Elite UK REIT (MXNU) H1 2026 earnings summary

Executive summary

• Achieved record-high DPU of 1.55 pence in 1H 2026, up 0.6% year-over-year, yielding 9.8% annualised, supported by high occupancy, long WALE of 7.1 years, and distributable income rising 3.6% to £10.1 million.

• Portfolio expanded to 147 UK commercial buildings, with 99% of rental income from UK government agencies, ensuring stable, long-term cash flows.

• Portfolio valuation rose 15% year-to-date to £488.8 million, driven by new acquisitions and lease regears with UK government tenants.

• Entered new 10-year inflation-linked leases with the Department for Work and Pensions, securing £24.3 million annual rent from April 2028.

• Strategic repositioning and asset management initiatives, including student housing and data centre developments, underpin future growth.

Financial highlights

• Revenue for 1H 2026 was £18.9 million, up 0.8% year-over-year, mainly from new property acquisitions.

• Adjusted net property income increased 5.0% year-over-year to £18.0 million, reflecting improved operating performance.

• Distributable income rose 3.6% to £10.1 million; DPU up 0.6% to 1.55 pence.

• Profit after tax surged to £48.2 million from £5.1 million, mainly due to a £39.3 million fair value gain on investment properties.

• NAV per unit increased 10% year-to-date to £0.44.

Outlook and guidance

• FY2026 DPU expected to rise steadily, supported by recent acquisitions and ongoing asset repositioning.

• Long-dated government leases and inflation-linked rent reviews provide income visibility and resilience.

• Asset enhancement initiatives and new acquisitions expected to support future growth.

• Net gearing projected to trend towards 35-40% as capital is deployed into asset enhancement initiatives.

• Limited impact expected from higher utility costs due to triple-net leases; cautious stance on macroeconomic risks.