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? |
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. |
Or here :- |
Ah - I understand and it looks like the website link has the same information - perhaps an email or call to :-
Henry Butt
henry.butt@eu.aew.com
+44(0) 20 7016 4869
AEW Investor Relations
investor_relations@eu.aew.com |
@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? |
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!! |
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 |
ST gives this another push in the I/C : Lock in this secure 9 1/2 % yield |
@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. |
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. |
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. |
XD 2p today |
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. |
A pretty good update. NAV slightly better than I would have expected; and of course great to see the 2p Qtly divi again held at 2p. Also that divi looking more secure.
At 86p the discount is 16.3%; but more importantly the yield a lip-smacking 9.3%. |
I have CLI Sky, I think it was one of your posts that first alerted me to them, crazy discount was the clincher for me and the not too shabby dividend. SERE I also hold, but, not EBOX, I looked at it but, I'm already quite exposed to CRE with large holdings in RECI and SUPR. In hindsight I should have added.
wllm :) |
dsct - hopefully you bought into those two mentioned above in 1560.
CLI - up 6.6%
but...
EBOX up a staggering 25%!!!
Sector recovering well. CLI still cheap & SERE cheaper than most others. |
@wllmherk certainly due a Qtrly NAV update as well |
Seems to be picking up steam like a few of my REIT's at the moment. We should be due a dividend announcement soon as these went xd last year 4th May.
wllm :) |
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% |
@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. |
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. |
I have just begun to look at AEWU for the income side of my portfolio. Does anyone think this REIT would be bid for? |
Nice to see a gentle recovery from lows...so far... |
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