Aew Uk Reit Share Discussion Threads

[lord gnome] 25/1/2019 08:48

Solid update. This company isn't going anywhere fast, but it's a good place to park your cash in an uncertain world and get 8% into the bargain - paid quarterly. If I am being picky, I prefer RGL's portfolio, but this has a small advantage in that it is lightly geared at 25% compared with the 40% of RGL. I hold both.

[stemis] 25/1/2019 08:19

Yes, cash up £1.51m, although LTV up modestly from 25.48% to 25.95% (which I think equates to about £68k higher borrowings). LTV will fall though when they invest the cash (because V will increase in LTV).

[stemis] 25/1/2019 08:03

The drop in EPRA earnings from Q2 (2.06p) to Q3 (1.98p) is equivalent to £121,246. That looks pretty much like the rent on Stoneferry Retail Park (sales proceeds must have been £1.9m). That should be offset in Q4 by the portfolio and asset management activity announced in the release.

Yield of 8.8% looking covered.

[sogoesit] 25/1/2019 07:43

This is a “bank account” for me, sitting in an isa.
Accumulated last week as it seemed discount overdone... which looks to be the case.

[belgraviaboy] 25/1/2019 07:11

Told you - dividend maintained, although fractionally uncovered

[chucko1] 18/1/2019 14:10

Well, I bought a few more - I think it’s a well run REIT and the compensation is good enough.

[belgraviaboy] 18/1/2019 13:50

I see no prospect of an imminent dividend cut.

[eeza] 18/1/2019 13:39

They have to pay out 90% (at least) of earnings. If earnings fall so can the pay out. Each div announcement carries the rider that the Div level is not guaranteed.

[chucko1] 18/1/2019 12:40

They are a REIT and they cover their dividend (just). There cannot be a cut.

[jon123] 18/1/2019 12:25

if you go on last years update release they'll be one next week if they old the dividend could be a good yield

[spectoacc] 18/1/2019 10:50

Bought a few today - 88.61p to buy!

[eeza] 18/1/2019 10:47

Getting a kicking again. Seems to be going in the opposite direction to the other REITS.

[jon123] 19/12/2018 09:38

that's only true if the sale is pulled if the sale continues then the plays only get cheaper but there has to be a point when things turn around just not sure were there yet

[lord gnome] 19/12/2018 09:02

There are a lot of bargains about just now. Anyone with the cash to build a portfolio would have the pick of the market at sale prices.

[spectoacc] 19/12/2018 09:02

Bought a handful more this morning, got quite near the bid so the MMs have a lot of stock.

I see the issue as being a possible impending recession - gearing is relevant, yes, but so is length of leases, security of covenant, tenants going bust, and the killer: empty rates.

Saying all that, I still like the property plays, but as pointed out before - there's so many "bargains" it's difficult to chose. Even BBOX has tempted me, for the first time ever.

[belgraviaboy] 19/12/2018 08:30

The dividend will only drop if rents drop - as a REIT they have to pay 90% of their income out as dividends.

Also, note the low gearing of 26%

Looks a Brexit Bargain here with a yield of 8.85%

[jon123] 19/12/2018 07:55

as long as they maintain the dividend i don't see a problem here just the market as a whole hammering the sector

[lord gnome] 18/12/2018 22:20

Brexit and state of the market waikenchan. Lots of property trusts are flat on the floor.

[waikenchan] 18/12/2018 21:05

Is the decline in share price just the brexit effect or do we think there are legitimate worries on the types of commercial properties AEWU hold?

[skinny] 15/11/2018 07:15

Financial Highlights


● Unaudited Net Asset Value ('NAV') of £151.65 million and 100.06 pence per share as at 30 September 2018 (31 March 2018: £146.03 million and 96.36 pence per share).

● Operating profit before fair value changes of £6.86 million for the period (six months to 31 October 2017: £4.96 million).

● Unadjusted profit before tax ('PBT') of £11.68 million and 7.71 pence per share for the period (six months to 31 October 2017: £6.99 million and 5.60 pence per share).

● EPRA Earnings Per Share ('EPRA EPS') for the period were 4.10 pence (six months to 31 October 2017: 3.73 pence). See below for more details.

● Total dividends of 4.00 pence per share have been declared for the period (six months to 31 October 2017: 4.00 pence per share).

● Total shareholder return for the period was 3.56% (six months to 31 October 2017: 5.17%). See below for more details.

● NAV total return for the period was 7.99% (six months to 31 October 2017: 6.06%). See below for definition.
● The price of the Company's Ordinary Shares on the Main Market of the London Stock Exchange was 95.01 pence per share as at 30 September 2018 (31 March 2018: 95.60 pence per share).

● As at 30 September 2018, the Company had a £60.00 million (31 March 2018: £60.00 million) term credit facility with The Royal Bank of Scotland International Limited ('RBSI') and was geared to 25.84% of the Gross Asset Value (31 March 2018: 26.00%).

● Since the period end, the Company has extended the term of its loan facility with RBSI by three years up to 22 October 2023.

● The Company held cash balances totalling £8.15 million as at 30 September 2018 (31 March 2018: £4.71 million), of which £7.40 million (31 March 2018: £3.57 million) was held for the purpose of capital acquisitions.

Property Highlights


● As at 30 September 2018, the Company's property portfolio had a fair value of £193.53 million (31 March 2018: £192.34 million) and a historical cost (including purchase costs and capital expenditure) of £191.92 million (31 March 2018: £196.64 million), representing an increase of £1.61 million (31 March 2018: decrease of £4.30 million), or 0.84% (31 March 2018: decrease of 2.19%).

● The majority of assets that have been acquired are fully let and the portfolio had a vacancy rate of 3.27% as at 30 September 2018 (31 March 2018: 7.10%).

● Rental income generated in the period was £8.46 million (six months to 31 October 2017: £6.50 million). The number of tenants as at 30 September 2018 was 95 (31 March 2018: 104).

● Average portfolio Net Initial Yield of 7.90% (31 March 2018: 7.74%). See below for more details.

● Weighted average unexpired lease term ('WAULT') of 5.00 years (31 March 2018: 5.08 years) to break and 6.18 years (31 March 2018: 6.16 years) to expiry. See below for more details.

more.....

[belgraviaboy] 13/11/2018 14:15

Started buying here - small to start...

[spectoacc] 13/11/2018 12:56

Always feels a mixed blessing when John Baron ramps something - goes to show the size of the seller tho.

[speedsgh] 13/11/2018 12:14

I note from John Baron's latest column in IC that he has recently added AEWU to his IT Income portfolio...



Meanwhile, during October... AEW UK REIT (AEWU) was introduced...

AEWU seeks to capitalise on the pricing anomalies offered by smaller commercial properties on shorter occupational leases (averaging 4.9 years to break and 6.1 years to expiry) in strong commercial locations. An active asset management approach is then employed to improve income streams. The 8p dividend is now covered by earnings and represented a yield of 8.6 per cent at time of purchase. An experienced management team, a focus on the industrial sector, limited exposure to retail, a geographical bias outside the south-east and discount to the last reported net asset value of 100p adds to the attraction.