Aew Uk Reit Share Discussion Threads

[chucko1] 21/7/2021 14:47

LG - clearly the person marking you down was not a buyer when the opportunity was there!

Our Alex is playing it very well with this fund. As you know, I always felt the doubters had an imprecise grip on the true risk/reward here.

[spectoacc] 21/7/2021 11:15

Am sure we will, and the housing/property market, which is due to slow pretty fast, pretty soon.

But there's a real lack of industrial, coupled with a one-off shift that's happened. Some of it EU, some of it Covid, some of it connected-to-Covid online shopping, but much of it supply chain. Just In Time is over, now it's Just In Case. A small rise in industrial/logistics/whatever demand is fueling a big price shift. People can only expand on their existing sites so far, and until there's a building boom, values are going up IMO.

But for all that, that's a big rise from AEWU.

(@brwo349 - dead right, happily sat on SLI too :) )

[nickrl] 21/7/2021 11:10

Specto I do wonder though as furlough, nil business rates and other related Covid largesse unwinds we will see a drop off in demand and this may expose some froth in industrials/logistics although looking too far ahead doesn't help me sometimes!

[brwo349] 21/7/2021 11:08

I'm buying sli which is 50% industrial

[spectoacc] 21/7/2021 11:01

Wow. Expecting NAV increases across the board (you wouldn't believe the prices at the auction I'm watching today) but AEWU have knocked it out the park.

"....Largely driven by the performance of the industrial assets in the portfolio which saw a like-for-like increase of
10.62% for the quarter and make up 57% of the portfolio".


Industrial is & continues to be gangbusters. BREI, SREI, and more all exposed.

[nickrl] 21/7/2021 10:58

NAV update out

Highlights



"Interim dividend of 2.00 pence per share for the three months ended 30 June 2021, in line with the targeted annual dividend of 8.00 pence per share.
EPRA earnings per share ("EPRA EPS") for the quarter of 2.14 pence (31 March 2021 quarter: 1.10 pence).
NAV of £169.69 million or 107.11 pence per share as at 30 June 2021 (31 March 2021: £157.08 million or 99.15 pence per share).
NAV total return of 10.04% for the quarter (31 March 2021 quarter: 5.51%).
Acquisitions of two properties: Arrow Point Retail Park, Shrewsbury, for £8.35 million and 15-33 Union Street, Bristol, for £10.19 million.
Successful outcome of legal action against two well-funded national tenants to recover unpaid rent. All rent arrears due from these tenants have since been collected.
The Company remains conservatively geared with a loan to NAV ratio of 29.76% (31 March 2021: 25.15%). As at 30 June 2021, the Company had a cash balance of £8.43 million and £8.89 million of its loan facility available to draw up to the maximum 35% Loan to NAV at drawdown.
For the rental quarter commencing on 24 June 2021, 88% of rent has been collected or is expected to be received under monthly payment plans prior to quarter end. The remainder of rents owed will continue to be pursued"

Umm NAV well up beyond my expectations and made two bold acquisitions in teh retail sector

"We are now seeing more attractive investment opportunities coming to the market and the Company made two acquisitions during the quarter for a combined gross purchase price of £18.54 million, drawing £11.00 million of its loan facility. The first, Arrow Point Retail Park in Shrewsbury, was acquired in May for £8.35 million and is a fully-let, purpose-built retail park prominently located on a busy commercial estate, providing a net initial yield of 8.7%. The second, 15-33 Union Street, Bristol, is a retail site located on a busy pedestrian thoroughfare in Bristol city centre and provides a net initial yield of 8.0%. Both of these assets provide opportunity for value growth in the medium to long term, and also strong and stable income streams from their tenancy profiles. While we continue to take a cautious approach towards the retail sector, judging each site on its specific merits, these two acquisitions are an excellent fit for the portfolio. The retail sector now makes up 18% of the portfolio valuation."

Can see this lot going for a share placing soon

[stemis] 21/7/2021 10:56

Good update. NAV jumped from 99.15p to 107.11p in the quarter. Dividend yield at 101p is 7.9% and should be well covered after recent acquisitions.

[chucko1] 16/7/2021 09:02

Seems that over the past 6 years, you have earned 8.95% annualised by reinvesting dividends in the share. Compare this with the 8.24% annual that 8.00% per annum (2.00% per quarter) paid quarterly represents.

If you had not reinvested the dividends in the share, you would have had to have reinvested them at just over 14% to achieve the same overall return. Much of this will be a result of investing any dividend near to April to July 2020.

If you had saved your dividends and redeployed an equivalent cash amount all at once in that low period, the return would be far higher still. Which is effectively what I think quite a few people here did. Not all, as some decided to be "prudent" and risk averse. And poor.

[spectoacc] 15/7/2021 16:27

Amazed, well done AEWU.

If you compound that 8p pa - reinvest the 2p's every qtr - the performance will have been fantastic, Much of the reinvestment will have happened at much lower prices.

[1tx] 15/7/2021 16:23

Wow 100p.....AEWU are now back at the level they were floated in 2015!Thankfully I bought them last year at a rather lower figure;actually I suppose on an income basis the company has not been a total disaster for those who bought at float and had the nerve to hold on & a fair number of REITs have performed much worse;its "sister" company AIRE for example but I guess with a few exceptions(eg London Metric) in the long term very few REITS are going to provide much in the way of capital growth if you buy at float or book NAV.All about income and the ability to maintain it.I still hold but going forward I shall have to be content with the above average income.

[brucie5] 12/7/2021 11:13

Yes, AEWU and RGL excellent income holds, which could show some useful capital appreciation too, as well managed REITs regain a bit of investor confidence. I hold both.

[lord gnome] 12/7/2021 10:50

Good to see this continuing its slow steady haul back up to previous highs. Dividend reinstated as well. A rock solid and safe 8% takes a lot of beating. The whole REIT sector is looking in better health as well. My RGL also moving up, although they still have a way to run to recover previous highs.

[chippy hackee] 25/6/2021 17:07

Meridian Metals had nothing to do with it; the onerous fee base for too small a portfolio and the inability to attract additional fresh equity to scale up was the killer.

[chucko1] 23/6/2021 12:09

One poor credit is not enough to condemn. It's not SQN which hardly had one GOOD credit!

[spectoacc] 23/6/2021 10:19

The pivot to Bristol is really interesting - if RLE can do it (badly) in Brum, why not Alex Short in Bristol.

Hats off to her, only misstep was Meridian Metals, which cost AEW the running of AIRE. They've had the last laugh with Steve Smith's defenestration.

[chucko1] 23/6/2021 08:44

And so, just like that (almost) the income deficiency has been largely overcome. As they said it would in the end of year update.

This has been well managed. I see it as a very well curated near 9% (current) yield, and in a world of nothing rates, I should possibly own more (having sold down heavily as the share price climbed the late 90s and moved epically into EPIC).

[spectoacc] 23/6/2021 08:14

They really, really like Bristol:



"Acquisition of prime retail site in Bristol city centre



AEW UK REIT plc (LSE: AEWU) (the "Company") is pleased to announce the acquisition of a prime retail site in the heart of Bristol city centre for a purchase price of £10.19 million, equating to £161 per sq ft and reflecting a net initial yield of 8%.



15-33 Union Street occupies a prominent location in Bristol city centre, opposite The Galleries Shopping Centre and near Cabot Circus, Bristol's premier retail destination. Located on a busy thoroughfare for pedestrians, the 63,125 sq ft property experiences high footfall and is ideally suited for retail or leisure use. The location of the site has also been identified as a major regeneration area.



Constructed in 2001, the property currently comprises five purpose built split-level retail or leisure units over four floors with road access to both Union Street and Fairfax Street. Four of the five units are let to three household names and a successful local retailer. The remaining unit is currently vacant, with the vendor providing a 12 month rent guarantee. We are currently in discussions with a number of parties who are keen to occupy this space. "

[spectoacc] 17/6/2021 07:18

Still digesting the moratorium & been adding to REITs on weakness, but from a legal standpoint the govnt abandoning the Rule of Law isn't good news.

[nickrl] 16/6/2021 21:39

SteMis interesting would have thought Mecca Bingo would have been able to defend its position better than Sports Direct. Mind you i see they have extended rental moratorium till Mar 22 now so AEWU action may have been very timely as perhaps these two thought they were likely to lose out if moratorium was going to be rescinded.

[stemis] 16/6/2021 12:47

I believe it's Sports Direct and Mecca Bingo

hxxps://reactnews.com/article/aew-uk-reit-plans-to-recover-1-2m-in-unpaid-rent-following-successful-legal-battle-with-sports-direct-and-mecca-bingo/

[nickrl] 16/6/2021 12:18

Who are the two well funded retailers?

This should ensure the govt takes appropriate measures in whatever replaces moratorium (can't see it being just left to legal system to sort out)so that the can pay but won't have no further protection. This will then ensure no further shenanigans in the courts costing both sides money.

[cwa1] 15/6/2021 17:15

Decent finish in the auction. Respectable volume overall today too

[spectoacc] 15/6/2021 07:21

Very good, hope to see it repeated across the smaller REITs. Legal fees paid too.

There's a minority of well-funded, open-for-trading, non-paying tenants out there - recall Sports Direct & Boots as being two.

[cwa1] 15/6/2021 07:20

Excellent :-)

What a bunch of can pay, won't pay chancers...