AEW UK REIT plc: Update Statement (1128855)

 
 AEW UK REIT plc (AEWU) 
AEW UK REIT plc: Update Statement 
 
09-Sep-2020 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
            9 September 2020 
 
      AEW UK REIT Plc (the "Company") 
 
      Update statement 
 
 AEW UK REIT plc (LSE: AEWU) (the "Company"), which, as at 9 September 2020, 
 directly owns a diversified portfolio of 34 regional UK commercial property 
            assets, today provides an update in respect of recent activity. 
 
            Rent Collection 
 
     The Investment Manager has continued to maintain close contact with all 
  tenants over recent months in order to maximise collection. As at the date 
        of this announcement, the Company had collected the following rental 
     payments for the rental quarter commencing 24 June 2020, expressed as a 
            percentage of the quarter's total rental income: 
 
Current Position                          As at 7 September 2020 
Received                                                     85% 
Payments expected prior to quarter end                        2% 
                                                             87% 
Payments expected under longer term                           2% 
payment plans 
 
                                                              3% 
Under Negotiation - pending the 
agreement of potential asset management 
transactions 
                                                             91% 
Outstanding                                                   9% 
Total                                                       100% 
 
      In respect of the quarter commencing on the 25 March 2020, the Company 
      reports that 89% of rents have now been collected with a further 8% of 
       payments expected to be received over coming periods by way of agreed 
            payment plans which, once received, will total 97%. 
 
   It should be noted that this is an evolving picture with further payments 
   being received each day. In addition, amounts that remain outstanding are 
  being pursued by the Company and are subject to ongoing engagement between 
            the Manager and the tenant. 
 
            Asset Management Update 
 
Since its last announcement in July, the Company has completed the following 
            asset management transactions: 
 
 Langthwaite Grange Industrial Estate, South Kirkby - During August, a lease 
   renewal was signed with the Company's third largest tenant, Ardagh Glass. 
          Rent payable under the new lease has been agreed 13% ahead of both 
     independent valuer's estimated levels and the previous level of passing 
    rent. The lease is for a five year term and the tenant will benefit from 
         four months' rent free and a tenant break option after three years. 
 
Bessemer Road, Basingstoke - During July, the Company has completed a 5 year 
   lease renewal at its 58,000 sq ft industrial premises in Basingstoke. The 
  lease has been granted with no rent free incentive given to the tenant and 
  secures a rental income that is 6% ahead of independent valuer's estimated 
            levels. The tenant has the benefit of a break option in year 3. 
 
     Alex Short and Laura Elkin, Portfolio Managers, AEW UK REIT, commented: 
 
"We are very encouraged by recent performance from AEWU's portfolio and rent 
    collection figures continue to improve in line with our expectations. We 
   have completed some major asset management initiatives since the start of 
  the year that have been accretive to both income and NAV, some examples of 
   these are listed above, and in the majority of our portfolio we are still 
seeing opportunities to both lengthen and grow income streams. This positive 
   momentum, along with our healthy capitalisation, led our Board to support 
  the full payment of AEWU's target 2p per share per quarter dividend during 
 July and it is our hope that this positive momentum can be maintained going 
            forward." 
 
                   Enquiries 
                      AEW UK 
                  Alex Short          alex.short@eu.aew.com 
                                        +44(0) 20 7016 4848 
                 Laura Elkin         laura.elkin@eu.aew.com 
 
                                        +44(0) 20 7016 4869 
             Nicki Gladstone nicki.gladstone-ext@eu.aew.com 
                                        +44(0) 7711 401 021 
           Company Secretary 
Link Company Matters Limited     aewu.cosec@linkgroup.co.uk 
                                        +44(0) 1392 477 500 
 
                   TB Cardew               aew@tbcardew.com 
                  Ed Orlebar           +44 (0) 7738 724 630 
              Lucas Bramwell           +44 (0) 7939 694 437 
 
             Liberum Capital 
Gillian Martin/Owen Matthews           +44 (0) 20 3100 2000 
 
            Notes to Editors 
 
            About AEW UK REIT 
 
   AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to 
    shareholders by investing predominantly in smaller commercial properties 
 (typically less than GBP15 million), on shorter occupational leases in strong 
   commercial locations across the United Kingdom. The Company was listed on 
the Official List of the UK Listing Authority and admitted to trading on the 
   Main Market of the London Stock Exchange on 12 May 2015, raising GBP100.5m. 
             Since IPO it has raised a further GBP58m. 
 
 The Company is currently invested in office, retail, industrial and leisure 
          assets, with a focus on active asset management, repositioning the 
            properties and improving the quality of the income stream. 
 
            AEWU is currently paying an annualised dividend of 8p per share. 
 
            www.aewukreit.com [1] [2] 
 
            About AEW UK Investment Management LLP 
 
AEW UK Investment Management LLP employs a well-resourced team comprising 26 
 individuals covering investment, asset management, operations and strategy. 
   It is part of AEW Group, one of the world's largest real estate managers, 
  with &euro71.2bn of assets under management as at 31 March 2020. AEW Group 
         comprises AEW SA and AEW Capital Management L.P., a U.S. registered 
   investment manager and their respective subsidiaries. In Europe, as at 31 
March 2020, AEW Group managed &euro33.5bn of real estate assets on behalf of 
    a number of funds and separate accounts with over 420 staff located in 9 
        offices. The Investment Manager is a 50:50 joint venture between the 
principals of the Investment Manager and AEW. In May 2019, AEW UK Investment 
 Management LLP was awarded Property Manager of the Year at the Pensions and 
            Investment Provider Awards. 
 
            www.aewuk.co.uk [3] 
 
LEI: 21380073LDXHV2LP5K50 
 
ISIN:           GB00BWD24154 
Category Code:  MSCL 
TIDM:           AEWU 
LEI Code:       21380073LDXHV2LP5K50 
OAM Categories: 3.1. Additional regulated information required to be 
                disclosed under the laws of a Member State 
Sequence No.:   83738 
EQS News ID:    1128855 
 
End of Announcement EQS News Service 
 
 
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