Broker: Maybank Research Pte Ltd
Date of Report: June 7, 2026
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Stock: ELITE UK REIT (ELITE SP)
- Action: Initiate with BUY
- Target Price: GBP 0.44 (38% upside from current price GBP 0.34)
- Key Idea: ELITE UK REIT is a UK-focused commercial REIT with approximately 99% of rental income from UK government entities, mainly the Department for Work and Pensions (DWP), providing strong cashflow visibility and credit quality.
- Dividend Yield: Expected sustainable yield of around 9% through FY26-FY28, underpinned by high payout ratio (~95%), long WALE (6.9 years), and proactive lease renewals that significantly de-risk the 2028 lease expiry cliff.
- Value Creation: Ongoing capital recycling with divestments above book value, including potential Peel Park sale (10% of AUM), which has achieved an 82% uplift in value since Dec-23 and is earmarked for alternative data centre use.
- Balance Sheet: Conservative funding profile with over 90% fixed-rate debt, cost of debt at 4.7%, and no major refinancing until 2027. Gearing is moderate and liquidity headroom is strong.
- Risks: Main risks include interest rate increases, GBP/SGD forex risk, delays in asset divestments, and softer leasing demand for non-government tenants.
Actionable Insight: BUY ELITE UK REIT for attractive and stable 9% yield, strong government-backed tenant base, and 38% potential price upside to GBP 0.44.
above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website : www.maybank-keresearch.com
