Elite Commercial REIT DPU fall 11.4% in FY 2022

The decrease was due to increased borrowings and a marginally lower occupancy rate.

Elite Commercial REIT reported an 11.4% drop in their distribution per unit (DPU) for the full fiscal year (FY 2022) ended 31 December 2022.

In a financial report, the REIT’s DPU decreased to 4.81 pence ($ .077) from 5.43 pence ($ .087) in the previous fiscal year (FY 2021). The report also revealed that the REIT’s distributable income for FY 2022 declined 5.8% to £23.1m ($37.2m) from £24.5m ($39.5m) in FY 2021.

The decrease was due to the increased borrowings for the full period and interest cost on borrowings, as well as a marginally lower occupancy rate from vacancies.

However, Elite Commercial REIT’s generated revenue for FY 2022 grew 6.7% to £37.1m ($59.8m) from £34.7m ($56m).

For Shaldine Wang, CEO of the Manager, Elite Commercial REIT delivered “a resilient performance” coupled with capital management initiatives that they carried out over the year amidst macroeconomic headwinds.

“We have also achieved greater income visibility through the removal of lease break clauses for the majority of our assets leased to the UK’s Department of Works and Pensions (DWP), signed lease renewal, as well as built-in inflation-linked rental escalations to take effect in April 2023,” she added.

1 pence = $ .015
£1 = $1.61