Aew Uk Reit Share Discussion Threads

[hugepants] 29/11/2019 16:29

Apologies thought EPIC were 100% retail.

"Retail W'hse (rather than Retail)"

Semantics surely? EPIC said the retail warehouse index cratered 6.9% in the last 6 months.

[spectoacc] 29/11/2019 15:46

EPIC got it badly wrong, switching into Retail Warehouses about 20 months ago. Maybe it'll come right for them - maybe it won't.

Didn't think much of RLE's last acquisition but would love Invesco to properly dump so we could buy them on the cheap.

Have never liked PCA management but everything has its price. I'd buy again if low enough.

SHED the best for me, right sector, right management, but prone to being illiquid and the occasional dilutory fundraising.

The not risk-free AEWL my largest prop (see "everything has its price").

[skyship] 29/11/2019 15:39

HP - EPIC is 24% Office; 72% Retail W'hse (rather than Retail); 4% Spec/Alt.

As I stated in my 566 above, I hold a few EPIC from sometime back; and the Sp has drooped because of their over-exposure to Retail Warehouse.

[hugepants] 29/11/2019 14:26

I hold RLE and PCA. RLE actually has a well diversified portfolio. Not sure skyship how you can claim RLE has too high an exposure to retail when one of your picks, EPIC, is 100% exposed to retail! (RLE is on a similar discount and yield to EPIC)

[skyship] 29/11/2019 08:57

Riverman:

PCA - as posted many times, I will never buy PCA again whilst Sinclair still at the helm. He trashed any credibility with that absurd pre-emption placing 2 yrs ago which slashed both the Sp and the NAV, all to satisfy his ego to manage a fully listed rather than AIM listed propco.

RLE - I do occasionally trade them; but not a core holding due to their rather eclectic portfolio which appears to have very little coordinated strategy. 2018 stats showed Office 38%; Retail 36%; Spec./Alt 26%. Retail rather too high. Current share price of 53p seems to represent Fair Value.

[redponza] 29/11/2019 06:06

I am a foreign investor and so will incur a 20% dividend withholding tax, the 8% yield
will turn to sth like 6.8%....

RGL at least has some growth in DPU which is more attractive to me....

PCA's management seems a bit poor?

[riverman77] 28/11/2019 17:12

You can get regional office exposure through RLE and PCA but at much more attractive discounts (both over 20% last time I looked).

[skyship] 28/11/2019 16:44

IMO regional offices are in a sweet spot, so I like AEWU, but have a far higher allocation to RGL. Also the management far more active, as Specto states above.

[skyship] 28/11/2019 16:42

Compare..... AEWU..to..RGL:
Sp....……………; 94.0p......108.5p

Discount:....3.5%.....5.1%
Yield:...…...8.5%.....7.6%

Office:......23%......78%
Industrial:..48%......14%
Retail:......14%....….6%
Spec./Alt....15%......2%

[spectoacc] 28/11/2019 16:21

True @HP, but RGL much more "active". AEWL my largest property IT, with SHED probably my favourite. Have some AEWU but not so many.

[hugepants] 28/11/2019 16:01

Re comparison with RGL I hold both but hold a lot more of AEWU. Aren't they both yielding about the same and on similar discounts to NAV? But AEWU has LTV of only 25% versus RGL at 40%.

[redhill9] 28/11/2019 14:47

Skyship, my largest propco holding is also RGL with AEWU second plus a smaller holding in SUPR.

I have HCFT on my watchlist but couldn't decide if I liked it enough considering the retail aspect so have deferred for now. I suspect SUPR is probably the safest propco in the sector considering the tenants' profile and rental strategy of inflation linking but of course the much lower yield of c.5.35% reflects that lower risk.

Until recently I also held PHP but sold when the share price went up so much that the yield went below 4% and it seemed to me to have become overpriced (certainly compared to SUPR for example which I'd guess is best comparator). I sold PHP having held from the days of 102p based on a Mike Walters tip originally.

As I get further into my retirement years I find myself increasingly drawn to holding propcos within my income portfolio but choice is difficult. Anything with large retail exposure worries me (SUPR I consider an exception to that due to its tenants).

[2wild] 28/11/2019 14:42

Picked up a few more at 92.4p. Love the borrowing rate. The loan incurs interest at 3 month LIBOR +1.4%, which equated to an all-in rate of 2.17% at 30 September 2019 (31 March 2019: 2.32%). The Company has entered into additional interest rate caps on a notional value of £46.51 million at 2.00% covering the extension period of the loan from 20 October 2020 to 19 October 2023.
Although there has been no dividend growth, cover has been rising over the last few years and is now 109%. Prefer REITs that wait until they can already fully cover any increased amount.

[skyship] 28/11/2019 13:51

redhill - spot on. My largest holding is of course RGL; thereafter AEWU & EPIC. Less happy with this last; though the lower share price surely prices in the retail w/hse concern.

Can you say where else you would go in the sector?

NB: I sold my HCFT due to the same retail w/hse concerns as EPIC; also playing a few DJAN, though that simply a short-term oversold trade and a nice chart for a little upside...

[redhill9] 28/11/2019 11:03

redponza, it's true the dividend has been flat but with a current yield of c.8.65%, which is seemingly adequately covered by earnings, lack of dividend growth isn't a great concern?

Not a share to go overboard on but worth holding for diversification in a property/income portfolio.

[sleepy] 28/11/2019 10:11

Stemis - I don’t think it has if Skinny’s 561 is correct

[redponza] 28/11/2019 09:54

I always think the problem of this ticker is that its dividend per share never grows....

[stemis] 28/11/2019 09:22

Well they've certainly achieved full coverage of the dividend. I don't quite understand how the average lease expiry has fallen by 1+ years under just 6 month. That's either a threat or an opportunity, depending on how you look at it...

[skinny] 28/11/2019 07:13

.

Financial Highlights

● Unaudited Net Asset Value ("NAV") of £147.55 million and of 97.36 pence per share ("pps") as at 30 September 2019 (31 March 2019: £149.46 million and 98.61 pps).

● Operating profit before fair value changes of £7.26 million for the period (six months ended 30 September 2018: £6.86 million).

● Profit Before Tax ("PBT") of £4.16 million and 2.74 pps (six months ended 30 September 2018: £11.68 million and 7.71 pps). PBT includes a £2.41 million loss arising from changes to fair value of the investment properties in the period (six months ended 30 September 2018: gain of £5.65 million). This change explains the significant fall in PBT for the period.

● Unadjusted EPRA Earnings Per Share ("EPRA EPS") for the period of 4.37 pps (six months ended 30 September 2018: 4.10 pps). See below for the calculation of EPRA EPS.

● Total dividends of 4.00 pps have been declared for the period (six months ended 30 September 2018: 4.00 pps).

● Shareholder Total Return for the period of 5.50% (six months ended 30 September 2018: 3.56%).

● The price of the Company's Ordinary Shares on the Main Market of the London Stock Exchange was 93.90 pps as at 30 September 2019 (31 March 2019: 92.80 pps).

● As at 30 September 2019, the Company had drawn £50.00 million (31 March 2019: £50.00 million) of a £60.00 million (31 March 2019: £60.00 million) term credit facility with the Royal Bank of Scotland International Limited ('RBSi') and was geared to 25.50% of the portfolio valuation (31 March 2019: 25.30%).

● The Company held cash balances totalling £2.01 million as at 30 September 2019 (31 March 2019: £2.13 million). Under the terms of its loan facility, the Company can draw a further £1.64 million (31 March 2019: £2.31 million) up to the maximum 35% loan to NAV at drawdown.

Property Highlights

● As at 30 September 2019, the Company's property portfolio had a fair value of £196.05 million across 35 properties (31 March 2019: £197.61 million across 35 properties) and a historical cost of £197.02 million (31 March 2019: £196.86 million).

● As at 30 September 2019, the Company's property portfolio had an EPRA vacancy rate of 3.96% (31 March 2019: 2.99%).

● Rental income generated during the period was £8.78 million (six months ended 30 September 2018: £8.46 million). The number of tenants as at 30 September 2019 was 92 (31 March 2019: 95).

● EPRA Net Initial Yield ("EPRA NIY") of 7.45% as at 30 September 2019 (31 March 2019: 7.62%).

● Weighted Average Unexpired Lease Term ("WAULT") of 4.33 years to break and 5.82 years to expiry (31 March 2019: 4.87 years to break and 6.10 years to expiry). See below for definition and relevance to strategy.

more.....

[spectoacc] 18/10/2019 07:21

AEWU continuing to do everything right IMO. Alex Short done such a good job of AEWU, and such a poor job of AEWL.

But remarkable how the small retail holdings (c.14% of the fund) were marked down 5.77% in just one quarter.

[skinny] 18/10/2019 07:17

.

Highlights

At 30 September 2019, the fair value independent valuation of the property portfolio was £196.05 million (30 June 2019: £196.56 million). On a like-for-like basis the valuation of the property portfolio decreased by £0.51 million (0.26%) over the quarter (30 June 2019: decrease of £1.05 million and 0.53%).

NAV of £147.55 million or 97.36 pence per share (30 June 2019: £148.33 million or 97.87 pence per share).

EPRA earnings per share ("EPRA EPS") for the quarter of 2.13 pence per share (30 June 2019: 2.25 pence per share).

The Company today announces an interim dividend of 2.00 pence per share for the three months ended 30 September 2019, in line with the targeted annual dividend of 8.00 pence per share.

NAV total return of 1.52% for the three months ended 30 September 2019 (three months ended 30 June 2019: 1.28%).

The Company remains conservatively geared with a gross loan to value ratio of 25.50% (30 June 2019: 25.44%).

[2wild] 14/10/2019 18:30

This is by far my largest holding and the total value of my portfolio is often skewed by random movements on AEWU.

[skinny] 14/10/2019 17:02

This is one of the weirdest shares for intra day price moves!

[chucko1] 10/10/2019 21:38

Yes, it was trading 90/90.25 near the close. Strange that the seller had a chance to sell at 94 for the past two weeks, but sold a lot today and yesterday down here. Same thing seems to happen frequently with this share. It’s as though someone has a perpetual desire to lose money.