TIDMAEWU
RNS Number : 3368Q
AEW UK REIT PLC
11 September 2017
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, CANADA, JAPAN,
AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OR ANY
OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
This announcement is not an offer to sell, or a solicitation of
an offer to acquire, securities in the United States or in any
other jurisdiction. Neither this announcement nor any part of it
shall form the basis of or be relied on in connection with or act
as an inducement to enter into any contract or commitment
whatsoever.
AEW UK REIT PLC
11 September 2017
Intention to issue new equity
AEW UK REIT plc (the "Company") is pleased to announce that it
intends to undertake a 12 month share issuance programme (the
"Issuance Programme"). The Issuance Programme will commence with an
issue of ordinary shares (the "Shares"), currently anticipated to
close around mid October 2017 (the "Initial Issue"). The Initial
Issue is expected to be undertaken by way of a placing, offer for
subscription and intermediaries offer.
The Company is seeking to raise a target amount of GBP40 million
under the Initial Issue, with the ability to increase the size of
the Initial Issue, up to a maximum of GBP60 million, if the
Directors, on advice from AEW UK Investment Management LLP (the
"Investment Manager"), believe it is appropriate to do so in light
of the pipeline of properties and the expected speed of deployment
of the net proceeds of the Initial Issue.
The Initial Issue price will be set by reference to the
prevailing net asset value ("NAV") per Share and Share price at the
last practicable date prior to the publication of the prospectus in
relation to the Initial Issue and Issuance Programme (the
"Prospectus").
The target Initial Issue size has been set with regard to the
pipeline of available stock reviewed by the Investment Manager at
yields which would be accretive to the Company's current portfolio.
The Investment Manager remains focused on searching for properties
in locations that exhibit healthy levels of tenant demand and low
levels of supply for competing stock. There is a particular focus
on keeping investment values at a level where they are
significantly supported by the underlying long term value of a
property and, therefore, assets will be less exposed to capital
erosion in the event of tenant default.
The current pipeline includes a diverse range of geographical
locations and property sectors. Over recent weeks the Investment
Manager has seen an increased number of attractive opportunities in
retail and other sectors and therefore expects that future
acquisitions will represent a more balanced spread of property
sectors, rather than being concentrated in the industrial sector as
seen over past quarters. In line with the Company's strategy the
Investment Manager continues to focus on finding future
acquisitions which will deliver an attractive return as part of a
well-diversified regional portfolio.
Further details of the Initial Issue, including definitive
timing and the Initial Issue price, will be announced on the
publication of the Prospectus, alongside a circular convening a
general meeting to seek shareholder approval for the Issuance
Programme, later this month, subject to receipt of regulatory
approvals. Subject to shareholder approval, the new Shares under
the Initial Issue will be issued and commence trading by the end of
October 2017.
Change of Accounting Reference Date
The Company announces a change to its accounting reference date
from 30 April to 31 March. The current interim reporting period to
31 October for this financial period will remain unchanged and,
therefore, the Company's next financial reporting event will be
interim results for the 6 month period from 1 May 2017 to 31
October 2017 and the next audited results will be for the 11-month
period from 1 May 2017 to 31 March 2018.
Thereafter, the Company will revert to an annual reporting
calendar based on a 31 March year end with the interim reporting
period to 30 September.
The Board does not foresee any material financial implications
for the Company as a result of the change to the accounting
reference date, nor is there any other matter of significance that
needs to be brought to the attention of the Company's shareholders
in this regard. The change in accounting reference date is being
made to align the Company's quarterly NAV reporting dates with
those of its peers in the UK commercial property sector.
The next NAV will be calculated in respect of the three month
period ending 31 October 2017, consistent with the Company's
interim reporting period for the current financial period and with
the intended dividend policy (see below). Subsequent to this, the
Company's NAV will be calculated for the two months ending 31
December 2017 (rather than the 3 months ending 31 January 2018),
and thereafter on a rolling 3 month basis.
Dividend Policy
In order to align dividend payments with the Company's new
accounting period, in respect of the 3 month period to 31 October
2017 the Company intends to pay a dividend of 2 pence per Share and
then, in respect of the 2 month period to 31 December 2017, it
intends to pay a further dividend at a rate of two-thirds of the 2
pence per Share dividend currently being paid for a three month
period (reflecting the 2 month period since the previous dividend
payment).
From March 2018 the Company anticipates resuming quarterly
dividends with dividends declared in January, April, July and
October of each year. The Directors will declare dividends taking
into account the level of the Company's net income and the
Directors' view on the outlook for sustainable recurring earnings.
As such the level of dividends paid may increase or decrease from
the current annual dividend, which is 8 pence per Share over the 12
months ending 30 April 2017.
Based on the current market conditions, the Company expects to
pay an annualised dividend of 8 pence per Share in respect of the
financial period ending 31 March 2018 and for the interim financial
period to 30 September 2018.(1)
(1) The figures in relation to dividends are indicative only and
are not intended to be, and should not be taken as, a profit
forecast or estimate. Actual returns cannot be predicted and may
differ materially from these figures. There can be no assurance
that they will be met.
This announcement contains Inside Information as defined under
the Market Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
AEW UK Investment Management
LLP
Alex Short
Laura Elkin 020 7016 4880
Fidante Capital
Katie Standley 020 7832 0900
Media Enquiries: 0207 002 1510
Temple Bar Advisory (Financial aew@templebaradvisory.com
PR advisor)
Ed Orlebar
Tom Allison
Lucy Featherstone
Company Secretary 0207 954 9547
Capita Company Secretarial aewu-cosec@capita.co.uk
Services Limited
This information is provided by RNS
The company news service from the London Stock Exchange
END
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