Aew Uk Reit Share Discussion Threads

[skinny] 16/1/2020 07:12

.

Highlights

At 31 December 2019, the fair value independent valuation of the property portfolio was £195.80 million (30 September 2019: £196.05 million). On a like-for-like basis the valuation of the property portfolio decreased by £0.25 million (0.13%) over the quarter (30 September 2019: decrease of £0.51 million and 0.26%).

NAV of £147.38 million or 97.24 pence per share (30 September 2019: £147.55 million or 97.36 pence per share).

EPRA earnings per share ("EPRA EPS") for the quarter of 2.18 pence per share (30 September 2019: 2.13 pence per share).

EPRA occupancy 96.14%. The Manager's active asset management approach has led to 12 lettings being completed during the year to 31 December 2019 with annual headline income totalling £1.63m against an estimated rental value from independent valuers on these units of £1.49m.

The Company today announces an interim dividend of 2.00 pence per share for the three months ended 31 December 2019, in line with the targeted annual dividend of 8.00 pence per share.

NAV total return of 1.93% for the three months ended 31 December 2019 (three months ended 30 September 2019: 1.52%).

The Company remains conservatively geared with a gross loan to value ratio of 26.30% (30 September 2019: 25.50%).

Share price total return of 20.67% for the 12 months ended 31 December 2019.


more.....

[shieldbug] 10/1/2020 15:12

Sold out here. Look to buy back in at a lower price. Don't want to be holding property at a premimum, especially a REIT buying shorter WAULTs.

[spectoacc] 02/1/2020 15:51

Ironically, if we stuck fairly closely to how we are now, then a deal could be "easy". ie for the vast majority of trade deals, you take two countries with different systems, different rules, different legislation, and arduously try to come to agreement on pretty much everything. We're already 100% fitted to the EU, because we're in it.

Trouble is, whole point of leaving is that we diverge, & Cummings seems pretty keen on diverging strongly. The more we create our own rules & regs, the harder the deal becomes.

Anyway - I digress :)

[rcturner2] 02/1/2020 15:01

The end 2020 deadline though was for the original May deal which was delayed 3 times without the 2020 deadline being moved.

I don't think it is about political will, it's the SIZE of the purely technical nature of everything that has to be agreed.

[rcturner2] 02/1/2020 14:35

One other factor here is that there is currently a strong December/Boris bounce.

I have used that bounce to sell most of my shares.

There is no guarantee that 2020 will be plain sailing. Remember that we leave the EU on the 31st Jan with all the disruption that will cause and during 2020 the UK government believes it can finalise a trade deal with the EU, which I think is virtually impossible.

[2wild] 02/1/2020 11:24

Even at 102p AEWU yields 7.84% with a hefty 109.3% div cover. Expect dividend increase either this or next year or both, as we get close to breaching the 90% distribution rule. With borrowing costs at 2.17%, occupancy above 96% and prospective yield above 8% what's not to like. If any REIT deserves to be trading above NAV this is it.

[spectoacc] 02/1/2020 10:04

Someone paid 102.1p for 25k. Have to say, I think they're mad - but I would say that :) Can't say the current premiums/near premiums are yet as daft as the discounts got to.

[jombaston] 27/12/2019 12:01

Spec, that's a good point you make about the same teams running both funds. Tbf, cost ratios are both reasonable - even AEWL is pretty good taking into account it is so small. The only reason I thought AEWU was worth topping up is the way the whole market has been going the last few months. It may now be an advantage some of their leases are quite short.I have lost/am losing 2 of my favourite funds in MKLW and HSTN which is bitter sweet. I felt with those two I was in good hands. HSTN looks a done deal - it would be nice to get a sweetener but the money is coming back in cash which we will all have to reinvested somewhere.

I don't see much at at discount to NAV which has a covered dividend (by my calculations)and doesn't involve a slug of high st retail. In any case, a well-covered dividend and sustainable strategy is more important to me than NAV. I am investing for income; I rarely sell unless there is a strategic change I don't like or an underlying income/cost issue. I could have a nibble at AEWL but it doesn't fit my profile of a steadier income generator I can forget about. I told myself I wasn't going to get involved in sub-scale funds which I might need to follow closely. However, I couldn't resist a decent block of SHED, which does look anomalously cheap given urban logistics is the hot sector, certainly if you read LMP's latest musings. If SHED can avoid getting taken out it could potentially grow to a good size.

[skyship] 24/12/2019 15:46

Specto - well, I totally agree with your above. AEWU to AEWL a good switch these past few days.

[spectoacc] 24/12/2019 15:41

I disagree with you all - obviously, since I've sold :)

And now the markets are closed hopefully this won't sound like a de-ramp.

Last NAV 97.36p - I'll ignore the 2p XD as it earns what it pays out.

Fully invested - but with an eye to growing the co through more issuance, which I'd wager is bound to happen when trading above NAV.

Can't recall the retail % - about 15%? - and some of that is retail parks. But far from immune from retail headwinds, counter-balanced by a good spread of industrial & offices. But still - I'd much rather just the industrial.

Divi look safe-ish except in a recession, AEWU seems surprisingly well run compared to the problems the exact same team have had at AEWL, and I'd be in again at the right price. That price is not at a premium, nor even at par.

(@Jombaston re AEWL, one of my largest holdings - it's all about the price! Big discount, decent yield thanks to the discount, divi only back to being uncovered thanks to the rent-free granted after the Meridian Metals fiasco. AEWL was never meant to be a high yielder like AEWU - it was meant to be a long lease, RPI/CPI-backed investment. Ignoring Meridian, which hasn't worked out too badly but went wrong far too quickly, it's been reasonably successful. Yes, size & relative costs are an issue, and they won't be able to get bigger, but again - in the price IMO).

[skyship] 24/12/2019 15:40

2wild / Specto - do either of you mind explaining P. No. 649, because at the moment I view it as entirely bogus & totally irrelevant.

Sorry, prepared to be convinced - but I suspect unlikely.

[jombaston] 24/12/2019 15:17

I added some AEWU the other day - my main concern was putting too much in such a small fund. But the way things are going they might be able to issue next year(which I view as a good thing in a sub £250m fund). I particularly like the high exposure to industrial and the minimal reliance on high st income.

Income is going up and the divi was already covered anyway. Have a look at the last results. If you want to be in commercial property with a good allocation to industrial and avoid high st retail I don't think there are many better options (can't put it all in SHED or even WHR!)

AEWL is tiny - the best bet in my view would be a sale but they appear to have ruled that out. I don't think there is too much wrong with the portfolio but 3 years after launch they still haven't covered the divi. Underlying yield is lower and costs are much higher than at AEWU. It simply isn't big enough to be an effective and efficient REIT. It might work out well in the end but Its a special situation and not comparable to a sustainable REIT.

[chucko1] 24/12/2019 12:53

HugePants, tend to agree. The lack of volatility in its dividend coverage suggests it’s not as risky as it’s being priced. That said, it does have trouble keeping these lofty levels, but then there’s a higher degree of certainty in the National politics, so everything has been given a filip. It might stay around here.

If you look at PHP with what is regarded as a gilt-edged dividend, it yields 3.8% with a NAV premium of around 40%. I thought it was expensive 9% ago, but “fixed” income comes more expensive nowadays.

[hugepants] 24/12/2019 12:06

Its not an obvious sell though is it? Its a conservatively geared property company with an 8% covered yield.

[spectoacc] 24/12/2019 11:46

Nah mine was the earlier even smaller one! If I had any more left down the back of the sofa, I'd be out of those at over £1 too. I like AEWU but only at the right price.

[skinny] 24/12/2019 11:44

10K just traded @100.012p

[spectoacc] 24/12/2019 11:26

Wish I'd kept hold of more now! Sold the last few from ISA at a quid, wow. The L's look a total bargain in comparison..

[2wild] 19/12/2019 11:26

SpectoAcc AEWL added

[eezymunny] 19/12/2019 09:13

Exactly RCTurner

The thicko valuers were knocking down valuations right left and centre, because a tiny fraction of the comprop market was being flogged off at a discount for technical reasons. Rent rolls, the real driver of value, were barely touched in the "financial crisis".

Helped me make a shedload, so thanks to all the thicko valuers and here's to more of the same in the next recession!