AEW UK REIT plans further expansion – AEW UK REIT has published results for the year ended 31 March 2018. the highlights are:
- Net Asset Value (‘NAV’) of GBP146.03 million and of 96.36 pence per share as at 31 March 2018 (30 April 2017: GBP118.67 million and 95.98 pence per share).
- Operating profit before fair value changes of GBP9.60 million for the period (year ended 30 April 2017: GBP9.81 million).
- Unadjusted profit before tax (‘PBT’) of GBP9.82 million and of 7.17 pence per share for the period (year ended 30 April 2017: GBP6.10 million and of 5.04 pence per share).
- EPRA Earnings Per Share (‘EPRA EPS’)* for the period of 6.56 pence (year ended 30 April 2017: 7.57 pence).
- Total dividends of 7.33 pence per share have been declared for the period (year ended 30 April 2017: 8.00 pence per share).
- Total shareholder return* for the period was 3.65% (year ended 30 April 2017: 8.22%).
- The Company raised gross capital proceeds of GBP28.05 million for the period (year ended 30 April 2017: GBP6.00 million).
- The price of the Company’s Ordinary Shares on the Main Market of the London Stock Exchange was 95.60 pence per share as at 31 March 2018 (30 April 2017: 99.56 pence per share).
- As at 31 March 2018, the Company had a GBP60.00 million (30 April 2017: GBP40.00 million) term credit facility with the Royal Bank of Scotland International Limited (‘RBSi’) and was geared to 26.00% of the Gross Asset Value (‘GAV’) (30 April 2017: 19.31%).
- The Company held cash balances totalling GBP4.71 million as at 31 March 2018 (30 April 2017: GBP3.65 million), of which GBP3.57 million (30 April 2017: GBP1.31 million) was held for the purposes of capital acquisitions.
Property Highlights
- The Company acquired ten properties during the period for a combined purchase price of GBP60.11 million, excluding acquisition costs (year ended 30 April 2017: five properties for GBP24.70 million), and disposed of one property for gross sales proceeds of GBP11.05 million (year ended 30 April 2017: one property for gross sales proceeds of GBP2.05 million).
- As at 31 March 2018, the Company’s property portfolio had a fair value of GBP192.34 million (30 April 2017: GBP137.82 million) and a historical cost of GBP196.64 million (30 April 2017: GBP140.19 million).
- The majority of assets that have been acquired are fully let and the portfolio has a vacancy rate of 7.10% (30 April 2017: 7.22%).
- Rental income generated in the period under review was GBP12.33 million (year ended 30 April 2017: GBP12.15 million). The number of tenants as at 31 March 2018 was 104 (30 April 2017: 79).
- Portfolio net initial yield (‘NIY’) of 7.74% as at 31 March 2018 (30 April 2017: 7.63%).
- Weighted average unexpired lease term (‘WAULT’) of 5.08 years (30 April 2017: 5.22 years) to break and 6.16 years (30 April 2017: 6.37 years) to expiry.
Extract from the chairman’s statement
“The Board and the Investment Manager are pleased with the strong income returns delivered to our shareholders to date through the diversified and high yielding property portfolio that has been established. Based on annualised dividend payments of 8.00 pence per share, the Company delivers a dividend yield of 8.37% as at 31 March 2018. The Company has now established a stabilised portfolio and as such, we expect to be able to more frequently deliver a covered dividend, with recent acquisitions giving a significant boost to the initial yield of the portfolio, which was 7.74% as at 31 March 2018.
There is also value to be gained through asset management initiatives. The portfolio had a vacancy rate of 7.10% as at 31 March 2018 and has since achieved sales comprising 1.9% of total vacancy with a further 1.3% under offer to let. There is one planned capex project at Eastpoint Business Park, Oxford, which is expected to increase the ERV and future potential income from the asset once complete….
…Looking forward, our focus remains on continuing to grow the Company with further share issues”
AEWU : AEW UK REIT plans further expansion