TIDMAEWU
RNS Number : 2618H
AEW UK REIT PLC
27 November 2015
NAV Update and Dividend Declaration for the period 1 August to
31 October 2015
27 November 2015
AEW UK REIT plc (LSE: AEWU) (the "Company") announces its Net
Asset Value and interim dividend for the period ended 31 October
2015.
Highlights
-- 12 Properties acquired during the period for total of
GBP47.71 million (net of acquisition costs).
-- Fair Value independent valuation of the property portfolio as
at 31 October 2015 of GBP71.36 million. Acquisitions costs on new
property purchases have been written-off. The valuation of the
property portfolio on a like for like basis compared with 31 July
2015 has increased by 1.31%.
-- AEW UK Core Property Fund valuation of GBP9.94 million.
-- The Company has secured a GBP40m 5 year term loan facility
with RBS International. This facility will provide gearing up to
20% loan to Net Asset Value measured at drawdown.
-- NAV per share at 31 October 2015 of 97.09 pence.
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for the period from inception of the
Company to 31 October 2015 of 1.36 pence per share ('PPS').
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) as adjusted for amounts received from
rental guarantees and rental top-ups for the period from inception
of the Company to 31 October of 1.53 pps.
Net Asset Value
The Company's unaudited NAV as at 31 October 2015 was GBP97.58m,
or 97.09 pence per share. As at 31 October 2015, the Company owned
investment properties with a Fair Value of GBP71.36m. The Company's
investment in AEW UK Core Property Fund is valued at GBP9.94m and
the Company had cash balances of GBP15.8m for capital
investment.
Pence per GBP
share million
NAV at 1 August 2015 97.12 97.60
Portfolio acquisition costs (2.47) (2.47)
Valuation change in property portfolio 1.09 1.09
Valuation change in AEW UK Core
Property Fund 0.15 0.15
Income earned for the period 1.47 1.48
Expenses for the period (0.27) (0.27)
NAV at 31 October 2015 97.09 97.58
The NAV attributable to the ordinary shares has been calculated
under International Financial Reporting Standards and incorporates
the independent portfolio valuation as at 31 October 2015 and
income for the period but does not include a provision for the
first interim dividend, which will be paid in December 2015.
Dividend
The Company announces an interim dividend of 1.50 pps for the
period from the inception of the Company to 31 October 2015. The
dividend payment will be made on 31 December 2015 to shareholders
on the register as at 11 December 2015. The ex-dividend date will
be 10 December 2015.
The dividend of 1.50 pps will be designated 1.50 pps as an
interim property income distribution ('PID').
Portfolio activity
During the 3 month period ending 31 October 2015, the Company
has acquired a further 12 properties as described below:
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 weighted average unexpired lease
term ("WAULT") of 2.3 years to break and 4.5 years to expiry. The
Estimated Rental Value ('ERV') for the property is just over
GBP1,315,000 which equates to a reversionary yield of 10.2%.
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%.
Stoneferry Retail Park, Hull was purchased for GBP2.16 million
(net of acquisition costs). Stoneferry Retail Park occupies a
prominent roundabout site totalling 17,656 sq ft approximately 2
miles to the north of Hull city centre. The scheme comprises 2
retail warehouse units along with a drive thru Burger King and 113
customer parking spaces. This property has a net initial yield of
10.0% and a WAULT of just under 7 years to expiry. The ERV for the
property is GBP210,481 and a reversionary yield of 9.2%.
710 Brightside Lane, Sheffield was purchased for GBP3.5 million
(net of acquisition costs). This property is located to the
north-east of Sheffield, with good access from both the city centre
and the M1 and within one mile of the Meadowhall Shopping Centre.
This property has a net initial yield of 9.5% and the lease
provides for a tenant break option in just under 10 years' time.
The ERV for the property is GBP350,000 and the reversionary yield
is 9.5%.
Vantage Point, 23 Mark Road, Hemel Hempstead was purchased for
GBP2.18 million (net of acquisition costs). This property comprises
a two storey office building of 18,407 sq ft located within the
established Maylands Business Park. The property is fully let to
two tenants, providing a WAULT of 5 years to break and 9.4 years to
expiry. This property has a net initial yield of 8.4%. The ERV for
the property is GBP193,722 and the reversionary yield is 8.4%.
11-15 Fargate & 18-36 Chapel Walk, Sheffield was purchased
for GBP5.3 million (net of acquisition costs). This property
provides a total of 40,128 sq ft with 8 retail units spread over
basement, ground and first floors. Tenants include Paperchase, H
Samuel and Claire's Accessories with the lettings providing a WAULT
of 3.8 years to break and 5.3 years to expiry. This property has a
net initial yield of 8.25%, inclusive of rental guarantees. The ERV
for the property is GBP487,500 and the reversionary yield is
9.1%.
Barnstaple Retail Park was purchased for GBP6.79m (net of
acquisition costs). This property comprises a fully let retail
warehouse scheme, extending to 50,950 sq ft. The Park is anchored
by a 35,690 sq ft B&Q store and includes a 9,605 sq ft unit let
to Sports Direct and a 5,717 sq ft unit let to Poundland. This
property has a net initial yield of 8.5% and a WAULT of 7.3 years
to break and 8.6 years to expiry. The ERV for the property is
GBP610,680 and the reversionary yield is 8.5%.
Carrs Coatings, Eagle Road, Redditch was purchased for GBP2.0m
(net of acquisition costs). This property is located on the
established North Moons Moat Industrial Estate to the east of
Redditch, a short distance from Junction 3 of the M42. The site
extends to circa 1.7 acres and accommodates an industrial warehouse
building of 37,833 sq ft. This property has a net initial yield of
9.5% and the reversionary yield is 7.5%. The property is single let
to Carrs Coatings Ltd providing an unexpired terms of 13 years with
annual fixed rental uplifts in line with RPI. The ERV for the
property is GBP170,249.
A portfolio comprising of 3 industrial warehouses was purchased
for GBP3.06m (net of acquisition costs). This portfolio comprises
of properites in Swinton, Mossley and Milton Keynes, all trading as
Nationwide Crash Repair Centres. The leases, expiring in August
2023, provide a WAULT of just under 8 years and product a total
rental income of GBP269,000 per annum which is considered to be
rack rented. The portfolio has a net initial yield and reversionary
yield of 8.3%.
Units 1001-1004, Sarus Court, Runcorn was purchased for GBP3.37m
(net of acquisition costs). The site extends to 3.6 acres and
accommodates four industrial warehouse buildings totalling 56,153
sq ft. The property is fully let to two tenants on four leases
providing a WAULT of 3.8 years to break and 5.2 years to expiry.
The property has a net initial yield is 8.0% and a reversionary
yield of 7.9%. The ERV for the property is GBP280,765.
The sector weighting, by value, of the direct investment
portfolio as at 31 October 2015 was 39.6% offices, 43.7% retail and
16.7% industrial.
Post quarter end activity
The Company has made 2 further acquisitions during November 2015
and has approximately GBP88 million invested.
Equinox, Castlegate Business Park, Salisbury was purchased for
GBP2.0 million (net of acquisition costs). This property is
situated at the western end of Castlegate Business Park, an
established industrial area located 3 miles north of Salisbury town
centre. This property has a net initial yield of 11.3% and a WAULT
of 1 year to break and 6 years to expiry. The ERV for the property
is GBP195,000 and the reversionary yield is 9.2%.
Langthwaite Business Park, South Kirkby was purchased for GBP5.8
million (net of acquisition costs). This Business Park consists of
two neighbouring industrial warehouses totalling 221,145 sq ft, let
to Ardagh Glass Limited with a WAULT of c. 1 year to break and 2.5
years to expiry. The properties have a net initial yield of 11% and
a reversionary yield of 12%. The ERV for the properties totals just
over GBP742,000.
Taking into account the above acquisitions, the sector weighting
by value of the direct investment portfolio as at 27 November 2015
was 35.7% offices, 39.4% retail and 24.9% industrial.
The Company will publish the unaudited half yearly report for
the period ended 31 October 2015 during December 2015.
Portfolio Manager's comment
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