Elite UK REIT (MXNU) Q4 2024 earnings summary

Executive summary

• Distributable income stabilized through strategic capital and asset management, with a 5% DPU increase to 2.87 pence.

• Portfolio valued at £416.2 million as of 31 Dec 2024, up 1.2% year-on-year; Peel Park, Blackpool rose 36%.

• 93.9% occupancy rate, expected to reach 95.6% post-divestments.

• 99.1% of gross rental income from UK government tenants, ensuring resilient cashflows.

• Divestment of vacant assets at a 15.1% premium to valuation, proceeds used to reduce gearing.

Financial highlights

• FY2024 revenue was £37.5 million; net property income at £37.4 million.

• Distributable income increased 2.3% year-on-year to £18.5 million.

• DPU up 5.0% year-on-year to 2.87 pence; 2H 2024 DPU was 1.47 pence, up 5.8%.

• Tax expense decreased 13.5% year-on-year due to higher interest deductions and capital allowances.

Outlook and guidance

• Management targets sub-40% long-term gearing via divestments and capital recycling.

• No refinancing required until 2027, with 2-year extension options.

• Focus on expanding into student housing and Build-to-Rent sectors.

• Ongoing engagement with tenants for early lease renewals ahead of 2028 expiries.

• UK macroeconomic outlook includes slower GDP growth, cautious rate cuts, and increased public spending.