Elite UK REIT FY2025: Portfolio £424.7M, DPU 3.03p +5.6%, WALE 7.2yrs Post DWP Lease Regear
Elite UK REIT FY2025 (year ended 31 December 2025) delivered its strongest annual performance since listing, with DPU growing 5.
Elite UK REIT FY2025 (year ended 31 December 2025) delivered its strongest annual performance since listing, with DPU growing 5.6% YoY to 3.03 pence, portfolio valuation rising for a third consecutive year, and a landmark lease regear with the DWP dramatically extending the REIT's income visibility.
Revenue £37.5M (+1.3% excl. straight-line). NPI £36.0M. Distributable Income £19.3M (+4.6%). DPU 3.03p (+5.6%). Portfolio Valuation £424.7M (+2.0% to £416.2M). Total Assets £444.0M. NAV/unit £0.40. Net Gearing 40.7% (↓from 42.5%). Borrowing Cost 4.7% (↓20bps). Market Cap £217.1M (+25.4%). Total Return FY2025: 34.2%.
LANDMARK LEASE REGEAR (Feb 2026)
Most significant event: New lease agreements with the Secretary of State for Housing, Communities and Local Government for DWP-occupied properties covering ~69% of DWP income (£24.3M annual rent, no lease breaks). Leases extended up to 10 years from March 2028, with CPI-linked rent reviews (1-5% p.a.) from April 2033. Result: WALE improves from 2.4 to 7.2 years pro forma; 2028 expiry exposure drops from 95.7% to 32.0% of GRI. This is one of the longest WALEs in the Singapore REIT sector.
Acquisitions (Jun 2025, £9.2M total, 7.6% discount to independent vals): Priory Court Dover (Home Office, £4.0M); Custom House Felixstowe (Home Office, £3.4M); Merlin House Carmarthen (DEFRA, £1.8M) — all at 9.2% blended yield, WALE 7.4 years. Added DEFRA as a new government tenant.
Divestments (4 vacant assets, £5.9M total at avg 5% premium): Hilden House Warrington (£3.3M, May 2025); St Paul's House Chippenham (£1.6M, Jul 2025); Crown Buildings Caerphilly (£0.7M, Mar 2025); Victoria Road Kirkcaldy (£0.3M, Jul 2025). Occupancy improved to 98.6% from 95.8%.
- ▸Peel Park Blackpool: Valuation +22.1% to £40.0M. Planning approval for data centre use received Feb 2026 (120MVA power supply offered). Strategic divestment being explored to maximise value.
- ▸Lindsay House Dundee: Planning approved Jul 2025 for 170-bed PBSA. Soft strip works commenced. On track for Sept 2027 academic year opening.
- ▸Cambria House Cardiff: Positive pre-planning consultation completed for 348-bed PBSA conversion. Total repositioning uplift: £7.9M in FY2025.
Elite UK REIT's FY2025 is a structural inflection point. The DWP lease regear eliminates the 2028 cliff-edge risk that had been the key investor concern — WALE going from 2.4 to 7.2 years transforms the REIT's risk profile. Combined with Peel Park's potential as a data centre site and the PBSA pipeline, there are multiple catalysts for further NAV creation. The 34.2% total return in FY2025 reflects the market's re-rating of the REIT as these risks were progressively removed. Key remaining items: refinancing requirements from 2027 (WADR 1.8 years); completing remaining DWP lease negotiations; executing Lindsay House PBSA on time and on budget.