Elite UK REIT (MXNU) H2 2025 earnings summary

Executive summary

• Achieved revenue of £38 million for FY2025, up 1.3% year-over-year, driven by rental reversions, new asset contributions, and government lease agreements.

• FY2025 DPU rose 5.6% year-over-year to 3.03 pence, supported by lower borrowing costs and a resilient, diversified portfolio.

• High occupancy rate of 98.6% as of 31 Dec 2025, with portfolio WALE extended to 7.2 years after lease regears.

• Portfolio valuation increased to £425 million, up 2.0% from 2024, supported by acquisitions and value creation initiatives.

• Unit price rose 22% year-over-year, delivering a 75% total return since Q1 2024.

Financial highlights

• Revenue for FY2025 was £38.0 million, up 1.3% year-over-year, mainly from rental reversions and new acquisitions.

• Distributable income increased 4.6% to £19.3 million.

• DPU increased 5.6% to 3.03 pence; adjusted DPU up 4.5%.

• Net property income declined 3.7% year-over-year due to asset repositioning expenses and lower dilapidation settlements.

• Cost of debt reduced by 20 bps to 4.7% as of 31 Dec 2025.

Outlook and guidance

• Management prioritizes finalizing remaining DWP lease regears, portfolio reconstitution, and asset repositioning.

• Focus on disciplined capital structure optimization and improving trading liquidity.

• Manager expects to continue providing stable income, supported by 85% hedged interest rate exposure and new lease agreements.

• Three value-add conversion projects, including Lindsay House, to be delivered from 2026 onwards.

• Focus remains on sustainable returns, leveraging government-backed income and expansion into resilient sectors.