AEW UK REIT has published its first set of accounts covering the period from 1 April 2015 to 30 April 2016. The net asset value was GBP116.38 million or 99.03 pence per share as at 30 April 2016. Total dividends of 5.5 pence per share have been declared for the period from the IPO to 30 April 2016. The price of the Company’s Ordinary Shares on the Main Market of the London Stock Exchange was at 100.00 pence per share as at 30 April 2016.
In May 2015, the Company’s IPO raised gross proceeds of GBP100.5 million followed by a share issue in December 2015 with the issuance of 17,010,000 new Ordinary Shares at an issue price of 101 pence per share. As at 30 April 2016, the Company has established a diversified portfolio of 25 commercial investment properties throughout the UK with a weighted average total equivalent yield of 8.36%.
Under International Financial Reporting Standards (‘IFRS’), operating profit for the period of the IPO on 12 May 2015 to 30 April 2016 was GBP4.86 million, with total comprehensive income of GBP4.64 million. Basic earnings per share (‘EPS’) for the period were 4.83 pence. This includes net valuation losses of GBP1.94 million on the revaluation of investment properties across the portfolio (being GBP5.64 million of transaction costs associated with asset purchases offset by GBP3.70 million of unrealised valuation gains) and a valuation gain on the investment in the AEW UK Core Property Fund of GBP0.48 million. Adjusting for these valuation losses and finance costs of GBP0.23 million, adjusted earnings per share for the period were 6.34 pence. Under European Public Real Estate Association (‘EPRA’) methodology, EPS for the period was 6.33 pence and the NAV per share at 30 April 2016 was 98.97 pence.
On 20 October 2015, the Company entered into a 5 year GBP40 million term loan facility with The Royal Bank of Scotland International Limited. The Company used GBP14.25 million of this facility to continue to invest in properties once the initial net IPO proceeds had been fully invested. As at 30 April 2016, the unexpired term of the facility was 4.5 years and the gearing was 12.5% (as calculated on the loan to market value of the property portfolio). The loan attracts interest at LIBOR +1.4%. The Company is protected from a potential significant rise in interest rates as it has entered into an interest rate CAP with a notional value of GBP14.25 million and a strike rate of 2.5% for 5 years. On 18 May 2016 the Company amended the terms of its loan facility with The Royal Bank of Scotland International Limited to increase the facility limit from 20% to 30% of NAV measured at drawdown. This amendment will enable the Company to utilise the facility up to an amount calculated as the equivalent of 25% of the GAV (measured at drawdown) which is the maximum gearing limit as set out in the Company’s Prospectus.
AEWU : AEW UK REIT publishes first accounts