Elite Commercial REIT hits 22.3% DPU growth

It has outperformed IPO projections for eight consecutive quarters.

Elite Commercial REIT reached a 22.3% growth in distribution per unit (DPU), an improvement over IPO projections of 11.3%.

This marked the eighth consecutive quarter of the REIT's IPO projections outperformance, said its manager, Elite Commercial REIT Management Pte. Ltd.

This performance is mainly attributed to its maiden acquisition and enhanced tax efficiencies, following the REIT’s successful admission
on The International Stock Exchange (“TISE”), which qualifies the REIT’s UK entities as a UK REIT group. 

An amount available for distribution to unitholders was recorded at $45m (£ 24.53m), showing a 49.4% year-on-year (YoY) growth from the previous year. 

For the second half of 2021, an amount available for distribution of $24.5m (£ 13.36m) was seen, or a 60.2% YoY growth. On the other hand, DPU for the same period was 12.4% higher on a YoY basis. 

Meanwhile, the group also reported a 100% occupancy rate as of 31 December 2021, with 99.9% of the rent for the next three months to March 2022 being collected in advance. 

The properties also have built-in inflation-linked rental escalation clauses, showing potential upside at the upcoming rent review in the fifth year of the leases.