Elite UK REIT (MXNU) Investor Presentation summary

Acquisition overview

• Announced acquisition of three government-leased properties in England and Wales for £9.2 million, representing a 7.6% discount to average independent valuations.

• Properties are freehold or virtual freehold, fully occupied by UK government agencies, with a 100% occupancy rate and a WALE of 7.4 years.

• Strategic locations near key infrastructure: Felixstowe Port, Dover Town Centre, and Carmarthen's commercial hub.

• Acquisition is expected to be DPU accretive by 0.6% and increase the portfolio's blended GRI yield to 9.2%.

• Portfolio expands from 148 to 151 assets, further diversifying income streams and tenant mix.

Strategic rationale and financial impact

• Strengthens counter-cyclical revenue with government-backed, AA-rated tenants, reducing reliance on Department for Work & Pensions.

• Introduces DEFRA as a new tenant, increasing non-DWP government GRI contribution by 1.5x.

• Extends portfolio WALE from 3.1 to 3.2 years, with new leases maturing beyond 2028.

• Enhances pro forma GRI yield by 20 bps and reduces portfolio gearing by 20 bps to 43.2%.

• Acquisition funded through a mix of debt, internal cash, divestment proceeds, and private placement of new units.

Portfolio and asset details

• Properties include Custom House (Felixstowe, Home Office, 11-year WALE), Priory Court (Dover, Home Office, 6-year WALE), and Tŷ Merlin (Carmarthen, DEFRA, 5.7-year WALE).

• All assets are mission-critical government infrastructure with potential for alternative uses such as logistics or residential redevelopment.

• Portfolio is geographically diversified across England and Wales, with 80.4% of acquisition value in England and 19.6% in Wales.

• Nearly all leases are triple net, placing repair and insurance obligations on tenants.

• Portfolio is managed with a focus on defensive cashflows, value creation, and sustainability initiatives.