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10 June 2025 Proposed Acquisition of Three Government-leased Properties for £9.2 million
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Priory Court, Dover England Introduction Section I
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Freehold, Virtual Freehold and Long Leasehold 100% 2 Scotland North East North West Yorkshire & Humber Midlands East South West South East London 99.1% Gross Rental Income from UK Government (1) Full Repairing & Insuring Leases (“FRI”) (2) Triple Net (1) Nearly all leases are signed with the Ministry of Housing, Communities and Local Government, which is a Crown Body. (2) Under a full repairing and insuring lease, commonly known as triple net lease, the responsibility for the repair of the external and internal parts as well as the structure of the property is placed with the tenant for occupied assets. A counter-cyclical portfolio amidst macro uncertainty AA-rated Rental income backed by UK sovereign credit Wales Scotland 26 North West 24 North East 11 Yorkshire & Humber 10 Wales 19 Midlands 16 South West 12 East 8 London 10 South East 12 148 assets As at 31 March 2025 UK REIT Listed In Singapore
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Unique Capital Structure Pound sterling- denominated UK pure-play exposure Tax-efficient structure On par with other UK REITs Government-backed cashflow AA-rated sovereign credit strength AA Specialist Asset & Lease Features Natural Hedge Assets, debts & distributions are all in Pound sterling Strategically located Town centre locations near amenities and key transport nodes Resilient tenants Nearly all leases signed with a Crown Body, and Departments of Work & Pensions (“DWP”) as key occupier Aligned & Experienced Leadership Boots on the Ground Asset managers based in the same time zone as assets Strong Support >40% units held by substantial unitholders and sponsors Best-in-class fee structure Based on distributable income & DPU growth Proven Track Record REIT management, real estate, and corporate finance Advance Rent Collection Used to reduce debt and optimise financial costs Freehold Almost all assets are freehold or virtual freehold properties 3 Key Investment Merits
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Long-term vision for Elite UK REIT Defensive cashflow backed by non-discretionary assets • Benefit from resilient cashflow afforded by government tenancies • Expand defensive portfolio to include non-government tenancies in non-discretionary sectors such as student housing and Build-to-Rent residential Multi-sector and focused market exposure to the UK • Diversified exposure to UK real estate accessed via one of the pre-eminent REIT regimes for international capital • Key international market for institutional-quality real estate backed by strong rule of law, property and tax regulations Asset management-led value creation • Strengthen existing assets through value enhancements and future- proofing of current assets • Participate in organic growth via strategic asset repositioning Focused on Defensive Cashflows Expansion of Investment Strategy UK Focus with Dual Sector Emphases Social Infrastructure Assets Living Sector Assets Student Housing Built-to-Rent Residential Government Workspaces Jobcentres 4
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Custom House, Felixstowe England Proposed Acquisition Section II
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6 (1) Based on average independent valuations conducted by CBRE and Colliers as at 31 January 2025. (2) Assuming (i) approximately 13,333,333 units are issued pursuant to a private placement at an illustrative issue price of £0.300 per unit (the "Private Placement", and the units, the "Private Placement Units") to part-finance the proposed acquisition of the New Properties (the “Proposed Acquisition”), (ii) approximately 306,667 units are issued to the Manager as payment of the acquisition fee for the Proposed Acquisition (the “Acquisition Fee”, and the units, the “Acquisition Fee Units”) at an illustrative issue price of £0.300 per Acquisition Fee Unit and (iii) pro forma distribution takes into account 90% payout ratio for 1H FY2024 and 95% for 2H FY2024. (3) Weighted based on the GRI as at 31 March 2025 of each New Property over the Purchase Consideration of each New Property. (4) Weighted based on GRI as of 31 March 2025. (5) Two properties are on freehold tenures and one property is on a virtual freehold tenure of 999 years. Proposed Acquisition Reinforces the Manager’s investment strategy Key Highlights of the New Properties ✓ Three freehold and virtual freehold(5) government infrastructure and workspaces in the United Kingdom (the “New Properties”) ✓ Strategically located with excellent connectivity to port and rural infrastructure with good long term asset management potential. ✓ Triple-net leases at an attractive portfolio yield with a long weighted average lease expiry (“WALE”) of 7.4 years(4) ✓ Reinforcing strategy of focusing on high credit quality tenants – 100% of rental income from UK Government tenants collected three months in advance ✓ Portfolio diversification benefits from occupier concentration and WALE perspectives – adding a new UK Government tenant to the tenant mix ▪ Purchase Consideration of £9.2m, 7.6% discount to the average independent valuations(1) ▪ DPU accretion of 0.6% on a pro forma FY2024 basis(2) ▪ Attractive blended gross rental income (“GRI”) Yield of 9.2% (Existing portfolio: 9.0%)(3) Summary of the New Properties Purchase Consideration £9.2m No. of assets 3 Total NIA 139,967 square feet Occupancy rate 100% WALE 7.4 years(4)
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7 Strategically located close to the port or rural infrastructure they serve and are well-connected to the national highway network, providing efficient access for the tenants and well as rural communities. Purchase Consideration Breakdown by Geography 80.4% 19.6% England Wales £9.2m Property Name CBRE Valuation(1) (£’m) Colliers Valuation(2) (£’m) Average of Valuations (£’m) Purchase Consideration (£’m) Discount to Average Valuation 1 Custom House, Felixstowe 2.8 3.9 3.4 3.4 – 2 Priory Court, Dover 4.1 5.0 4.5 4.0 10.7% 3 Tŷ Merlin, Carmarthen 1.8 2.4 2.1 1.8 13.3% Total 8.6 11.3 10.0 9.2 7.6% Overview of the New Properties Tŷ Merlin, Carmarthen Custom House, Felixstowe Priory Court, Dover 3 2 1 London WALES ENGLAND 1 2 3 1 2 3 (1) Based on independent valuation commissioned by the Manager as at 31 January 2025. (2) Based on independent valuation commissioned by the Trustee as at 31 January 2025.
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8 Custom House, Felixstowe Population 24,440 Accessibility • 1.5 miles south of the town centre, and adjacent to Felixstowe Port, Britain’s biggest and busiest container port, dealing with 48% of the country’s containerised trade • The town’s strategic importance to British trade led to decades of investments, translated into excellent road and train connectivity Description • 6-storey property comprising of 3 octagon shaped units • Its ground to 3rd floors are designated offices with the 4th floor housing a water tank and the 5th floor serving as a watch tower • Used by the Border Force as a Customs Office with direct port access Total Land Area 208,818 sq ft Net Internal Area 52,578 sq ft and 200 surface parking lots Land Tenure Freehold Tenant / Occupier Home Office WALE (31 Mar 2025) 11.0 years Lease Expiry / Break 02-Apr-36 / 02-Apr-31 Potential Alternative Use Cases Re-letting to another port user, or redevelopment into industrial/logistics IP11 3RF
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9 Priory Court, Dover Population 31,020 Accessibility • Situated in Dover Town Centre, within proximity of Dover Priory Train Station, offering direct high- speed links to Ashford International and London St Pancras stations • <1 mile from Port of Dover, the 2nd busiest port in the UK, hosting some of the world's largest cruise lines, cross-channel ferry crossings and a cargo terminal Description • 12 separate buildings arranged on a site of approx. 6.3 acres • Home Office/HMRC operational facility for neighbouring Port of Dover Total Land Area 452,083 sq ft Net Internal Area 72,052 sq ft & 273 surface parking lots Land Tenure Freehold Tenant / Occupier Home Office WALE (31 Mar 2025) 6.0 years Lease Expiry / Break 02-Apr-31 Potential Alternative Use Cases Re-letting to another port user, or redevelopment into residential CT17 9SH
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10 Tŷ Merlin, Carmarthen Population 107,000 Accessibility • Located at Parc Pensarn, a well-established commercial location 1.2 miles south of Carmarthen Town Centre • Tŷ Merlin is located along an estate road which leads off the A484 and the main A48 roundabout Description • Modern 2-storey portal frame construction occupied by vets, field technicians and administrative staff from the DEFRA, and functions as its HQ for South and West Wales • DEFRA's main TB testing and registry facility Total Land Area 82,882 sq ft Net Internal Area 15,337 sq ft & 55 surface parking lots Land Tenure 999 years from Mar 2005 Tenant / Occupier DEFRA WALE (31 Mar 2025) 5.7 years Lease Expiry / Break 15-Dec-30 Potential Alternative Use Cases Conversion to industrial/logistics and residential SA31 2NF
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11 Funding Structure Method of Financing(1) Illustrative Uses Proposed Acquisition Total Acquisition Outlay: £10.5m ▪ Purchase Consideration: £9.2m ▪ Stamp Duty: £0.5m ▪ Acquisition Fee payable in Units to the Manager: £0.1m ▪ Estimated professional and other fees and expenses: £0.7m Illustrative Sources Debt Facilities ▪ External bank borrowings of up to £4.9m Internal cash resources ▪ Net proceeds from divestment of Hilden House, Warrington amounting to £1.4m Acquisition Fee Units ▪ Issuance of 306,667(2) Acquisition Fee Units to the Manager amounting to £0.1m Equity Fund Raising ▪ Elite UK REIT is proposing to issue approximately 13,333,333(2) Private Placement Units under the Private Placement to raise gross proceeds of no less than, approximately £4.0m to part-finance the Proposed Acquisition (1) Variance of £0.1m between Illustrative Uses and Illustrative Sources is due to rounding (2) Based on an illustrative issue price of £0.300 per Acquisition Fee Unit
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Tŷ Merlin, Carmarthen Wales Rationale Section III
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13 Rationale for the Proposed Acquisition Strengthens Elite UK REIT’s counter-cyclical revenue stream amidst rising macro uncertainty Leases with expiries beyond 2028. Improves portfolio WALE Tenancy diversification include a new tenant (DEFRA) and additional revenue generated from existing tenant (Home Office) Enhances pro forma GRI yield & DPU accretive Continues strategy of reducing portfolio gearing Assets Financial ▪ New UK Government tenant added to the tenancy mix – Department for Environment, Food & Rural Affairs ▪ More diversified: 1.5x increase in GRI contribution from non-DWP UK Government occupiers ▪ Longer WALE: 7.4 years WALE(1) for acquisition portfolio, compared with WALE of 3.1 years for existing portfolio ▪ Exposure to essential and high-priority national assets linked to biosecurity and border control and customs operations ▪ 0.6% DPU accretion on a pro forma FY2024 basis (2) ▪ GRI yield of 9.2%, higher than existing portfolio yield of 9.0% ▪ 20 bps reduction in gearing, in alignment with goal to bring gearing closer to <40% (1) Weighted based on GRI as at 31 March 2025. (2) For illustrative purposes only. Assuming (i) approximately 13,333,333 Private Placement Units are issued pursuant to the Private Placement at an illustrative issue price of £0.300 per Private Placement Unit to part-finance the Proposed Acquisition, (ii) approximately 306,667 Acquisition Fee Units are issued to the Manager as payment of the Acquisition Fee at an illustrative issue price of £0.300 per Acquisition Fee Unit and (iii) pro forma distribution takes into account 90% payout ratio for 1H FY2024 and 95% for 2H FY2024. 1 2 3 4 5
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14 Strengthens Elite UK REIT’s counter-cyclical revenue stream amidst rising macro uncertainty Contribution from non-DWP UK government occupiers increases by 1.5x GRI Contribution March 2025 Pro Forma March 2025 Change DWP 94.4% 92.3% ▼ 210 bps Ministry of Defence 2.4% 2.4% – Home Office 0.6% 2.1% ▲ 150 bps HM Courts & Tribunals 1.4% 1.4% – Department for Environment, Food & Rural Affairs (“DEFRA”) - 0.7% ▲ 70 bps Environment Agency 0.3% 0.3% – Other tenants 0.9% 0.8% ▼ 10 bps Non-DWP UK Government 4.7% 6.9% ▲ 220 bps ✓ Acquisition assets complementary to current portfolio assets and are tenanted to UK Government agencies providing resilient and counter-cyclical revenue streams ✓ UK Govt’s AA (stable) rating affirmed by Standard & Poor’s credit rating on 18 October 2024 based on its: ✓ High income levels ✓ Large, diversified economy and financial sector ✓ Developed product and labour markets ✓ Strength and independence of its key institutions ✓ The Sterling’s reserve currency status ✓ 1.5x increase in GRI contribution from non-DWP UK government occupiers ✓ GRI contribution by DWP decreases from 94.4% to 92.3% 1
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15 Elite UK REIT’s portfolio WALE extends to 3.2 years with 2028 lease maturity reduced by 220 bps ✓ New Properties have a long weighted average lease expiry (“WALE”) of 7.4 years(1) ✓ Following proposed acquisition, portfolio’s pro forma WALE increases to 3.2 years from 3.1 years(1) ✓ Proportion of leases expiring in 2028 decreases by 220 basis points from 97.9% to 95.7% (1) Weighted based on GRI, as at 31 March 2025. Leases with expiries beyond 2028. Improves portfolio WALE2 Lease Expiry Profile as at 31 March 2025 Before After Change Pre-2028 No lease expiry before 2028 2028 97.9% 95.7% ▼ 220 bps 2029 0.7% 0.8% ▲ 10 bps 2030 0.5% 1.2% ▲ 70 bps 2031 0.3% 1.1% ▲ 80 bps After 2031 0.6% 1.2% ▲ 60 bps Portfolio WALE 3.1 years 3.2 years ▲ 0.1 year 11.0 6.0 5.7 Custom House, Felixstowe Priory Court, Dover Tŷ Merlin, Carmarthen WALE of New Properties (years)
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16 New Properties Tenant Breakdown by Annual GRI(1) (1) Based on Annual GRI as of 31 March 2025. Tenancy diversification includes a new tenant (DEFRA) and additional revenue generated from existing tenant (Home Office) 3 New Properties' leases part of mission critical national infrastructure ▪ Custom House and Priory Court are occupied by Home Office for customs and immigration purposes ▪ Tŷ Merlin is an asset occupied by DEFRA – an agency supporting green economy and rural communities New Properties portfolio introduces DEFRA as a new tenant to Elite UK REIT’s portfolio mix ▪ DEFRA is responsible for improving and protecting the environment, aiming to grow a green economy and sustain thriving rural communities ▪ Home Office is a ministerial department, supported by 28 agencies and public bodies. ▪ Plays a fundamental role in securing the borders of the UK and administering UK customs. 68.4% 31.6% £0.8m Custom House, Felixstowe Priory Court, Dover Tŷ Merlin, Carmarthen
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17 (1) For illustrative purposes only. Assuming (i) approximately 13,333,333 Private Placement Units are issued pursuant to the Private Placement at an illustrative issue price of £0.300 per Private Placement Unit to part-finance the Proposed Acquisition, (ii) approximately 306,667 Acquisition Fee Units are issued to the Manager as payment of the Acquisition Fee at an illustrative issue price of £0.300 per Acquisition Fee Unit and (iii) pro forma distribution takes into account 90% payout ratio for 1H FY2024 and 95% for 2H FY2024. (2) Weighted based on the GRI as at 31 March 2025 of each New Property over the Purchase Consideration of each New Property. 9.0% 9.2% Existing portfolio New Properties 2.870 2.888 Before Proposed Acquisition and Private Placement After Proposed Acquisition and Private Placement FY2024 Pro Forma DPU (pence)(1) DPU +0.6% Existing Portfolio vs New Properties GRI Yield (%)(2) +20 bps FOR ILLUSTRATIVE PURPOSES ONLY Enhances pro forma GRI yield & DPU accretive4 Proposed Acquisition is DPU Accretive ▪ 0.6% DPU accretive(1), from 2.870 pence to 2.888 pence Enhances Elite UK REIT’s overall GRI yield ▪ New Properties provide an attractive blended GRI yield of 9.2%(2), higher than Elite UK REIT’s existing portfolio yield of 9.0% ▪ Positive reversionary potential
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18 (1) Based on the audited financial statements for the financial year ended 31 December 2024. (2) For illustrative purposes only. Assuming (i) approximately 13,333,333 Private Placement Units are issued pursuant to the Private Placement at an illustrative issue price of £0.300 per Private Placement Unit to part-finance the Proposed Acquisition, (ii) approximately 306,667 Acquisition Fee Units are issued to the Manager as payment of the Acquisition Fee at an illustrative issue price of £0.300 per Acquisition Fee Unit and (iii) pro forma distribution takes into account 90% payout ratio for 1H FY2024 and 95% for 2H FY2024. This also assumes the completion of announced divestments in 1H 2025, proceeds of which will be partially used to repay loans. (3) Based on valuation of Elite UK REIT’s existing portfolio of 148 assets (after divestment of Crown Buildings, Caerphilly in March 2025) as at 31 December 2024 and the Purchase Consideration. FOR ILLUSTRATIVE PURPOSES ONLY 43.4% 43.2% Before Proposed Acquisition and Private Placement Pro Forma After Proposed Acquisition and Private Placement 415.6 424.8 Existing Portfolio before Proposed Acquisition Enlarged Portfolio after Proposed Acquisition FY2024 Aggregate Leverage (%) Portfolio Valuation (£' million)(3) +2.2% (1) (2) 20 bps Continues strategy of declining portfolio gearing 5 2.2% increase in portfolio valuation ▪ Number of assets in Elite UK REIT’s portfolio increases from 148 assets to 151 assets ▪ Further diversify its asset base and contribute to its income stability Reduction in pro forma gearing ▪ Gearing down by 20 bps from 43.4% to 43.2%
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Custom House, Felixstowe England Key Priorities Section IV
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Key Priorities Management’s focus areas in the near-term WHAT WE HAVE ACHIEVED SINCE 2023 Reduced borrowings by £46.7m through fundraising and capital recycling from dilapidation settlements and divestments 1 All refinancing completed with no refinancing requirements until 2027 4 Funded £15m of sustainability capital expenditure in collaboration with tenants to reduce their occupation costs 2 100% sustainability financing supported by a diversified group of relationship banks 5 Generated £24.9m gross receipts through capital recycling from dilapidation settlements and divestments 3 Portfolio valuation of £416m as at 31 Mar 2025 held steady, well-supported by transacted divestments 6 1. Proactive asset management Equity index inclusion Sub-40% long term gearing 3. Improve liquidity Extend and diversify leases Social focus + sustainability 2. Capital management Widen analyst + media coverage Highest + best alternative uses Long-term Value Optimisation Opportunistic divestment + capital recycling to lower gearing 20
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This announcement is for information only and does not constitute or form part of an offer, invitation or solicitation of any 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 subscribe for units in Elite UK REIT (“Units”) in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses, property expenses, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s current view on future events. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither the Manager nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use of, reliance on or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of Elite UK REIT is not indicative of future performance. The listing of the Units on the Singapore Exchange Securities Trading Limited (“SGX-ST”) does not guarantee a liquid market for the Units. The value of the Units and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by Elite UK REIT, the Manager or any of their respective affiliates. An investment in the Units is subject to investment risks, including the possible loss of the principal amount invested. The Unitholders have no right to request the Manager to redeem or purchase their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This announcement should be read in conjunction with accompanying disclosure materials, including but not limited to, the announcement dated 10 June 2025 relating to the Proposed Acquisition, and the unaudited or audited financial statements of Elite UK REIT. Disclaimer
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For enquiries, please contact: Elite UK REIT Management Pte. Ltd. +65 6955 9999 pearl.lam@eliteukreit.com 3 Church Street, #09-03 Samsung Hub, Singapore 049483 www.eliteukreit.com WebsiteLinkedIn Email Alerts