Elite Commercial REIT's Upper Huntbach Street, Stoke on Trent. (Image: Google Maps)Elite Commercial REIT's Upper Huntbach Street, Stoke on Trent. (Image: Google Maps)

Elite Commercial REIT has announced the establishment of a distribution reinvestment plan (DRP).

The DRP may be applied to any distribution declared by Elite Commercial REIT, and its application will be at the discretion of the REIT’s manager.

The DRP provides unitholders with an opportunity to elect to receive distributions in the form of fully-paid new units instead of cash.

This will enable unitholders to increase their unitholdings in Elite Commercial REIT without incurring brokerage fees, stamp duties, and other related costs, said the REIT.

The issue of new units in lieu of cash distributions under the DRP will also strengthen Elite Commercial REIT’s balance sheet, enhance its working capital reserves, and improve the liquidity of the units, it added.

Participation in the DRP is optional and unitholders may elect to participate in the programme either partially or in full with regards to their distributions.

At the discretion of Elite Commercial REIT’s manager, the DRP may not be offered to overseas unitholders.

The manager will make an announcement whenever it decides to apply the DRP to a particular distribution.

Elite Commercial REIT was last done on the SGX at GBP0.67, which currently implies a distribution yield of 7.43% according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.