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AEW UK REIT net asset value up

By BFN News | 09:35 AM | Friday 01 December, 2017


AEW UK REIT's net asset value rose to £148.22m or 97.80p per share at the end of October - up from £119.76m or 96.86 pence per share at the end of July. Fair value independent valuation of the property portfolio was £147.79m (31 Jul: £150.38m), following a disposal at a sale price of £11.05m and an acquisition at a purchase price of £6.37m. On a like-for-like basis the valuation of the property portfolio increased by £2.09m (1.50%) (31 Jul: £1.94m and 1.41%) over the quarter. Other highlights: - EPRA earnings per share for the period of 1.65 pence per share (31 July 2017: 2.10 pence per share). The decrease in EPRA earnings per share is partly attributable to a loss of income from the sale of Valley Retail Park, Belfast, and increased lease renewal costs during the quarter. - Interim dividend of 2.0 pence per share announced for the quarter ended 31 Oct. - NAV total return of 3.10% and shareholder total return of 2.16% for the quarter ended 31 Oct. The company said it remains conservatively geared with a gross loan to value ratio of 22.0% (31 Jul: 21.6%). The company increased its debt facility from £32.5 million to £40.0 million during the quarter. At 31 Oct, the company held £32.44 million cash for investment with a further £7.5m of loan facility available for new investment. Portfolio manager Alex Short said: 'We are pleased to be investing again following our successful raise of £28 million in October and already a significant amount of these funds have been allocated to properties under offer. 'With a lot of focus in the market currently on longer leased properties we are seeing some very compelling buying opportunities at present for our strategy which continues to find yield premium by investing in smaller lot size properties let on shorter than average leases but with a focus on sustainable locations and replicable income streams. 'We therefore expect to be making further acquisition announcements shortly. 'We have already completed one acquisition since the close of the capital raise for over £6m being a High Street retail asset in Portsmouth, a top 50 retailing centre which is set to see £1 billion of investment over the next 20 years. 'The performance of the Company's assets has continued strongly again this quarter with like-for-like valuation growth of 1.5%. 'This compares favourably to MSCI data which shows that the market as a whole delivered growth of 1.3% over the quarter to 30 September 2017 on a "standing investment" basis (excluding transactions and developments). 'We are particularly pleased with the capital appreciation delivered by the Company's industrial assets which have seen the strongest growth of all of the sectors in which the Company is invested, at an average of 3.2% within the quarter. 'The portfolio has been particularly well placed to benefit from this movement with its high weighting towards the industrial sector where many of our recent acquisitions have been focused, particularly in locations which exhibit low levels of supply alongside robust tenant demand and a low level of passing rent. 'Our asset management team have had another successful quarter completing the disposal of the Valley Retail Park in Belfast which is the culmination of 2 years of hard work that has seen some significant value added to the asset with an overall valuation uplift in excess of 50% achieved. 'The team have also this quarter completed a lease renewal with the company's largest tenant Ardagh Glass lengthening the income stream and creating a 9% valuation uplift.' At 9:35am: (LON:AEWU) AEW UK REIT Plc share price was -0.25p at 100.88p Story provided by StockMarketWire.com

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