AEW UK REIT has declared a 2p-per-share interim dividend for the 44th consecutive quarter, despite a slight fall in portfolio valuations.
AEW UK REIT’s portfolio manager Laura Elkin
The company’s net asset value (NAV) stood at £170.5m, or 107.45p per share (pps) as of the end of September, down from £171.05m and 107.80 pps three months earlier.
NAV total return was 1.53% for the quarter, while shareholder total return reached 0.57%. Like-for-like portfolio valuations fell 0.09%.
Laura Elkin, portfolio manager at AEW UK REIT, said: “The portfolio’s valuation declined modestly during the quarter; however, capital performance remained positive over the half year, comparing favourably with the 1.1% decline recorded by CBRE’s valuation index over the same period.
“Despite continued economic headwinds, the company has delivered robust performance overall, increasingly supported by the active asset management approach for which it is well recognised.”
She added: “Looking ahead, we are encouraged by the depth of attractive, high-yielding opportunities in our investment pipeline across a range of real estate sectors. Over the coming periods, we intend to pursue these through a programme of capital recycling, divesting assets where value has been maximised and reinvesting in acquisitions that are accretive to earnings.”
AEW’s dividend remains in line with the company’s targeted annual payout of 8p per share, representing a 7.8% yield at the end of Q3.
The company, which owns a portfolio of 33 UK commercial properties, reported quarterly EPRA earnings per share of 1.78p, down from 1.89p in the previous quarter.
Earlier this year AEW stopped short of making a firm offer for Alternative Income REIT (AIRE), abandoning a proposed all-share combination of the two UK-focused REITs, first announced on 16 July.
