Elite UK REIT (MXNU) Investor presentation summary

Acquisition overview and rationale

• Proposed acquisition of five UK government-leased properties for £31.9 million, increasing portfolio valuation by 7%.

• New tenants include HM Revenue & Customs and Department for Work and Pensions, enhancing tenant diversification and counter-cyclical income.

• Portfolio WALE increases to 7.6 years, with no lease expiries before 2028 and staggered expiries over 21 years.

• Government-leased income rises to 99.4%, with improved exposure to non-DWP government tenants.

• Acquisition is expected to be DPU accretive by 1.3% and enhances distribution yield by 10 basis points.

Property and tenant details

• Properties are located in Scotland, England, and Wales, with key sites in East Kilbride, Wigan, St Austell, Pontefract, and Bridgend.

• HMRC will contribute approximately 3.1% of gross rental income post-acquisition.

• DWP remains the largest tenant, but its GRI contribution decreases from 92.3% to 89.9%.

• Most leases benefit from CPI-linked rent reviews with annual compounding and minimum/maximum caps.

• Properties are strategically located near transport hubs and urban amenities.

Financial impact and funding

• Portfolio valuation increases to £492.1 million, with NAV per unit stable at 45.0p.

• Funding mix includes £17.4 million in debt, £8.9 million in consideration units, £7.4 million from private placement, and £5.9 million in cash.

• Net gearing rises from 39.2% to 41.5% post-acquisition and Lindsay House conversion.

• Lindsay House conversion to student accommodation expected to further uplift DPU and yield.

• Transaction costs and capital incentives are included in the funding structure.