Elite UK REIT posted distributable income of £10.06 million for the six months ended Jun 30, rising 3.6 percent year-on-year, supported by interest savings and reduced vacancy expenses. Revenue in the period edged up 0.8 percent to £18.86 million, while net property income slipped 3.3 percent to £18.04 million amid one-off dilapidation settlements.

The real-estate investment trust declared a distribution per unit of 1.55 pence, the highest level in three years and 0.6 percent above the prior-year interim payout. On a comparable unit base, the adjusted DPU increased 3.3 percent. Net asset value per unit rose 10 percent from Dec 31 2025 to £0.44, reflecting the impact of £24.3 million in new government leases signed in February.

Portfolio revenue was driven by last year’s acquisitions of Priory Court in Dover, Custom House in Felixstowe and Merlin House in Carmarthen. These assets helped offset higher operating costs that trimmed statutory net property income. Aggregate leverage improved to 34.6 percent from 47.5 percent at end-2023, and 99 percent of borrowings are now on fixed rates, keeping the average cost of debt steady at 4.7 percent with an interest coverage ratio of 2.6 times.

Operationally, the weighted average lease expiry lengthened to a pro-forma 7.1 years after February’s lease regears with the UK government for Department for Work and Pensions properties. Occupancy stood at 99.9 percent. Subsequent to the June quarter, unitholders approved the £2.6 million-rent acquisition of five government-leased properties carrying a 12.7-year WALE, and the trust has recycled £9.3 million from five divestments into these purchases. Conversion works on the £19.4 million, 170-bed purpose-built student accommodation project at Lindsay House, Dundee remain on schedule for the 2027 academic year.

Chief executive Joshua Liaw noted that the record interim payout and lower gearing underscore the resilience of the government-backed portfolio. He said the manager will focus on further lease negotiations, advancing redevelopment projects and engaging lenders for early refinancing ahead of debt maturities in 2027.

Looking ahead, the trust cited IMF forecasts for 1 percent UK GDP growth in 2026 and persistent but moderating inflation of 2.6 percent. Management believes the portfolio’s long-dated, inflation-linked government leases and ongoing capital-recycling strategy position the REIT to sustain distributions despite macroeconomic uncertainty.