Aew Uk Reit Share Discussion Threads

[skyship] 18/4/2024 09:10

dsct - we are currently spoiled for choice with REITs yielding over 8%.

IMO the best two covered dividend payers are:

# CLI - 83p - Disc at 67% and yield at 9.6%. Peel Hunt just posted "ADD". InvestorMeet presentation just last week



# EBOX - 48.4p - Disc at 45% and yield at 9.0%

[nickrl] 17/4/2024 20:56

@dsct got the best yield in the mainstream reit group but isn't covered and hasn't been for years but they've had a knack of churning the portfolio regularly to realise gains to cover the deficit. However, this year the halo over them has evaporated somewhat. I know their lead mgr is off on maternity leave but im sure she will be keeping her finger on the pulse here.

The divi is 90% covered by my calcs currently but lets see what the Q1 NAV updates reveals in the next week or two. Even if divi was to be realigned it would still have 8%+ yield in all probability.

[dsct] 17/4/2024 10:25

Like @Raj K, I have been looking at AEWU, as a replacement for BCPT (which is in a Formal Sale process, so may not be about much longer). Swapping one Real Estate for another.

I'm hoping it won't be 'bid for' as that would mean I'd have to look for another replacement. Initially had EPIC, then to BCPT, so maybe not a good omen lol.

The NAV and constant divi are what's attracted me here. I'm slowly reading through the past post to see the negatives (fortunately there are some posters giving their negative views as opposed to the often ADVFN pump-fest ! lol).

Any views from posters on here would be most welcome, as would other Real Estate stocks to consider - I have a list of divi paying UK REITs I'm currently going through.

[raj k] 04/4/2024 09:53

I have just begun to look at AEWU for the income side of my portfolio. Does anyone think this REIT would be bid for?

[cwa1] 15/3/2024 16:48

Nice to see a gentle recovery from lows...so far...

[stemis] 01/3/2024 08:42

Yes, always happy to hear contrary viewpoints constructively made, even if I disagree with them

[tag57] 01/3/2024 08:02

Thanks SpectoAcc. I have a few on your list, bought near recent lows and GABI bought at £1+ :-(
Always seem to have too much invested in my winners and not enough in my losers!
Edit, got that one the wrong way around!! :-0

[spectoacc] 01/3/2024 07:03

@Tag57 - quite a few, but ramping them across multiple BBs isn't my way ;)

Top 5 holdings fwiw:
CGT
SGLN
ERNS
(Cash)
SEIT
CSH2

Which is clearly bearish, but some recent purchases:

LTI (discount)
BBGI (quality at a discount)
LABS (risky discount)

REIT holdings, back on topic:

CLI (added to below 90p this week)
SHED
CREI

The latter two in the hope neither gets lumbered with API, but realistically one will get it and fall further, the other bounce back strongly. Also hoping SGRO may come in for SHED.

Horses for courses - and inevitably have a few bad losers, eg DGI9, GCP. Other holdings I'm positive on: SSIT, GABI, CORD, MERC etc.

Everything has its price - including AEWU.

[tag57] 29/2/2024 22:41

SpectoAcc, I like reading your comments as they usually give an opposing view to the norm (although usually negative :-) ) Just out of interest are their any companies / trusts that you are actually bullish on?

[stemis] 29/2/2024 17:01

Yes, the dividend has become almost a matter of honour for AEWU so I also would be surprised if they cut it.

Just to add to my previous post. Since 31 March 2018, despite paying out 44p in dividends, the net asset value per share has increased from 96.36p to the current 103.53p, so dividend cover hasn't been a problem so far...

[spectoacc] 29/2/2024 16:57

"EPRA earnings per share have been negatively impacted by 0.28 pence due to two tenants entering administration during the period.."

"Despite our recent asset management achievements, we remain cognisant of the economic backdrop and its cumulative effect on occupational markets."

"The Company has committed to pay its market-leading dividend of 2.00 pence per share this quarter..".

"Prospective lettings at three void units....are advancing well. The re-letting of these units are expected to have completed during the first half of this calendar year, further improving income streams and mitigating the incurrence of void costs, albeit with associated tenant incentives suppressing earnings potential over the short term."


That you'd come out with:
"So - wrong. Would be totally surprising if they cut. They won't."
surprises me not in the least.

They'll probably continue to hold the divi. But nobody should be surprised if they don't at some point. A sale or larger letting falling through, or another CVA(s), could do it.

AEWU clearly want to maintain their record, but they're not daft & they'll be hoping the mood music changes. Div unlikely to be covered next qtr either.

[skyship] 29/2/2024 16:49

Specto - in their IM presentation (see link below) they confirmed the Wilko site already under negotiations for re-letting; and the industrial property at Runcorn likely to be re-let at a higher level.

They go on to explain their track record of 33 qtrs of 2p/share dividend. When not covered by earnings, they show cover with capital gains from property sales.

They would be very loath to cut; and certainly no need to as adequate reserves to cover any earnings shortfalls.

So - wrong. Would be totally surprising if they cut. They won't.

[spectoacc] 29/2/2024 14:03

Agreed, AEWU has delivered, but best to value it now with the dividend lowered, say 1.5p/qtr going forwards.

The cut may not happen - they only need one good sale in the pipeline - but nobody could be surprised if it gets cut.

[chucko1] 28/2/2024 15:27

Agreed - but although based over a perhaps statistically significant period of 5.5 years, that still does not include a lot of transactions, nor the change in investment manager as of not that long ago. Added to the risk is the relatively small size of the REIT. This is not to say that it cannot continue to outperform, but therein lies some increased risk. Hence my preference for one or two others, although the now hard hit share price of 84p to give a yield of 9.5% is beginning to get interesting (once again).

Competition from SREI, once again, as it just gapped down 5% on nothing whatsoever. Bought those first.

[stemis] 28/2/2024 14:54

One man's 'churn' is another man's 'asset management to improve the quality of income streams and maximise value, exploiting pricing inefficiencies in smaller commercial properties, let on shorter occupational leases in strong commercial locations'.

I think if you expected this to be a passive landlord, sitting on a bunch of properties to generate a rental income and pay this out as a dividend, you were looking in the wrong place.

I've just looked back at my financial data, going back to 1 April 2018 (the period of my interest). During the 5.5 years since then the company has paid out 44p in dividends, costing £69.7m. Net rental income (after costs and interest) was £60.8m. However it also made a £20.8m gain on sale of properties. Net revaluation of properties over the period was a surplus of £2.2m. Overall a 'profit' of £83.9m.

Clearly there's no guarantees going forward but, so far, I'd say it's done pretty much what it says on the tin...

[chucko1] 28/2/2024 13:54

Nickrl, that is my sense. I have been an avoider of AEWU (for 18 months or so) after having been a cheerleader (arguing against the dividend doubters). The price reflects far less benefit of doubt than some others, at a time when doubt is reappearing to some extent.

[cwa1] 28/2/2024 12:47

Modest top up just under 83p. Seems very weak with a persistent seller. Ho hum...

[nickrl] 27/2/2024 19:38

Seems the luv affair is over here that they can keep churning the portfolio to cover the divi deficit

[cwa1] 27/2/2024 12:45

Oh, go on then, I'll have a handful at 85.74p. Price does seem very weak though, so probably further to fall. Wish folk wouldn't keep putting temptation in my way. I blame that Skyship...mutter...grumble :-))

[skyship] 27/2/2024 11:05

No indeed. Discount only 15%; but the stock has always enjoyed a slightly higher rating than many peers due to its consistent 8p/annum dividend - paid every year since IPO nearly 9yrs ago.

I've bought for the likely swing back up toward 100p - see chart in 1536 above.

[boystown] 27/2/2024 10:49

Not as big a discount as you usually go for Skyship???

[skyship] 27/2/2024 10:41

Hitting the Q4'22 lows. On offer below 88p for a 9.1% yield.

Added a few more, though only a few as pretty fully invested in my SIPP.

[skyship] 22/2/2024 21:10

Just a different observation:


free stock charts from uk.advfn.com

[spectoacc] 22/2/2024 13:17

The couple of CVA's causing the divi to be uncovered again won't have helped. They'll no doubt try to maintain it indefinitely as per usual, but no one can say they weren't warned, if they did cut it. Plenty of commentary in every release about it.

One of the better REITs tho - perhaps they should bid for something. I hear API's for sale.