A portfolio of Jobcentre Plus properties has enabled Singapore-listed Elite Commercial REIT to outperform throughout the pandemic.
The company, which is the only Singaporean REIT focused solely on the UK, said that trading had been better than expected since its IPO in early 2020.
Pretax profit for the period between 6 February and 31 December 2020 was 123% higher than it had expected, said the REIT, at £29m. Turnover was in line with expectations at £21m. Profit increased off the back of a valuation uplift of £15.9m.
The group collects 99% of its rent from the UK government, with much of its portfolio let to the Department for Work & Pensions. It said that the majority of its assets, which largely operate as Jobcentre Plus units, had remained open during lockdowns, enabling it to collect 100% of its rent.
Following a successful first year of trading, the REIT , which has £140m of unsecured loan facilities available to it, said it was focused on strengthening its portfolio and would “closely monitor the market to explore opportunities for growth via yield-accretive acquisitions”.
Late last month it got the go ahead from shareholders to add a further 58 government-let properties to its portfolio through a £212.5m acquisition. Chief executive Shaldine Wang said the deal would increase Elite’s London exposure to 14% and would be beneficial to its long-term rental and capital growth.
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