Elite UK REIT (MXNU) Investor presentation summary

Portfolio overview and tenant profile

• Portfolio valued at £463 million as of February 2026, comprising 148 assets across the UK, with 99% of gross rental income from UK government tenants, primarily the Department for Work & Pensions (DWP).

• Weighted average lease to expiry (WALE) extended to 7.2 years, among the longest in the S-REIT sector, providing strong income visibility.

• Assets are predominantly freehold or virtual freehold, with leases structured as triple net (full repairing and insuring), placing repair and maintenance obligations on tenants.

• Tenant mix is highly resilient, with over 92% of rental income from DWP, supporting essential social infrastructure and services.

• Recent acquisitions have diversified the tenant base, adding Home Office and DEFRA as occupiers and increasing non-DWP government income by 1.5x.

Financial performance and capital management

• FY2025 revenue rose 1.3% year-on-year to £38 million, driven by rental reversions and new asset contributions.

• Distributable income increased 4.6% to £19.3 million, with DPU up 5.6% to 3.03 pence, reflecting effective capital and asset management.

• Portfolio valuation increased 9.1% since December 2025, supported by inflation-linked rents and asset initiatives.

• Cost of debt reduced to 4.7%, with 85% of interest rates fixed, and net gearing lowered to 37.3%.

• All debt is GBP-denominated, providing a natural hedge, and 100% of debt is sustainability-linked, with margin reductions tied to energy performance.

Lease regearing and income visibility

• Major DWP lease regearing completed, extending most leases to 7–10 years and reducing 2028 expiry exposure from 95.7% to 32.0%.

• WALE improved from 2.4 to 7.2 years, smoothing lease maturity and enhancing cash flow visibility.

• CPI-linked rent reviews embedded, with annual compounding and a minimum 1% and maximum 5% increase from April 2028.

• Advance rent collections are used to reduce debt and improve financing efficiency.