Aew Uk Reit Share Discussion Threads

[marketmuser] 25/7/2024 17:32

Indeed they are as good as (think underlying was just shy of the 2p).So a solid as good as dammit 9% covered yield...that'll do me nicely thank you very much!

[nickrl] 25/7/2024 09:05

Unusual to get a NAV increase these days and there is a bit flattery from reversals but also good up lift on retail pks (EPIC board take note). Henry seems to have a plan for all the cash on the books now but on asset management initiatives. Despite Lauras absence the halo over AEWU is still burning bright.

[glaws2] 25/7/2024 08:59

Dividend now covered by earnings

[skinny] 25/7/2024 07:01

Highlights



· NAV of £167.79 million or 105.91 pence per share as at 30 June 2024 (31 March 2024: £162.75 million or 102.73 pence per share).

· NAV total return of 5.04% for the quarter (31 March 2024 quarter: 1.16%).

· 2.41% like-for-like valuation increase for the quarter (31 March 2024 quarter: 0.41% increase).

· EPRA earnings per share ("EPRA EPS") for the quarter of 2.26 pence (31 March 2024 quarter: 1.88 pence).

· Interim dividend of 2.00 pence per share for the three months ended 30 June 2024, paid for 35 consecutive quarters and in line with the targeted annual dividend of 8.00 pence per share.

· Loan to GAV ratio at the quarter end was 25.66% (31 March 2024: 26.21%). Significant headroom remains on all loan covenants.

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

· Disposal of Oak Park, Droitwich, for £6.30 million, reflecting a 33% premium to the 31 March 2024 valuation.

· New letting and RPI rent review increasing annual contracted rent by £220,462.

[nickrl] 24/7/2024 17:05

@WC104 it is but valuers should assess reversion possibilities as well surely. Anyhow another excellent recycling operation although that means even more cash in the bank which needs a new home. Not a year ago they they showed several slides worth of acquisition targets they would like if they had the cash but now seem slow in crystallising any which means they can't pick them up on the cheap anymore which of course is a good indicator for wider mkt.

[williamcooper104] 24/7/2024 15:48

They did leases after the last valuation, so that likely accounts for most of the premium to book Valuation is only ever an educated guess and it's historic

[mindthestash] 24/7/2024 13:54

Interesting premium to valuation!
Do they seem to be calling the top of this multi let market in this location at least?

Do we know who the valuers were and more importantly who else they work for? 33% profit to be made somewhere?

I'll have a scout around at weekend

[stemis] 24/7/2024 13:11

Adds 1.0p to NAV

[marketmuser] 24/7/2024 12:53

And as if by magic there is another sale. While the price achieved is not exactly brilliant compared to the purchase cost it's a whopping 33% above latest carry value.Which makes you wonder just how the valuers got this wrong by so much and what else they might be grossly underestimating here and in other property vehicles!

[nickrl] 04/7/2024 10:20

@kibes they've been running that cautionary statement for over four years but have had the midas touch in recycling the portfolio to generate plenty of surplus to cover the shortfall. That strategy has served them well but gone a bit quiet recently but generally out of the blue they dispose of something at a decent premia.

[kibes] 04/7/2024 09:24

Financial statements look generally OK to me but it depends rather on forward performance. The dividend is not currently covered by earnings and there are cagey comments about 'reviewing it depending on circumstances'. Some of their more recent purchases are a bit off the wall, a nightclub in Cardiff for example? (Which has gone into administration). Nightclubs have a track record of sometimes doing well but more often going bust. I would quite like to top up here but will wait for their next NAV statement. Their company structure which has no Executive Directors or staff and relies on AEW (a separate listed company) to manage their portfolio is also a bit strange although it seems to have worked so far. What does AEW get out of it?

[nickrl] 02/7/2024 10:41

Someone with more clout them me has finally woken them up and uploaded it although the financial narrative is pretty thin.

Anyhow a good uplift in NRI over the year and reduced operating costs, before provision for bad debts (Wilko), shows they are closing in on divi cover which I'd say is good as the magic of churning the portfolio has dropped back this year. Looking ahead the lease expires/breaks this year are the highest for several years ahead and have the biggest opportunity on ERV to finally close the divi cover gap. They also have 16m (incl latest disposal) available for acquisitions and in past presentations they've shown they had plenty of targets.

[skinny] 02/7/2024 10:15

Or here :-

[skinny] 02/7/2024 10:13

Ah - I understand and it looks like the website link has the same information - perhaps an email or call to :-

Henry Butt

[e-mail]

[phone]

AEW Investor Relations

[e-mail]

[nickrl] 02/7/2024 09:29

@skinny thats the abstracts not the full financials that most usually include in the RNS release but AEWU aren't the only ones recently who have gone down this path. They refer to specific page numbers of the report in the RNS but then don't upload it. Presumably they aren't required to include full financials if they don't want to?

[nickrl] 02/7/2024 09:06

Results today but only half the story on the RNS and say refer to website for full report which has the full financials in it but still isn't uploaded!!

[petewy] 01/6/2024 12:30

simon Thompson IC

A lowly geared Reit trades on an 18 per cent discount even though its portfolio is outperforming peers.

In the fourth quarter to 31 March 2024, a like-for-like valuation gain of 0.4 per cent comfortably outpaced the 0.6 per cent decline in the UK Quarterly MSCI index and helped AEW deliver a NAV quarterly total return of 1.16 per cent. After the payment of the quarterly 2p a share dividend, NAV dipped slightly to £165mn (102.7p) but that was only due to a tax provision which will be reversed in the next quarter.
outperforming peers

[panshanger1] 29/5/2024 08:36

ST gives this another push in the I/C : Lock in this secure 9 1/2 % yield

[raj k] 28/5/2024 10:06

@SKY

Yep it is attractive as stands. Any other upside (narrowing of discount with NAV same or increasing or least likely dividend increase) should be seen as a bonus. i have added some more this morning.

[skyship] 28/5/2024 09:52

Well, their debt matures in 2027, so will need to refinance in 2026. Depends upon interest rates perhaps; but don't really see any increase from the 8p pa in the foreseeable future.

Still, the current yield of 9.5% is surely attractive enough for now.

[raj k] 28/5/2024 07:59

Does anyone know if the AEWU dividend is likely to ever increase. I understand the dividend has never really been covered solely by rental income and through their shrewd buying and selling of properties they have managed to keep the 8p per year payout going. If we strip out the extra dividend contribution from doing this and just look at the rental income, has it been increasing over the years and there will come a point when it will go beyond the 8p per year.

Or is this a trust you simply buy for the starting yield and the capital kicker if the interest rate environment becomes more favourable.

[skyship] 23/5/2024 08:15

XD 2p today

[nickrl] 14/5/2024 22:38

A bit of a screw up on the tax though albeit the inv mgr is going to deal with it so no impact.

Wish they could give a update on what the current NRI is so we can see how close we are to full divi cover which has improved over the qtr.