Elite UK REIT announced that its Distribution Per Unit (DPU) for the second half of 2024 grew by a notable 5.8% compared to the same period last year, reaching 1.47 pence. Over the entire year, the DPU increased by 5.0%, totaling 2.87 pence.
For the latter half of 2024, revenues took a slight dip, falling by 0.9% year-on-year to £18.4 million. The Net Property Income (NPI) saw a more significant drop of 15.2% from the previous year. This decline was mainly due to reduced income from dilapidation settlements, although it was somewhat cushioned by a decrease in other property-related expenses. By the way, dilapidation income refers to the compensation tenants pay when vacating properties and ending leases.
Even with the decrease in net property income, Elite UK REIT managed to grow its distributable income by 6.5% year-on-year. This was achieved through smart capital management and optimizing interest rates, which resulted in cost savings. On top of that, the company benefited from tax advantages linked to capital spent on enhancing sustainability.
Adding to the positive picture, the DPU got a boost thanks to an increased payout ratio, moving up from 90% to 95%.
