AEW UK REIT plc (LSE: AEWU) (“the Company”), which, as at 27 April 2018, directly owns a diversified portfolio of 36 regional UK commercial property assets, announces its unaudited Net Asset Value (“NAV”) and interim dividend for the three month period ended 31 March 2018.
Highlights
- At 31 March 2018, the fair value independent valuation of the property portfolio was £192.34 million (31 December 2017: £151.59 million), following five acquisitions during the period totalling £40.02 million. On a like-for-like basis the valuation of the property portfolio increased by £0.74 million (0.48) over the quarter (two months to 31 December 2017: £0.70 million and 0.47%).
- NAV of £146.03 million or 96.36 pence per share (31 December 2017: £147.34 million or 97.21 pence per share). This decrease is largely due to purchase costs totalling £2.35 million relating to the acquisition of five properties during the quarter. Excluding purchase costs, the NAV would have increased by £1.04 million to £148.38 million or 97.91 pence per share.
- EPRA earnings per share (“EPRA EPS”) for the quarter of 1.76 pence per share (two months to 31 December 2017: 1.09 pence per share).
- The Company today announces an interim dividend of 2.00 pence per share for the three months ended 31 March 2018.
- NAV total return of 0.50% for the three months ended 31 March 2018.
- The Company remains conservatively geared with a gross loan to value ratio of 26.00% (31 December 2017: 21.44). During the quarter, the Company increased its loan facility with the Royal Bank of Scotland International Limited (‘RBSi’) from £40.00 million to £60.00 million and made drawdowns totalling £17.50 million, increasing the total debt drawn to £50.00 million as at 31 March 2018.
- At 31 March 2018, the Company held £3.57 million cash for investment and on 5 April 2018 completed the sale of the Floors 1-9, Pearl House, Nottingham, for gross proceeds of £3.65 million.
Portfolio and asset management activity during the period included:
- The acquisition of Knowles Lane, Bradford, for £2.10 million on 24 January 2018. The property comprises an industrial warehouse and two storey ancillary offices and provides a net initial yield of 7.1%.
- The acquisition of Diamond Business Park, Wakefield, for £4.18 million on 5 February 2018. The multi-let asset comprises an industrial and office element and provides a net initial yield of 8.5% and a weighted average unexpired lease term (WAULT) of 5.0 years to expiry.
- The acquisition of 2 Geddington Road, Corby, for £12.40 million on 19 February 2018. The asset provides a net initial yield of 10.0% and a WAULT of 3.5 years to expiry and the site is used by the tenant for the storage and inspection of vehicles.
- The acquisition of Units 6, 6a and 7 London East Leisure Park, Dagenham, for £11.37 million on 23 March 2018. The leisure asset currently houses Mecca Bingo, McDonalds and Hollywood Bowl and provides a net initial yield of 5.8%, rising to 8% in September, and a WAULT of 12.8 years to expiry.
- The acquisition at Gresford Industrial Park, Wrexham, for £9.98 million on 23 March 2018. This industrial asset is leased to Plastipak UK Limited and provides a net initial yield of 8.3% and a WAULT of 14.0 years to expiry.