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Elite REIT - the only GBP-denominated REIT today. Post Reply Rate topic
chengwh1 Elite	13-Jun-2026 20:21        chengwh1 About Contact  Quote this Post!
x 0   x 0  Alert Admin	To make a long story short, I' d think the investing public and the insto' s here are not very confident of these foreign-denominated S-REITs. Hence, the moment trouble appears, these REITs will get sold down very fast. And rightly so,... looking at what happened to MUST, Prime and KORE. And the main reason for the non-confidence is because of : Asset Quality ! I would think this is the first and foremost reason ! Alignment      ( Date: 12-Jun-2026 00:06) Posted: I think you are correct in pointing out the foreign currency denominated ones do appear to have done materially worse than average of the SGX listed REITs. It is an interesting observation. The next question to ask is whether there is a common reason. I suggest the following are potentially possible causes (this is not exhaustive and I am not saying I believe all of these to be true): 1) The Singapore property market did better than overseas property markets 2) Trying to manage overseas properties from Singapore is more difficult than when you are managing properties in the same country 3) Singaporean interest rates stayed relatively low compared to overseas interest rates, so the cost of capital is lower 4) Managers that invested overseas were more likely to take Singaporean investors for granted and assumed because the properties were far away they did not know what they were investing in 5) There is less demand in Singapore for non S$ denominated investments, so demand for these shares are lower relative to supply I am sure others can think of more potential reasons. Everyone can decide for themselves if any of these reasons have merit. chengwh1      ( Date: 11-Jun-2026 11:49) Posted: By the way, last 5 years also involved Covid events - all ctrs experienced falls, especially the foreign-currency-denominated REITs,... We know what happened to the likes of Manulife, KORE and Prime,... at least Elite preformed better than they did.
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Alignment Elite	12-Jun-2026 00:06        Alignment About Contact  Quote this Post! Style: Fundamental
x 1   x 0  Alert Admin	I think you are correct in pointing out the foreign currency denominated ones do appear to have done materially worse than average of the SGX listed REITs. It is an interesting observation. The next question to ask is whether there is a common reason. I suggest the following are potentially possible causes (this is not exhaustive and I am not saying I believe all of these to be true): 1) The Singapore property market did better than overseas property markets 2) Trying to manage overseas properties from Singapore is more difficult than when you are managing properties in the same country 3) Singaporean interest rates stayed relatively low compared to overseas interest rates, so the cost of capital is lower 4) Managers that invested overseas were more likely to take Singaporean investors for granted and assumed because the properties were far away they did not know what they were investing in 5) There is less demand in Singapore for non S$ denominated investments, so demand for these shares are lower relative to supply I am sure others can think of more potential reasons. Everyone can decide for themselves if any of these reasons have merit. chengwh1      ( Date: 11-Jun-2026 11:49) Posted: By the way, last 5 years also involved Covid events - all ctrs experienced falls, especially the foreign-currency-denominated REITs,... We know what happened to the likes of Manulife, KORE and Prime,... at least Elite preformed better than they did.
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chengwh1 Elite	11-Jun-2026 11:49        chengwh1 About Contact  Quote this Post!
x 0   x 0  Alert Admin	By the way, last 5 years also involved Covid events - all ctrs experienced falls, especially the foreign-currency-denominated REITs,... We know what happened to the likes of Manulife, KORE and Prime,... at least Elite preformed better than they did.
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chengwh1 Elite	11-Jun-2026 11:46        chengwh1 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Given the 2, I will take Elite for the currency diversification,... and debt is not to be renewed after 2 years from today,... So, I ll just go with Elite becos I am holding all the other ' good' REITs and shares and can' t move anymore bullets into them.  Alignment      ( Date: 10-Jun-2026 21:24) Posted: You seem quite positive about a management that oversaw a 50% share price decline over the past 5 years. But looking forward, it is the things that management can do nothing about that concern me. First, I fundamentally don' t like the quality of the properties they own. Notwithstanding they have had some renewal successes recently I will always be concerned when a renewal comes up for them and they have 32% due in 2028. Second is their interest rates will go up significantly when they refi so the DPU yield is not sustainable. Their cost of debt is 4.7% now vs the current UK ten year gilt of 4.95%. So at refi the debt cost will go up to 5.5% at least. chengwh1      ( Date: 10-Jun-2026 12:42) Posted: Hi bro,... what this REIT gives is currency diversification. The GBP is never too weak against the SGD. But one thing good here is the mgmt is HIGHLY proactive in managing this REIT and puts in great speed and effort to mitigate future problems. This is what we called mgmt quality,... unlike Mapletree Industrial Trust' s mgmt,... which may or may not have seen the oncoming problems with their US data ctrs,... but waited till the waves hit them and they' re now on damage-ctrl mode.  I can live with 8.52% yield at my holding price, and will average down further...
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Alignment Elite	11-Jun-2026 11:15        Alignment About Contact  Quote this Post! Style: Fundamental
x 0   x 0  Alert Admin	I can' t speak for other people, but I do not consider MIT to be a gold standard and have commented for some time now that there are far better industrial REIT investment opportunities compared to it (and MLT and Ascendas). Then again, 30% and 50% falls are materially different - if you fall 50%, then going up to only a 30% fall is 40% upside!  As to Elite' s debt situation, the structure itself is suboptimal in terms of having a single bullet refi wall in 2027. That is much higher risk than the normal more evenly spaced profile. AIMS for instance is spread out between 2027 and 2030 and Alpha between 2027 and 2029. The two year option Elite has does protect it from refi risk but it does not protect it against higher rates. The hedging does that, but Elite does not disclose how long the hedges run for and I suspect given market practice that they do not extend beyond the 2027 refi wall i.e. they are only hedged for another year. So I believe they  face a repricing of their debt in a year' s time, and one distinctive point here is that compared to other REITs what they are paying now and the market rate is very different. This is not their fault, but a function of the dysfunction of the UK political and economic environment. I think of the G7 countries the UK bond yield is the one that has gone up most in the last few years, and Elite next year will suffer the consequences of this. prophetjul      ( Date: 11-Jun-2026 08:37) Posted: Compare wih MIT, which has decreased 30% over last 5 years. And yet, generally they are accepted as a gold standard SREIT. And MIT' s revenue seems to be under pressure too. Not sure what this means for Elite: " 90% of debt are on fixed rates.  There are no refinancing requirements until 2027, with two-year extension options embedded in its loan facilities, providing added flexibility" But REITS which are facing refi in 2026/27 will hit the high interest rate environment again.  I suppose it risks are reflected in the higher yields.  Alignment      ( Date: 10-Jun-2026 21:24) Posted: You seem quite positive about a management that oversaw a 50% share price decline over the past 5 years. But looking forward, it is the things that management can do nothing about that concern me. First, I fundamentally don' t like the quality of the properties they own. Notwithstanding they have had some renewal successes recently I will always be concerned when a renewal comes up for them and they have 32% due in 2028. Second is their interest rates will go up significantly when they refi so the DPU yield is not sustainable. Their cost of debt is 4.7% now vs the current UK ten year gilt of 4.95%. So at refi the debt cost will go up to 5.5% at least
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prophetjul Master	11-Jun-2026 08:37        prophetjul About Contact  Quote this Post!
x 0   x 0  Alert Admin	Compare wih MIT, which has decreased 30% over last 5 years. And yet, generally they are accepted as a gold standard SREIT. And MIT' s revenue seems to be under pressure too. Not sure what this means for Elite: " 90% of debt are on fixed rates.  There are no refinancing requirements until 2027, with two-year extension options embedded in its loan facilities, providing added flexibility" But REITS which are facing refi in 2026/27 will hit the high interest rate environment again.  I suppose it risks are reflected in the higher yields.  Alignment      ( Date: 10-Jun-2026 21:24) Posted: You seem quite positive about a management that oversaw a 50% share price decline over the past 5 years. But looking forward, it is the things that management can do nothing about that concern me. First, I fundamentally don' t like the quality of the properties they own. Notwithstanding they have had some renewal successes recently I will always be concerned when a renewal comes up for them and they have 32% due in 2028. Second is their interest rates will go up significantly when they refi so the DPU yield is not sustainable. Their cost of debt is 4.7% now vs the current UK ten year gilt of 4.95%. So at refi the debt cost will go up to 5.5% at least. chengwh1      ( Date: 10-Jun-2026 12:42) Posted: Hi bro,... what this REIT gives is currency diversification. The GBP is never too weak against the SGD. But one thing good here is the mgmt is HIGHLY proactive in managing this REIT and puts in great speed and effort to mitigate future problems. This is what we called mgmt quality,... unlike Mapletree Industrial Trust' s mgmt,... which may or may not have seen the oncoming problems with their US data ctrs,... but waited till the waves hit them and they' re now on damage-ctrl mode.  I can live with 8.52% yield at my holding price, and will average down further...
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Alignment Elite	10-Jun-2026 21:24        Alignment About Contact  Quote this Post! Style: Fundamental
x 0   x 0  Alert Admin	You seem quite positive about a management that oversaw a 50% share price decline over the past 5 years. But looking forward, it is the things that management can do nothing about that concern me. First, I fundamentally don' t like the quality of the properties they own. Notwithstanding they have had some renewal successes recently I will always be concerned when a renewal comes up for them and they have 32% due in 2028. Second is their interest rates will go up significantly when they refi so the DPU yield is not sustainable. Their cost of debt is 4.7% now vs the current UK ten year gilt of 4.95%. So at refi the debt cost will go up to 5.5% at least. chengwh1      ( Date: 10-Jun-2026 12:42) Posted: Hi bro,... what this REIT gives is currency diversification. The GBP is never too weak against the SGD. But one thing good here is the mgmt is HIGHLY proactive in managing this REIT and puts in great speed and effort to mitigate future problems. This is what we called mgmt quality,... unlike Mapletree Industrial Trust' s mgmt,... which may or may not have seen the oncoming problems with their US data ctrs,... but waited till the waves hit them and they' re now on damage-ctrl mode.  I can live with 8.52% yield at my holding price, and will average down further.... Alignment      ( Date: 09-Jun-2026 13:36) Posted: That does not fill me with a lot of confidence.... Almost none of their assets are in London
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chengwh1 Elite	10-Jun-2026 12:42        chengwh1 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Hi bro,... what this REIT gives is currency diversification. The GBP is never too weak against the SGD. But one thing good here is the mgmt is HIGHLY proactive in managing this REIT and puts in great speed and effort to mitigate future problems. This is what we called mgmt quality,... unlike Mapletree Industrial Trust' s mgmt,... which may or may not have seen the oncoming problems with their US data ctrs,... but waited till the waves hit them and they' re now on damage-ctrl mode.  I can live with 8.52% yield at my holding price, and will average down further.... Alignment      ( Date: 09-Jun-2026 13:36) Posted: That does not fill me with a lot of confidence.... Almost none of their assets are in London. chengwh1      ( Date: 28-May-2026 18:09) Posted: Elite had a British man who is stationed in London, I forgot the designation of this man but in some webinars that I attended, this man will speak when asked abt the porfolio, and addressed property-specific questions... United Hampshire REIT has a bigger local representation in The USA.
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Joelton Supreme	10-Jun-2026 09:40        Joelton About Contact  Quote this Post!
x 1   x 0  Alert Admin	Units of Elite UK REIT to be included in the CPF Investment Scheme The manager of Elite UK REIT (SGX:MENU) announced that its Singapore dollar-denominated units has been included under the Central Provident Fund Board&rsquo s CPFIS &ndash Ordinary Account with effect from June 9. Investors may now utilise their Central Provident Fund (CPF) savings in their CPF ordinary accounts to acquire units in the REIT. The units purchased using CPF savings may only be sold via trading on SGX, and any form of sales proceed will be credited back to their respective ordinary accounts. As at 9.05am, Elite UK REIT&rsquo s Singapore dollar-denominated units were unchanged at 58 cents.
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Alignment Elite	09-Jun-2026 13:36        Alignment About Contact  Quote this Post! Style: Fundamental
x 0   x 0  Alert Admin	That does not fill me with a lot of confidence.... Almost none of their assets are in London. chengwh1      ( Date: 28-May-2026 18:09) Posted: Elite had a British man who is stationed in London, I forgot the designation of this man but in some webinars that I attended, this man will speak when asked abt the porfolio, and addressed property-specific questions... United Hampshire REIT has a bigger local representation in The USA.
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Joelton Supreme	09-Jun-2026 10:25        Joelton About Contact  Quote this Post!
x 0   x 0  Alert Admin	&lsquo Sustainable 9% dividend yield backed by UK government&rsquo , Maybank initiates coverage on Elite UK REIT at &lsquo buy&rsquo Liu Miaomiao of Maybank Securities has initiated coverage on Elite UK REIT (SGX:MXNU) , citing the sustainable and defensive dividend yield backed by the UK government, the REIT&rsquo s key tenant. Elite UK REIT&rsquo s investment case is anchored on improved income visibility following the ongoing re-gear of its largest tenant, the Department for Work and Pensions (DWP), says Liu in her June 7 initiation report. &ldquo About 70% of leases have been secured, extending WALE to 6.9 years and significantly de-risking the previously concentrated 2028 expiry profile. With retention rates guided at 85&ndash 95%, occupancy risk remains manageable,&rdquo she adds. Liu also sees Elite UK REIT having a &ldquo strong track record&rdquo of divestments above book value is currently progressing on the divestment of Peel Park, of which its valuation stood at GBP44 million, amounting to 10% of Elite UK REIT&rsquo s asset under management (AUM). &ldquo With planning approval secured for alternative use as a data centre, the asset has seen significant value uplift of 82% since Dec 2023, and management is targeting a disposal at least at book value,&rdquo Liu says. She believes that this divestment will allow the REIT to monetise a mature asset and redeploy proceeds into more accretive opportunities such as redevelopment of PBSA. As such, Liu has given a &ldquo buy&rdquo recommendation and target price of GBP0.44 for the REIT, given that it offers an attractive yield of 9% at the current share price level, supported by an increased payout ratio of around 95% and a stable funding profile. &ldquo Cost of debt remains at 4.7%, with over 90% of borrowings on fixed rates. This is complemented by an undemanding valuation at 0.86 times price to book ratio which we deem as attractive,&rdquo concludes Liu. As at 10.10am, Units in Elite UKREIT were trading 0.5 pence lower, or 1.47% down at GBP0.335.
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Joelton Supreme	29-May-2026 10:43        Joelton About Contact  Quote this Post!
x 0   x 0  Alert Admin	PhillipCapital and RHB reaffirms &lsquo buy&rsquo recommendation on Elite UK REIT following recent site visit PhillipCapital and RHB Bank Singapore analysts have kept their respective &ldquo buy&rdquo calls on Elite UK REIT following a recent site visit of the REIT' s assets in London, Kent and Cardiff. The REIT owns a portfolio of 148 properties across the United Kingdom (UK) are predominantly rented to the Department for Work and Pensions (DWP), which operates Jobcentre Plus, a government-funded employment agency and social security office, which aims to help people of working age find employment in the UK. At the same time, DWP also administers claims for benefits such as income support, incapacity benefit, universal credit, jobseeker&rsquo s allowance, and employment support allowance. Jobcentre Plus provides training opportunities and resources to enable job-searchers to find work, through Jobpoints, which is a touch-screen computer terminal at the office that can be used to apply for jobs using either telephones or website. &ldquo Our site visit across London, Kent, and Cardiff confirmed our views that the visited jobcentres are operationally critical to DWP&rsquo s daily service delivery, financial support claimant volumes at the jobcentres are at record highs and rising and select assets offer repositioning optionality,&rdquo says PhillipCapital' s Hashim Osman in his May 25 note. The REIT continues to achieve portfolio stability as it recently signed new leases with DWP in February, which secured CPI-linked rents which are floored at 1% and capped at 5% per annum and will commence in April 2028, says Hashim, who is keeping his &ldquo buy&rdquo call with unchanged DDM-based target price of £ 0.41. The recent site visit reinforced the critical nature of Elite UK REIT&rsquo s UK Government social infrastructure portfolio, says RHB Bank Singapore&rsquo s Vijay Natarajan in his May 28 note. &ldquo Although some of the assets could be consolidated in future, Elite UK REIT&rsquo s pivot into the living sector offers repurposing ability to extract upside potential from housing supply shortage in the UK,&rdquo says Natarajan. Some of his takeaways were that DWP' s physical offices remain critical with rising unemployment and transforming job market and asset utilisation from tenants and end users have improved. &ldquo Furthermore, prime asset location and standalone facilities with freehold land title provide good alternate usage such as living sector opportunities in the medium-term, while the shortage of quality living sector assets due to permit and construction delays, against the backdrop of a strong demand,&rdquo Natarajan adds. At the same time, despite the rising concerns over inflationary impact from the Middle East conflict, Natarajan shares that Elite UK REIT&rsquo s portfolio is partially mitigated from triple-net leases and strong government tenant credit profile. As such, Natarajan is keeping a &ldquo buy&rdquo call on Elite UK REIT and a target price of £ 0.41. This translates to a potential 21% upside and 9% distribution yield. &ldquo While the REIT is not fully immune to macroeconomic headwinds in the UK, its stable cash flow profile from the sovereign tenant offers value at 9% distribution yield,&rdquo the analyst concludes. As of 1.58pm, Units in Elite UK REIT are trading flat at £ 0.34.
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chengwh1 Elite	28-May-2026 18:09        chengwh1 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Elite had a British man who is stationed in London, I forgot the designation of this man but in some webinars that I attended, this man will speak when asked abt the porfolio, and addressed property-specific questions... United Hampshire REIT has a bigger local representation in The USA.
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chengwh1 Elite	28-May-2026 17:57        chengwh1 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Joshua is based in SG ! He was the CFO back then,... and the CEO was an angmoh. Alignment      ( Date: 25-May-2026 20:02) Posted: " I actually volunteered to relocate myself to London for four months straight..." Where is he actually based then?
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Alignment Elite	28-May-2026 10:01        Alignment About Contact  Quote this Post! Style: Fundamental
x 0   x 0  Alert Admin	I see. Perhaps that' s why many of the big REITs are struggling now while the smaller more focused ones especially those with high Singaporean weighting are doing better. prophetjul      ( Date: 28-May-2026 08:21) Posted: Many big reits have their corporate team in SG and management team local in foreign companies. Elite may have mono UK properties. However, their corporate team may be based in SG. No difference.  Alignment      ( Date: 27-May-2026 20:56) Posted: SG? If that is true, how can someone whose job is to run a company that owns, buys and sells UK properties but who lives in SG compete against companies run by UK people who actually live there
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prophetjul Master	28-May-2026 08:21        prophetjul About Contact  Quote this Post!
x 0   x 0  Alert Admin	Many big reits have their corporate team in SG and management team local in foreign companies. Elite may have mono UK properties. However, their corporate team may be based in SG. No difference.  Alignment      ( Date: 27-May-2026 20:56) Posted: SG? If that is true, how can someone whose job is to run a company that owns, buys and sells UK properties but who lives in SG compete against companies run by UK people who actually live there? prophetjul      ( Date: 26-May-2026 09:09) Posted: Probably SG? The ex lady CEO was useless.
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Alignment Elite	27-May-2026 20:56        Alignment About Contact  Quote this Post! Style: Fundamental
x 0   x 0  Alert Admin	SG? If that is true, how can someone whose job is to run a company that owns, buys and sells UK properties but who lives in SG compete against companies run by UK people who actually live there? prophetjul      ( Date: 26-May-2026 09:09) Posted: Probably SG? The ex lady CEO was useless.  Alignment      ( Date: 25-May-2026 20:02) Posted: " I actually volunteered to relocate myself to London for four months straight..." Where is he actually based then?
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prophetjul Master	26-May-2026 09:09        prophetjul About Contact  Quote this Post!
x 0   x 0  Alert Admin	Probably SG? The ex lady CEO was useless.  Alignment      ( Date: 25-May-2026 20:02) Posted: " I actually volunteered to relocate myself to London for four months straight..." Where is he actually based then?
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Alignment Elite	25-May-2026 20:02        Alignment About Contact  Quote this Post! Style: Fundamental
x 0   x 0  Alert Admin	" I actually volunteered to relocate myself to London for four months straight..." Where is he actually based then?
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Joelton Supreme	20-May-2026 11:05        Joelton About Contact  Quote this Post!
x 0   x 0  Alert Admin	Beyond survival: Elite UK Reit plots next phase of growth After stabilising the trust, CEO Joshua Liaw looks to more asset repositioning, active portfolio management [LONDON] Since taking over as CEO of Elite UK Reit&rsquo s manager in 2023, Joshua Liaw has helped steer the once-troubled trust out of crisis, stabilising its balance sheet while laying the groundwork for its next phase of growth.  &ldquo When I first joined three years ago, the Reit (real estate investment trust) was quite frankly distressed,&rdquo Liaw said during a media visit to its properties last week. The Reit was grappling with gearing of 47.5 per cent &ndash just shy of the 50 per cent regulatory limit &ndash alongside refinancing concerns and vacancies across several assets. &ldquo I actually volunteered to relocate myself to London for four months straight... to work this out,&rdquo he added. An equity fundraising exercise in December 2023 brought gearing down to a &ldquo more sustainable level&rdquo , while a subsequent refinancing one addressed investors&rsquo concerns over the trust&rsquo s financial stability.  Since then, Elite UK Reit has broadened its investment strategy beyond its traditional government-leased portfolio of primarily job centres and offices into the living sector &ndash namely the purpose-built student accommodation (PBSA) and build-to-rent segments. This includes repositioning vacant buildings in Dundee, Scotland, and Cardiff, Wales, into student housing assets. Liaw said the move into the living sector was driven by investors&rsquo preference for defensive and counter-cyclical income streams. That said, he stressed that the manager was not looking to acquire PBSA assets from other owners, especially amid elevated financing costs. Instead, the opportunities in Dundee and Cardiff emerged after certain government leases expired, allowing the manager to assess whether the underlying sites could be redeveloped for higher-value use.    &ldquo It&rsquo s based on what opportunities, what properties we can reposition at that point in time,&rdquo he said. &ldquo It&rsquo s not that we chose Dundee and Cardiff &ndash it&rsquo s more that Dundee and Cardiff chose us.&rdquo   Fortunately, Liaw noted that the two were &ldquo excellent markets&rdquo with student-to-bed ratios that are &ldquo very much in favour of developers&rdquo .  Beyond expanding into the living sector, the manager has also been working to reduce lease concentration risks within its core government-backed portfolio.  In February, the Reit secured lease extensions for around 70 per cent of its properties leased to the UK government&rsquo s Department for Work and Pensions (DWP). The exercise increased the portfolio&rsquo s weighted average lease expiry to 7.2 years on a pro forma basis as at end-2025, from 2.4 years previously. &ldquo That has always been a concern since (the trust&rsquo s) initial public offering six years ago, because close to 96 per cent of our leases (were set to expire) in 2028,&rdquo Liaw said, making the recent exercise a &ldquo very big milestone&rdquo for the Reit.  The improved income visibility lifted portfolio valuations to £ 460.2 million (S$790.2 million) as at Mar 31, 2026, and reduced net gearing to 37.4 per cent, from 40.7 per cent as at end-2025.  &ldquo The world is still rather uncertain today,&rdquo said Liaw. &ldquo The macroeconomic environment is volatile, so (that) headroom&hellip is very much well-received.&rdquo   Beyond survival With its balance sheet stabilised and the bulk of its leases extended, the manager is now turning its attention towards capital management and portfolio reconstitution.  One immediate priority is staggering the trust&rsquo s debt maturities and diversifying its funding sources. &ldquo We have been speaking to lenders &ndash new lenders as well as existing lenders,&rdquo said Liaw. The manager will also continue exploring redevelopment opportunities across its portfolio, particularly for some of the Reit&rsquo s freehold and &ldquo virtual freehold&rdquo assets.    &ldquo That&rsquo s super important for us &ndash for growth but also for future-proofing,&rdquo said Liaw. &ldquo Some of these seeds will not (bear) fruits immediately&hellip We&rsquo re taking a very long-term view in some of these repositioning projects.&rdquo One example is Peckham Jobcentre in London, which comprises two freehold sites collectively valued at more than £ 15 million, up 8 per cent following the recent lease extension. Although the properties continue to generate stable rental income from DWP, they could hold longer-term redevelopment potential as the surrounding neighbourhood evolves.  &ldquo We are sometimes thought of as a future land bank with cash flow,&rdquo Liaw said. &ldquo While the government will continue to occupy it and give you rental every month, that doesn&rsquo t mean you&rsquo re going to lose out on future optionality.&rdquo   The manager will also assess opportunities to recycle capital through selective divestments and portfolio reconstitution. For example, it received planning approval in February to repurpose a vacant site in Blackpool, previously zoned for office use, into a data centre facility spanning up to 20 acres (8.1 hectares). So far, Liaw said the costs and efforts required to ready the plot have been &ldquo very worth it&rdquo . &ldquo Now it&rsquo s just (settling) the finishing touches before we proceed to monetise it in a few coming months.&rdquo Proceeds from the eventual divestment could be redeployed into new investment opportunities, pare down debt, or returned to unitholders through share buybacks or special dividends, he said. For some of its other assets, Liaw said the manager has in recent years received &ldquo unsolicited inquiries&rdquo from interested buyers. &ldquo We have very politely refused in some cases, because we were waiting for the lease regear to happen. Now that (it has), we can relook at some of these inquiries going forward.&rdquo &ldquo We (don&rsquo t want to) just be a Reit manager that holds assets,&rdquo he added. &ldquo We also want to do the right thing by (actively managing) and selling the assets&hellip at peak valuations. I think you will see us doing a lot more in the next few months.&rdquo Navigating uncertainty Despite expanding into the living sector, Liaw said the Reit was not looking to aggressively diversify across multiple real estate segments. &ldquo Even in this sector, there is a lot more that we can do... We don&rsquo t have to be everything to everyone.&rdquo Asked about potential opportunities in social housing, he noted that the segment sat within the living sector and was supported by government-backed cash flow &ndash &ldquo exactly the two things we love, and within our investment strategy&rdquo . But these assets remain unfamiliar to Singapore investors. &ldquo We are looking at that, but currently, I don&rsquo t think we have anything that&rsquo s specifically available.&rdquo Looking ahead, Liaw cited geopolitical tensions, inflation and interest-rate volatility as key risks, but said the portfolio remains relatively defensive. Most of the Reit&rsquo s leases are structured as triple-net leases, where tenants are responsible for all ongoing expenses.  Around 92 per cent of its debt is on fixed rates, with borrowing costs at 4.7 per cent as at end-Q1.  Liaw added that job centres &ndash which account for 66 per cent of the trust&rsquo s gross rental income &ndash are particularly resilient during economic downturns given the counter-cyclical nature of employment support services. These are government offices that help job seekers find work and access welfare support. The Reit&rsquo s renewed leases also include rent reviews linked to the consumer price index, with compounded annual rental increases ranging from 1 to 5 per cent. On the UK&rsquo s political uncertainty, Liaw pointed out that leases were signed with the UK government through the Secretary of State for Housing, Communities and Local Government.  In any case, he said: &ldquo The government of the day, whether it is the Conservatives, Labour or Reform, I think everybody will agree that getting people back to work is a key pathway to prosperity.&rdquo   &ldquo No party will say we want more misery, we want more unemployment,&rdquo Liaw added. &ldquo It&rsquo s going to be very much part of the social fabric of the UK for the long foreseeable future.&rdquo
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