NAV Update and Dividend Declaration (803661)
April 26 2019 - 1:01AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
AEW UK REIT plc (AEWU)
NAV Update and Dividend Declaration
26-Apr-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
26 April 2019
NAV Update and Dividend Declaration for the three months to 31 March 2019
AEW UK REIT plc (LSE: AEWU) ("the Company"), which, as at 26 April 2019,
directly owns a diversified portfolio of 35 regional UK commercial property
assets, announces its unaudited Net Asset Value ("NAV") and interim dividend
for the three month period ended 31 March 2019.
Highlights
· At 31 March 2019, the fair value independent valuation of the property
portfolio was GBP197.61 million (31 December 2018: GBP192.66 million),
following the acquisition of Lockwood Court, Leeds, and the sale of Waggon
Road, Mossley, during the quarter. On a like-for-like basis the valuation
of the property portfolio decreased by GBP1.75 million (0.91%) over the
quarter (31 December 2018: increase of GBP1.03 million and 0.53%).
· NAV of GBP149.46 million or 98.61 pence per share ( 31 December 2018:
GBP152.12 million or 100.37 pence per share).
· EPRA earnings per share ("EPRA EPS") for the quarter of 1.99 pence per
share (31 December 2018: 1.98 pence per share).
· The Company today announces an interim dividend of 2.00 pence per share
for the three months ended 31 March 2019, in line with the targeted annual
dividend of 8.00 pence per share.
· Shareholder total return of 5.6% for the three months ended 31 March
2019.
· The Company remains conservatively geared with a gross loan to value
ratio of 25.30% (31 December 2018: 25.95%).
· At 31 March 2019, the Company held GBP1.84 million cash for investment
which will be held for future capex projects.
· Portfolio and asset management activity during the period included:
· The acquisition of Lockwood Court, Parkside Industrial Estate, Leeds,
for a net purchase price of GBP6.93 million. The 187,794 sq ft warehouse
asset is fully let to LWS Yorkshire Ltd, a logistics and storage
provider for Harrogate Spring Water, on a 10 year lease from October
2018.
· The disposal of Waggon Road, Mossley, for gross proceeds of GBP450,000,
ahead of the most recent valuation of GBP350,000.
Alex Short, Portfolio Manager, AEW UK REIT, commented:
"The first quarter of 2019 has seen the Company's EPRA EPS figure increase
slightly to 1.99 pence per share, as the portfolio's income stream remains
stable and the vacancy level remains low at 2.99% by ERV.
Whilst it had been hoped that the first quarter of 2019 would have removed
some element of political uncertainty, the Brexit deadline has been extended
to 31 October 2019 which is expected to hinder UK economic growth and
investment. It is hoped that the extension has eliminated the possibility of
a 'no deal' outcome which would likely have had a significant negative
impact on the UK property market. We think that the portfolio is well
positioned to mitigate the risks in the wider economy, having no exposure to
the Central London Office Market. However, the well-publicised headwinds
facing the retail sector mean that the Company's property portfolio has seen
a like-for-like decrease in valuation over the quarter, albeit the overall
impact is relatively low given the Company's limited exposure to the retail
market.
The like-for-like valuation decrease for the quarter of GBP1.75 million
(0.91%) is detailed as follows by sector:
Sector Valuation 31 Valuation Valuation
March 2019 movement for the movement for the
quarter quarter
GBP million GBP million %
Industrial 94.13 0.20 0.23
Office 43.21 0.00 0.00
Other 30.02 (0.30) (0.99)
Retail 30.25 (1.65) (5.17)
Total 197.61 (1.75) (0.91)
The Company's industrial assets continue to perform relatively well and make
up 47.6% of the portfolio valuation as at 31 March 2019. We continue to see
attractive opportunities in the industrial sector, as evidenced by the
acquisition of Lockwood Court, Leeds, during the quarter. We hope to take
advantage of further opportunities in industrials, subject to cash becoming
available for investment.
The Company also profited on the disposal of one of its smaller industrial
assets during the quarter. Waggon Road, Mossley, was sold at auction for
gross proceeds of GBP450,000 compared with its most recent valuation of
GBP350,000.
Although the Company's retail assets have reduced in valuation, we believe
that our downside risk is limited by the strong alternative use values and
asset management options, as most of these assets are located in town and
city centre locations with large catchment populations. This is in addition
to the fact that the Company has relatively low overall exposure to retail,
as it makes up 15.3% of the portfolio valuation.
Whilst we have a low level of vacancy in the portfolio, we expect to
continue adding value through an active approach to asset management. The
portfolio has a weighted average unexpired lease term of 4.9 years to break
and over GBP2 million of passing rent reaching a lease event within the next
12 months. This will allow the opportunity to negotiate higher rents and
boost the income profile of the portfolio. We continue to see attractive
opportunities across our target sectors and look forward to raising
additional capital under our placing programme to pursue those opportunities
as and when market conditions allow."
Net Asset Value
The Company's unaudited NAV as at 31 March 2019 was GBP149.46 million, or
98.61 pence per share. This reflects a decrease of 1.75% compared with the
NAV as at 31 December 2018. The Company's NAV total return, which includes
the interim dividend for the period from 1 January 2019 to 31 March 2019 of
2.00 pence per share, is 0.24% for the three month period ended 31 March
2019. As at 31 March 2019, the Company owned investment properties with a
fair value of GBP197.61 million.
Pence per share GBP million
NAV at 1 January 2019 100.37 152.12
Portfolio acquisition costs (0.29) (0.44)
Profit on disposal of investment 0.06 0.09
properties
Capital expenditure (0.01) (0.01)
Valuation change in property (1.35) (2.04)
portfolio
Valuation change in derivatives (0.16) (0.24)
Income earned for the period 2.86 4.32
Expenses and net finance costs for (0.87) (1.32)
the period
Interim dividend paid (2.00) (3.03)
NAV at 31 March 2019 98.61 149.46
The NAV attributable to the ordinary shares has been calculated under
International Financial Reporting Standards and incorporates the independent
portfolio valuation as at 31 March 2019 and income for the period, but does
not include a provision for the interim dividend for the three month period
to 31 March 2019.
Dividend
The Company today announces an interim dividend of 2.00 pence per share for
the period from 1 January 2019 to 31 March 2019. The dividend payment will
be made on 31 May 2019 to shareholders on the register as at 10 May 2019.
The ex-dividend date will be 9 May 2019.
The dividend of 2.00 pence per share will be designated 2.00 pence per share
as an interim property income distribution ("PID").
The EPRA EPS for the three month period to 31 December 2018 was 1.99 pence
(31 December 2018: 1.98 pence). Excluding one-off costs relating to the
issue of the Company's Prospectus, the underlying EPRA EPS was 2.11 pence
per share, compared with an underlying EPRA EPS of 2.05 pence per share for
the quarter to 31 December 2018.
The Directors will declare dividends taking into account the level of the
Company's net income and the Directors' view on the outlook for sustainable
recurring earnings. As such, the level of dividends paid may increase or
decrease from the current annual dividend of 8.00 pence per share. Based on
current market conditions, the Company expects to pay an annualised dividend
of 8.00 pence per share in respect of the financial period ending 31 March
2020.
Investors should note that this target is for illustrative purposes only,
based on current market conditions and is not intended to be, and should not
be taken as, a profit forecast or estimate. Actual returns cannot be
predicted and may differ materially from this illustrative figure. There can
be no assurance that the target will be met or that any dividend or total
return will be achieved.
Financing
Equity
The Company's issued share capital consists of 151,558,251 Ordinary Shares
and there was no movement during the quarter.
Debt
The Company's borrowings remained at GBP50.00 million throughout the quarter
and at 31 March 2019, the Company was geared at a gross loan to value of
25.30% and a net loan to value of 24.37%.
The loan continues to attract interest at LIBOR + 1.4%. To mitigate the
interest rate risk that arises as a result of entering into a variable rate
linked loan, the Company has entered into interest rate caps on GBP36.51
million of the total value of the loan (GBP26.51 million at 2.5% cap rate and
GBP10.00 million at 2.0% cap rate) up to October 2020, resulting in the loan
being 73% hedged. The Investment Manager and the Company will keep the
levels of gearing and hedging under review.
The loan term runs to October 2023 and the Company has entered into
additional interest rate caps covering the period from October 2020 to
October 2023, capping a notional value of GBP46.51 million at LIBOR of 2.0%
per annum, which represents 90% of the current GBP50.00 million loan balance.
Portfolio activity and asset management
Lockwood Court, Leeds
In February 2019, the Company acquired an industrial asset, Lockwood Court,
Parkside Industrial Estate, Leeds, for a purchase price of GBP6.93 million.
The 187,794 sq ft warehouse asset is fully let to LWS Yorkshire Ltd, a
logistics and storage provider for Harrogate Spring Water on a ten year
lease from October 2018. The lease provides a low passing rent of GBP3.22 per
sq ft which, together with tight supply, forms a strong base for future
potential rental growth.
Located two miles south of Leeds City Centre and close to J25 of the M62 and
J40 of the M1, Parkside Industrial Estate is a well-established industrial
and commercial area with a history of attracting regional and national
occupiers.
Waggon Road, Mossley
In March 2018, the Company completed the disposal of Waggon Road, Mossley,
for a price of GBP450,000, ahead of the most recent valuation of GBP350,000.
LEI: 21380073LDXHV2LP5K50
Enquiries
AEW UK
Alex Short alex.short@eu.aew.com
+44(0) 20 7016 4848
Nicki Gladstone nicki.gladstone-ext@eu.aew.com
+44(0) 7711 401 021
Company Secretary
Link Company Matters Limited aewu.cosec@linkgroup.co.uk
T: +44(0) 1392 477500
TB Cardew
Ed Orlebar ed.orlebar@tbcardew.com
T: 07738 724 630
Lucy Featherstone lucy.featherstone@tbcardew.com
T: +44 (0) 20 7002 1482
M: +44 (0) 7789 374 663
Liberum Capital
Gillian Martin/Owen Matthews T: +44 (0) 20 3100 2000
Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to
shareholders by investing predominantly in smaller commercial properties
(typically less than GBP10 million), on shorter occupational leases in strong
commercial locations across the United Kingdom. The Company was listed on
the Official List of the UK Listing Authority and admitted to trading on the
Main Market of the London Stock Exchange on 12 May 2015, raising GBP100.5m.
Since IPO it has raised a further GBP51m.
The Company is currently invested in office, retail, industrial and leisure
assets, with a focus on active asset management, repositioning the
properties and improving the quality of the income stream.
AEWU is currently paying an annualised dividend of 8p per share.
www.aewukreit.com [1] [2]
About AEW UK Investment Management LLP
AEW UK Investment Management LLP employs a well-resourced team comprising 26
individuals covering investment, asset management, operations and strategy.
It is part of AEW Group, one of the world's largest real estate managers,
with just over EUR65.4bn of assets under management globally as at 31
December 2018. The AEW Group comprises AEW SA in Europe and AEW Capital
Management L.P. in the US and their respective subsidiaries as well as AEW
UK Investment Management LLP. In Europe, as at 31 December 2018, AEW Group
managed EUR31.4bn in value in properties of all types located in 16
countries, with over 400 staff located in 9 offices. The Investment Manager
is a 50:50 joint venture between the principals of the Investment Manager
and AEW.
ISIN: GB00BWD24154
Category Code: MSCH
TIDM: AEWU
LEI Code: 21380073LDXHV2LP5K50
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 8365
EQS News ID: 803661
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c9b6404682d7efd026577394ecbedab5&application_id=803661&site_id=vwd_london&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=9220892e63355ca6947a3a3423a3bac8&application_id=803661&site_id=vwd_london&application_name=news
(END) Dow Jones Newswires
April 26, 2019 02:01 ET (06:01 GMT)
Aew Uk Reit (LSE:AEWU)
Historical Stock Chart
From Apr 2024 to May 2024
Aew Uk Reit (LSE:AEWU)
Historical Stock Chart
From May 2023 to May 2024