Aew Uk Reit Dividends - AEWU

Aew Uk Reit Dividends - AEWU

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Aew Uk Reit Plc AEWU London Ordinary Share GB00BWD24154 ORD GBP0.01
  Price Change Price Change % Stock Price Last Trade
-1.90 -2.41% 76.90 16:35:19
Close Price Low Price High Price Open Price Previous Close
76.90 75.80 78.00 78.00 78.80
more quote information »
Industry Sector

Aew Uk Reit AEWU Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

nickrl: The comment "In determining future dividend payments, regard will be had to the circumstances prevailing at the relevant time, as well as the Company's requirement, as a UK REIT, to distribute at least 90% of its distributable income annually, which will remain a key consideration" is this a warning we may not see 2p again. Some positive asset mgt activity but broadly neutral on rental income with future sales. In another warning for the sector can be seen in Costa Coffee rent for a site in Nottingham being reduced from 110k to 52k as well as 9mths free reinforces why discount remains so high on retail centric propcos.
hugepants: fyi if they did reduce the divi to match last quarters "epra" earnings of 1.6p the yield would still be 8.6%
lord gnome: The uncovered element of the dividend means that if they maintain it at 8p it will cost approx £2.5 millions pa out of capital. Not ideal, but as long as they believe that they can see a way back to normality and full cover, they will maintain it. Not a lot in the grand scheme of things and they do have plenty of cash at present with income accretive purchases lined up. I am confident that the dividend will be maintained (ceteris paribus).
skyship: AEWU NAV Q3 update - down just 0.7% from 93.37p to 92.73p. Dividend again at 2.0p, but EPS at just 1.6p. Dividend unsustainable surely.
hugepants: Buyback started. 200K at 76.5p
chucko1: I really do not think, even with a 1.1mn shortfall, that they reduce the dividend. They would do so were more adverse events to occur which were not of a very temporary nature. They have maintained the dividend because the number of adverse events is very small. The current lack of income is not adverse, but by design. The cash shortfall is more than covered, as you rightly say, and will be more than compensated for by waiting for an opportune time to reinvest. The last thing to do is to rush into new purchases now just for the sake of a quarter or two of increased income. An oscillating dividend would certainly serve to annoy a lot of people! Cutting it (by 25% to 50%) for a year, and then gradually raising it would be preferable. At least you could understand the plan (assuming REIT rules allowed this - they probably do as a number of REITs have cited "conservatism").
skinny: " This positive momentum, along with our healthy capitalisation, led our Board to support the full payment of AEWU's target 2p per share per quarter dividend during July and it is our hope that this positive momentum can be maintained going forward."
chucko1: If you're earning 1.81p, paying a 2p dividend is no issue. That would be 0.76p of NAV attrition per annum - so what? They've got many multiples of that in cash and you don't micro-manage your dividend policy based on transient issues. I see nothing in the update to lower dividend prospects.
loglorry1: I topped up a few here. Clearly some of the portfolio remains distrssed as far as rent collection is concerned but this is in the price in my view. 11% dividend yield is not to be sniffed at. I assume if rents do remain uncollected then NAV review might result in that coming down a bit so the discount to NAV might be a bit of an illusioin until we get more clarity on that.
gez: Is this UK Reit a bargain on a 12% yield and 26% discount? By Michelle McGagh, Gavin Lumsden 02 Jul, 2020 6 Comments Is this UK Reit a bargain on a 12% yield and 26% discount? Laura Elkin, co-manager of AEW UK (AEWU) real estate investment trust (Reit), has urged investors to consider a flight to good value after a coronavirus slump left its shares looking extraordinary cheap on a 26% discount to net asset value and a 12% dividend yield, the highest in its sector. The Covid-19 pandemic has heightened a polarisation in UK real estate in recent years that has seen Reits holding long leases and exposed to industrial and logistics properties bid up at the expense of generalist commercial property funds such as AEWU, a ‘flight to security’ Elkin called it in an interview with Investment Trust Insider. The trust’s annual results published last month suggest a more nuanced approach may be justified. Certainly, three months into the economic and health crisis it is worth asking if AEWU has been oversold, its shares slumping a third this year, from 99.8p to 67.8p, despite a 25% rebound since its 18 March low of 54.2p. After all 48% of the £107m trust’s assets are in the favoured industrial sector with a relatively low 12% in struggling retail. The results for the year to 31 March revealed a 5.5% fall in net asset value but a 7% increase in earnings per share that meant 8p per share in quarterly dividends were covered. ADVERTISING Ads by Teads Liberum, the trust’s broker, forecasts the dividend for this year will only be 7% uncovered on the basis that rent collection at 84% is resilient given the scale of the disruption from the lockdown. Of course, the double-digit yield indicates the threat of a potential dividend cut, a point the trust’s board acknowledged given the extreme uncertainty over how long the UK recession will last. But Liberum analyst Conor Finn points to the self-help AEWU has taken, last month selling a Corby property at a 23% over book value with cash from the disposal reducing net debt to 14%. Since the financial year-end lease renewals and restructurings have added 4% to the net asset value. Elkin, who runs the Reit with Alex Short, said the discount and the fact Reits in the ‘balanced̵7; category have remained ‘out of favour’ was ‘disappointing’. ‘Most of the [Reits] that we have seen recover quickly have been those that focus on higher income and very specialist sectors,’ she said. ‘That’s been the trend over the past couple of years; a flight to security.’ Long can be wrong However, she believed the focus on longer-dated income and long leases was misplaced due to the high cost of securing these stable income streams. ‘When we buy our assets they are not at a price that is very inflated like long leases, and a more in line with their fundamental valuation,’ she said. ‘If you are buying a 25-year lease at a very strong yield, that inflates the price [of the asset].’ Although longer leases are seen as safer bets, Elkin pointed to recent problems with Travelodge, which has entered into a ‘company voluntary arrangement’ (CVA), as proof that it is not totally secure. The CVA has forced Travelodge’s landlords to renegotiate rents and Secure Income Reit (SIR) has had to write off £14.4m of rent from its 123 leases with the budget hotel chain, which accounts for 12.9% of the £924m portfolio’s total rent. ‘When the market experiences volatility, and something like Travelodge, [with longer lease trusts] you have a much longer way to fall before the value is propped up by the fundamental value [of the asset],’ said Elkin. Managers AEW have had their own problems with long lease investments. The former AEW Long Lease trust sacked the fund manager and renamed itself Alternative Income Reit (AIRE) following a strategic review prompted by its largest tenant Meridian Metal Trading temporarily falling into administration last year. Alternative use Elkin argued that generalist property investors also have the benefit of being able to find ‘alternative use’ for their assets to boost returns. ‘Our property is supported by its fundamental value and its alternative use value,’ she said. AEW’s sale of the 35-acre car storage in Corby for £18.8m came two years after buying it for £12.4m, with the large mark-up partly due to the managers creating alternative use plans. Elkin said the asset yielded over 10% a year and the sale price achieved was 25% ahead of the asset’s value immediately prior to sale due to the ability to develop the land that came with the property for both residential or industrial use. ‘New-build residential and logistics would both create more value,’ said Elkin. ‘Because of the work we had done on the business plan we could say we wanted 25% [more] reflect the value that could be created.’ Pinpointing alternative uses will continue to be a strong trend for UK commercial property, particularly the development of residential property. ‘We have an industrial asset that we are in discussion about with a national house builder because they want to investigate the site for potential development and we are quite alive to that for the future,’ she said. Comments Rob Walker5 hours ago Whatever the comparative advantage of Industrial vs retail property, I can't see how property values and rental income will return anywhere near to that 99p valuation anytime soon. The real effect on struggling companies has yet to materialise while government support is still active and I suspect the forecast 7% income level will be short-lived. Reply Report this! Julian Stevens5 hours ago But for how long is a yield of 12% likely to last? Reply Report this! Jim Downie4 hours ago I hold this with quite a few others as I’m retired and to its credit unlike others it has paid full income through the current crisis - still a fair hit on capital but I’m not too worried about that if income can be maintained Reply Report this! Ian Marshall3 hours ago @Julian Stevens IMO dividend yield is not the point if its your own money which is being cannibalised. The reason I bought AEWU is the relatively low cost of each of their portfolio properties, the opportunity for enhancement, the reasonable borrowing level, the trust size and, yes the dividend. Although I am showing a 30% loss I will stick with it and hope it’s value improves without any risk of liquidation at low value. Reply Report this! Tony Taylor3 hours ago The inevitable rise in inflation warned about by the BoE this week will see property values rise considerably over the next 5 years. I'd rather be in now than late to the table. Reply Report this! DWi2 hours ago Bit confused about the charges for this REIT. Harg Lans's "At a glance" summary doesn't show any TER (strangely), but the KID shows a horrendous 1.42% transaction costs PLUS 3.49 other ongoing costs. AEW's quarterly (Q1 2020) update quotes annual management charge of 0.9% of invested NAV. Which is accurate? Reply Report this! Hide all comments
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