Much of the lack of cover is due to AEWU trading properties rather than holding them for their rentals. The recent sale of the two industrial assets generated a profit of £3.8m on purchase price, which equates to 2.4p/share. Don't se them cutting the dividend. |
@aeonflux i came to that conclusion several years ago and never bought them believing they would have to rebase they never have. Laura has the knack of buying low selling high and generating enough surplus capital to keep the show on the road. I guess when that strategy no longer has legs we may get a reset. Divi good but trading too close to NAV currently compared to others. |
Could be a read across from SERE who yesterday cut their uncovered dividend. |
Aeon, the dividend has not been fully covered for 3 years, so, whilst your explanation is generally true it doesn't explain why today the share price drops 4.5%. THoughts about the timing? |
New major risk - Dividend sustainabilityThe dividend is not well covered by earnings and cash flows.Payout ratio: 132%Cash payout ratio: 129%Dividend yield: 8.4%This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price.This is currently the only risk that has been identified for the company. |
Any idea why AEWU has dropped 4% this morning. Yes FTSE is down but AEWU seems particularly, badly affected. |
Indeed; they're one of the better management teams |
But they seem quite effective at engineering value in their assets and realising the profits, rather than just collecting rents, and the market clearly attributs value to that... |
Sure - 8p per annum - but uncovered. LTV quite high at 36%; but debt good - 4yrs still to run at 2.96%
Tipped again yesterday by Simon Thompson of the IC. |
Not a holder, but they knock spots off any other REIT in that regard, all the while churning out 8p pa.
Maybe helps being less "legacy" than many of them.
Opportunity Cost going into a recession mind - UKCM, BCPT, API, SHED all lower again this morning. |
Buy low Sell high buy low again they certainly have become very adept at it |
Hats off to AEWU, have no idea who's still buying at those yields but once again AEWU prove their success in churning. |
To be fair - it is very unusual - dividends are normally there by noon (ish) on the payment day. |
Or an HL benefit. A lot of extra interest if they're stashing it overnight for a few days, on every divi in every a/c on every stock. |
You could tell them the Div was in my IG account at open yesterday, so any delay seems to be an HL problem. |
Nothing on my HL account as well. I've emailed them. |
I've emailed them. |
No dividend on my account from HL yet, due 07th June, they are getting very tardy.
They can't say the cheque has got to clear first! AJ Bell are much more efficient . |
clive7878 - AEWU very well managed; dividend uncovered but looks secure as always uncovered!
IMO however they are fully priced as the discount is just 5.7%, even though the yield a very tempting 8.1%.
Far better value and anomalously good value at the moment is API. At 49.2p the discount is 40.3% and the yield 8.13% (dividend covered).
Anomalies provide opportunities, so I rate this as currently the BEST BUY in the REIT sector. |
In the IC last Friday they stated which appeared good reasons to buy AEWU,
in their smaller companies section, although their record of late again
over the last couple of months have been a bit shaky.
But with a divi of around 8%, and what appears to be good deals by the company,
and with the share price having a rocky ride of late it could prove to be correct.
If the rents received are at a good percentage in theory, the divi is safe, and it looks like the asset value should increase along with the share price.
Will AEWU share price move on full year results I believe due to be released in June / July time? The Company does appear to be sound to me, I will either dip my toe in or put it on my watch list to see what happens
They look to me that they are a better bet than RGL, looking at their track record. |
And avoiding a £1 million pound refurbishment. Good deal methinks. |
Looks like a decent deal; recycling a vacant property at a slight premium to the valuation in the accounts |
Laura Elkin features on this:
hxxps://money-makers.co/2023/05/06/money-makers-podcast-06-may-2023/ |
Investor presentation today :-
Investors can sign up to Investor Meet Company for free and add to meet AEW UK REIT plc via : |
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