Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Elite Commercial REIT — H1 2023 Earnings Presentation
28 slides from Singapore Exchange's earnings presentation, Aug 7, 2023
Slide 1: 1H 2023 Financial Results
Elite Commercial REIT 1H 2023 Financial Results 7 August 2023 0
Slide 2: Overview and 1H 2023 Highlights
Section I Overview and 1H 2023 Highlights Crown Building, Banbury 1
Slide 3: UK-Focused REIT
UK-Focused REIT Critical social infrastructure backed by UK Government leases(1) Geographically Diversified with a network of strategically well-located assets across the UK 155 Triple Net Freehold and Full Repairing & Long Leasehold Assets(2) Insuring Leases(3) Scotland 3.9 4.5 North Million Square
Slide 4: 1H 2023 Highlights
1H 2023 Highlights 1H 2023 Revenue(1) 1H 2023 DPU(2) Gearing Ratio as at 30 June 2023 £19.1 million 1.94 pence 46.0% ▲ 3.4% y-o-y ▲ 6.4% q-o-q ▼ 60 basis points q-o-q Proposed Recycled Stable NAV Divestments(3) Gross Proceeds(4) per unit as at 30 June 2023 £1.1 million £3.0 million £0.51 ▲~14.4% abo
Slide 5: 1H 2023 Financial Performance
Section II 1H 2023 Ward Jackson House, Hartlepool Financial Performance 4
Slide 6: Financial Position
Financial Position 30 Jun 2023 31 Dec 2022 £’000 £’000 Non-current assets(1) 458,728 460,042 Current assets 29,718 26,753 Total assets 488,446 486,795 Non-current liabilities 222,730 216,468 Current liabilities 19,216 22,426 Total liabilities 241,946 238,894 Net assets / Unitholders’ funds 246,500 2
Slide 7: Financial Highlights – 1H 2023 vs 1H 2022
Financial Highlights – 1H 2023 vs 1H 2022 1H 2023 1H 2022 Actual Actual Variance £’000 £’000 % Revenue 19,098(1) 18,474 ▲ 3.4 Net Property Income 19,997(1) 18,102 ▲ 10.5 Amount generated during the period 9,340 12,244 ▼ 23.7 for distribution to Unitholders Distribution per unit (“DPU”) - pence 1.94(
Slide 8: Capital Management
Capital Management No near-term debt maturity until 4Q 2024 Naturally hedged against foreign exchange fluctuations 62% of interest rate exposures fixed Compliant with all debt facilities’ financial covenants Every 100 basis points increase in interest rate will impact DPU by approximately 4%
Slide 9: Attractive and Defensive Yield
Attractive and Defensive Yield Government-backed income stream at an attractive valuation Elite REIT’s Annualised DPU Yield vs Comparables Elite REIT’s Quarterly DPU and Annualised Yield Elite REIT’s DPU Yield offers a ~900 basis points Elite REIT’s quarterly DPU increased 6.4% q-o-q, pick-up agains
Slide 10: 1H 2023 Portfolio Performance
Section III 1H 2023 Nutwood House, Canterbury Portfolio Performance 9
Slide 11: Income Certainty and Visibility
Income Certainty and Visibility High Portfolio On-time Advance Weighted Average Occupancy Rate(1) Rent Collection(2) Lease Expiry(1) 92.1% 99.9% 4.5 years Upper Huntbach Street, Stoke-On-Trent Glasgow Benefits Centre, Glasgow High Road, Ilford Notes: 1. As at 30 June 2023. 2. For the three-month per
Slide 12: Long Portfolio WALE at 4.5 years
Long Portfolio WALE at 4.5 years Lease Expiry Profile as at 30 June 2023 (% of total portfolio rent)(1) 94.3% 92.9% % of rent by WALE (2) (3) % of rent by WALB 2023 Vacating Assets Ladywell House, Edinburgh Hilden House, Warrington 4.8% 4.8% 0.4% 1.5% 0.4% 0.5% 0.4% 2023 2024 2025 2026 2027 2028 202
Slide 13: Geographically Diversified Portfolio
Geographically Diversified Portfolio A network of social infrastructure assets strategically located across the UK covering regional cities, providing a strong base of assets Geographical Breakdown by Valuation(1) Yorkshire & Humber 2.9% North East East 2.7% London 6.4% 15.5% Wales 6.4% Midlands Sou
Slide 14: Strong Underlying Tenant Base
Strong Underlying Tenant Base Backed by AA-rated UK sovereign credit rating, with leases signed directly with the Secretary of State(1), providing credit stability and income certainty Consistent rental collection in advance since listing Diversified tenant mix with UK sovereign credit rating
Slide 15: Asset Management Updates
Section IV Asset Management Updates Crown House, Grantham 14
Slide 16: Strategies to Maximise Value
Strategies to Maximise Value We are progressing on our action plans on Elite REIT’s vacant portfolio Assets are located primarily in town centres, close to transportation nodes and amenities Various potential alternative uses are available for the assets, depending on the real estate market cond
Slide 17: Asset Management Strategy
Asset Management Strategy Active engagements with current and potential occupiers Proactive Tenant Engagement Focus on Tenant Retention Engage with various UK Government agencies in order to understand their requirements and to better meet their needs Develop collaborations that would be mutuall
Slide 18: Sustainability Efforts
Section V Sustainability Efforts Upper Huntbach Street, Stoke-On-Trent 17
Slide 19: Commitment to Sustainability
Commitment to Sustainability Driving sustainable value for Unitholders Secured landmark Secured inaugural Upgrade in Sustainability Collaboration £15 million Energy Performance with the UK’s Department for green revolving credit facility Certificate Work and Pensions & Ministry to fund sustainabilit
Slide 20: 'Greening' the Portfolio
‘Greening’ the Portfolio Asset enhancement works to boost energy efficiency of buildings Expand and upgrade variable refrigerant system Replace air-conditioning Modernise Building system with variable Management System refrigerant system Driving Sustainable Value for the Long Term Planned sustainabi
Slide 21: Key Priorities
Section VI Key Priorities High Road, Ilford 20
Slide 22: Outlook and Opportunities
Outlook and Opportunities Positioning for long term income and value Economy of the UK Elite REIT’s assets benefit from a resilient and • 6th largest economy in the world and 2nd largest in Europe stable income profile • Stable and lawful political and judiciary system with low High level of inc
Slide 23: Key Priorities
Key Priorities Management’s focus areas in the near-term Proactive Asset Management of Vacant Assets Achieve reasonable dilapidation settlements and seek potential re-letting 01 of vacant assets Disposal with vacant possession or following re-letting Seek redevelopment consent for 'highest and
Slide 24: Thank You
Confidential Thank You For enquiries, please contact: Ms CHAI Hung Yin, Investor Relations Elite Commercial REIT Management Pte. Ltd. DID: +(65) 6955 9977 Main: +(65) 6955 9999 Email: hungyin.chai@elitecreit.com Address: 8 Temasek Boulevard, #37-02 Suntec Tower Three, Singapore 038988 https://www.el
Slide 25: Additional Information
Section VII Additional Information Tannery House, Alfreton 24
Slide 26: Portfolio Overview as at June 2023
Portfolio Overview as at 30 June 2023 London Portfolio Scotland Properties 10 Properties 155 Properties 27 Net internal area (sq ft) 193,532 Net internal area (sq ft) 3,889,340 Net internal area (sq ft) 847,174 Valuation (£ million) 72.3 Valuation as at 31 December 2023 (£ million) 466.2 Valuation (
Slide 27: Hedge Against Rising Inflation
Hedge Against Rising Inflation Lease stability & income visibility 1 Long portfolio WALE of 4.5 years Leases are on full repairing and insuring (FRI) basis 2 Responsibility for repair and maintenance is placed with the tenant for occupied assets Naturally hedged against forex fluctuations 3 Assets a
Slide 28: Disclaimer
Disclaimer This announcement is for information only and does not constitute or form part of an offer, invitation or solicitation of any offer to This announcement is for information only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscri
Elite Commercial REIT — H1 2023 Earnings Presentation on 6ix