AEW UK REIT has declared a dividend for the quarter to the end of June of 2p in line with its targeted annual dividend of 8p.
The group has seen EPRA earnings per share for the quarter fall to 1.81p (March 2020: 2.12p) as rent collection figures fell slightly, but has decided to maintain its dividend level.
For the current quarter it has collected (or expects to collect including monthly payments) 84% of rent billed, with a further 6% to be collected on longer-term payment plans. Another 4% is under negotiations with the tenant and 7% is outstanding.
The collection figure for the previous quarter stands at 86%, with a further 8% on payment plans.
The group net asset value (NAV) increased slightly in the quarter to 93.37p (March 2020: 93.13p), mainly due to the gain on disposal of its largest asset, which was sold for £18.8m in the quarter 25% ahead of book value. NAV total return for the quarter was 2.4%.
The group’s portfolio valuation fell slightly during the quarter by 1.6% to £171.49m.
Financing
The group’s board announced that it has approved a share buy-back programme.
Its gross loan to value is low at 30.03% at 30 June 2020, falling to 23.03% after the company repaid £12m of its £51.5m loan with RBS post-period end.
Although the company is not close to breaching banking covenants, it has obtained consent from RBS to waive interest cover tests for July and October with the next proposed test date being January 2021. No additional terms have been added to qualify for the waiver.
AEWU : AEW UK REIT maintains dividend and sees NAV rise