A case study of Trusts added to the Watch List, starting with Property shares as that is where the market’s interest is at the moment. Not a recommendation to buy just posted in alphabetical order for you to DYOR.

As always timing and then time in if you want to GRS.

AEW UK REIT plc

NAV Update and Dividend Declaration

AEW UK REIT plc (LSE: AEWU) (“AEWU” or the “Company”), which directly owns a value-focused, diversified portfolio of 32 UK commercial property assets, announces its unaudited Net Asset Value (“NAV”) at 31 December 2024 and interim dividend for the three-month period ending 31 December 2024.

Highlights

·      NAV of £174.30 million or 110.02 pence per share at 31 December 2024 (30 September 2024: £172.76 million or 109.05 pence per share).

·      NAV total return of 2.73% for the quarter (30 September 2024 quarter: 4.85%).

·      1.22% like-for-like valuation increase for the quarter (30 September 2024 quarter: 2.94% increase).

·      EPRA earnings per share (“EPRA EPS”) for the quarter of 2.35 pence (30 September 2024 quarter: 2.68 pence).

·      Interim dividend of 2.00 pence per share for the three months ended 31 December 2024, paid for 37 consecutive quarters and in line with the targeted annual dividend of 8.00 pence per share, representing a dividend yield of 7.9%.

·      Loan to GAV ratio at the quarter end was 25.03% (30 September 2024: 25.04%). Significant headroom on all loan covenants.

·      Company continues to benefit from a low fixed cost of debt of 2.959% until May 2027.

·    Disposal of Units 1-11 of Central Six Retail Park, Coventry, for £26,250,000, reflecting a net initial yield of 7.49% and a capital value of £213 per sq. ft, representing a 60% premium to the purchase price.

Henry Butt, Assistant Portfolio Manager, AEW UK REIT, commented:

“We are pleased with the growth in NAV per share and the dividend being covered by EPRA earnings for a third consecutive quarter, which continues to evidence the earnings accretion produced by the Company’s programme of ongoing asset management initiatives through income generation and void cost mitigation. Rental income has been buoyed by the billing of annual turnover rent for Next in Bromley, and Poundland in Coventry, while the Company’s ‘bottom line’ continues to benefit from a stabilised portfolio and tenant base.

The part sale of Central Six Retail Park, Coventry, at a very healthy premium of 60% to the purchase price, means the Company has capital to deploy on a pipeline of attractive investment opportunities, a significant amount of which is already under offer.

The Company has committed to pay its quarterly dividend of 2.00 pence per share, which has now been paid for 37 consecutive quarters.”

20/01/25

AEW UK REIT plc

Acquisition of high-yielding asset in affluent town

AEW UK REIT plc (LSE: AEWU) (“AEWU” or the “Company”) is pleased to announce that it has completed the purchase of a freehold, high-street retail asset at 13/13A, 114-119, 121-123 Bancroft and 3-4 Portmill Lane (the “Property”) in the affluent commuter town of Hitchin for £10,000,000. The purchase price reflects an attractive net initial yield of 8.31% and a capital value of £213 per sq. ft.

The Property, located in the centre of Hitchin’s high-street retail pitch, provides 46,905 sq. ft. of space across 12 retail units and a standalone office building, as well as car parking and service yards.  The retail elements of the Property are fully let to a strong line up of 12 tenants, with recent leasing activity evidencing the strength of the location. Major tenants include Marks & Spencer plc, Next Holdings Ltd, Vodafone Ltd, The White Company and Holland & Barrett. The vacant office element to the rear provides various asset management options in the short-to-medium term, including new lettings or residential conversion.

Hitchin is a busy market town located in Hertfordshire with an affluent catchment. The town is served by rail connections to both London and Cambridge, underpinning its attractiveness as a commuter location.

The acquisition demonstrates the Company’s swift and ongoing redeployment of sale proceeds from the recent disposal of Central Six Retail Park in Coventry, with a significant amount of the remaining proceeds also under exclusive negotiation. In considering the re-deployment of the proceeds from Central Six, the Company has identified an attractive pipeline of investments available for purchase in the current market and is considering available growth opportunities for further earnings accretive acquisitions.”

Commenting on the purchase, Laura Elkin, Portfolio Manager of AEW UK REIT said: “We are delighted to have purchased this well-located asset at a day one yield that will enhance the Company’s earnings. Completing this acquisition marks a significant milestone in our strategy to reinvest capital generated from the recent successful sale of our retail park in Coventry into higher-yielding and value-add assets. We continue to actively monitor a pipeline of attractive potential investments, and believe the Company is well positioned to focus on the growth of the portfolio should the right earnings accretive opportunities arise.”

14/03/25

Current yield 8%

Trades around its NAV