Aew Uk Long Lease Reit Share Discussion Threads

[sleepy] 18/6/2019 14:00

Thanks Sky

[skyship] 18/6/2019 13:11

In fact, of the 245,879 traded so far today:

# 213,485 were BUYS

# 32,394 were SALES

The sales were Trade Nos: 7, 11, 12, 15 & 16

[skyship] 18/6/2019 13:06

iggis - the notional quote is 76.5p-79.0p.

All trades are stated as buy or sales according to above or below the mid-price of 77.75p.

Don't ask me why - but that is how it works.

The vast majority of today's trades thus far are purchases; but reported here on ADVFN as SALES!

[iggis] 18/6/2019 12:34

Why did it go through as a sale?

[skyship] 18/6/2019 10:02

Sleepy - from the NAV Update of 22nd May - see last line:

Meridian Metal Update

-- On 3 April 2019, the Group announced that MMT, the tenant occupying three industrial assets, had appointed Administrators. As a consequence, the value of the three assets have been included in the 31 March 2019 valuation at their vacant possession value of GBP6.80 million, a fall of GBP3.95 million from the 31 December 2018 valuation of GBP10.75 million. Prior to going into administration MMT paid the full rent due for the quarter ending 24 June 2019.

-- On 9 May 2019, we announced that the assets and business of Meridian Metal Trading Limited ("MMT") had been acquired by Meridian Steel Limited ("Meridian Steel"), a newly incorporated wholly owned subsidiary of Duferco International Trading Holding S.A. ("DITH").

-- We are pleased to announce that earlier today the leases have been assigned to Meridian Steel for all three properties. Under the terms of the new lease arrangements, the passing rental income for the three industrial assets, two located in Dudley and one in Sheffield, will remain unchanged at GBP659,000, following an initial 12-month rent free period. The leases, which will run for a period of eight years, are linked to the Retail Price Index, with annual reviews and are all guaranteed by DITH.

-- Following the assignment of the leases, Knight Frank LLP, AEWL's independent valuer, has valued the properties at GBP8.85 million. The impact of this revised valuation would increase the Group's reported NAV based on the balance sheet as at 31 March 2019 (see below) by GBP2.05 million (2.55 pence per share).

[sleepy] 18/6/2019 09:21

What is the 2.5p adjustment please?

[skyship] 18/6/2019 08:49

Topped-up with 10k at 76.74p

[skyship] 18/6/2019 08:39

riverman - good point about the 2.5p adjustment - may have to top-up...

[riverman77] 18/6/2019 07:32

This is now on a 20% discount, NAV should be around 95.5p once the 2.5p adjustment is added back. The yield is over 7% and fully covered.

[spectoacc] 18/6/2019 07:19

Welcome aboard @Sky. No idea who the seller is, and disappointed how long this "review" is taking, but everything has its price, and I reckon this can't be far off being AEWL's.

[skyship] 18/6/2019 07:03

Bought a few this morning @ 76.7pXD. Surely looks to be fair value down at this level; and with the very real possibility of some sort of corporate action to take us out 10%-15% higher...

[iggis] 10/6/2019 14:18

Nav of over 93p but price still sinking?

[iggis] 07/6/2019 11:49

Sinking like the titanic, sell or wait?

[spectoacc] 07/6/2019 07:18

Disappointing fall back, not seen a reason? Nor any further news from the Board.

[spectoacc] 23/5/2019 15:10

Interesting re LXI not being interested, thanks @Jonwig.

[jonwig] 23/5/2019 13:38

The nearest comparable company (I think) is LXI. They seem to be doing very well plus a fundraising at a premium, and in this article they say they've no interest in AEWL

Also, look how they're picking up properties on the cheap:

[spectoacc] 23/5/2019 12:58

Completely missed this, released after the close last night.



"Alex Short, Portfolio Manager, AEW UK Long Lease REIT, commented

"Prior to going into Administration MMT settled its full rent due in respect of the quarter ending 24 June 2019. We are very pleased to have secured assignments of all three leases at our Dudley and Sheffield sites, minimising the overall impact on the valuation of the portfolio.

All other properties in the portfolio either retained or increased their value during the quarter.

Investor demand in the long lease sector of the market generally remains robust and AEW UK remains committed to achieving the best outcome for the investors of AEWL".


Generally positive, they've assigned all 3 leases, with a guarantee from a stronger (we now know!) counterparty. But - there's a 12 month rent-free, and also a NAV drop to about the middle of the range on Meridian. Divi cover inevitably slipping too.

NAV over 93p for shares at 82p, but there's more to prove, and it's gone very quiet on the possible management changes/sale.

[chucko1] 09/5/2019 13:13

The information gap partly explains the low price! As well as the lack of diversification etc. But then the management know that and therefore the REIT is effectively in closedown mode. Which is good given the discount and apparent failure of strategy.

[spectoacc] 09/5/2019 13:10

Potentially good if they simply take over the leases - will they have much choice? AEWL ought to be in the driving seat. Presumably if they'd left the lease liabilities with the administrator, they'd be able to tell us now.

Tho in fact - if leases continuing as before, they ought to be able to tell us that now too.

And still waiting for update from Board re manager, winding up, selling, etc.

I like the risk/reward & happy to hold, but could do with some more communication.

[chucko1] 09/5/2019 13:03

Well, probably not a zero recovery which is pretty well what has been priced in.

[spectoacc] 09/5/2019 12:38

Tells us not much at all - a rent haircut maybe?

"Further to the announcement on 3rd April 2019, the Group has been notified that the assets and business of Meridian Metal Trading Ltd ("MMT"), a tenant of the Group, have been acquired out of Administration by Meridian Steel Limited, part of the DITH Group. The DITH Group, Duferco International Trading Holding SA, are headquartered in Luxembourg with a main operating base in Lugano, Switzerland. Further details regarding the arrangements for the three assets previously leased to MMT will be made in due course. "

[spectoacc] 01/5/2019 13:30

All gone a bit quiet.

[spectoacc] 18/4/2019 06:25

Plenty of time to eg change manager, merge with another, decide to wind up - or decide to continue exactly as they are!

But it's reminded me that I've heard absolutely nothing more on Meridian Metals - presumably no buyer come forward?

[jonwig] 18/4/2019 05:49

Yes, the BoD is seeking ways to release value. But there haven't been any bids yet! And the market doesn't seem interested in the gap between price and 'value'.