Aew Uk Reit Share Discussion Threads

[skinny] 01/2/2023 12:21

I'll continue to hold for now (av 83.89p).

[lord gnome] 01/2/2023 12:18

I have absolutely no idea as to what is holding up the AEWU share price when all my other REITs are on their backs. It looks fully valued with a yield which is now nothing out of the ordinary, whereas all my others are at sizeable discounts in anticipation of nav revisions.My decision to sell was clearly wrong, but I don't know why.

[skinny] 01/2/2023 12:09

For anyone interested :-

"This is a reminder that AEW UK REIT PLC will be holding the meeting Q4 Investor Presentation today at 2:00pm."

[skyship] 01/2/2023 11:17

Well, you were all correct. Would have been a stupid short, thankfully missed that particular bullet! Now up to 108p and again trading at a premium...

[skyship] 26/1/2023 16:23

Went XD today. so not an issue.

[stemis] 26/1/2023 15:51

If you short, dont you have to 'pay' the dividend? Quite expensive for a high yield with probably limited downside...

[nickrl] 26/1/2023 14:49

@Sky surprised myself they've recovered back so far back but they have a big fan base who no doubt saw an opportunity at sub a quid. So a brave short i reckon.

[fordtin] 26/1/2023 14:47

Maybe there are no shareholders who’re willing to rent their shares out. Or maybe all the AEWU share holders who do rent their shares out, have already done so.

If your brokers can’t borrow shares, they can’t sell them on your behalf.

[skinny] 26/1/2023 13:38

Same on IG, but I don't know their 'normal' approach to this share.

[skyship] 26/1/2023 13:36

Went to CMC to short this at 102.8p as I believe they are well over-valued v. all peers. CMC state unable to short AEWU!!! Why not I wonder...

[ramellous] 25/1/2023 16:03

Ex dividend tomorrow

[sleepy] 19/1/2023 21:44

Seems to me that someone got their sums wrong - should be closer to £100 per sq ft than £10?

NEXT, Bromley (retail) - In late November, the Company completed the purchase of a freehold retail asset in Bromley for GBP5.30 million, reflecting a low capital value of GBP10 per sq ft and a net initial yield of 8.7%. The asset is located in a prominent position on the western side of the pedestrianised Bromley High Street and provides 54,215 sq ft of accommodation, let in its entirety to Next Holdings Limited. Next Holdings Limited has occupied the property since 2000 and, in September 2021, renewed on a four-year lease at a rebased level of rent. A comprehensive store re-fit was undertaken by the tenant at this time, demonstrating the retailer's commitment to the location.

[skyship] 19/1/2023 19:00

Brucie - answered that elsewhere - clearly EPIC a better bet!

[smidge21] 19/1/2023 14:13

If you like owning B&Q sheds then the latter is for you. In short yield might be the only similarity

[brucie5] 19/1/2023 14:01

OK, I doff my cap to any experts here who can tell me whether this is buy or hold and in relation to Epic, which yields similar..? TiA.

[lord gnome] 19/1/2023 10:56

Good point, SteMis.

[spectoacc] 19/1/2023 10:56

Caps are a bete noir of mine - all this "inflation-protected, inflation-linked" stuff is baloney, in most cases. SIR, LXI, AIRE etc. Compounding 14% RPI is one thing; compounding 3% or 4% quite another.

Personally think there's a very real chance of CB targets being reset to 3% (CPI, so 4%+ RPI) in the next few years.

Well spotted @nickrl - and they're not alone, didn't someone (EPIC?) grant an 18 month rent-free to BME simply for extending a lease? Might have mis-remembered but it shows the state of the market when even the hugely expanding Lidl can get long rent-frees. [Edit - but fair point, @SteMiS. Trophy tenant perhaps].

I don't mind AEWU - I think they're a good operator - but there's tougher times ahead for all the REITs, and I see NAVs continuing to fall rather than flatlining.

[stemis] 19/1/2023 10:55

Central Six Retail Park, Coventry (retail/leisure) - In October, the Company completed an agreement for lease with new tenant, Aldi Stores Limited, for vacant units 8 & 9. Aldi will enter into a new 20-year lease with a 15-year tenant break option at a rent of £270,166 per annum, reflecting £13 per sq ft

So that's about 20,782 sq ft of the 148,765 sq ft. I suspect the incentive for AEWU is that bringing a tenant like Aldi into a vacant part of the development will improve the letability (and rents) for other units

[riverman77] 19/1/2023 10:34

And RPI capped at 3% - very little protection if inflation stays high over next 20 years.

[lord gnome] 19/1/2023 10:22

That's the way I read it nickel. Looks like Aldi drove a hard bargain. With deals like that, no wonder the divi still isn't covered. Call me in five year's time.

[nickrl] 19/1/2023 10:18

AEWU bette noir of course is paying that divi come what may despite it not being covered and it still isn't. It can't afford to do it for ever of course but that decision point remains at large and they are forecasting coverage by Q3 now. Feels like a bit of catch up here as there was quite a bit of disparity amongst propco/reits at Q3 updates. Personally i reckon NAVs tread water for next couple of qtrs as whilst its seems clearer, barring a black swan event, economy will muddle along its not clear whether a sustainable pick up is likely yet or not.

They continue to set the benchmark on quality of updates although this particular lease event caught my attention.

"Central Six Retail Park, Coventry (retail/leisure) - In October, the Company completed an agreement for lease with new tenant, Aldi Stores Limited, for vacant units 8 & 9. Aldi will enter into a new 20-year lease with a 15-year tenant break option at a rent of £270,166 per annum, reflecting £13 per sq ft, to be reviewed every five years based on compounded annual RPI, collared and capped at 1% and 3% respectively. The letting is subject to the landlord securing planning permission for 1) change of use to food use (achieved in July 2022), 2) external alteration works (achieved in November 2022) and 3) extended delivery hours, as well as landlord works which will commence this month, at a cost of £894,212. Lease completion is targeted for July 2023. The letting also includes a 12-month rent-free incentive"

This reads to me that to get a 20 year lease they've given them 12mths rent free and need to spend 900k on the building - so effectively four years rent free!

[riverman77] 19/1/2023 09:58

Lucky to have got out of this a few weeks ago - I thought their high yielding properties would be more resilient and was not expecting such a large drop in NAV. Even after today's fall, still looks expensive compared to peers such as CTPT, so will stay well clear of this for now. Possibly interesting around 85p.

[skyship] 19/1/2023 09:15

EDIT - sorry, miscalculated stats!

Problem for the AEWU share price was the very nominal discount.

Congratulation Smidge - a great sale. Would have joined you with a short if I'd seen this disaster - stupidly missed the RNS in spite of it being on my Monitor.

[smidge21] 19/1/2023 08:40

I'm a long term holder (of various AEW funds) but trimmed AEWU at 103.05 this morning. I agree with previous posts: market conditions likely to weigh on share price for a while and discount should widen. Rotation into Retail sector of market should have more to go - if only to partially address extreme divergence

[gliderpilot2002] 19/1/2023 08:29

A much bigger discount to NAV is needed.