Shares of SGX-listed Elite Commercial REIT (SG:MXNU) closed at a gain of almost 2% today after the company reported its results for the second half and full year 2023. The stock reacted positively despite a drop of 40.9% in its second half’s distribution per unit (DPU) to 1.33p.
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Elite Commercial REIT is a Singapore real estate investment trust (REIT) engaged in direct or indirect investment in commercial assets in the UK.
FY2023 Financial Results
Elite Commercial REIT’s revenue increased 1.5% to £37.6 million in FY23. This uptick primarily stemmed from rent escalations across 136 assets due to an inflation-linked rental uplift that started on April 1, 2023. However, this growth was partially offset by the eight vacant assets in that same month.
During the same period, net property income (NPI) increased by 15.7% to £41.4 million, up from £35.7 million in the previous year. The company attributed this significant rise to a dilapidation settlement associated with the vacated assets.
The amount distributed to unit-holders for FY2023 totalled £18.0 million, marking a 21.9% decline compared to the previous year. This decrease was primarily attributed to higher borrowing costs and other expenses. Elite Commercial REIT reported a DPU of 3.42 pence for FY2023.
With a 90% payout ratio, unit-holders will receive a DPU of 1.33p for the second half of FY2023. The record date is set for February 27, 2024, with payment expected on March 28, 2024.
Elite Commercial REIT Share Price Target
On TipRanks, MXNU stock has been rated as a Hold by analyst Tabitha Foo from DBS. The Elite Commercial REIT share price target is 33.0p, which implies an upside of 27% from the current trading levels.
