AEW UK REIT PLC, which holds a diversified portfolio of 35 commercial investment properties throughout the UK, has published its full year results for the year ended 31 March 2020.
Summary Highlights
- Net Asset Value (‘NAV’)** of £147.86 million and of 93.13 pence per share (‘pps’) as at 31 March 2020 (31 March 2019:£149.46 million and 98.61 pps)
- Rental income generated was £17.42 million (year ended 31 March 2019: £17.18 million)
- Operating profit before fair value changes of £14.47 million (year ended 31 March 2019: £13.52 million)
- Profit before tax (‘PBT’)* of £3.65 million and EPS of 2.40 pps (year ended 31 March 2019: £15.54 million and of 10.26 pps)
- EPRA Earnings Per Share (‘EPRA EPS’)* of 8.67 pps (year ended 31 March 2019: 8.07 pps)
- Total dividends of 8.00 pps declared (year ended 31 March 2019: 8.00 pps) with a dividend cover of 108.38%
- Cash balances totalling £9.87 million as at 31 March 2020 (31 March 2019: £2.13 million) having raised gross proceeds of £7.00 million via a share placing in February 2020. Following the disposal of 2 Geddington Road, Corby the Company had a cash balance of £27.28 million as at 19 June 2020
- The portfolio delivered strong results relative to the MSCI/AREF PFI Balanced Funds Quarterly Property Index, outperforming with a total return of 3.5% largely driven by the portfolio’s high yielding assets, which generated a strong income return of 8.2% over the year
- The portfolio has a high weighting towards the industrial sector which has maintained its position as one of the most resilient market sectors, both in terms of occupational and investment market sentiment
- Since the year-end the Company disposed of 2 Geddington Road, Corby, for gross proceeds of £18.80 million delivering an IRR in excess of 30%
Mark Burton, Chairman of AEW UK REIT, commented: ”We are pleased with the overall performance of the Company, which, for a second consecutive year, has improved its performance in EPRA EPS, while also achieving a dividend of 8 pence per share. The end of the financial year saw the outbreak of COVID-19 and the focus of the Board and Investment Manager has been on minimising the impact on the Company and stakeholders. We believe the Company’s assets are strategically placed to continue to provide investors with robust performance over the medium and long term. The Board is encouraged by the fact that, despite the uncertainty that has been caused by the outbreak of COVID-19, a number of ongoing asset management transactions are currently being negotiated by the Manager whose active management style is a principal feature of the Company’s strategy seeking to maximise both income and capital returns to shareholders. With a number of these key discussions ongoing it is hoped that further value can be added.”