AEW UK REIT plc (AEWU) 
Half Yearly Results 
 
18-Nov-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
18 November 2020 
 
AEW UK REIT PLC (the "Company") 
 
Interim Report and Financial Statements 
 
for the six months ended 30 September 2020 
 
Financial Highlights 
 
?  Net Asset Value ('NAV') of GBP147.24 million and of 92.73 pence 
       per share ('pps') as at 30 September 2020 (31 March 2020: 
                                 GBP147.86 million and 93.13 pps). 
?    Operating profit before fair value changes of GBP5.93 million 
       for the period (six months ended 30 September 2019: GBP7.26 
                                                       million). 
?    Profit Before Tax ("PBT") of GBP5.72 million and 3.61 pps for 
   the period (six months ended 30 September 2019: GBP4.16 million 
                                                  and 2.74 pps). 
 
?  Shareholder Total Return for the period of 16.13% (six months 
                                ended 30 September 2019: 5.50%). 
?    EPRA Earnings Per Share ('EPRA EPS') for the period of 3.41 
   pps (six months ended 30 September 2019: 4.37 pps). See below 
                                for the calculation of EPRA EPS. 
 
? Total dividends of 4.00 pps declared in relation to the period 
                 (six months ended 30 September 2019: 4.00 pps). 
 
? The price of the Company's Ordinary Shares on the London Stock 
  Exchange was 75.20 pps as at 30 September 2020 (31 March 2020: 
                                                     68.20 pps). 
?   As at 30 September 2020, the Company had a balance of GBP39.50 
   million (31 March 2020: GBP51.50 million) of its GBP60.00 million 
   (31 March 2020: GBP60.00 million) term credit facility with the 
   Royal Bank of Scotland International Limited ('RBSi') and was 
       geared with a Loan to NAV ratio of 26.83% (31 March 2020: 
   34.83%). The Company can draw GBP12.03 million of the remaining 
     facility up to the maximum 35% Loan to NAV at drawdown (see 
                             note 13 below for further details). 
 
?  The Company held cash balances totalling GBP13.36 million as at 
               30 September 2020 (31 March 2020: GBP9.87 million). 
 
Property Highlights 
 
?  As at 30 September 2020, the Company's property portfolio had 
   a valuation of GBP171.36 million across 34 properties (31 March 
  2020: GBP189.30 million across 35 properties) as assessed by the 
       valuer and a historical cost of GBP184.07 million (31 March 
                                         2020: GBP197.12 million). 
 
?         The Company made no acquisitions during the period and 
       disposed of one property, Geddington Road, Corby, for net 
   proceeds of GBP18.68 million, realising a profit on disposal of 
                                                  GBP3.67 million. 
 
? The portfolio had an EPRA vacancy rate of 8.21%. Excluding 225 
  Bath Street, Glasgow, which has been exchanged for sale with a 
  condition of vacant possession, the vacancy rate was 4.90% (31 
                                             March 2020: 3.68%). 
 
?    Rental income generated during the period was GBP8.12 million 
            (six months ended 30 September 2019: GBP8.78 million). 
 
?          EPRA Net Initial Yield ('EPRA NIY') of 7.21% as at 30 
                          September 2020 (31 March 2020: 8.26%). 
 
?  Weighted Average Unexpired Lease Term ('WAULT') of 4.99 years 
    to break and 6.48 years to expiry (31 March 2020: 4.26 years 
                             to break and 5.55 years to expiry). 
 
?      Post period-end, in November 2020, the Company acquired a 
    warehouse asset in Weston-Super-Mare for a purchase price of 
                                                  GBP5.40 million. 
 
? As at the date of this report, rent collection statistics were 
   as follows for the March, June and September rental quarters: 
 
Current Position as at 12    March 2020 June 2020 September 2020 
November 2020 
 
                                      %         %              % 
Received                             93        89             72 
Monthly Payments Expected             -         -             15 
Prior to Quarter End 
                                     93        89             87 
Agreed on longer term                 4         3              4 
payment plans 
Under Negotiation                     2         4              4 
                                     99        96             95 
Outstanding                           1         4              5 
Total                               100       100            100 
 
Chairman's Statement 
 
Overview 
 
I am pleased to report the unaudited interim results of AEW UK REIT plc (the 'Company') for the six months 
ended 30 September 2020. The Company had a diversified portfolio of 34 commercial investment properties 
 throughout the UK with a value of GBP171.36 million as at 30 September 2020. 
 
The Company's NAV has remained resilient over the period, having fallen by only 0.43% despite the uncertain 
economic backdrop caused by the ongoing COVID-19 pandemic. Although the valuation of the Company's property 
portfolio has fallen by 1.69% on a like-for-like basis over the period, the sale of 2 Geddington Road, 
 Corby, at a price significantly ahead of its prevailing valuation, realised a profit on disposal of GBP3.67 
million. This not only provided a boost to the Company's NAV, but improved the Company's position in terms 
of its cash and debt covenants, thus making the Company robustly positioned to deal with uncertainty 
 resulting from the pandemic. The Company repaid GBP12.00 million of its debt facility in July 2020, resulting 
 in a Loan to NAV ratio of 26.83% while maintaining a healthy cash balance of GBP13.36 million, both as at 30 
September 2020. 
 
The sale of Corby and the resulting loss of the Company's largest tenant at the time has contributed to a 
fall in rental income and therefore a fall in EPRA EPS, which was 3.41 pence for the period. Proceeds from 
the sale of Corby have now begun to be reinvested as our Investment Manager (AEW UK Investment Management 
LLP) is starting to see more attractive opportunities in the investment pipeline that should prove to be 
accretive to both NAV and earnings. The Company made one acquisition post period-end, acquiring a warehouse 
 asset in Weston-Super-Mare for a purchase price of GBP5.40 million. The property shows strong potential for 
medium and long term value growth due to neighbouring land sales for residential development as well as 
offering an attractive income yield in the meantime. We hope that further opportunities such as this will 
allow the Company to increase its earnings over the coming quarters. 
 
The Investment Manager continues to work with the Company's tenants in order to manage the difficulties 
posed by the pandemic. To date, the tenancy profile of the Company has remained largely intact, as the 
vacancy rate by ERV was just 4.9% as at 30 September 2020 (this excludes vacancy at the Company's property 
in Glasgow, which has exchanged to be sold with a condition of vacant possession. Portfolio level vacancy 
increases to 8.2% with this asset included). Rent collection rates have remained high for the March 2020, 
June 2020 and September 2020 rent quarters in comparison with the averages seen in the wider market and we 
expect that ultimate rates of collection, following the expiry of longer-term payment plans, should result 
in collection rates in excess of 90%. There are tenants who continue to face difficulties in the current 
environment and in such instances the Investment Manager has agreed a longer-term payment plan where rental 
income can be recovered in full over coming periods. A prudent assessment has been made of the 
recoverability of the Company's outstanding receivables, taking into account the uncertain economic climate, 
and a provision has been made in the financial statements for expected credit losses. 
 
The active asset management approach of the Investment Manager has continued to add value and limit the 
downside in the current market. During the period, the Company has completed a number of lettings and lease 
renewals which are noted in more detail in the 'Asset Management' section of the Investment Manager's 
report. The most notable of these has been the 15-year lease renewal with the Secretary of State for 
Housing, Communities and Local Government at the Company's office asset, Sandford House, Solihull, which 
resulted in a 30% increase in rental income. In addition to its letting activity, the Company has begun to 
undertake remedial works to its property at Bank Hey Street, Blackpool, which include the overhaul and 
reinstatement of its cathodic protection system, and comprehensive repairs to faience elevations and 
windows. The nature of these repair works means that as the costs are incurred, they will be expensed to the 
Company's profit or loss, with a corresponding increase expected to be seen in the revaluation of the 
property. 
 
The Company's share price was 75.20 pps as at 30 September 2020, representing an 18.90% discount to NAV. 
This reflects the declines experienced in equity markets in general and specifically in the real estate 
sector as a result of the COVID-19 pandemic. In light of the discount in share price to NAV and cash 
reserves available, post period-end the Company has bought back 350,000 of its own shares for gross 
 consideration of GBP262,995, which will have a positive impact on the Company's NAV per share. 
 
We are delighted to announce that the Company has received four awards during the year; EPRA Gold medal for 
Financial Reporting, EPRA Silver medal for Sustainability Reporting and EPRA Most Improved award for 
Sustainability Reporting. The Company has also been named Best UK Real Estate Investment Trust in the 
Citywire Investment Trust Awards based upon its strong three year track record. These awards are a 
reflection of much hard work committed to the Company by the Investment Manager and the Board would like to 
thank the team at AEW and express its positivity and confidence in the Investment Manager's ongoing ability 
to implement the Company's strategy. 
 
Financial Results 
 
               6 month period   6 month period   12 month period 
               from             from             from 
               1 April 2020 to  1 April 2019 to  1 April 2019 to 
               30 September     30 September     31 March 2020 
               2020             2019 
               (unaudited)      (unaudited) 
 
                                                       (audited) 
 
     Operating            5,934            7,264          14,472 
 Profit before 
    fair value 
       changes 
       (GBP'000) 
     Operating            6,276            4,901           5,072 
Profit (GBP'000) 
   PBT (GBP'000)            5,724            4,159           3,652 
  Earnings Per             3.61             2.74            2.40 
  Share (basic 
     &diluted) 
       (pence) 
      EPRA EPS             3.41             4.37            8.67 
    (basic and 
      diluted) 
       (pence) 
       Ongoing             1.31             1.34            1.34 
   Charges (%) 
 NAV per share            92.73            97.36           93.13 
       (pence) 
  EPRA NAV per            92.70            97.32           93.12 
 share (pence) 
 
Financing 
 
  The Company has a GBP60.00 million loan facility, of which it had drawn a balance of GBP39.50 million as at 30 
September 2020 (31 March 2020: GBP60.00 million facility; GBP51.50 million drawn), producing a Loan to NAV ratio 
of 26.83% (31 March 2020: 34.83%). During the period, the Company amended the facility to allow the 
flexibility to make repayments and re-draw these amounts, akin to a revolving credit facility. 
 
The unexpired term of the facility was 3.1 years as at 30 September 2020 (31 March 2020: 3.6 years). The 
loan incurs interest at 3-month LIBOR +1.4%, which equated to an all-in rate of 1.47% as at 30 September 
2020 (31 March 2020: 2.10%). 
 
The Company is protected from a significant rise in interest rates as it has in place interest rate caps. 
Throughout the period and up to 19 October 2020, the Company had in effect interest rate caps on a notional 
value of GBP36.51 million of the loan, with GBP26.51 million capped at 2.50% and GBP10.00 million capped at 2.00%, 
which resulted in the loan balance being 92.4% hedged as at 30 September 2020. During the period, the 
 Company paid a premium of GBP62,968 to enter into new interest rate caps effective from 20 October 2020 and 
for the remaining term of the loan, which cap the LIBOR rate at 1.00% on a notional value of GBP51.50 million. 
 
As noted in the KPIs, the Company targets a long-term gearing of 35% Loan to NAV, which is the maximum 
gearing on drawdown of the RBSi loan facility. The Board and Investment Manager will continue to monitor the 
level of gearing and may adjust the gearing according to the Company's circumstances and perceived risk 
levels. 
 
During the period, the Company obtained consent from its lender, RBSi, to waive the interest cover ratio 
('ICR') tests within its loan agreement for July and October 2020, with the next proposed test being in 
January 2021, which was considered to be a prudent action given the economic environment. Irrespective of 
these waivers the Company would have passed its ICR tests for both July and October 2020. 
 
Dividends 
 
The Company has continued to deliver on its target of paying dividends of 8.00 pps per annum. During the 
period, the Company declared and paid two quarterly dividends of 2.00 pps, in line with its target. 
Dividends for the period were 85.25% covered by EPRA EPS. 
 
It remains the Company's intention to continue to pay dividends in line with its dividend policy, however 
the outlook remains very uncertain given the current COVID-19 pandemic. In determining future dividend 
payments, regard will be had to the circumstances prevailing at the relevant time, as well as the Company's 
requirement, as a UK REIT, to distribute at least 90% of its distributable income annually, which will 
remain a key consideration. 
 
Outlook 
 
At the time of writing this report, the UK faces unprecedented economic uncertainty and it appears likely 
that the economy will continue to struggle for the remainder of 2020 and beyond. While we expect that this 
will continue to impact the property market, the Company remains well positioned to withstand these 
conditions as a result of its healthy cash position and borrowing covenant headroom. Since the onset of the 
pandemic, the Company has displayed stable NAV performance, reflecting the diversity of the portfolio, its 
low exposure to the retail sector and the fact that many of its assets benefit from viable alternative use 
potential, which limits downside risk and volatility. We are also encouraged by strong and improving rent 
collection levels to date. 
 
In the near term, the Board and Investment Manager will continue to focus on minimising the impact of 
COVID-19 on its stakeholders and, as more attractive opportunities arise in the investment market, will aim 
to find suitable assets to build earnings back towards a fully covered dividend, following the sale of the 
Company's Corby asset. The developing economic conditions will be monitored closely and the Company's 
strategy adjusted accordingly. There has recently been some positive news regarding the development of a 
vaccine and it is hoped that its implementation will kick-start economic recovery and provide the conditions 
to enable growth of the Company to resume. 
 
Mark Burton 
 
Chairman 
 
17 November 2020 
 
Key Performance Indicators 
 
KPI AND            RELEVANCE TO         TARGET       PERFORMANCE 
DEFINITION             STRATEGY 
 
1. EPRA NIY 
                                               7.21% 
 
A               An EPRA NIY     7.50 - 10.00% 
representation  profile in line                at 30 September 
to the investor with the                       2020 (31 March 
of what their   Company's                      2020: 8.26%). 
initial net     target dividend 
yield would be  yield shows 
at a            that, after 
predetermined   costs, the 
purchase price  Company should 
after taking    have the 
account of all  ability to meet 
associated      its target 
costs, e.g.     dividend 
void costs and  through 
rent free       property 
periods.        income. 
 
2. True 
Equivalent      A True                         8.30% 
Yield           Equivalent 
                Yield profile 
                in line with    7.50 - 10.00% 
                the Company's                  at 30 September 
The average     target dividend                2020 (31 March 
weighted return yield shows                    2020: 8.04%). 
a property will that, after 
produce         costs, the 
according to    Company should 
the present     have the 
income and      ability to meet 
estimated       its proposed 
rental value    dividend 
assumptions,    through 
assuming the    property 
income is       income. 
received 
quarterly in 
advance. 
 
3. Reversionary 
Yield                                          8.27% 
 
                A Reversionary  7.50 - 10.00% 
The expected    Yield profile                  at 30 September 
return the      that is in line                2020 (31 March 
property will   with an Initial                2020: 7.90%). 
provide once    Yield profile 
rack rented.    shows a 
                potentially 
                sustainable 
                income stream 
                that can be 
                used to meet 
                dividends past 
                the expiry of a 
                property's 
                current leasing 
                arrangements. 
 
4. WAULT to 
expiry                                         6.48 years 
 
                The Investment  >3 years 
The average     Manager                        at 30 September 
lease term      believes that                  2020 (31 March 
remaining to    current market                 2020: 5.55 
expiry across   conditions                     years). 
the portfolio,  present an 
weighted by     opportunity 
contracted      whereby assets 
rent.           with a shorter 
                unexpired lease 
                term are often 
                mispriced. It 
                is also the 
                Investment 
                Manager's view 
                that a shorter 
                WAULT is useful 
                for active 
                asset 
                management, 
                particularly in 
                certain growth 
                sectors such as 
                warehousing, as 
                it allows the 
                Investment 
                Manager to 
                engage in 
                direct 
                negotiation 
                with tenants 
                rather than via 
                rent-review 
                mechanisms. 
5. WAULT to 
break                                          4.99 years 
 
                The Investment  >3 years 
The average     Manager                        at 30 September 
lease term      believes that                  2020 (31 March 
remaining to    current market                 2020: 4.26 
break, across   conditions                     years). 
the portfolio   present an 
weighted by     opportunity 
contracted      whereby assets 
rent.           with a shorter 
                unexpired lease 
                term are often 
                mispriced. As 
                such, it is in 
                line with the 
                Investment 
                Manager's 
                strategy to 
                acquire 
                properties with 
                a WAULT that is 
                generally 
                shorter than 
                the benchmark. 
                It is also the 
                Investment 
                Manager's view 
                that a shorter 
                WAULT is useful 
                for active 
                asset 
                management, 
                particularly in 
                certain growth 
                sectors such as 
                warehousing, as 
                it allows the 
                Investment 
                Manager to 
                engage in 
                direct 
                negotiation 
                with tenants 
                rather than via 
                rent-review 
                mechanisms. 
6. NAV 
                                Increase       GBP147.24 million 
                                year-on-year 
 
NAV is the      Provides 
value of an     stakeholders                   at 30 September 
entity's assets with the most                  2020 (31 March 
minus the value relevant                       2020: GBP147.86 
of its          information on                 million). 
liabilities.    the fair value 
                of the assets 
                and liabilities 
                of the Company. 
 
7. Leverage 
(Loan to NAV)                                  26.83 % 
 
                The Company has 35% 
The proportion  changed the                    at 30 September 
of the          measure of its                 2020 (31 March 
                Leverage KPI                   2020: 34.83%). 
                from 'Loan to 
                Gross Asset 
Company's net   Value ('GAV')' 
assets that is  to 'Loan to 
funded by       NAV'. This is 
borrowings.     in line with 
                the measure 
                used in its 
                banking 
                covenants and 
                so is 
                considered to 
                be more 
                relevant to the 
                Company's 
                position. 
 
                The target of 
                35% Loan to 
                NAV, which is 
                the gearing 
                limit at 
                drawdown under 
                the RBSi 
                facility, 
                approximates to 
                the previous 
                target of 25% 
                Loan to GAV, 
                which is the 
                measure used in 
                the Company's 
                Investment 
                Guidelines. 
                Gearing will 
                continue to be 
                monitored using 
                both measures. 
8. Vacant ERV 
                                               8.21% / 4.90% 
                                               excluding Glasgow 
 
The space in    The Company's   <10.00% 
the property    aim is to 
portfolio which minimise                       at 30 September 
is currently    vacancy of the                 2020 (31 March 
unlet, as a     properties. A                  2020: 3.68%) 
percentage of   low level of 
the total ERV   structural 
of the          vacancy 
portfolio.      provides an 
                opportunity for 
                the Company to 
                capture rental 
                uplifts and 
                manage the mix 
                of tenants 
                within a 
                property. 
 
9. Dividend 
                                               4.00 pps 
 
Dividends       The dividend    4.00 pps 
declared in     reflects the    (period to 30  for the six 
relation to the Company's       September)     months to 30 
year. The       ability to                     September 2020. 
Company targets deliver a 
a dividend of   sustainable 
8.00 pence per  income stream 
Ordinary Share  from its                       This supports an 
per annum.      portfolio.                     annualised target 
However, given                                 of 8.00 pps (six 
the current                                    months to 30 
COVID-19                                       September 2019: 
situation,                                     4.00 pps). 
regard will be 
had to the 
circumstances 
prevailing at 
the relevant 
 
time in 
determining 
dividend 
payments. 
 
10. Ongoing 
Charges                                        1.31% 
 
                The Ongoing     <1.50% 
The ratio of    Charges ratio                  for the six 
annualised      provides a                     months to 30 
administration  measure of                     September 2020 
and operating   total costs                    (six months to 30 
costs expressed associated with                September 2019: 
as a percentage managing and                   1.34%). 
of average NAV  operating the 
throughout the  Company, which 
period.         includes the 
                management fees 
                due to the 
                Investment 
                Manager. This 
                measure is to 
                provide 
                investors with 
                a clear picture 
                of operational 
                costs involved 
                in running the 
                Company. 
 
11. Profit 
Before Tax 
('PBT') 
 
                The PBT is an   4.00 pps       GBP5.72 
                indication of   (period to     million/3.61 pps 
PBT is a        the Company's 
profitability   financial 
measure which   performance for 
considers the   the period in   30 September)  for the six 
Company's       which its                      months to 30 
profit before   strategy is                    September 2020 
the payment of  exercised.                     (six months to 30 
income tax.                                    September 2019: 
                                               GBP4.16 
                                               million/2.74 
                                               pps). 
 
12. Shareholder 
Total Return                                   16.13% 
 
                This reflects   8.00% 
The percentage  the return seen                for the six 
change in the   by shareholders                months to 30 
share price     on their                       September 2020 
assuming        shareholdings                  (six months to 30 
dividends are   through share                  September 2019: 
reinvested to   price movements                5.50%). 
purchase        and dividends 
additional      received. 
Ordinary 
Shares. 
 
13. EPRA EPS 
                This reflects                  3.41 pps 
                the Company's 
                ability to 
Earnings from   generate        4.00 pps 
core            earnings from   (period to     for the six 
operational     the portfolio                  months to 30 
activities. A   which underpins                September 2020 
key measure of  dividends.                     (six months to 30 
a company's                     30 September)  September 2019: 
underlying                                     4.37 pps). 
operating 
results from 
its property 
rental business 
and an 
indication of 
the extent to 
which current 
dividend 
payments are 
supported by 
earnings. See 
note 8. 
 
Investment Manager's Report 
 
Economic Outlook 
 
As a second wave of the COVID-19 pandemic leads to increased lockdown restrictions being implemented across 
the country, the UK faces continued uncertainty. The economy has already experienced contraction in the 
quarter to 30 June 2020 following a nationwide lockdown and KPMG's September 2020 UK Economic Outlook 
expects the economy to contract by 10.3% over the year as a whole. When the Government withdraws its job 
retention scheme, unemployment will be expected to rise and key indicators of short term economic outlook 
will be the extent of the impact of the second wave, the subsequent responses needed to contain the virus 
and further progress in the development of a vaccine. 
 
The strength and timing of the economic recovery thereafter will largely depend on the success in 
implementing a vaccine, while a no deal Brexit scenario will also pose a risk. The KPMG Economic Outlook 
forecasts growth of 8.4% in 2021, assuming a vaccine is approved in January 2021 and an outline trade 
agreement is reached with the EU by the end of the transition period, with the economy forecast to reach 
pre-COVID-19 levels by the start of 2023. However, the picture is ever changing and it is difficult to place 
any significant reliance on forecasts with such variable assumptions. Inflation is expected to remain well 
below the Bank of England's 2% target, which should see the base rate remain at 0.1% or below until at least 
the end of 2021. 
 
General recovery in the UK commercial property market is expected to track that of the wider UK economy 
although recovery in sub sectors of the property market will be driven by structural forces as well. A much 
publicised example of this includes the growth of online retail sales at the expense of physical stores, 
which has seen a divergence in the capital values of the retail and industrial warehousing sectors. This 
trend is an important one for the Company's portfolio due to its high weighting to industrial and 
warehousing property which makes up 52.9% of its property assets by value as at 30 September 2020. Given 
this weighting, the Company expects to continue its current trend of outperformance against the UK 
commercial property market as a whole. The high exposure to this sector is expected to continue to provide a 
resilient outlook for the Company's major performance indicators including net asset value, earnings and 
occupancy, despite wider economic uncertainty. The high portfolio weighting to warehouses is also expected 
to continue to provide a positive outlook for rent collection, which, based on levels seen to date since the 
start of the pandemic, is ultimately expected to well exceed 90% in each quarter. 
 
This robust base will further be supported by the Investment Manager's proactive approach to asset 
management which, despite the ongoing pandemic, has delivered six new lettings in the portfolio since the 
start of UK-wide lockdowns in March 2020 across all major market sectors including retail. These lettings 
have secured ongoing rental income to the Company at a weighted average of 5% ahead of previous independent 
estimates. 
 
Financial Results 
 
  The Company's NAV as at 30 September 2020 was GBP147.24 million or 92.73 pps (31 March 2020: GBP147.86 million 
or 93.13 pps). This is a decrease of 0.40 pps or 0.27% over the period. 
 
EPRA EPS for the year was 3.41 pps which, based on dividends paid of 4.00 pps, reflects a dividend cover of 
85.25%. The reduction in dividend cover has largely come about due to the loss of rental income following 
the disposal of 2 Geddington Road, Corby, in May 2020, which realised a profit on disposal of GBP3.67 million. 
Income from the remaining tenancy profile has remained largely intact. Collection rates have reached 93% and 
89% for the March 2020 and June 2020 quarters respectively, with further payments expected to be received 
 under longer-term payment plans. Of the outstanding arrears, GBP0.20 million has been provided for expected 
credit losses. 
 
Financing 
 
 As at 30 September 2020, the Company has a GBP60.0 million loan facility with RBSi, in place until October 
2023, the details of which are presented below: 
 
                          30 September 2020        31 March 2020 
              Facility       GBP60.00 million       GBP60.00 million 
                 Drawn       GBP39.50 million       GBP51.50 million 
 Gearing (Loan to NAV)               26.83%               34.83% 
         Interest rate  1.47% all-in (LIBOR  2.10% all-in (LIBOR 
                                   + 1.40%)              + 1.4%) 
Notional Value of Loan               92.40%               70.90% 
        Balance Hedged 
 
On 24 June 2020, the Company announced an amendment to its facility, allowing the flexibility to make 
repayments and re-draw these amounts, akin to a revolving credit facility. 
 
Property Portfolio 
 
During the period, the Company disposed of 2 Geddington Road, Corby, for net proceeds of GBP18.68 million. The 
Company made no acquisitions during the period. 
 
The Company made no acquisitions during the period and disposed of one property, Geddington Road, Corby, for 
  net proceeds of GBP18.68 million, realising a profit on disposal of GBP3.67 million. The following tables 
illustrate the composition of the portfolio in relation to its properties, tenants and income streams: 
 
Summary by Sector as at 30 September 2020 
 
                                                     Gross   Gross                       Like-   Like- 
 
                                                   passing passing                         for     for 
                                                                                          like    like 
 
                                   Vacancy   WAULT  rental  rental              Rental 
             Number                             to                                      rental  rental 
             of 
 
                    Valuation Area  by ERV          income  income   ERV    ERV income 
                                             break                                     growth* growth* 
             assets 
 
      Sector             (GBPm)  (sq     (%)            (GBPm)  (GBPpsf)  (GBPm) (GBPpsf)   (GBPm) 
                               ft)         (years)                                        (GBPm)       % 
 
  Industrial     20     90.61 2,33    5.13    3.64    7.03    3.01  8.60   3.68   4.23    0.13    3.24 
                              6,08 
                                 7 
      Office      6     45.85 286,    2.76    4.15    2.91   10.15  4.16  14.50   1.60   -0.08   -5.01 
                               909 
Alternatives      2     13.00 112,    0.00    7.85    1.50   13.31  1.28  11.44   0.96    0.04    3.41 
                               355 
    Standard      5     16.40 168,   11.02    4.82    2.06   12.17  1.65   9.76   1.03   -0.29  -22.15 
      Retail                   917 
      Retail      1      5.50 51,0    0.00    3.51    0.61   11.96  0.52  10.09   0.30    0.00    0.07 
   Warehouse                    21 
 
   Portfolio     34    171.36 2,95  8.21**    4.99   14.11    4.77 16.21   5.49   8.12   -0.20   -2.26 
                              5,28 
                                 9 
 
Summary by Geographical Area as at 30 September 2020 
 
                                                     Gross   Gross                       Like-   Like- 
 
                                                   passing passing                         for     for 
                                                                                          like    like 
 
                                   Vacancy   WAULT  rental  rental              Rental 
             Number                             to                                      rental  rental 
             of 
 
                    Valuation Area  by ERV          income  income   ERV    ERV income 
Geographical                                 break                                     growth* growth* 
Area         assets 
 
                         (GBPm)  (sq     (%)            (GBPm)  (GBPpsf)  (GBPm) (GBPpsf)   (GBPm) 
                               ft)         (years)                                        (GBPm)       % 
 
   Yorkshire      8     34.46 1,02    4.59    1.87    2.43    2.37  3.49   3.31   1.58   -0.03   -1.59 
         and                  7,80 
  Humberside                     1 
  South East      5     25.83 195,    8.95    3.77    2.11   10.78  2.21  11.67   1.23   -0.18  -12.93 
                               545 
     Eastern      5     20.50 344,   11.36    1.99    1.47    4.27  2.10   6.10   0.96    0.03    3.75 
                               885 
  South West      3     20.60 125,    0.00    2.31    1.73   13.82  1.77  14.14   0.83    0.01    0.64 
                               004 
        West      4     21.15 398,    3.59    7.21    1.84    4.62  1.75   4.69   0.96    0.03    2.69 
    Midlands                   273 
        East      1      4.00 28,2    0.00    5.65    0.39   13.64  0.40  18.59   0.38   -0.07   -7.92 
    Midlands                    19 
  North West      4     13.87 302,    6.11    4.66    1.39    4.61  1.28   4.30   0.66   -0.04   -6.27 
                               061 
       Wales      2     13.25 376,    0.00    8.58    1.25    3.31  1.30   3.44   0.64    0.00    0.52 
                               138 
     Greater      1      9.25 71,7    0.00   11.12    0.96   13.40  0.75  10.45   0.52    0.05   10.05 
      London                    20 
    Scotland      1      8.45 85,6    51.1    1.49    0.54    6.33  1.16  13.54   0.36    0.00    2.52 
                                43 
 
   Portfolio     34    171.36 2,95  8.21**    4.99   14.11    4.77 16.21   5.49   8.12   -0.20   -2.26 
                              5,28 
                                 9 
 
*like-for-like rental growth is for the six months ended 30 September 2020. 
 
**excluding Glasgow, total vacancy is 4.90%. 
 
Source: Knight Frank/AEW, 30 September 2020. 
 
Individual Property Classifications 
 
                                                         Market 
                                                          Value 
            Property         Sector          Region  Range (GBPm) 
 
1  40 Queen Square,  Offices        South West      10.0 - 15.0 
   Bristol 
2  Eastpoint         Offices        South East      10.0 - 15.0 
   Business Park, 
   Oxford 
3  Sandford House,   Offices        West Midlands    7.5 - 10.0 
   Solihull 
4  London East       Other          Greater London   7.5 - 10.0 
   Leisure Park,     (Leisure) 
   Dagenham 
5  Gresford          Industrial     Wales            7.5 - 10.0 
   Industrial 
   Estate, Wrexham 
6  225 Bath Street,  Offices        Scotland         7.5 - 10.0 
   Glasgow 
7  Langthwaite       Industrial     Yorkshire and    7.5 - 10.0 
   Grange Industrial                Humberside 
   Estate, South 
   Kirby 
8  Lockwood Court,   Industrial     Yorkshire and     5.0 - 7.5 
   Leeds                            Humberside 
9  Storeys Bar Road, Industrial     Eastern           5.0 - 7.5 
   Peterborough 
10 Sarus Court       Industrial     North West        5.0 - 7.5 
   Industrial 
   Estate, Runcorn 
 
The Company's top ten properties listed above comprise 50.1% of the total value of the portfolio. 
 
                                                         Market 
                                                          Value 
           Property          Sector          Region  Range (GBPm) 
 
11 Apollo Business  Industrial      Eastern           5.0 - 7.5 
   Park, Basildon 
12 Barnstaple       Retail          South West        5.0 - 7.5 
   Retail Park      Warehouse 
13 Euroway Trading  Industrial      Yorkshire and     5.0 - 7.5 
   Estate, Bradford                 Humberside 
14 Brockhurst       Industrial      West Midlands     5.0 - 7.5 
   Crescent, 
   Walsall 
15 Above Bar        Standard Retail South East             <5.0 
   Street, 
   Southampton 
16 Diamond Business Industrial      Yorkshire and          <5.0 
   Park, Wakefield                  Humberside 
17 Cranbourne       Industrial      South East             <5.0 
   House, 
   Basingstoke 
18 Excel 95,        Industrial      Wales                  <5.0 
   Deeside 
19 Oak Park,        Industrial      West Midlands          <5.0 
   Droitwich 
20 Commercial Road, Standard Retail South East             <5.0 
   Portsmouth 
21 Pearl Assurance  Standard Retail East Midlands          <5.0 
   House, 
   Nottingham 
22 Walkers Lane,    Industrial      North West             <5.0 
   St. Helens 
23 Cedar House,     Offices         South West             <5.0 
   Gloucester 
24 Odeon Cinema,    Other (Leisure) Eastern 
   Southend 
 
                                                           <5.0 
25 Brightside Lane, Industrial      Yorkshire and 
   Sheffield                        Humberside 
 
                                                           <5.0 
26 Magham Road,     Industrial      Yorkshire and 
   Rotherham                        Humberside 
 
                                                           <5.0 
27 Pipps Hill       Industrial      Eastern 
   Industrial 
   Estate, Basildon 
 
                                                           <5.0 
28 Bank Hey Street, Standard Retail North West 
   Blackpool 
 
                                                           <5.0 
29 Eagle Road,      Industrial      West Midlands 
   Redditch 
 
                                                           <5.0 
30 Clarke Road,     Industrial      South East 
   Milton Keynes 
 
                                                           <5.0 
31 Knowles Lane,    Industrial      Yorkshire and 
   Bradford                         Humberside 
 
                                                           <5.0 
32 Vantage Point,   Offices         Eastern 
   Hemel Hempstead 
 
                                                           <5.0 
33 Moorside Road,   Industrial      North West 
   Salford 
 
                                                           <5.0 
34 Fargate and      Standard Retail Yorkshire and 
   Chapel Walk,                     Humberside 
   Sheffield 
 
                                                           <5.0 
 
Sector and Geographical Allocation by Market Value as at 30 September 2020 
 
Sector Allocation 
 
          Sector    % 
 Standard Retail  9.6 
Retail Warehouse  3.2 
         Offices 26.8 
      Industrial 52.8 
           Other  7.6 
 
Geographical Allocation 
 
                Location    % 
          Greater London  5.4 
              South East 15.1 
              South West 12.1 
                 Eastern 12.0 
           West Midlands 12.3 
           East Midlands  2.3 
              North West  8.1 
Yorkshire and Humberside 20.1 
                   Wales  7.7 
                Scotland  4.9 
 
Top Ten Tenants 
 
           Tenant     Sector         Property Passing       % of 
 
                                               Rental  Portfolio 
 
                                               Income      Total 
 
                                              (GBP'000) Contracted 
 
                                                          Rental 
 
                                                          Income 
                                                  984        6.4 
 
1  The Secretary 
   of State for 
   Housing, 
   Communities 
   and Local 
   Government 
                  Office     Sandford House, 
                             Solihull and 
                             Cedar House, 
                             Gloucester 
2  Plastipak UK   Industrial Gresford             883        5.8 
   Limited                   Industrial 
                             Estate, Wrexham 
3  Ardagh Glass   Industrial Langthwaite          676        5.0 
   Limited                   Industrial 
                             Estate, South 
                             Kirkby 
4  Mecca Bingo    Leisure    London East          625        4.1 
   Limited                   Leisure Park, 
                             Dagenham 
5  Harrogate      Industrial Lockwood Court,      603        3.9 
   Spring Water              Leeds 
6  Odeon Cinemas  Leisure    Odeon Cinema,        535        3.5 
                             Southend 
7  Sports Direct  Retail     Barnstaple           525        3.4 
                             Retail Park and 
                             Bank Hey Street, 
                             Blackpool 
8  Wyndeham       Industrial Storeys Bar          525        3.4 
   Peterborough              Road, 
   Limited                   Peterborough 
9  Egbert H       Industrial Oak Park,            500        3.3 
   Taylor &                  Droitwich 
   Company 
   Limited 
10 HFC Prestige   Industrial Cranbourne           460        3.0 
   Manufacturing             House, 
                             Basingstoke 
 
The Company's top ten tenants, listed above, represent 41.8% of the total passing rental income of the 
portfolio. 
 
Asset Management 
 
The Company completed the following material asset management transactions during the period: 
 
Bank Hey Street, Blackpool - In May 2020, the Company signed a reversionary lease with existing tenant JD 
Wetherspoon. This documents the removal of the tenant's break option in 2025 and provides an additional 
10-year lease term taking the earliest expiry from 2025 to 2050. The annual rent payable by the tenant has 
  reduced from GBP96,750 to GBP90,000 but the lease now provides five-yearly fixed increases reflecting 1% per 
annum. 
 
2 Geddington Road, Corby - On 22 May 2020, the Company disposed of its largest asset at 2 Geddington Road, 
 Corby, for gross proceeds of GBP18.80 million, 25% ahead of the valuation level immediately prior and 52% 
ahead of its acquisition price in 2018. The asset had been delivering an income yield to the Company of 10% 
per annum. 
 
Sandford House, Solihull - During June 2020, the Company completed a 15-year renewal lease with its existing 
tenant, the Secretary of State for Housing, Communities and Local Government. The agreement documents the 
increase of rental income from the property by 30% as well as providing for five-yearly open market rent 
reviews and a tenant break option at year 10. The tenant intends to carry out a full refurbishment of the 
property over coming weeks requiring no capital payment by the Company either by way of refurbishment cost 
or capital incentive to the tenant. In addition, no rent free incentive has been granted to the tenant. 
Throughout its hold period the Company has so far received a net income yield from the asset in excess of 9% 
 per annum against its purchase price of GBP5.4 million. 
 
Bessemer Road, Basingstoke - In July 2020, the Company completed a 5-year lease renewal at its 58,000 sq ft 
industrial premises in Basingstoke. The lease has been granted with no rent free incentive given to the 
tenant and secures a rental income to the Company 6% ahead of independent valuer's estimated levels. The 
tenant has the benefit of a break option in year 3. 
 
Langthwaite Grange Industrial Estate, South Kirkby - During August 2020, a lease renewal was signed with the 
Company's third largest tenant, Ardagh Glass. Rent payable under the new lease has been agreed 13% ahead of 
both independent valuer's estimated levels and the previous level of passing rent. The lease is for a 
five-year term and the tenant will benefit from four months' rent free and a tenant break option after three 
years. 
 
Clarke Road, Milton Keynes and Moorside Road, Swinton - Nationwide Crash Repair Centres Limited, the tenant 
of this asset, which comprises 2% of the Company's annual rental income, appointed administrators on 3 
September 2020 although subsequently, on 4 September 2020, the business was acquired by Redde Northgate Plc. 
Redde Northgate have confirmed that they intend to operate the Milton Keynes branch, the larger of the two 
within AEWU ownership, and negotiations are currently underway to extend the terms of this lease which 
should prove to be value accretive to the Company. Redde Northgate is a substantial and well capitalised 
 business reporting profit before tax of over GBP60 million for the year ending 30 April 2019. The former 
Swinton branch of Nationwide Crash Repair Centres, representing 0.8% of the Company's annual rental income, 
will not be operated by Redde Northgate on an ongoing basis, however interest has already been received from 
a prospective new tenant. 
 
Apollo Business Park, Basildon - During September 2020, the Company completed a 5-year lease renewal on 
35,300 sq ft of these multi-let industrial premises in Basildon. The lease secures a rental income to the 
Company 4% ahead of independent valuer's estimated levels and 30% ahead of the previous rental level. The 
tenant will benefit from 6 months' rent free. 
 
Wheeler Gate, Nottingham - In September 2020, a 5-year renewal lease was completed with Costa Coffee on a 
1,400 sq ft retail unit located in central Nottingham. The reversionary lease documents the rebasing of 
Costa's rent from GBP110,000 to GBP52,000 per annum in line with its estimated rental value. The tenant benefits 
from 9 months' rent free. 
 
Bath Street, Glasgow - During October 2020, the Company exchanged contracts to sell its 85,000 sq ft office 
holding at 225 Bath Street in Glasgow city centre to a subsidiary company of IQ Student Accommodation. The 
transaction is conditional upon various matters including the grant of planning permission for the 
development of a 480 bedroom student housing development. Sale pricing will be determined following the 
  approval of all conditions according to an agreed matrix ranging from GBP8.55 to GBP9.30 million. Transaction 
pricing reflects 98% of pricing levels being discussed by the parties prior to the onset of the COVID-19 
pandemic. 
 
Bank Hey Street, Blackpool - The Company has begun to undertake remedial works to its property in Blackpool, 
which include the overhaul and reinstatement of its cathodic protection system, and comprehensive repairs to 
faience elevations and windows. Works have been budgeted at a total cost to the Company of GBP1.7 million over 
two years. The nature of these repair works means that as the costs are incurred, they will be expensed to 
the Company's profit or loss, with a corresponding increase expected to be seen in the revaluation of the 
property, all else being equal. 
 
Weston Super Mare - Post period end, the Company acquired the multi-let Westlands Distribution Park in 
 Weston Super Mare for a purchase price of GBP5.4 million. The purchase price reflects a low capital value of 
 GBP175,000 per acre which provides strong potential for future capital value growth based upon nearby 
  comparable land transactions which range between GBP350,000 and GBP500,000 per acre for other commercial and 
residential uses. The estate, located 3 miles from the M5 Motorway, provides a net initial yield of 6.4% 
which is expected to increase to at least 7.4% within the medium term. The average passing rent of GBP1.50 per 
sq ft also provides strong potential for rental growth. Tenants include North Somerset District Council who 
make up 30% of the income stream. 
 
Vacancy - The portfolio's overall vacancy level now sits at 4.9%, excluding vacancy contributed by the asset 
at 225 Bath Street, Glasgow which, as discussed above, has now been exchanged for sale for alternative use 
redevelopment. As a condition of the sale agreement, full vacancy must be achieved in the building before 
the sale can be completed. Including this asset, overall vacancy is 8.21%. 
 
AEW UK Investment Management LLP 
 
17 November 2020 
 
Principal Risks and Uncertainties 
 
The Company's assets consist primarily of UK commercial property. Its principal risks are therefore related 
to the commercial property market in general, but also to the particular circumstances of the individual 
properties and the tenants within the properties. 
 
The Board has overall responsibility for reviewing the effectiveness of the system of risk management and 
internal control which is operated by the Investment Manager. The Company's ongoing risk management process 
is designed to identify, evaluate and mitigate the significant risks the Company faces. 
 
At least twice a year, the Board undertakes a formal risk review with the assistance of the Audit Committee, 
to assess the adequacy and effectiveness of the Investment Manager and other service providers' risk 
management and internal control processes. 
 
The Board has carried out a robust assessment of the principal and emerging risks facing the Company, 
including those that would threaten its business model, future performance, solvency or liquidity. 
 
An analysis of the principal risks and uncertainties is set out below. The risks below do not purport to be 
exhaustive as some risks are not yet known and some risks are currently not deemed material but could turn 
out to be material in the future. Changes to the principal risks since the date of the Annual Report and 
Financial Statements for the year ended 31 March 2020 are indicated below. 
 
 Principal risks and        How risk is managed Risk assessment 
     their potential 
              impact 
                              REAL ESTATE RISKS 
 
1. Property market 
 
 Any property market The Company has investment Probability: 
 recession or future   restrictions in place to High 
deterioration in the      invest and manage its 
     property market  assets with the objective 
  could, inter alia,           of spreading and 
       (i) cause the           mitigating risk. Impact: High 
  Company to realise 
  its investments at 
   lower valuations; 
  and (ii) delay the                            Movement: No 
      timings of the                            change 
           Company's 
 realisations. These 
  risks could have a 
    material adverse 
       effect on the 
      ability of the 
  Company to achieve 
      its investment 
          objective. 
 
         2. Property 
           valuation 
 
                            The Company uses an Probability: 
        Property and       independent external Moderate 
    property-related  valuer (Knight Frank LLP) 
          assets are to value the properties at 
inherently difficult   fair value in accordance 
 to value due to the         with accepted RICS Impact: Low to 
individual nature of    appraisal and valuation Moderate 
      each property.                 standards. 
 
                                                Movement: 
                                                Decrease 
 
     There may be an 
   adverse effect on 
       the Company's 
  profitability, the 
NAV and the price of 
  Ordinary Shares in 
         cases where 
 properties are sold 
    whose valuations 
have previously been 
          materially 
         overstated. 
 
   3. Tenant default 
 
  Failure by tenants          Comprehensive due Probability: 
     to fulfil their diligence is undertaken on High 
  rental obligations    all new tenants. Tenant 
    could affect the        covenant checks are 
     income that the     carried out on all new 
 properties earn and    tenants where a default Impact: High 
  the ability of the   would have a significant 
      Company to pay                    impact. 
    dividends to its 
       shareholders.                            Movement: No 
                                                change 
 
                          Asset management team 
                               conducts ongoing 
                         monitoring and liaison 
                         with tenants to manage 
                       potential bad debt risk. 
 4. Asset management 
         initiatives 
 
                        Costs incurred on asset    Probability: 
    Asset management management initiatives are 
initiatives, such as  closely monitored against 
refurbishment works,    budgets and reviewed in 
may prove to be more   regular presentations to Low to moderate 
extensive, expensive  the Investment Management  Impact: Low to 
and take longer than           Committee of the        moderate 
   anticipated. Cost        Investment Manager.       Movement: 
 overruns may have a                                   Increase 
    material adverse 
       effect on the 
           Company's 
  profitability, the 
   NAV and the share 
              price. 
 
    5. Due diligence 
 
   Due diligence may          The Company's due Probability: 
not identify all the   diligence relies on work Low 
           risks and  (such as legal reports on 
      liabilities in            title, property 
       respect of an  valuations, environmental 
         acquisition      and building surveys) Impact: 
      (including any        outsourced to third Moderate 
      environmental, parties who have expertise 
       structural or in their areas. Such third 
operational defects)  parties have professional 
  that may lead to a  indemnity cover in place. Movement: No 
    material adverse                            change 
       effect on the 
           Company's 
  profitability, the 
NAV and the price of 
       the Company's 
    Ordinary Shares. 
 
   6. Fall in rental 
               rates 
 
                           The Company builds a Probability: 
 Rental rates may be   diversified property and Moderate to 
  adversely affected           tenant base with High 
       by general UK   subsequent monitoring of 
 economic conditions           concentration to 
   and other factors  individual occupiers (top 
 that depress rental    10 tenants) and sectors Impact: 
    rates, including   (geographical and sector Moderate to 
       local factors                 exposure). High 
         relating to 
          particular 
properties/locations 
  (such as increased                            Movement: No 
       competition).                            change 
 
                         The Investment Manager 
                       holds quarterly meetings 
                            with its Investment 
                         Strategy Committee and 
                      regularly meets the Board 
     Any fall in the     of Directors to assess 
rental rates for the whether any changes in the 
Company's properties  market present risks that 
 may have a material should be addressed in the 
   adverse effect on        Company's strategy. 
       the Company's 
  profitability, the 
   NAV, the price of 
 the Ordinary Shares 
   and the Company's 
     ability to meet 
interest and capital 
   repayments on any 
    debt facilities. 
 
                                FINANCIAL RISKS 
 
        7. Breach of 
 borrowing covenants 
 
                       The Company monitors the    Probability: 
     The Company has    use of borrowings on an 
 entered into a term      ongoing basis through 
    credit facility.           weekly cash flow 
                      forecasting and quarterly Low to Moderate 
                     risk monitoring to monitor 
                           financial covenants. 
 
                                                   Impact: High 
 
    Material adverse 
          changes in                               Movement: No 
  valuations and net                                     change 
  income may lead to 
 breaches in the LTV 
  and interest cover 
    ratio covenants. 
 
    8. Interest rate 
  rises (short term) 
 
                      The Company uses interest    Probability: 
       The Company's rate caps on a significant 
borrowings through a notional value of the loan 
term credit facility    to mitigate the adverse 
      are subject to         impact of possible Low to Moderate 
  interest rate risk       interest rate rises. 
    through changing 
    LIBOR rates. Any 
  increases in LIBOR                                Impact: Low 
   rates may have an 
   adverse effect on 
       the Company's 
      ability to pay                                  Movement: 
          dividends. The Investment Manager and        Decrease 
                     Board of Directors monitor 
                       the level of hedging and 
                     interest rate movements to 
                        ensure that the risk is 
                         managed appropriately. 
    9. Interest rate 
   rises (long term) 
 
                      The Company uses interest    Probability: 
       The Company's rate caps on a significant            High 
borrowings through a notional value of the loan 
term credit facility    to mitigate the adverse 
      are subject to         impact of possible 
  interest rate risk       interest rate rises.  Impact: Low to 
    through changing                                   Moderate 
    LIBOR rates. Any 
  increases in LIBOR 
   rates may have an 
   adverse effect on                                  Movement: 
       the Company's                                   Increase 
      ability to pay 
          dividends. The Investment Manager and 
                     Board of Directors monitor 
                       the level of hedging and 
                     interest rate movements to 
                        ensure that the risk is 
                         managed appropriately. 
10. Availability and 
        cost of debt 
 
                        The Company maintains a    Probability: 
     The term credit good relationship with the 
 facility expires in    bank providing the term 
October 2023. In the           credit facility. 
event that RBSi does                            Low to Moderate 
       not renew the 
       facility, the 
 Company may need to 
sell assets to repay                               Impact: High 
     the outstanding 
  loan. Any increase 
    in the financing   The Company monitors the 
        costs of the        projected usage and    Movement: No 
 facility on renewal    covenants of the credit          change 
     would adversely    facility on a quarterly 
       impact on the                     basis. 
           Company's 
      profitability. 
 
                                CORPORATE RISKS 
 
  11. Use of service 
           providers 
 
                     The performance of service    Probability: 
  The Company has no   providers in conjunction     Moderate to 
    employees and is   with their service level            High 
    reliant upon the    agreements is monitored 
performance of third      via regular calls and 
       party service  face-to-face meetings and 
          providers. the use of key performance         Impact: 
                              indicators, where        Moderate 
                                      relevant. 
 
                                                      Movement: 
                                                       Increase 
 
      Failure by any 
 service provider to 
       carry out its 
  obligations to the 
          Company in 
 accordance with the 
        terms of its 
   appointment could 
   have a materially 
  detrimental impact 
 on the operation of 
        the Company. 
   12. Dependence on 
      the Investment 
             Manager 
      The Investment 
          Manager is The Investment Manager has    Probability: 
     responsible for endeavoured to ensure that        Moderate 
providing investment   the principal members of         Impact: 
 management services    its management team are     Moderate to 
     to the Company.     suitably incentivised.            High 
 
                                                   Movement: No 
                                                         change 
 
  The future ability 
   of the Company to 
 successfully pursue 
      its investment 
       objective and 
   investment policy 
    may, among other 
   things, depend on 
  the ability of the 
  Investment Manager 
       to retain its 
      existing staff 
   and/or to recruit 
      individuals of 
  similar experience 
        and calibre. 
 13. Ability to meet 
          objectives 
 
                             The Company has an    Probability: 
 The Company may not       investment policy to            High 
 meet its investment         achieve a balanced 
objective to deliver           portfolio with a 
 an attractive total      diversified asset and 
           return to   tenant base. The Company    Impact: High 
   shareholders from        also has investment 
           investing   restrictions in place to 
  predominantly in a          limit exposure to 
portfolio of smaller    potential risk factors.    Movement: No 
          commercial These factors mitigate the          change 
   properties in the    risk of fluctuations in 
     United Kingdom.                   returns. 
 
 Poor relative total 
  return performance 
      may lead to an 
adverse reputational 
 impact that affects 
       the Company's 
ability to raise new 
            capital. 
                                 TAXATION RISKS 
 
    14. Company REIT 
              status 
 
                      The Company monitors REIT    Probability: 
The Company has a UK     compliance through the             Low 
    REIT status that      Investment Manager on 
          provides a          acquisitions; the 
       tax-efficient Administrator on asset and 
corporate structure.   distribution levels; the    Impact: High 
                        Registrar and Broker on 
                      shareholdings and the use 
                             of third-party tax 
                       advisers to monitor REIT    Movement: No 
                                                         change 
 
If the Company fails   compliance requirements. 
to remain a REIT for 
UK tax purposes, its 
   profits and gains 
  will be subject to 
 UK corporation tax. 
 
   Any change to the 
tax status or UK tax 
   legislation could 
       impact on the 
Company's ability to 
         achieve its 
          investment 
      objectives and 
  provide attractive 
          returns to 
       shareholders. 
                   15. POLITICAL/ECONOMIC RISKS 
 
         15. General 
  political/economic The Board considers the 
         environment impact of political and 
                     macroeconomic events when 
                     reviewing strategy.           Probability: 
                                                           High 
       Political and 
macroeconomic events 
present risks to the 
     real estate and                               Impact: High 
   financial markets 
     that affect the 
     Company and the 
     business of its                               Movement: No 
  tenants. The level                                     change 
 of uncertainty that 
   such events bring 
has been highlighted 
    in recent times, 
    most pertinently 
    following the EU 
     referendum vote 
    (Brexit) in June 
               2016. 
 
        16. COVID-19 
 
        The economic  The Investment Manager is    Probability: 
  disruption arising      in close contact with            High 
   from the COVID-19    tenants. The Investment 
  virus could impact   Manager has put in place 
       rental income social distancing measures 
       receipts from       as advised by the UK    Impact: High 
tenants, the ability government. The Investment 
to access funding at   Manager has maintained a 
  competitive rates,    close relationship with 
        maintain the  RBSi to ensure continuing       Movement: 
  Company's dividend dialogue around covenants.        Increase 
      policy and its 
    adherence to the 
   HMRC REIT regime, 
 particularly if the 
       UK government 
 restrictions are in 
         place for a 
   prolonged period. 
 
Interim Management Report and Directors' Responsibility Statement 
 
Interim Management Report 
 
The important events that have occurred during the period under review, the key factors influencing the 
financial statements and the principal risks and uncertainties for the remaining six months of the financial 
year are set out above. 
 
Responsibility Statement 
 
We confirm that to the best of our knowledge: 
 
· the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial 
Reporting as adopted by the EU; 
 
· the interim management report includes a fair review of the information required by: 
 
a) DTR 4.2.7R, being an indication of important events that have occurred during the first six months of 
the financial year and their impact on the condensed set of financial statements; and a description of the 
principal risks and uncertainties for the remaining six months of the year; and 
 
b) DTR 4.2.8R, being related party transactions that have taken place in the first six months of the 
current financial year and that have materially affected the financial position or performance of the 
entity during that period; and any changes in the related party transactions described in the last annual 
report that could do so. 
 
On behalf of the Board 
 
Mark Burton 
 
Chairman 
 
17 November 2020 
 
Independent Review Report to AEW UK REIT PLC 
 
*Conclusion * 
 
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly 
financial report for the six months ended 30 September 2020 which comprises the Condensed Statement of 
Comprehensive Income, Condensed Statement of Changes in Equity, Condensed Statement of Financial Position, 
Condensed Statement of Cash Flows and the related explanatory notes. 
 
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of 
financial statements in the half-yearly financial report for the six months ended 30 September 2020 is not 
prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted by the 
EU and the Disclosure Guidance and Transparency Rules ('the DTR') of the UK's Financial Conduct Authority 
('the UK FCA'). 
 
*Scope of review * 
 
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 
2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by 
the Auditing Practices Board for use in the UK. A review of interim financial information consists of making 
enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical 
and other review procedures. We read the other information contained in the half-yearly financial report and 
consider whether it contains any apparent misstatements or material inconsistencies with the information in 
the condensed set of financial statements. 
 
A review is substantially less in scope than an audit conducted in accordance with International Standards 
on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all 
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. 
 
*Directors' responsibilities * 
 
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The 
Directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the 
UK FCA. 
 
The annual financial statements of the Company are prepared in accordance with International Financial 
Reporting Standards as adopted by the EU. The Directors are responsible for preparing the condensed set of 
financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted by 
the EU. 
 
Our responsibility 
 
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in 
the half-yearly financial report based on our review. 
 
The purpose of our review work and to whom we owe our responsibilities 
 
This report is made solely to the Company in accordance with the terms of our engagement to assist the 
Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we 
might state to the Company those matters we are required to state to it in this report and for no other 
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other 
than the Company for our review work, for this report, or for the conclusions we have reached. 
 
Matthew Williams 
 
for and on behalf of KPMG LLP 
 
Chartered Accountants 
 
15 Canada Square 
 
London 
 
E14 5GL 
 
17 November 2020 
 
Financial Statements 
 
Condensed Statement of Comprehensive Income 
 
for the six months ended 30 September 2020 
 
                          Period from     Period from 
 
                      1 April 2020 to 1 April 2019 to Year ended 
 
                         30 September    30 September  31 March 
 
                                 2020            2019       2020 
 
                          (unaudited)     (unaudited)  (audited) 
 
                Notes           GBP'000           GBP'000      GBP'000 
         Income 
     Rental and     3           8,838           8,777     17,790 
   other income 
       Property     4         (1,933)           (509)    (1,326) 
      operating 
       expenses 
 Net rental and                 6,905           8,268     16,464 
   other income 
 
Other operating     5           (971)         (1,004)    (1,992) 
       expenses 
 
Operating                       5,934           7,264     14,472 
profit before 
fair value 
changes 
 
Change in fair     10         (3,328)         (2,407)    (9,444) 
value of 
investment 
properties 
Realised gains     10           3,670              44         44 
on disposal of 
investment 
properties 
 
      Operating                 6,276           4,901      5,072 
         profit 
 
Finance expense     6           (552)           (742)    (1,420) 
 
  Profit before                 5,724           4,159      3,652 
            tax 
       Taxation     7               -               -          - 
 
   Profit after                 5,724           4,159      3,652 
            tax 
          Other                     -               -          - 
  comprehensive 
         income 
 
          Total                 5,724           4,159      3,652 
  comprehensive 
 income for the 
         period 
 
Earnings per        8            3.61            2.74       2.40 
share (pence 
per share) 
(basic and 
diluted) 
 
The notes below form an integral part of these condensed financial statements. 
 
Condensed Statement of Changes in Equity 
 
for the six months ended 30 September 2020 
 
                                                   Total capital 
 
                                        Capital     and reserves 
 
                             Share  reserve and  attributable to 
 
                    Share  premium     retained        owners of 
 
For the           capital  account     earnings      the Company 
period 1 
April 2020 
to 
            Notes   GBP'000    GBP'000        GBP'000            GBP'000 
 
30 
September 
2020 
(unaudited) 
 
Balance as          1,587   56,578       89,698          147,863 
at 1 April 
2020 
 
Total                   -        -        5,724            5,724 
comprehensi 
ve income 
Dividends       9       -        -      (6,351)          (6,351) 
paid 
Balance as          1,587   56,578       89,071          147,236 
at 30 
September 
2020 
 
                                                   Total capital 
                                        Capital     and reserves 
                             Share  reserve and  attributable to 
                    Share  premium     retained        owners of 
For the           capital  account     earnings      the Company 
period 1 
April 2019 
to 
30          Notes   GBP'000    GBP'000        GBP'000            GBP'000 
September 
2019 
(unaudited) 
Balance at          1,515   49,770       98,171          149,456 
1 April 
2019 
 
Total                   -        -        4,159            4,159 
comprehensi 
ve income 
Dividends       9       -        -      (6,062)          (6,062) 
paid 
Balance as          1,515   49,770       96,268          147,553 
at 30 
September 
2019 
 
                                                   Total capital 
 
                                         Capital    and reserves 
 
                               Share reserve and attributable to 
 
                       Share premium    retained       owners of 
 
For the year         capital account    earnings     the Company 
ended 31 March 
2020 (audited) 
 
               Notes   GBP'000   GBP'000       GBP'000           GBP'000 
 
Balance at 1           1,515  49,770      98,171         149,456 
April 2019 
 
Total                      -       -       3,652           3,652 
comprehensive 
income 
Ordinary                  72   6,928           -           7,000 
shares issued 
Share issue                -   (120)           -           (120) 
costs 
Dividends paid     9       -       -    (12,125)        (12,125) 
Balance as at          1,587  56,578      89,698         147,863 
31 March 2020 
 
The notes below form an integral part of these condensed financial statements. 
 
Condensed Statement of Financial Position 
 
as at 30 September 2020 
 
                     As at          As at          As at 
 
                       30 September   30 September 31 March 2020 
                               2020           2019 
 
                                                       (audited) 
                        (unaudited)    (unaudited) 
 
                                                           GBP'000 
                              GBP'000          GBP'000 
 
               Notes 
        Assets 
   Non-Current 
        Assets 
    Investment    10        160,601        193,979       187,042 
      property 
                            160,601        193,979       187,042 
 
Current Assets 
   Receivables    11          9,063          7,621         7,351 
           and 
   prepayments 
         Other    12             49             58            14 
     financial 
assets held at 
    fair value 
 Cash and cash               13,357          2,012         9,873 
   equivalents 
                             22,469          9,691        17,238 
 Held for sale 
        assets 
    Investment    10          8,212              -             - 
 property held 
      for sale 
 
  Total assets              191,282        203,670       204,280 
   Non-Current 
   Liabilities 
      Interest    13       (39,082)       (49,528)      (51,047) 
 bearing loans 
and borrowings 
         Lease    15          (635)          (636)         (635) 
   obligations 
                           (39,717)       (50,164)      (51,682) 
 
       Current 
   Liabilities 
  Payables and    14        (4,281)        (5,905)       (4,687) 
       accrued 
      expenses 
         Lease    15           (48)           (48)          (48) 
   obligations 
                            (4,329)        (5,953)       (4,735) 
 
         Total             (44,046)       (56,117)      (56,417) 
   Liabilities 
 
    Net Assets              147,236        147,553       147,863 
 
        Equity 
 Share capital                1,587          1,515         1,587 
 Share premium               56,578         49,770        56,578 
       account 
       Capital               89,071         96,268        89,698 
   reserve and 
      retained 
      earnings 
 
Total capital               147,236        147,553       147,863 
and reserves 
attributable 
to equity 
holders of the 
Company 
 
     Net Asset     8          92.73          97.36         93.13 
     Value per 
   share (pps) 
 
The financial statements were approved by the Board of Directors on 17 November 2020 and were signed on its 
behalf by: 
 
Mark Burton 
 
Chairman 
 
AEW UK REIT plc 
 
Company number: 09522515 
 
The notes below form an integral part of these condensed financial statements. 
 
Condensed Statement of Cash Flows 
 
for the six months ended 30 September 2020 
 
                           Period from 
                                       Period from    Year ended 
 
                       1 April 2020 to 
                                         1 April 2019   31 March 
                                                   to 
 
                          30 September 
                                                            2020 
                                         30 September 
                                                 2019 
                                  2020 
                                                       (audited) 
 
                                          (unaudited) 
                           (unaudited) 
                                                           GBP'000 
 
                                                GBP'000 
                                 GBP'000 
 
       Cash flows from 
  operating activities 
      Profit after tax           5,724          4,159      3,652 
 
        Adjustment for 
       non-cash items: 
      Finance expenses             552            742      1,420 
Loss from change in              3,328          2,407      9,444 
fair value of 
investment property 
Realised gains on              (3,670)           (44)       (44) 
disposal of investment 
property 
Increase in other              (1,573)        (3,152)    (2,882) 
receivables and 
prepayments 
(Decrease)/Increase in           (463)          2,640      1,424 
other payables and 
accrued expenses 
Net cash generated               3,898          6,752     13,014 
from operating 
activities 
 
       Cash flows from 
  investing activities 
       Purchase of and           (106)          (257)      (358) 
          additions to 
   investment property 
Proceeds of disposal            18,676             44         44 
of investment property 
Net cash generated              18,570          (213)      (314) 
from/(used in) 
investing activities 
 
       Cash flows from 
  financing activities 
Proceeds from issue of               -              -      7,000 
ordinary share capital 
     Share issue costs               -              -      (120) 
        Loan draw down               -              -      1,500 
        Loan repayment          12,000              -          - 
      Arrangement loan            (13)              -       (39) 
     facility fee paid 
  Premiums on interest            (63)              -          - 
             rate caps 
         Finance costs           (557)          (596)    (1,174) 
        Dividends paid         (6,351)        (6,062)   (12,125) 
 
Net cash flow used in         (18,984)        (6,658)    (4,958) 
financing activities 
 
Net                              3,484          (119)      7,742 
increase/(decrease) in 
cash and cash 
equivalents 
Cash and cash                    9,873          2,131      2,131 
equivalents at start 
of the period/year 
Cash and cash                   13,357          2,012      9,873 
equivalents at end of 
the period/year 
 
The notes below form an integral part of these condensed financial statements. 
 
Notes to the Condensed Financial Statements 
 
for the six months ended 30 September 2020 
 
1. Corporate information 
 
AEW UK REIT plc (the 'Company') is a closed ended Real Estate Investment Trust ('REIT') incorporated on 1 
April 2015 and domiciled in the UK. 
 
2. Accounting policies 
 
2.1 Basis of preparation 
 
These interim condensed unaudited financial statements have been prepared in accordance with IAS 34 Interim 
Financial Reporting as adopted by the EU, and should be read in conjunction with the Company's last 
financial statements for the year ended 31 March 2020. These condensed unaudited financial statements do not 
include all information required for a complete set of financial statements proposed in accordance with IFRS 
as adopted by the EU ('EU IFRS'). However, selected explanatory notes have been included to explain events 
and transactions that are significant in understanding changes in the Company's financial position and 
performance since the last financial statements. 
 
The financial information contained in this Interim Report and Financial Statements for the six months ended 
30 September 2020 and the comparative information for the year ended 31 March 2020 does not constitute 
statutory accounts as defined in sections 435(1) and (2) of the Companies Act 2006. Statutory accounts for 
the year ended 31 March 2020 have been delivered to the Registrar of Companies. The Auditor reported on 
those accounts. Its report was unqualified and did not contain a statement under section 498(2) or (3) of 
the Companies Act 2006. 
 
A review of the interim financial information has been performed by the Auditor of the Company for issue on 
17 November 2020. 
 
The comparative figures disclosed in the condensed unaudited financial statements and related notes have 
been presented for both the six month period ended 30 September 2019 and year ended 31 March 2020 and as at 
30 September 2019 and 31 March 2020. 
 
These condensed unaudited financial statements have been prepared under the historical-cost convention, 
except for investment property and interest rate derivatives that have been measured at fair value. The 
condensed unaudited financial statements are presented in Sterling and all values are rounded to the nearest 
 thousand pounds (GBP'000), except when otherwise indicated. 
 
The Company is exempt by virtue of section 402 of the Companies Act 2006 from the requirement to prepare 
group financial statements. These financial statements present information solely about the Company as an 
individual undertaking. 
 
New standards, amendments and interpretations 
 
There were a number of new standards and amendments to existing standards which are required for the 
Company's accounting periods beginning after 1 April 2020, which have been considered and applied. These 
being: 
 
· Amendments to IFRS 3 "Business Combinations", definition of a business 
 
· Amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in 
Accounting Estimates and Errors", definition of material 
 
· Revised Conceptual Framework for Financial Reporting 
 
· Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) 
 
The Company has applied the new standards and there has been no impact on the financial statements. 
 
As a result of COVID-19 there was an amendment to IFRS 16, Leases, for COVID-19 related rent concessions. 
The amendment to the standard has been considered, however at the reporting date had not been required to be 
applied. 
 
There are a number of new standards and amendments to existing standards which have been published and are 
mandatory for the Company's accounting periods beginning on or after 1 April 2021 or later. The Company has 
not early adopted any of these new or amended standards as the impact of the adoption is not considered to 
be significant. 
 
2.2 Significant accounting judgements and estimates 
 
The preparation of financial statements in accordance with IAS 34 requires the Directors of the Company to 
make judgements, estimates and assumptions that affect the reported amounts recognised in the financial 
statements. However, uncertainty about these assumptions and estimates could result in outcomes that require 
a material adjustment to the carrying amount of the asset or liability in the future. 
 
i) Valuation of investment property 
 
The Company's investment property is held at fair value as determined by the independent valuer on the basis 
of fair value in accordance with the internationally accepted Royal Institution of Chartered Surveyors 
('RICS') Appraisal and Valuation Standards. 
 
2.3 Segmental information 
 
The Board of Directors retains overall control of the Company but the Investment Manager (AEW UK Investment 
Management LLP) has certain authorities and fulfils the function of allocating resource to, and assessing 
the performance of the Company's operating segments and is therefore considered to be the Chief Operating 
Decision Maker ('CODM'). In accordance with IFRS 8, the Company considers each of its properties to be an 
individual operating segment. The CODM allocates resources, and reviews the performance of, the Company's 
portfolio on a property-by-property basis and discrete financial information is available for each 
individual property. 
 
These operating segments have similar economic characteristics and, as such, are aggregated into one 
reporting segment, being investment in property and property-related investments in the UK. 
 
2.4 Going concern 
 
The Directors assessed the Company's ability to continue as a going concern, which takes into consideration 
the uncertainty surrounding the outbreak of COVID-19, as well as the Company's cash flows, financial 
position, liquidity and borrowing facilities. 
 
In that assessment the Directors' considered that the Company benefits from a diversified income stream from 
numerous tenants and sectors, which reduces risk. They also noted that: 
 
· The Company's rent collection has been strong with at least 90% of contracted rent either collected - or 
payment plans agreed - for each of the March, June and September 2020 quarters. Based on the contracted 
rent as at 30 September 2020, a reduction of 64% could be accommodated before breaching the interest cover 
ratio (ICR) covenant in the Company's debt arrangements; 
 
· Based on the property valuation at 30 September 2020, the Company had room for a GBP59m fall in valuations 
before reaching the maximum Loan to Value (LTV) covenant in the Company's debt arrangements. If certain 
conditions are met, a further GBP16m fall in values could be accommodated. 
 
Finally, the Directors' note that the Company's cash flow can also be significantly managed through the 
adjustment of dividend payments. 
 
Taking this into consideration, the Directors have reviewed a number of scenarios over 12 months, including 
a severe but plausible downside scenario which makes the following assumptions: 
 
· A reduction in rental income of 45% and collection of 70% of those rents on the quarter date, with 
remaining collection deferred for three quarters; 
 
· No new lettings or renewals, other than those where terms have already been agreed; and 
 
· A 15% fall in property valuations. 
 
Given the Company's financial position and headroom on covenants then even in this severe scenario, the 
Directors do not consider there are any material uncertainties in relation to the Company's ability to meets 
its liabilities as they fall due and continue in operation for a period of 12 months from the date of 
approval of these financial statements. They therefore consider the going concern basis adopted in the 
preparation of the interim financial statements is appropriate. 
 
2.5 Summary of significant accounting policies 
 
The principal accounting policies applied in the preparation of these financial statements are consistent 
with those applied within the Company's Annual Report and Financial Statements for the year ended 31 March 
2020 except for the changes as detailed in note 2.1. 
 
3. Revenue 
 
                          Period from     Period from 
 
                      1 April 2020 to 1 April 2019 to Year ended 
 
                         30 September    30 September   31 March 
 
                                 2020            2019       2020 
 
                          (unaudited)     (unaudited)  (audited) 
 
                                GBP'000           GBP'000      GBP'000 
 
  Gross rental income           8,124           8,777     17,418 
Service charge income            674*        -            - 
  Dilapidation income              40               -        372 
 
     Total rental and           8,838           8,777     17,790 
         other income 
 
Gross rental income includes adjustment for the effect of any incentives agreed. 
 
*For the current period, service charge income has been presented gross to reflect the Company's role as 
principal in its agreements with tenants. In comparative periods, they have been presented net, however the 
difference in presentation is considered to be immaterial. 
 
4. Property operating expenses 
 
                          Period from     Period from 
 
                      1 April 2020 to 1 April 2019 to Year ended 
 
                         30 September    30 September   31 March 
 
                                 2020            2019       2020 
 
                          (unaudited)     (unaudited)  (audited) 
 
                                GBP'000           GBP'000      GBP'000 
 
  Recoverable service            674*               -          - 
       charge expense 
      Non-recoverable            601#             143        436 
       service charge 
              expense 
       Other property             658             366        890 
   operating expenses 
 
       Total property           1,933             509      1,326 
   operating expenses 
 
* For the current period, recoverable service charge expenditure has been presented gross to reflect the 
Company's role as principal in its agreements with tenants. In comparative periods, they have been presented 
net, however the difference in presentation is considered to be immaterial. 
 
  # Of the c. GBP601,000 non-recoverable service charge expenditure c. GBP394,000 relates to Bank Hey Street, 
Blackpool which includes costs relating to the remedial works as detailed in the Investment Manager's 
Report. 
 
5. Other operating expenses 
 
                          Period from     Period from 
 
                      1 April 2020 to 1 April 2019 to Year ended 
 
                         30 September    30 September   31 March 
 
                                 2020            2019       2020 
 
                          (unaudited)     (unaudited)  (audited) 
 
                                GBP'000           GBP'000      GBP'000 
 
Investment management             579             665      1,308 
                  fee 
            Audit fee              30              24         82 
     ISRE 2410 review              25              24         24 
 (interim review fee) 
      Operating costs             289             230        463 
           Directors'              48              61        115 
         remuneration 
 
Total other operating             971           1,004      1,992 
             expenses 
 
6. Finance expense 
 
                              Period from  Period from 
 
                             1 April 2020 1 April 2019      Year 
 
                                       to           to     ended 
 
                             30 September 30 September  31 March 
 
                                     2020         2019      2020 
 
                              (unaudited)  (unaudited) (audited) 
 
                                    GBP'000        GBP'000     GBP'000 
 
    Interest payable on loan          438          556     1,108 
                  borrowings 
        Amortisation of loan           49           53       110 
             arrangement fee 
   Commitment fee payable on           37           29        54 
             loan borrowings 
                                      524          638     1,272 
     Change in fair value of           28          104       148 
   interest rate derivatives 
                       Total          552          742     1,420 
 
7. Taxation 
 
                           Period from     Period from      Year 
 
                       1 April 2020 to 1 April 2019 to     ended 
 
                          30 September    30 September  31 March 
 
                                  2020            2019      2020 
 
                           (unaudited)     (unaudited) (audited) 
 
                                 GBP'000           GBP'000     GBP'000 
 Analysis of charge in 
            the period 
     Profit before tax           5,724           4,159     3,652 
 
Theoretical tax at UK            1,088             790       694 
corporation tax 
standard rate of 19% 
(30 September 2019: 
19%; 31 March 2020: 
19%) 
 
         Adjusted for: 
    Exempt REIT income         (1,023)         (1,239)   (2,488) 
Non taxable investment            (65)             449     1,794 
        losses/(gains) 
                 Total               -               -         - 
 
8. Earnings per share and NAV per share 
 
                        Period from     Period from 
 
                    1 April 2020 to 1 April 2019 to   Year ended 
 
                       30 September    30 September     31 March 
 
                               2020            2019         2020 
 
                        (unaudited)     (unaudited)    (audited) 
 
                              GBP'000           GBP'000        GBP'000 
Earnings per share: 
Total comprehensive           5,724           4,159        3,652 
income (GBP'000) 
Weighted average        158,774,746     151,558,251  152,208,919 
number of shares 
EPS (basic and                 3.61            2.74         2.40 
diluted) (pence) 
 
EPRA earnings per             5,724           4,159        3,652 
share: 
 
Total comprehensive 
income (GBP'000) 
Adjustment to total 
comprehensive 
income: 
Change in fair                3,328           2,407        9,444 
value of investment 
property (GBP'000) 
Realised gain on            (3,670)            (44)         (44) 
disposal of 
investment property 
(GBP'000) 
Change in fair                   28             104          148 
value of interest 
rate derivatives 
(GBP'000) 
Total EPRA Earnings           5,410           6,626       13,200 
(GBP'000) 
EPRA earnings per                              4.37         8.67 
share (basic and 
diluted) (pence) 
 
                               3.41 
 
NAV per share: 
Net assets (GBP'000)          147,236         147,553      147,863 
Ordinary Shares         158,774,746     151,558,251  158,774,746 
NAV per share                 92.73           97.36        93.13 
(pence) 
 
EPRA NAV per share: 
Net assets (GBP'000)          147,236         147,553      147,863 
Adjustments to net 
assets: 
Other financial                (49)            (58)         (14) 
assets held at fair 
value (GBP'000) 
EPRA NAV (GBP'000)            147,187         147,495      147,849 
EPRA NAV per share            92.70           97.32        93.12 
(pence) 
 
Earnings per share amounts are calculated by dividing profit for the period attributable to ordinary equity 
holders of the Company by the weighted average number of Ordinary Shares in issue during the period. As at 
30 September 2020, EPRA NNNAV was equal to IFRS NAV and as such a reconciliation between the two measures 
has not been presented. 
 
9. Dividends paid 
 
                         Period from      Period from 
 
                     1 April 2020 to  1 April 2019 to Year ended 
 
                        30 September     30 September   31 March 
 
                                2020             2019       2020 
 
     Dividends paid            GBP'000            GBP'000      GBP'000 
  during the period 
 
Represents                     6,351            6,062     12,125 
two/two/four 
interim dividends 
of 2.00 pps each 
 
                         Period from      Period from 
                     1 April 2020 to  1 April 2019 to Year ended 
                        30 September     30 September   31 March 
                                2020             2019       2020 
Dividends relating             GBP'000            GBP'000      GBP'000 
to the period 
 
Represents                     6,351            6,062     12,269 
two/two/four 
interim dividends 
of 2.00 pps each 
 
Dividends paid relate to Ordinary Shares only. 
 
10. Investments 
 
10.a) Investment property 
 
             Period from 1 April 2020 to 
 
                  30 September 2020 
                     (unaudited) 
            Investment Investment    Total Period from 
 
            properties properties    GBP'000     1 April      Year 
                                                  2019     ended 
 
              freehold  leasehold 
                                                 to 30  31 March 
                                             September 
 
                 GBP'000      GBP'000 
                                                            2020 
                                                  2019 
 
                                                       (audited) 
                                           (unaudited) 
 
                                                           Total 
                                                 Total 
 
                                                           GBP'000 
                                                 GBP'000 
UK 
Investment 
property 
 
As at          147,400     41,900  189,300     197,605   197,605 
beginning 
of period 
Purchases          106          -      106         257       358 
and capital 
expenditure 
in the 
period 
Disposals            -   (15,006) (15,006)           -         - 
in the 
period 
Revaluation    (4,901)      1,856  (3,045)     (1,812)   (8,663) 
of 
investment 
property 
 
Valuation      142,605     28,750  171,355     196,050   189,300 
provided by 
Knight 
Frank 
 
Adjustment                         (3,225)     (2,755)   (2,941) 
to fair 
value for 
lease 
incentive 
debtor 
Adjustment                             683         684       683 
for lease 
obligations 
* 
Total                              168,813     193,979   187,042 
Investment 
property 
 
Classified 
as: 
Investment                           8,212           -         - 
property 
held sale# 
Investment                         160,601     193,979   187,042 
property 
                                   168,813     193,979   187,042 
 
Change in 
fair value 
of 
investment 
property 
Change in                          (3,045)     (1,812)   (8,663) 
fair value 
before 
adjustments 
for lease 
incentives 
Adjustment 
for 
movement in 
the period: 
in value of                          (283)       (595)     (781) 
lease 
incentive 
debtor 
                                   (3,328)     (2,407)   (9,444) 
Gains 
realised on 
disposal of 
investment 
property 
Net                                 18,676          44        44 
proceeds 
from 
disposals 
of 
investment 
property 
during the 
period 
Fair value                        (15,006)           -         - 
at 
beginning 
of period 
Gains                                3,670          44        44 
realised on 
disposal of 
investment 
property 
 
* Adjustment in respect of minimum payment under head leases separately included as a liability within the 
Condensed Statement of Financial Position. 
 
# 225 Bath Street, Glasgow, has been classified as held-for-sale as at 30 September 2020. Contracts to sell 
the property were exchanged post period-end, details of which can be found in Note 18 to the Financial 
Statements. 
 
Valuation of investment property 
 
Valuation of investment property is performed by Knight Frank LLP, an accredited external valuer with 
recognised and relevant professional qualifications and recent experience of the location and category of 
the investment property being valued. 
 
The valuation of the Company's investment property at fair value is determined by the external valuer on the 
basis of market value in accordance with the internationally accepted RICS Valuation - Professional 
Standards (incorporating the International Valuation Standards). 
 
The determination of the fair value is based upon the income capitalisation approach. This approach involves 
applying capitalisation yields to current and future rental streams net of income voids arising from 
vacancies or rent-free periods and associated running costs. These capitalisation yields and estimated 
rental values are based on comparable property and leasing transactions in the market using the valuer's 
professional judgement and market observation. Other factors taken into account in the valuations include 
the tenure of the property, tenancy details, capital values of fixtures and fittings, environmental matter 
and the overall repair and condition of the property. 
 
In the annual report to 31 March 2020 the report of the valuer included a material valuation uncertainty 
clause due to COVID 19 and its unknown impact at that point in time. This valuation uncertainty clause had 
been removed for the valuation provided as at 30 September 2020. 
 
10.b) Fair value measurement hierarchy 
 
The following table provides the fair value measurement hierarchy for non-current assets: 
 
                  Quoted prices 
 
                                Significant  Significant 
                      in active 
 
                                 observable unobservable 
                        markets 
 
                                     inputs       inputs 
                      (Level 1) 
 
                                  (Level 2)    (Level 3)   Total 
Assets measured           GBP'000 
at fair value 
 
                                      GBP'000        GBP'000   GBP'000 
 
30 September 2020 
Investment                    -           -      168,813 168,813 
property 
 
30 September 2019 
Investment                    -           -      193,979 193,979 
property 
 
31 March 2020 
Investment                    -           -      187,042 187,042 
property 
 
Explanation of the fair value hierarchy: 
 
Level 1 - Quoted prices for an identical instrument in active markets; 
 
Level 2 - Prices of recent transactions for identical instruments and valuation techniques using observable 
market data; and 
 
Level 3 - Valuation techniques using non-observable data. 
 
There have been no transfers between Level 1 and Level 2 during either period, nor have there been any 
transfers in or out of Level 3. 
 
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy 
 
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the 
fair value hierarchy of the entity's portfolios of investment properties are: 
 
1) ERV 
 
2) Equivalent yield 
 
Increases/(decreases) in the ERV (per sq ft per annum) in isolation would result in a higher/(lower) fair 
value measurement. Increases/(decreases) in the yield in isolation would result in a lower/(higher) fair 
value measurement. 
 
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the 
fair value hierarchy of the portfolio of investment property are: 
 
                                           Significant 
 
              Fair value    Valuation     unobservable 
 
        Class      GBP'000    technique           inputs     Range 
 
30 September 
2020 
Investment       171,355       Income              ERV    GBP0.50- 
Property                 capitalisati                     GBP95.00 
                                   on 
 
                                      Equivalent yield 
                                                         6.23% - 
                                                          10.48% 
 
30 September 
2019 
Investment       196,050       Income              ERV    GBP0.50- 
Property                 capitalisati                    GBP127.00 
                                   on 
 
                                      Equivalent yield 
                                                         5.95% - 
                                                           9.69% 
 
31 March 2020 
Investment       189,300       Income              ERV    GBP0.50- 
Property                 capitalisati                    GBP105.00 
                                   on 
 
                                      Equivalent yield 
                                                         5.71% - 
                                                          10.54% 
 
Fair value per Knight Frank LLP. 
 
Where possible, sensitivity of the fair values of Level 3 assets are tested to changes in unobservable 
inputs to reasonable alternatives. 
 
Gains and losses recorded in profit or loss for recurring fair value measurements categorised within Level 3 
of the fair value hierarchy are attributable to changes in unrealised gains or losses relating to investment 
property and investments held at the end of the reporting period. 
 
With regards to both investment property and investments, gains and losses for recurring fair value 
measurements categorised within Level 3 of the fair value hierarchy, prior to adjustment for rent free 
debtor and rent guarantee debtor, are recorded in profit and loss. 
 
The tables below set out a sensitivity analysis for each of the key sources of estimation uncertainty with 
the resulting increase/(decrease) in the fair value of investment property. 
 
               Fair   Change in ERV      Change in equivalent 
              value                             yield 
              GBP'000     GBP'000    GBP'000        GBP'000       GBP'000 
 
 Sensitivity              +5%      -5%          +5%         -5% 
    Analysis 
 
30 September 171,35   176,434  161,957      163,582     179,481 
2020              5 
 
30 September 196,05   204,427  187,935      185,802     207,198 
2019              0 
 
31 March     189,30   197,146  180,075      179,906     199,956 
2020              0 
 
               Fair   Change in ERV      Change in equivalent 
              value                             yield 
              GBP'000     GBP'000    GBP'000        GBP'000       GBP'000 
 
 Sensitivity             +10%     -10%         +10%        -10% 
    Analysis 
 
30 September 171,35   183,940  154,933      156,710     188,744 
2020              5 
 
30 September 196,05   213,858  179,153      178,444     217,351 
2019              0 
 
31 March     189,30   205,933  171,723      171,251     211,640 
2020              0 
 
               Fair   Change in ERV      Change in equivalent 
              value                             yield 
              GBP'000     GBP'000    GBP'000        GBP'000       GBP'000 
 
 Sensitivity             +15%     -15%         +15%        -15% 
    Analysis 
 
30 September 171,35   191,497  147,893      150,433     199,087 
2020              5 
 
30 September 196,05   222,863  170,767      170,822     229,917 
2019              0 
 
31 March     189,30   214,777  163,364      163,327     224,687 
2020              0 
 
11. Receivables and prepayments 
 
                             30 September 30 September  31 March 
 
                                     2020         2019      2020 
 
                              (unaudited)  (unaudited) (audited) 
 
                                    GBP'000        GBP'000     GBP'000 
                 Receivables 
                 Rent debtor        3,469        2,789     2,579 
      Allowance for expected        (207)         (51)     (190) 
               credit losses 
    Rent agent float account        2,056        1,363     1,486 
    Dilapidations receivable           69            -       372 
           Other receivables          368          481       115 
                                    5,755        4,582     4,362 
 
            Rent free debtor        3,225        2,755     2,941 
                 Prepayments           83          284        48 
                       Total        9,063        7,621     7,351 
 
The aged debtor analysis of receivables as follows: 
 
                               30 September          30 31 March 
                                              September 
 
                                       2020                 2020 
                                                   2019 
 
                                      GBP'000                GBP'000 
                                                  GBP'000 
 
    Less than three months due        4,206       4,257    4,317 
  Between three and six months        1,549         325       45 
                           due 
 
                         Total        5,755       4,582    4,362 
 
12. Interest rate derivatives 
 
                             30 September 30 September  31 March 
 
                                     2020         2019      2020 
 
                              (unaudited)  (unaudited) (audited) 
 
                                    GBP'000        GBP'000     GBP'000 
 
     At the beginning of the           14          162       162 
                      period 
   Interest rate cap premium           63            -         - 
                        paid 
Changes in fair value of             (28)        (104)     (148) 
interest rate derivatives 
 
    At the end of the period           49           58        14 
 
The Company is protected from a significant rise in interest rates as it currently has interest rate caps in 
effect with a combined notional value of GBP36.51 million (31 March 2020: GBP36.51 million), with GBP26.51 million 
 capped at 2.50% and GBP10.00 million capped at 2.00%, resulting in the loan being 92% hedged (31 March 2020: 
71%). These interest rate caps are effective until 19 October 2020. The Company has additional interest rate 
caps covering the remaining period of the loan from 20 October 2020 to 23 October 2023. During the period, 
the Company replaced its existing caps covering this period, which capped the interest rate at 2.00% on a 
 notional value of GBP49.51 million, with new caps covering the same period capping the interest rate at 1.00% 
  on a notional value of GBP51.50 million. The Company paid a premium of GBP62,968. 
 
Fair Value hierarchy 
 
The following table provides the fair value measurement hierarchy for interest rate derivatives: 
 
                 Assets measured at fair value 
 
                        Quoted Significant  Significant 
                        prices 
 
                                observable unobservable 
                     in active 
 
                                     input       inputs 
                       markets 
 
                                 (Level 2)    (Level 3)   Total 
                     (Level 1) 
 
Valuation date                       GBP'000        GBP'000   GBP'000 
                         GBP'000 
30 September 2020            -          49            -      49 
30 September 2019            -          58            -      58 
31 March 2020                -          14            -      14 
 
The fair value of these contracts is recorded in the Condensed Statement of Financial Position as at the 
period end. 
 
There have been no transfers between Level 1 and Level 2 during the period, nor have there been any 
transfers between Level 2 and Level 3 during the period. 
 
13. Interest bearing loans and borrowings 
 
                                    Bank borrowings drawn 
                             30 September 30 September  31 March 
 
                                     2020         2019      2020 
 
                              (unaudited)  (unaudited) (audited) 
 
                                    GBP'000        GBP'000     GBP'000 
     At the beginning of the       51,500       50,000    50,000 
                      period 
Bank borrowings drawn in the            -            -     1,500 
                      period 
   Bank borrowings repaid in     (12,000)            -         - 
                  the period 
  Interest bearing loans and       39,500       50,000    51,500 
                  borrowings 
 
Unamortised loan arrangement        (418)        (472)     (453) 
                        fees 
    At the end of the period       39,082       49,528    51,047 
 
   Repayable between two and       39,500       50,000    51,500 
                  five years 
   Bank borrowings available       20,500       10,000     8,500 
   but undrawn in the period 
 
    Total facility available       60,000       60,000    60,000 
 
  The Company has a GBP60.00 million (31 March 2020: GBP60.00 million) credit facility with RBSi of which GBP39.50 
 million (31 March 2020: GBP51.50 million) has been utilised as at 30 September 2020. 
 
The Company has a target gearing of 35% Loan to NAV, which is the maximum gearing on drawdown under the 
terms of the facility. As at 30 September 2020, the Company's gearing was 26.83% Loan to NAV (31 March 2020: 
34.83%). 
 
Borrowing costs associated with the credit facility are shown as finance costs in note 6 to these financial 
statements. 
 
14. Payables and accrued expenses 
 
                                                 31 
                30 September 30 September 
 
                                              March 
                        2020         2019 
 
                                               2020 
                 (unaudited)  (unaudited) 
 
                                          (audited) 
                       GBP'000        GBP'000 
 
                                              GBP'000 
 
Deferred income        2,835        3,312     2,906 
       Accruals          991        1,037       814 
Other creditors          455        1,556       967 
 
          Total        4,281        5,905     4,687 
 
15. Lease obligation as lessee 
 
Leases as lessee are capitalised at the lease's commencement at the present value of the minimum lease 
payments. The present value of the corresponding rental obligations are included as liabilities. 
 
The following table analyses the present value of the minimum lease payments under non-cancellable finance 
leases: 
 
                             30 September 30 September  31 March 
 
                                     2020         2019      2020 
 
                              (unaudited)  (unaudited) (audited) 
 
                                    GBP'000        GBP'000     GBP'000 
                     Current           48           48        48 
                 Non Current          635          636    635 
 
  Lease liabilities included          683          684       683 
         in the Statement of 
    Financial Position at 30 
              September 2020 
 
16. Issued share capital 
 
There was no change to the issued share capital during the period. The number of ordinary shares in issue 
 and fully paid remains 151,774,746 of GBP0.01 each. 
 
17. Transactions with related parties 
 
As defined by IAS 24 Related Party Disclosures, parties are considered to be related if one party has the 
ability to control the other party or exercise significant influence over the other party in making 
financial or operational decisions. 
 
For the six months ended 30 September 2020, the Directors of the Company are considered to be the key 
management personnel. Directors' remuneration is disclosed in note 5. 
 
The Company is party to an Investment Management Agreement with the Investment Manager, pursuant to which 
the Company has appointed the Investment Manager to provide investment management services relating to the 
respective assets on a day-to-day basis in accordance with their respective investment objectives and 
policies, subject to the overall supervision and direction of the Board of Directors. 
 
Under the Investment Management Agreement, the Investment Manager receives a quarterly management fee which 
is calculated and accrued monthly at a rate equivalent to 0.9% per annum of NAV (excluding uninvested 
proceeds from fundraising). 
 
During the period from 1 April 2020 to 30 September 2020, the Company incurred GBP578,821 (six months ended 30 
  September 2019: GBP665,344) in respect of investment management fees and expenses of which GBP304,595 was 
 outstanding at 30 September 2020 (31 March 2020: GBP311,683). 
 
18. Events after reporting date 
 
Dividend 
 
On 22 October 2020, the Board declared its second interim dividend of 2.00 pps in respect of the period from 
1 July 2020 to 30 September 2020. The dividend payment will be made on 30 November 2020 to shareholders on 
the register as at 30 October 2020. The ex-dividend date was 29 October 2020. 
 
The dividend of 2.00 pps was designated as an interim property income distribution ('PID'). Unless 
shareholders have elected to receive the PID gross, 20% tax will be deducted at source. 
 
Property acquisitions 
 
Post period-end, in November 2020, the Company acquired a warehouse asset in Weston-Super-Mare for a 
 purchase price of GBP5.40 million. 
 
Share buybacks 
 
The Company's share capital consists of 158,774,746 Ordinary Shares, of which 350,000 are currently held by 
the Company as treasury shares. This reflects 350,000 Ordinary Shares having been bought back since the 
 period end for a gross consideration of GBP262,995. 
 
Bath Street, Glasgow 
 
During October 2020, the Company exchanged contracts to sell its 85,000 sq ft office holding at 225 Bath 
Street in Glasgow city centre. The transaction is conditional upon various matters including the grant of 
planning permission for the development of a 480 bedroom student housing development. Sale pricing will be 
 determined following the approval of all conditions according to an agreed matrix ranging from GBP8.55 to 
 GBP9.30 million. Due to these conditions, there is some uncertainty as to the date of completion of the 
transaction, but there is considered to be a high probability that the transaction will complete within 12 
months of the balance sheet date and, as such, the property has been classified as held-for-sale in these 
financial statements 
 
EPRA Performance Measures 
 
Detailed below is a summary table showing the EPRA performance measures of the Company. All EPRA performance 
measures have been calculated in line with EPRA Best Practices Recommendations Guidelines which can be found 
at www.epra.com [1]. 
 
  MEASURE AND DEFINITION           PURPOSE           PERFORMANCE 
 
1. EPRA Earnings 
 
Earnings from            A key measure of  GBP5.41 million/3.41 
operational activities.  a company's       pps 
                         underlying 
                         operating results 
                         and an indication 
                         of the extent to  EPRA earnings for the 
                         which current     six month period 
                         dividend payments ended 30 September 
                         are supported by  2020 (six month 
                         earnings.         period ended 30 
                                           September 2019: GBP6.63 
                                           million/4.37 pps) 
 
2. EPRA NAV 
 
NAV adjusted to include  Makes adjustments GBP147.19 million/92.70 
properties and other     to IFRS NAV to    pps EPRA NAV as at 30 
investment interests at  provide           September 2020 (At 31 
fair value and to        stakeholders with March 2020: GBP147.85 
exclude certain items    the most relevant million/ 93.12 pps) 
not expected to          information on 
crystallise in a         the fair value of 
long-term investment     the assets and 
property business.       liabilities 
                         within a true 
                         real estate 
                         investment 
                         company with a 
                         long-term 
                         investment 
                         strategy. 
3. EPRA NNNAV 
 
EPRA NAV adjusted to     Makes adjustments GBP147.24 million/92.73 
include the fair values  to EPRA NAV to    pps EPRA NNNAV as at 
of:                      provide           30 September 2020 
                         stakeholders with 
                         the most relevant 
                         information on 
(i) financial            the current fair  (At 31 March 2020: 
instruments;             value of all the  GBP147.86 million/93.13 
                         assets and        pps) 
                         liabilities 
                         within a real 
(ii) debt; and           estate company. 
 
(iii) deferred taxes. 
4.1 EPRA NIY 
 
Annualised rental income A comparable      7.21% 
based on the cash rents  measure for 
passing at the balance   portfolio 
sheet date, less         valuations. This 
non-recoverable property measure should    EPRA NIY 
operating expenses,      make it easier 
divided by the market    for investors to 
value of the property,   judge themselves, 
increased with           how the valuation as at 30 September 
(estimated) purchasers'  of portfolio X    2020 
costs.                   compares with 
                         portfolio Y. 
 
                                           (At 31 March 2020: 
                                           8.26%) 
4.2 EPRA 'Topped-Up' NIY 
 
This measure             A comparable      8.39% 
incorporates an          measure for 
adjustment to the EPRA   portfolio 
NIY in respect of the    valuations. This 
expiration of rent-free  measure should    EPRA 'Topped-Up' NIY 
periods (or other        make it easier 
unexpired lease          for investors to 
incentives such as       judge themselves, 
discounted rent periods  how the valuation as at 30 September 
and step rents).         of portfolio X    2020 
                         compares with 
                         portfolio Y. 
 
                                           (At 31 March 2020: 
                                           8.66%) 
5. EPRA Vacancy 
 
Estimated Market Rental  A "pure" (%)      8.21% 
Value ('ERV') of vacant  measure of 
space divided by ERV of  investment 
the whole portfolio.     property space 
                         that is vacant,   EPRA vacancy 
                         based on ERV. 
 
                                           as at 30 September 
                                           2020 
 
                                           (At 31 March 2020: 
                                           3.68%) 
6. EPRA Cost Ratio 
 
Administrative and       A key measure to  27.15% 
operating costs          enable meaningful 
(including and excluding measurement of 
costs of direct vacancy) the changes in a 
divided by gross rental  company's         EPRA Cost Ratio 
income.                  operating costs.  (including direct 
                                           vacancy cost) as at 
 
                                           30 September 2020 
 
                                           (At 30 September 
                                           2019: 16.93%) 
 
                                           16.70% 
 
                                           EPRA Cost ratio 
                                           excluding direct 
                                           vacancy costs as at 
 
                                           30 September 2020 
 
                                           (At 30 September 
                                           2019: 13.76%) 
 
7. EPRA Capital 
Expenditure 
 
                         Is used to        GBP0.11 million for the 
Property which has been  illustrate change period ended 30 
held at both the current in comparable     September 2020 
and comparative balance  capital values. 
sheet dates for which 
there has been no 
significant development.                   (31 March 2020: GBP0.29 
                                           million) 
8. EPRA Like-for-like 
Rental Growth            Is used to 
                         illustrate change 
                         in comparable 
                         income values.    (GBP0.20 
Net income generated by                    million)/(2.26%) for 
assets which were held                     the period ended 30 
by the Company                             September 2020 (31 
throughout both the                        March 2020: GBP0.29 
current and comparable                     million/1.71%) 
periods which there has 
been no significant 
development which 
materially impacts upon 
income. 
 
Calculation of EPRA NIY and 'topped-up' NIY 
 
                                                    30 September 
 
                                                            2020 
 
                                                           GBP'000 
 
                 Investment property - wholly-owned      171,355 
  Allowance for estimated purchasers' costs at 6.8%       11,652 
 
Grossed-up completed property portfolio valuation        183,007 
(B) 
 
              Annualised cash passing rental income       14,144 
                                 Property outgoings        (955) 
 
                           Annualised net rents (A)       13,189 
 
    Rent from expiry of rent-free periods and fixed        2,169 
                                            uplifts 
 
                'Topped-up' net annualised rent (C)    15,558 
 
                                     EPRA NIY (A/B)        7.21% 
 
                         EPRA 'topped-up' NIY (C/B)        8.39% 
 
EPRA NIY basis of calculation 
 
EPRA NIY is calculated as the annualised net rent, divided by the gross value of the completed property 
portfolio. 
 
The valuation of grossed up completed property portfolio is determined by our external valuers as at 30 
September 2020, plus an allowance for estimated purchasers' costs. Estimated purchasers' costs are 
determined by the relevant stamp duty liability, plus an estimate by our valuers of agent and legal fees on 
notional acquisition. The net rent deduction allowed for property outgoings is based on our valuers' 
assumptions on future recurring non-recoverable revenue expenditure. 
 
In calculating the EPRA 'topped-up' NIY, the annualised net rent is increased by the total contracted rent 
from expiry of rent-free periods and future contracted rental uplifts. 
 
Calculation of EPRA Vacancy Rate 
 
                                                    30 September 
 
                                                            2020 
 
                                                           GBP'000 
       Annualised potential rental value of vacant         1,330 
                                      premises (A) 
         Annualised potential rental value for the        16,211 
                  completed property portfolio (B) 
 
                           EPRA Vacancy Rate (A/B)         8.21% 
 
                      Calculation EPRA Cost Ratios 
                                                    30 September 
                                                            2020 
                                                           GBP'000 
 
  Administrative/operating expense per IFRS income         2,230 
                                         statement 
                           Less: Ground rent costs          (33) 
       EPRA costs (including direct vacancy costs)         2,197 
 
                              Direct vacancy costs         (846) 
 
   EPRA costs (excluding direct vacancy costs) (B)         1,351 
 
    Gross rental income less ground rent costs (C)         8,091 
 
  EPRA Cost Ratio (including direct vacancy costs)        27.15% 
                                             (A/C) 
EPRA Cost Ratio (excluding direct vacancy costs)          16.70% 
(B/C) 
 
The Company has not capitalised any overhead or operating expenses in the accounting period disclosed above. 
 
Only costs directly associated with the purchase or construction of properties as well as all subsequent 
value-enhancing capital expenditure are capitalised. 
 
Company Information 
 
Shareholder Enquiries 
 
The register for the Ordinary Shares is maintained by Computershare Investor Services PLC. In the event of 
queries regarding your holding, please contact the Registrar on +44 (0)370 707 1341 or email: 
web.queries@computershare.co.uk. 
 
Changes of name and/or address must be notified in writing to the Registrar, at the address shown below. You 
can check your shareholding and find practical help on transferring shares or updating your details at 
www.investorcentre.co.uk [2]. Shareholders eligible to receive dividend payments gross of tax may also 
download declaration forms from that website. 
 
Share Information 
 
 Ordinary GBP0.01 Shares 158,774,746 
 
SEDOL Number BWD2415 
 
ISIN Number GB00BWD24154 
 
Ticker/TIDM AEWU 
 
The Company's Ordinary Shares are traded on the Main Market of the London Stock Exchange. 
 
Annual and Interim Reports 
 
Copies of the Annual and Interim Reports are available from the Company's website: www.aewukreit.com [3]. 
 
Provisional Financial Calendar 
 
    31 March 2021                        Year end 
        June 2021  Announcement of annual results 
   September 2021          Annual General Meeting 
30 September 2021                   Half-year end 
    November 2021 Announcement of interim results 
 
Dividends 
 
The following table summarises the dividends declared in relation to the period: 
 
                                                               GBP 
   Interim dividend for the period 1 April 2020 to 30  3,175,495 
           June 2020 (payment made on 28 August 2020) 
    Interim dividend for the period 1 July 2020 to 30  3,175,495 
    September 2020 (payment to be made on 30 November 
                                                2020) 
                                                Total  6,350,990 
 
Independent Directors 
 
Mark Burton (Non-executive Chairman) 
 
Bimaljit ('Bim') Sandhu (Non-executive Director and Chairman of the Audit Committee) 
 
Katrina Hart (Non-executive Director) 
 
Registered Office 
 
6th Floor 
 
65 Gresham Street 
 
London 
 
EC2V 7NQ 
 
Investment Manager and AIFM 
 
AEW UK Investment Management LLP 
 
33 Jermyn Street 
 
London 
 
SW1Y 6DN 
 
Tel: 020 7016 4880 
 
Website: www.aewuk.co.uk 
 
Property Manager 
 
Mapp 
 
180 Great Portland Street 
 
London 
 
W1W 5QZ 
 
Corporate Broker 
 
Liberum 
 
Ropemaker Place 
 
25 Ropemaker Street 
 
London 
 
EC2Y 9LY 
 
Legal Adviser 
 
Gowling WLG (UK) LLP 
 
4 More London Riverside 
 
London 
 
SE1 2AU 
 
Depositary 
 
Langham Hall UK LLP 
 
8th Floor 
 
1 Fleet Place 
 
London 
 
EC4M 7RA 
 
Administrator 
 
Link Alternative Fund Administrators Limited 
 
Beaufort House 
 
51 New North Road 
 
Exeter 
 
EX4 4EP 
 
Company Secretary 
 
Link Company Matters Limited 
 
6th Floor 
 
65 Gresham Street 
 
London 
 
EC2V 7NQ 
 
Registrar 
 
Computershare Investor Services PLC 
 
The Pavilions 
 
Bridgwater Road 
 
Bristol 
 
BS13 8AE 
 
Auditor 
 
KPMG LLP 
 
15 Canada Square 
 
London 
 
E14 5GL 
 
Valuer 
 
Knight Frank LLP 
 
55 Baker Street 
 
London 
 
W1U 8AN 
 
Frequency of NAV publication: 
 
The Company's NAV is released to the London Stock Exchange on a quarterly basis and is published on the 
Company's website. 
 
National Storage Mechanism 
 
A copy of the Interim Report will be submitted shortly to the National Storage Mechanism ('NSM') and will be 
available for inspection at 
https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/national-storage-mechanism [4]. 
 
LEI: 21380073LDXHV2LP5K50 
 
ISIN:           GB00BWD24154 
Category Code:  IR 
TIDM:           AEWU 
LEI Code:       21380073LDXHV2LP5K50 
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited 
                reviews 
Sequence No.:   88041 
EQS News ID:    1148838 
 
End of Announcement EQS News Service 
 
 
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(END) Dow Jones Newswires

November 18, 2020 02:01 ET (07:01 GMT)

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