AEW UK REIT PLC Net Asset Value(s) (3337W)

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RNS Number : 3337W

AEW UK REIT PLC

18 August 2015

NAV Update for the period 12 May to 31 July 2015

18 August 2015

AEW UK REIT plc (LSE: AEWU) (the "Company") announces its Net Asset Value for the period ended 31 July 2015.

Highlights

-- Launch of the Company on 12 May 2015 raising GBP100.5 million of equity (before costs and expenses)

-- Properties acquired during the period for total of GBP22.85 million (net of acquisition costs)

-- Fair Value independent valuation of the property portfolio as at 31 July 2015 of GBP22.85 million; no change for valuation on acquisition and acquisition costs have been written-off

   --      Investment of GBP9.75m in AEW UK Core Property Fund 
   --      NAV per share at 31 July 2015 of 97.12 pence

Net Asset Value

The Company's unaudited NAV as at 31 July 2015 was GBP97.6m, or 97.12 pence per share. This is the first NAV announcement since launch on 12 May 2015. As at 31 July 2015, the Company owned investment properties with a Fair Value of GBP22.85m, the investment in AEW UK Core Property Fund is valued at GBP9.79m and the Company had cash balances of GBP65.6m.

 
                                           Pence per   GBP 
                                            share       million 
 NAV (after launch costs)                  98.03       98.51 
 Portfolio acquisition costs               (1.06)      (1.07) 
 Valuation change in property portfolio    0.00        0.00 
 Income earned for the period              0.32        0.33 
 Expenses for the period                   (0.17)      (0.17) 
 Dividend paid for the period              0.00        0.00 
 NAV at 31 July 2015                       97.12       97.60

The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards and incorporates the independent portfolio valuation as at 31 July 2015 and income for the period.

Portfolio activity

The Company entered the REIT regime with effect from 5 June 2015 following the submission of the application to HM Revenue & Customs.

The Company acquired its first property, Eastpoint Business Park in Oxford in June 2015. Purchased for GBP8.2 million with a 9.4% net initial yield, this property provides 75,000 square feet and comprises of 5 self-contained office buildings. There are 3 vacant units that are covered with 12 month rental guarantees. The weighted average unexpired lease term ("WAULT") are 6 years to break and 7.9 years to expiry. This property has an ERV of GBP829,050 and a reversionary yield of 9.12%.

Purchased in June 2015 for GBP9.25 million, 69-75 Above Bar Street in Southampton is a 27,247 square foot retail unit comprising of 3 units, fully let to Barclays Bank, Waterstones and Blacks. This property has a net initial yield of 8.75% and a WAULT of 6.2 years. This property has an ERV of GBP579,000 and a reversionary yield of 5.92%.

The acquisition of Sandford House, Solihull completed in July 2015 for a purchase price of GBP5.4 million. This property provides 34,418 square feet of office space in a prime Birmingham office location. The property is fully let to The Secretary of State for Communities and Local Government and has a net initial yield of 10.9%. This property has an ERV of GBP715,000 and a reversionary yield of 8.51%. The WAULT is 1.8 years to break and 4.5 years to expiry.

All purchase prices are net of acquisition costs.

The Company has invested GBP9.75m in the AEW UK Core Property Fund.

The sector weighting, by value, of the direct investment portfolio as at 31 July 2015 was 59.5% offices and 40.5% retail.

Post quarter end activity

The Company has made 2 further acquisitions during August 2015.

Valley Retail Park, Belfast was purchased for GBP7.15 million (net of acquisition costs). This property is a modern 100,413 square foot retail park located in Newtonabbey, Belfast. This property has a net initial yield of 12.8% and a WAULT of 3.5 years to break and 7 years to expiry. The ERV for the property is GBP953,923 and the reversionary yield is 13.8%.

225 Bath Street, Glasgow was purchased for GBP12.2 million (including an amount for rent top up; net of acquisition costs). This property comprises a refurbished 87,827 square foot office building and is currently fully let to 6 tenants. This property has a net initial yield of 10.0% and a WAULT of 2.3 years to break and 4.5 years to expiry. The ERV for the property is just over GBP1,315,000 which equates to a reversionary yield of 10.2%.

Taking into account the above two acquisitions, the sector weighting by value of the direct investment portfolio as at 18 August 2015 was 61.1% offices and 38.9% retail.

The Company will publish the unaudited half yearly report for the period ended 31 October 2015 during December 2015.

Portfolio Manager's comment

Alex Short, of AEW UK Investment Management LLP, the Company's Investment Manager, commented "We are pleased to have now completed five acquisitions for the Company and are working in line with our proposed timetable as set out to investors prior to the Company's launch. The Company is currently under offer, or close to being under offer on, a number of similar deals and consequently expects to be able to make further announcements over the coming weeks."

 
 Enquiries 
 Investor Relations               Company Secretary 
 Dana Eisner, AEW UK Investment   Marco Murray, Capita 
  Management LLP                   Asset Services 
 dana.eisner@aeweurope.com        Marco.Murray@capita.co.uk 
 T: 020 7016 4883                 T: 020 7954 9792

This information is provided by RNS

The company news service from the London Stock Exchange

END

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