Elite UK REIT Entering Into Student Accommodation and Data Centres?

Usually, I tend to stay away from writing any post on Elite UK REIT (“EUREIT”) as it can lead to personal attacks and persistent online hustling by disgruntled loyal investor who only wants to hear good points on this investment. Having a high concentration risk in mostly one government agency for over 90% of the entire REIT's revenue generation is extremely risky. What is there to stop the government from closing down or downsizing some of its agencies should it meet with financial constraint? EUREIT price has tumbled <-58.8%> from £0.68 per unit from its IPO days to £0.28 per unit (as at 9 Sep 2024) and has done 1 round of equity fund raising to par down leverage during the not too long ago debt crisis (current gearing is at a healthier 41.4%).  

Well, I came across an interesting video and post from Mystocksinvesting.com on an interview with the new CEO of Elite UK REIT, Joshua Liaw. In this interview, the new management team led by Joshua has mentioned that EUREIT is looking at entering into the student accommodation or Data Centre business. While there are question on whether EUREIT has the expertise and financial resources to enter into these segment, I personally think that this is the right step in a new direction taken by the new management team. Joshua has further mentioned that they intend to form a joint venture with those companies that has the right expertise to spearhead their foray into this new frontier. The vision to go into other business sector and diversification from a single major tenant is definitely a plus point. 

Saying that, execution risk of new joint ventures into student accommodation and data centres as well as UK forex losses are other key considerations going forward.

(Note: Another interesting point is that both Joshua and the new CFO, Micheal Tong, are formerly from Lendlease Group).