AEW UK REIT plc (AEWU) AEW UK REIT plc: Half Yearly Results
17-Nov-2021 / 07:00 GMT/BST Dissemination of a Regulatory
Announcement, transmitted by EQS Group. The issuer is solely
responsible for the content of this announcement.
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17 November 2021
AEW UK REIT PLC
Interim Report and Financial Statements
for the six months ended 30 September 2021
AEW UK REIT PLC ("AEW UK REIT" or the "Company"), , which holds
a diversified portfolio of 35 commercial investment properties
throughout the UK, is pleased to publish its Interim Report and
Financial Statements for the six months ended 30 September
2021.
Mark Burton, Chairman of AEW UK REIT,?commented: "We are very
pleased with the strong performance over the period with the
Company's NAV increasing by 10.96% and a total shareholder return
of 28.37%. . The valuation of the Company's property portfolio rose
by 9.81% on a like-for-like basis, chiefly driven by its industrial
assets. The sales of Langthwaite Industrial Estate, South Kirkby
for GBP10.84 million and Wella Warehouse, Basingstoke for GBP5.86
million post period end were well above both purchase prices and
book values.
The Company continues to see a number of attractive investment
opportunities as it seeks to deliver further attractive returns to
shareholders and support the 8p annual dividend. The Company made
two acquisitions during the period, and one after half-year end,
that are aligned with AEWU's strategy of adding value through
active asset management by renewing current tenancies and securing
new tenants. "
Financial Highlights
Net Asset Value ('NAV') of GBP174.29 million and of 110.01 pence per share ('pps') as at 30 September 2021
-- (31 March 2021: GBP157.08 million and 99.15 pps).
Operating profit before fair value changes of GBP5.88 million for the period (six months ended 30 September
-- 2020: GBP5.93 million).
Profit Before Tax ('PBT') of GBP23.55 million and earnings per share ('EPS') of 14.86 pps for the period
(six months ended 30 September 2020: GBP5.72 million and 3.61 pps). PBT includes a GBP16.60 million gain
-- arising from changes to the fair values of investment properties in the period (six months ended 30
September 2020: loss of GBP3.33 million). This change explains the significant rise in PBT for the period.
EPRA Earnings Per Share ('EPRA EPS') for the period of 3.45 pps (six months ended 30 September 2020: 3.41
-- pps).
-- Total dividends of 4.00 pps declared in relation to the period (six months ended 30 September 2020: 4.00
pps).
Shareholder Total Return for the period of 28.37% (six months ended 30 September 2020: 16.13%).
--
The price of the Company's Ordinary Shares on the London Stock Exchange was 102.80 pps as at 30 September
-- 2021 (31 March 2021: 83.20 pps).
As at 30 September 2021, the Company had a balance of GBP50.50 million drawn down (31 March 2021: GBP39.50
million) of its GBP60.00 million (31 March 2021: GBP60.00 million) term credit facility with the Royal Bank
of Scotland International Limited ('RBSi') and was geared to 28.97% of NAV (31 March 2021: 25.15%). The
-- Company can draw GBP9.50 million of the remaining facility up to the maximum 35% Loan to NAV at drawdown
(see note 13 below for further details).
-- The Company held cash balances totalling GBP15.16 million as at 30 September 2021 (31 March 2021: GBP17.45
million).
Property Highlights
As at 30 September 2021, the Company's property portfolio had a valuation of GBP206.69 million across 35
-- properties (31 March 2021: GBP179.00 million across 34 properties) as assessed by the valuer1 and a
historical cost of GBP197.69 million (31 March 2021: GBP173.28 million).
The Company acquired two properties during the period for a total purchase price of GBP18.54 million,
excluding acquisition costs (year ended 31 March 2021: one property for GBP5.40 million). Post period-end,
-- in November 2021, the Company acquired a retail park asset
in Coventry for a purchase price of GBP16.41 million, excluding acquisition costs.
The Company made one disposal during the period, Langthwaite Industrial Estate, South Kirkby for gross
sale proceeds of GBP10.84 million (year ended 31 March 2021: two properties for gross sale proceeds of
GBP29.30 million). Post period-end, in October 2021, the
--
Company disposed of Wella Warehouse, Basingstoke, for gross proceeds of GBP5.86 million.
The portfolio had an EPRA vacancy rate of 8.59% as at 30 September 2021 (31 March 2021: 8.96%). Excluding
vacancy contributed by Bath Street, Glasgow, which was exchanged to be sold with the condition of vacant
-- possession, the vacancy rate was 5.43% (31 March 2021: 5.58%).
Rental income generated during the period was GBP7.87 million (six months ended 30 September 2020: GBP8.12
-- million).
EPRA Net Initial Yield ('EPRA NIY') of 6.45% as at 30 September 2021 (31 March 2021: 7.37%).
--
Weighted Average Unexpired Lease Term ('WAULT') of 4.00 years to break and 6.20 years to expiry (31 March
-- 2021: 4.43 years to break and 6.71 years to expiry).
As at the date of this report, 87% of the rent due for the September 2021 quarter had been collected, 99%
-- for the June 2021 quarter and 99% for the March 2021 quarter.
1 The valuation figure is reconciled to the fair value under
IFRS in note 10.
Chairman's Statement
Overview
I am pleased to report the unaudited interim results of the
Company for the six months ended 30 September 2021 (the 'period').
The Company held a diversified portfolio of 35 commercial
investment properties located throughout the UK with a value of
GBP206.69 million as at 30 September 2021.
The Company's NAV has performed well over the period, having
increased by 10.96%. The valuation of the Company's property
portfolio rose by 9.81% on a like-for-like basis over the period,
chiefly driven by its industrial assets. The sales of Langthwaite
Industrial Estate, South Kirkby for GBP10.84 million and Wella
Warehouse, Basingstoke for GBP5.86 million post period end were
undertaken at 1.9x and 1.7x the purchase prices, respectively. The
resulting profits achieved on disposal were GBP2.25 million and
GBP1.93 million above book values, respectively, providing a boost
to the Company's NAV. The Company closed the period in a position
to take advantage of attractive opportunities to reinvest as a
result of its cash position and debt covenant headroom. The Company
has maintained a conservative Loan to NAV ratio, which stood at
29.00% at 30 September 2021, and had a healthy cash balance of
GBP15.16 million.
Following the disposal of the Corby and Solihull sites in the
prior period, the Company reinvested the sales proceeds to make two
acquisitions during the period. Arrow Point Retail Park in
Shrewsbury was acquired in May 2021 for GBP8.35 million and is a
fully-let, purpose-built retail park prominently located on a busy
estate and providing a Net Initial Yield ('NIY') of 8.7%. The
second, 15-33 Union Street, Bristol, is a prime retail site located
on a busy pedestrian thoroughfare in Bristol city centre and was
purchased for GBP10.19 million, equating to a low capital value of
GBP161 per sq ft and reflecting a NIY of 8.0%. Both of these assets
provide opportunity for value growth in the medium to long term,
and also have strong and stable income streams from their tenancy
profiles.
The ongoing remedial works in Blackpool, along with the vacancy
costs at Glasgow where we have sold an asset conditional on
obtaining vacant possession, have constrained the portfolio's
overall EPRA EPS, which was 3.45 pence for the period, providing a
dividend cover of 86.10%. Following the planned sale of Glasgow,
currently anticipated in December 2021, and completion of the works
at Blackpool in early 2022, we expect this cost overhead to fall,
leading to an increase in the EPRA EPS. The Company has made one
acquisition post period-end of a retail park in Coventry for a
purchase price of GBP16.41 million. This presents opportunities to
add value through active asset management by renewing current
tenancies and securing new tenants, which will further add to the
recent strong income return and NAV growth achieved by the Company.
The acquisition is accretive to EPRA EPS and takes the Company
close to full investment.
The Company continues to work with its tenants in order to
manage the difficulties posed by the pandemic. To date, the tenancy
profile of the Company has proved to be resilient, demonstrated by
the Company's low underlying vacancy rate of 5.43%* by Estimated
Rental Value ('ERV') as at 30 September 2021. Rent collection rates
have remained high for the March and June 2021 quarters, being 99%
for both and 87% has been collected to date for the September 2021
rent quarter. These collection rates are high in comparison with
the averages seen in the wider market and we expect that ultimate
rates of collection, following the expiry of longer-term payment
plans, should result in collection rates in excess of 98%. There
are a small number of tenants who continue to face challenges in
the current environment, and in a small number of cases the Company
has agreed a longer-term payment plan to recover rental income in
full over an extended period. A prudent assessment has been made of
the recoverability of the Company's outstanding debts and a
provision has been made in the financial statements for
potential debt write-offs.
The office park at Oxford continues to perform well with its
transition to life sciences/medical use, a sector which is seeing
particularly strong investor demand at present. Moreover, after a
tumultuous period for the retail sector, we have seen valuations
stabilise this period, with our valuations increasing by 1.36% on a
like-for-like basis, particularly driven by our new retail
warehousing holding in Shrewsbury. Stock selection and active asset
management continue to be key features of the Company's strategy
and drivers of performance. During the period, the Company
completed a number of lettings and lease renewals, the most notable
of which was two new lettings at our office holding in Bristol,
both of which were 15% above ERV. These are noted in more detail
below in the 'Asset Management' section of the Investment Manager's
Report.
The Company's share price was 102.80 pence per share as at 30
September 2021, representing a 6.56% discount to NAV (31 March
2021: 83.20 pence per share, representing a 16.1% discount to NAV).
Subsequent to the period-end, the Company's share price has
experienced additional growth, causing a further reduction in the
discount to NAV.
* Including vacancy contributed by Bath Street, Glasgow, which
has been sold with the condition of vacant possession, the vacancy
rate was 8.59%.
Financial Results
Six months ended 30 Six months ended 30
September 2021 Year ended 31 March September 2020
2021
Operating Profit before fair value 5,879 10,735 5,934
changes (GBP'000)
Operating Profit (GBP'000) 23,919 23,102 6,276
Profit Before Tax (GBP'000) 23,547 22,172 5,724
Earnings Per Share (basic and diluted) 14.86 13.98 3.61
(pence)*
EPRA Earnings Per Share (basic and 3.45 6.19 3.41
diluted) (pence)*
Ongoing Charges (%) 1.31 1.36 1.31
Net Asset Value per share (pence) 110.01 99.15 92.73
EPRA Net Asset Value per share (pence) 109.94 99.11 92.70
* see note 8 of the Financial Statements for the corresponding
calculations.
Financing
The Company has a GBP60.00 million loan facility, of which it
had drawn a balance of GBP50.50 million as at 30 September 2021 (31
March 2021: GBP60.00 million facility; GBP39.50 million drawn),
producing a Loan to NAV ratio of 28.97% (31 March 2021:
25.15%).
The unexpired term of the facility was 2.1 years as at 30
September 2021 (31 March 2021: 2.6 years). The loan incurs interest
at 3-month SONIA +1.4%, which equated to an all-in rate of 1.47% as
at 30 September 2021 (31 March 2021: 3-month LIBOR + 1.4% equating
to an all-in rate of 1.44%).
The Company is protected from a significant rise in interest
rates as it has interest rate caps in place. Throughout the period
and up to the date of this report, the Company had in effect
interest rate caps on a notional value of GBP51.50 million of the
loan, capped at 1.00%, which resulted in the loan balance being
102.0% hedged as at 30 September 2021.
As noted in the KPIs, the Company targets long-term gearing of
35% Loan to NAV, which is the maximum gearing on drawdown of the
RBSi facility. The Board and Investment Manager continue to monitor
the level of gearing and have the ability to adjust the target
gearing according to the Company's circumstances and perceived risk
levels.
The Company passed its Interest Cover Ratio ('ICR') tests for
April, July and October 2021 with significant headroom.
Dividends
The Company has continued to deliver on its target of paying
dividends of 8.00 pence per share per annum. During the period, the
Company declared and paid two quarterly dividends of 2.00 pence per
Ordinary Share, in line with its target. Dividends for the period
were 86.00% covered by EPRA EPS.
It remains the Company's intention to continue to pay dividends
in line with its dividend policy, and the existing portfolio and
investment opportunities support this policy. However, the outlook
remains unclear in the wake of the COVID-19 pandemic and in
determining future dividend payments, regard will be had to the
circumstances prevailing at the relevant time, as well as the
Company's requirement, as a UK REIT, to distribute at least 90% of
its distributable income annually.
Outlook
The easing of most of the remaining COVID-19 restrictions,
combined with the continued rollout of the vaccination programme,
has lifted most economists' outlook for the post COVID-19 rebound
in the second half of 2021. In light of this, the property market
has experienced a gradual recovery, with rent collection levels
greatly improving, as cash flow pressures on tenants ease. With its
strong cash position and borrowing covenant headroom, the Company
is well positioned to take advantage of attractive opportunities
coming to the market. During the period, the Company has displayed
strong NAV performance, reflecting the geographical diversity of
the portfolio, its circa 50% exposure to the industrial sector and
the fact that many of its assets benefit from viable alternative
use potential, limiting downside risk and volatility.
In the near term, the Board and Investment Manager will continue
to focus on minimising the legacy impact of COVID-19 on its
stakeholders and, as more attractive opportunities arise in the
investment market, will aim to find suitable assets to build
earnings back to a fully covered dividend. The developing economic
conditions will be monitored closely and the Company's strategy
adjusted accordingly. It is hoped that the start of 2022 will build
upon the economic recovery of the second half of 2021, providing
conditions to enable further growth of the Company
Mark Burton
Chairman
16 November 2021
Key Performance Indicators
KPI AND DEFINITION RELEVANCE TO STRATEGY
TARGET PERFORMANCE
1. EPRA NIY
A representation to investors of 6.45%
what their initial net yield would The Company's EPRA NIY demonstrates the ability to
be at a predetermined purchase price generate income from its portfolio in the short-term at 30 September
after taking account of all in order to meet its target dividend. 7.50 - 2021 (31 March
associated costs, e.g. void costs 10.00% 2021: 7.37%).
and rent free periods.
2. True Equivalent Yield
The average weighted return a 7.67%
property will produce according to The Company's True Equivalent Yield demonstrates the
the present income and ERV Company's ability to generate income, both from its 7.50 - at 30 September
assumptions, assuming the income is existing leases and its ERVs, in order to meet its 10.00% 2021 (31 March
received quarterly in advance. target dividend. 2021: 8.15%).
3. Reversionary Yield 7.67%
The expected return the property A Reversionary Yield profile shows a potentially at 30 September
will provide once rack rented. sustainable income stream that can be used to meet 7.50 - 2021 (31 March
dividends past the expiry of a property's current 10.00% 2021: 8.18%).
leasing arrangements.
The Investment Manager believes that current market
4. WAULT to expiry conditions present an opportunity whereby assets 6.20 years
with a shorter unexpired lease term are often
The average lease term remaining to mispriced. It is also the Investment Manager's view at 30 September
expiry across the portfolio, that a shorter WAULT is useful for active asset 2021 (31 March
weighted by contracted rent. management, particularly in certain growth sectors >3 years 2021: 6.71
such as warehousing, as it allows the Investment years).
Manager to engage in direct negotiation with tenants
rather than via rent-review mechanisms.
The Investment Manager believes that current market
conditions present an opportunity whereby assets
5. WAULT to break with a shorter unexpired lease term are often
mispriced. As such, it is in line with the 4.00 years
The average lease term remaining to Investment Manager's strategy to acquire properties
break, across the portfolio weighted with a WAULT that is generally shorter than the at 30 September
by contracted rent. benchmark. It is also the Investment Manager's view >3 years 2021 (31 March
that a shorter WAULT is useful for active asset 2021: 4.43
management, particularly in certain growth sectors years).
such as warehousing, as it allows the Investment
Manager to engage in direct negotiation with tenants
rather than via rent-review mechanisms.
6. NAV GBP174.29 million
NAV is the value of an entity's Provides stakeholders with the most relevant at 30 September
assets minus the value of its information on the fair value of the assets and Increase 2021 (31 March
liabilities. liabilities of the Company. year-on-year 2021: GBP157.08
million).
The Company has changed the measure of its Leverage
KPI from 'Loan to Gross Asset Value ('GAV')' to
'Loan to NAV'. This is in line with the measure used
7. Leverage (Loan to NAV) in its banking covenants and so is considered to be
more relevant to the Company's position. 28.97%
The proportion of the Company's net
assets that is funded by borrowings. at 30 September
The target of 35% Loan to NAV, which is the gearing 35% 2021 (31 March
limit at drawdown under the RBSi facility, 2021: 25.15%).
approximates to the previous target of 25% Loan to
GAV, which is the measure used in the Company's
Investment Guidelines. Gearing will continue to be
monitored using both measures.
8.59% / 5.43%
excluding
vacancy
8. Vacant ERV contributed by
Glasgow*
The space in the property portfolio The Company's aim is to minimise vacancy of the
which is currently unlet, as a properties. A low level of structural vacancy at 30 September
percentage of the total ERV of the provides an opportunity for the Company to capture 2021 (31 March
portfolio. rental uplifts and manage the mix of tenants within <10.00% 2021: 8.96%/
a property. 5.58% excluding
vacancy
contributed by
Glasgow).
4.00 pps
9. Dividend
for the six
Dividends declared in relation to months to 30
the year. The Company targets a September 2021.
dividend of 8.00 pence per Ordinary The dividend reflects the Company's ability to
Share per annum. However, given the deliver a sustainable income stream from its 4.00 pps This supports an
current COVID-19 situation, regard portfolio. (six month annualised
will be had to the circumstances period to 30 target of 8.00
prevailing at the relevant time in September) pps (six months
determining dividend payments. to 30 September
2020: 4.00 pps).
10. Ongoing Charges 1.31%
The Ongoing Charges ratio provides a measure of
The ratio of annualised total costs associated with managing and operating for the six
administration and operating costs the Company, which includes the management fees due months to 30
expressed as a percentage of average to the Investment Manager. This measure is to <1.50% September 2021
NAV throughout the period. provide investors with a clear picture of (six months to
operational costs involved in running the Company. 30 September
2020: 1.31%).
GBP23.55 million/
14.86 pps
11. Profit before Tax ('PBT')
4.00 pps for the six
PBT is a profitability measure which (six month months to 30
considers the Company's profit The PBT is an indication of the Company's financial period to September 2021
before the payment of income tax. performance for the period in which its strategy is (six months to
exercised. 30 30 September
September) 2020: GBP5.72
million/3.61
pps).
12. Shareholder Total Return
28.37%
The percentage change in the share
price assuming dividends are This reflects the return seen by shareholders on for the six
reinvested to purchase additional their shareholdings through share price movements 8.00% months to 30
Ordinary Shares. and dividends received. September 2021
(six months to
30 September
2020: 16.13%).
13. EPRA EPS
Earnings from core operational 3.45 pps
activities. A key measure of a
company's underlying operating 4.00 pps for the six
results from its property rental This reflects the Company's ability to generate (six month months to 30
business and an indication of the earnings from the portfolio which underpins period to September 2021
extent to which current dividend dividends. (six months to
payments are supported by earnings. 30 30 September
See note 8. September) 2020: 3.41 pps).
* Glasgow has exchanged to be sold with condition of vacant
possession.
Investment Manager's Report
Economic Outlook
The easing of most of the remaining COVID-19 restrictions has
increased market optimism in both the direct and indirect markets.
Oxford Economics' latest forecasts published in mid-September 2021
indicate UK GDP growth to be 6.9% for the whole year, compared with
the 9.8% contraction in 2020. However, the Bank of England
signalled its concerns on inflation being well ahead of its target
in mid-October. Due to energy, labour and materials shortages UK
inflation is expected to peak near 6% in early 2022. As a result,
gilt markets are pricing in interest rate hikes starting in
December 2021 followed by further increases in 2022. Despite these
interest rate increases, Oxford Economics' latest forecast confirms
the continued strong UK economic recovery with GDP growth of 6.7%
in 2022.
Although the direct markets are still strongest in the
industrial and warehouse sector, the next year is expected to be a
year of recovery and growth where some parts of the retail and
leisure sectors may be the beneficiaries. The Company is focusing
on portfolio adjustments to take advantage of value opportunities,
driven more by the specifics of the asset than the sector. This may
see the Company realise profits through sales where it believes
values have been optimised and where the funds can be recycled into
assets with better growth potential going forwards. There is likely
to be a slightly reduced weighting to business space and a rotation
towards retail warehousing, leisure and a continued focus on assets
with viable alternative use value. Assets whose current value is
supported by long-term alternative use optionality, irrespective of
current use, will be of increasing importance in our stock
selection process. Moreover, recent changes to the Use Classes
Order are likely to have a significant impact on portfolios in
terms of broadening potential use. Finally, in line with market
optimism and a period of post pandemic growth, rent collection
rates have strongly improved and this trend is expected to
continue.
Financial Results
The Company's NAV as at 30 September 2021 was GBP174.29 million
or 110.01 pps (31 March 2021: GBP157.08 million or 99.15 pps). This
is an increase of 10.86 pps or 10.96% over the period.
EPRA EPS for the period was 3.45 pence which, based on dividends
paid of 4.00 pps, reflects a dividend cover of 86.00%. The increase
in dividend cover compared to the prior six-month period has
largely arisen due to improvements in rent collection levels, along
with successful legal outcomes that have recovered significant
arrears. Income across the tenancy profile has remained largely
intact. Collection rates have reached 99% for both the March and
June 2021 quarters respectively, with further payments expected to
be received under longer-term payment plans. Of the outstanding
arrears, GBP0.61 million has been provided for expected credit
losses.
Financing
As at 30 September 2021, the Company has a GBP60.00 million loan
facility with RBSi, in place until October 2023, the details of
which are presented below:
30 September 2021 31 March 2021
Facility GBP60.00 million GBP60.00 million
Drawn GBP50.50 million GBP39.50 million
Gearing (Loan to NAV) 28.97% 25.15%
Interest rate 1.47% all-in (SONIA + 1.4%) 1.44% all-in (LIBOR +1.4%)
Notional Value of Loan Balance Hedged 102.0% 130.4%
Due to GBP LIBOR ending at the end of 2021, the Company
transitioned to SONIA on 20 July 2021, with a credit adjustment
spread of 0.0981%.
Property Portfolio
During the period, the Company disposed of Langthwaite
Industrial Estate, South Kirkby, for net proceeds of GBP10.84
million. The Company made two acquisitions during the period being:
Arrow Point Retail Park in Shrewsbury, which was acquired in May
2021 for GBP8.35 million, and 15-33 Union Street, Bristol, which
was purchased in June 2021 for a price of GBP10.19 million.
The following tables illustrate the composition of the portfolio
in relation to its properties, tenants and income streams:
Summary by Sector as at 30 September 2021
Gross Gross Like- Like-
passing passing for like for like
WAULT to
Vacancy rental rental Rental rental rental
Number of break
Valuation Area by ERV income income ERV ERV income growth* growth*
Sector assets (years)
(GBPm) (sq ft) (%) (GBPm) (GBPpsf) (GBPm) (GBPpsf) (GBPm) (GBPm) %
Industrial 20 114.72 2,428,590 6.45 3.73 8.04 3.31 9.28 3.82 4.20 0.10 2.42
Offices 5 39.95 251,812 18.73 3.12 2.19 8.71 3.62 14.38 1.16 0.02 1.83
Standard retail 6 24.62 237,792 10.35 4.60 2.65 11.13 2.36 9.92 1.21 (0.02) (1.76)
Retail warehouses 2 14.85 145,912 0.00 1.95 1.32 9.07 1.21 8.29 0.57 (0.02) (6.93)
Alternatives 2 12.55 112,355 0.00 6.85 1.50 13.31 1.23 10.99 0.73 (0.04) (5.01)
Portfolio 35 206.69 3,176,461 8.59 4.00 15.70 4.94 17.70 5.57 7.87 0.04 0.57
Summary by Geographical Area as at 30 September 2021
Gross Gross Like- Like-
passing passing for for
WAULT like like
Vacancy to rental rental Rental
Number rental rental
of Valuation Area by ERV break income income ERV ERV income
Geographical Area growth* growth*
assets (GBPm) (sq ft) (%) (years) (GBPm) (GBPpsf) (GBPm) (GBPpsf) (GBPm)
(GBPm) %
South West 5 37.69 517,232 12.65 2.85 2.70 5.21 3.40 6.57 1.21 (0.03) (3.08)
Yorkshire and 7 34.10 796,951 4.51 2.59 2.43 3.05 3.10 3.89 1.41 (0.20) (12.34)
Humberside
South East 5 30.32 195,545 3.94 3.99 2.03 10.40 2.19 11.19 1.13 (0.01) (0.41)
Eastern 5 23.85 344,339 10.23 2.29 1.84 5.33 2.06 5.98 0.91 0.21 29.68
West Midlands 4 23.22 458,613 3.42 3.46 1.90 4.14 1.83 4.00 0.85 (0.02) (2.71)
Wales 2 18.55 376,138 0.00 7.58 1.25 3.31 1.43 3.82 0.64 (0.03) (4.97)
North West 4 18.28 302,061 0.00 4.44 1.56 5.18 1.40 4.64 0.78 0.16 25.32
Rest of London 1 9.25 71,720 0.00 10.12 0.96 13.40 0.75 10.45 0.47 (0.02) (4.87)
Scotland 1 7.50 85,643 51.1 1.38 0.64 7.49 1.16 13.54 0.27 (0.01) (2.92)
East Midlands 1 3.93 28,219 0.00 5.16 0.39 13.82 0.38 13.38 0.20 (0.01) (2.96)
Portfolio 35 206.69 3,176,461 8.59 4.00 15.70 4.94 17.70 5.57 7.87 0.04 0.57
*like-for-like rental growth is for the six months ended 30
September 2021.
Source: Knight Frank/AEW, 30 September 2021.
Individual Property Classifications
Market Value
Range
Property Sector Region
(GBPm)
Eastpoint Business Park, Oxford Offices South East
1 15.0-20.0
Gresford Industrial Estate, Wrexham Industrial Wales
2 10.0-15.0
3 40 Queen Square, Bristol Offices South West 10.0-15.0
4 15-33 Union Street, Bristol Standard retail South West 10.0-15.0
5 Lockwood Court, Leeds Industrial Yorkshire and Humberside 7.5-10.0
London East Leisure Park, Dagenham Other Rest of London
6 7.5 -10.0
Arrow Point Retail Park, Shrewsbury Retail warehouses West Midlands
7 7.5-10.0
Storey's Bar Road, Peterborough Industrial Eastern
8 7.5-10.0
9 Sarus Court, Runcorn Industrial North West 7.5-10.0
10 225 Bath Street, Glasgow Offices Scotland 7.5-10.0
The Company's top ten properties listed above comprise 49.2% of
the total value of the portfolio.
Market Value
Range
Property Sector Region
(GBPm)
11 Euroway Trading Estate, Bradford Industrial Yorkshire and Humberside 5.0-7.5
12 Apollo Business Park, Basildon Industrial Eastern 5.0-7.5
13 Brockhurst Crescent, Walsall Industrial West Midlands 5.0-7.5
14 Westlands Distribution Park, Weston Super Mare Industrial South West 5.0-7.5
15 Barnstaple Retail Park, Barnstaple Retail warehouses South West 5.0-7.5
16 Walkers Lane, St Helens Industrial North West 5.0-7.5
17 Deeside Industrial Park, Deeside Industrial Wales 5.0-7.5
18 Diamond Business Park, Wakefield Industrial Yorkshire and Humberside 5.0-7.5
19 Wella Warehouse, Basingstoke Industrial South East 5.0-7.5
20 Oak Park, Droitwich Industrial West Midlands <5.0
21 Mangham Road, Rotherham Industrial Yorkshire and Humberside <5.0
22 Pearl House, Nottingham Standard retail East Midlands <5.0
23 710 Brightside Lane, Sheffield Industrial Yorkshire and Humberside <5.0
24 Hall Industrial Estate, Basildon Industrial Eastern <5.0
25 Cedar House, Gloucester Offices South West <5.0
26 75 Above Bar Street, Southampton Standard retail South East <5.0
27 Eagle Road, Redditch Industrial West Midlands <5.0
28 Odeon Cinema, Southend Other Eastern <5.0
29 Standard retail South East <5.0
Commercial Road, Portsmouth
30 Clarke Road, Milton Keynes Industrial South East <5.0
31 Bridge House, Bradford Industrial Yorkshire and Humberside <5.0
32 Standard retail North West <5.0
Pricebusters Building, Blackpool
33 Vantage Point, Hemel Hempstead Offices Eastern <5.0
34 Moorside Road, Swinton Industrial North West <5.0
35 11/15 Fargate, Sheffield Standard retail Yorkshire and Humberside <5.0
Sector and Geographical Allocation by Market Value as at 30
September 2021
Sector Allocation
Sector %
Standard retail 11.9
Retail warehouses 7.2
Offices 19.3
Industrial 55.5
Other 6.1
Geographical Allocation
Location %
Rest of London 4.5
South East 14.7
South West 18.2
Eastern 11.6
West Midlands 11.2
East Midlands 1.9
North West 8.8
Yorkshire and Humberside 16.5
Wales 9.0
Scotland 3.6
Source: Knight Frank valuation report as at 30 September
2021.
Top Ten Tenants
% of
Passing Portfolio
Rental Total
Tenant Sector Property
Income Contracted
(GBP'000) Rental
Income
1 Plastipak UK Ltd Industrial Gresford Industrial Estate, Wrexham 883 5.6
2 Wyndeham Group Industrial Wyndeham, Peterborough 644 4.1
3 Mecca Bingo Ltd London East Leisure Park, Dagenham 625 4.0
Leisure
4 Harrogate Spring Water Limited Industrial Lockwood Court, Leeds 603 3.8
5 Odeon Cinemas Leisure Odeon Cinema, Southend-on-Sea 535 3.4
6 Wilko Retail Limited Retail 15-33 Union Street, Bristol 481 3.1
7 Advanced Supply Chain (BFD) Ltd Industrial Euroway Trading Estate, Bradford 467 3.0
8 HFC Prestige Manufacturing Limited Industrial Cranbourne House, Basingstoke 460 2.9
9 Charlies Stores Retail Arrow Point Retail Park, Shrewsbury 440 2.8
10 Poundland Limited Retail Pricebusters Building, Blackpool 414 2.6
The Company's top ten tenants, listed above, represent 35.4% of
the total passing rental income of the portfolio.
Source: Knight Frank valuation report as at 30 September
2021.
Asset Management
The Company completed the following material asset management
transactions during the period:
Acquisitions - Arrow Point Retail Park in Shrewsbury was
acquired in May 2021 for GBP8.35 million and is a fully-let,
purpose-built retail park prominently located on a busy commercial
estate, providing a NIY of 8.7%. The second acquisition, 15-33
Union Street, Bristol, is a retail/leisure site located on a busy
pedestrian thoroughfare in Bristol city centre and provides a NIY
of 8.0%. Both of these assets provide opportunity for value growth
in the medium to long term as well as strong and stable income
streams from their tenancy profiles.
Disposals - Sales of Langthwaite Industrial Estate, South Kirkby
for GBP10.84 million and Wella Warehouse, Basingstoke for GBP5.86
million have now been completed, with the latter completing post
period end. The sales prices achieved were 31% and 35% ahead of
their March 2021 valuations, and also 1.9x and 1.7x their purchase
prices, respectively.
Arrow Point Retail Park, Shrewsbury - We have extended British
Heart Foundation's unexpired term to break by moving their November
2021 break option out to December 2024 in return for four months'
rent free. The majority of the rent free was used to write off rent
arrears predating the Company's ownership. British Heart
Foundation's lease expires in November 2028.
Diamond Business Park, Wakefield - We have completed a new five
year ex-Act lease at GBP41,866 per annum/GBP3.75 per sq ft on Unit
14, which reflects a rent 25% above the March 2021 ERV. The tenant
has provided a rent deposit equivalent to six month's rent. Six
months' rent free was given as an incentive.
40 Queen Square, Bristol - We have completed a new five year
ex-Act lease to Brewin Dolphin at GBP103,770 per annum/ GBP30 per
sq ft versus the previous passing rent of GBP22 per sq ft and the
March 2021 ERV of GBP26 per sq ft. A 12 month rent free incentive
was given. We have now also completed a lease renewal to Candide
Limited until February 2025 at the same rent of GBP30 psf
(GBP116,970 per annum). The previous passing rent was GBP22.81 per
sq ft and only 1.5 months' rent free incentive was given. These
lettings at GBP30 psf have produced an increase in the property's
valuation of GBP1.05 million (9.9%) over the past six months.
Vantage Point, Hemel Hempstead - We have completed a new five
year ex-Act lease (tenant break option at the end of year three) to
Netronix Integration Limited at a rent of GBP33,683 per
annum/GBP14.50 per sq ft, which is GBP3 per sq ft above ERV. Four
months' rent free incentive was given, with a further two months
should the tenant not exercise their tenant break option at the end
of the third year.
Above Bar Street, Southampton - We have exchanged on a new
straight five year ex-Act lease to Shoe Zone at a gross rent of
GBP80,000 per annum, subject to approximately GBP40,000 landlord
works. 12 months' rent free incentive was given.
Sarus Court, Runcorn - We have completed a ten year lease
renewal with NTT United Kingdom Limited (Dimension Data) at GBP5.75
per sq ft (GBP64,066.50 per annum) versus the previous passing rent
of GBP5.25 per sq ft. There is a tenant break option in December
2025. Five months' rent free incentive was given. The valuation of
this asset has increased by GBP1.05 million (15.3%) over the past
six months to GBP7.9 million.
Vacancy - The portfolio's overall vacancy level is 8.59%.
Excluding vacancy contributed by the asset at 225 Bath Street,
Glasgow, the vacancy level is 5.43%. This asset has now been
exchanged for sale for alternative use redevelopment as student
accommodation. As a condition of the sale agreement, full vacancy
must be achieved before the sale can be completed. Completion of
the sale is expected in Q4 2021 - Q1 2022. The purchaser has
submitted a planning application and is awaiting confirmation on a
committee date. Regarding achieving vacant possession, only one
tenant remains in the building having recently exchanged on the
variation of W.A. Fairhurst's lease, bringing their occupation to
an end on 31 January 2022, in exchange for an GBP800,000 surrender
premium, plus nine months' rent free from 28 February 2021 to 1
December 2021.
Environmental, Social and Governance ('ESG') Update
The Company has maintained its two stars Global Real Estate
Sustainability Benchmark ('GRESB') rating for 2021 and maintained
its score of 65 (GRESB Average 72). A large portion of the GRESB
score relates to performance data coverage where, due to the high
percentage of single-let assets with tenant procured utilities, the
Company does not score as well as funds with a smaller holding of
single-let assets and a higher proportion of multi-let assets where
the owner is responsible for the utilities and can therefore gather
the relevant data.
We continue to implement our plan to improve overall data
coverage and data collection for all utilities through increased
tenant engagement at our single-let assets and by installing
automated meter readers ('AMR') across the portfolio. So far, we
are in the process of installing AMRs in all of our multi-let
properties. We are also in discussions with the tenants of our top
10 single-let FRI assets (in terms of floor area) regarding the
installation of AMR.
We endeavour, where the opportunity presents itself through a
lease event, to include green clauses in leases, covenanting
landlord and tenant to collaborate over the environmental
performance of the property.
We continue to assess and strengthen our reporting and alignment
against the framework set out by the Taskforce on Climate-Related
Financial Disclosures ('TCFD') with further disclosure and update
to be provided in the 2022 annual report and accounts. We are
pleased to report the Company has maintained its EPRA Silver rating
for sBPR for ESG disclosure and transparency.
We have an Asset Sustainability Action Plan ('ASAP') initiative,
tracking ESG initiatives across the portfolio on an asset by asset
basis for targeted/relevant and specific implementation of ESG
improvements. In doing so, all managed assets and units have
recently been contracted to High Quality Green Tariffs, ensuring
that electricity supply is from renewable sources. All void/vacant
unit supplies have also been transferred to High Quality Green
Tariffs.
All managed assets will be moved to 'Green Gas' supplies in
2022.
We are underway with implementing initiatives such as a new
landscaping/biodiversity programme at our retail warehouse in
Barnstaple, replacing the existing plants and shrubs with a greater
diversity of appropriate species which in turn will attract a wider
variety of insects and wildlife to the property.
Lease Expiry Profile
Approximately GBP3.48 million of the Company's current
contracted income stream is subject to an expiry or break within
the 12 month period commencing 1 October 2021. 12.87% (GBP447,984)
of this income (Indigo Lighthouse Solutions and WA Fairhurst) is
attributable to our office holding in Glasgow, which has exchanged
for sale. A further 9.38% (GBP326,668) of this income relates to a
property where we expect the tenants to stay, renewing their
leases. 18.31% (GBP637,238) of this income is in the industrial
sector, where we anticipate strong occupier demand, low incentives
and reversionary rents. Regarding the remainder, we will
proactively manage, looking to unlock capital upside, whether that
be through lease regears/renewals, or through refurbishment/capex
projects and new lettings.
Source: Knight Frank valuation report as at 30 September
2021.
AEW UK Investment Management LLP
16 November 2021
Principal Risks and Uncertainties
The Company's assets consist of UK commercial property. Its
principal risks are therefore related to the commercial property
market in general, but also to the particular circumstances of the
individual properties and the tenants within the properties.
The Board has overall responsibility for reviewing the
effectiveness of the system of risk management and internal control
which is operated by the Investment Manager. The Company's ongoing
risk management process is designed to identify, evaluate and
mitigate the significant risks the Company faces.
At least twice a year, the Board undertakes a formal risk review
with the assistance of the Audit Committee, to assess the adequacy
and effectiveness of the Investment Manager and other service
providers' risk management and internal control processes.
The Board has carried out a robust assessment of the principal
and emerging risks facing the Company, including those that would
threaten its business model, future performance, solvency or
liquidity.
An analysis of the principal risks and uncertainties is set out
below. The risks below do not purport to be exhaustive as some
risks are not yet known and some risks are currently not deemed
material but could turn out to be material in the future. Changes
to the principal risks since the date of the Annual Report and
Financial Statements for the year ended 31 March 2021 are indicated
below.
Principal risks and their potential impact How risk is managed Risk
assessment
REAL ESTATE RISKS
1. Property market
Any property market recession or future Probability:
deterioration in the property market could, inter Moderate
alia, (i) cause the Company to realise its The Company has investment restrictions in place to
investments at lower valuations; and (ii) delay the invest and manage its assets with the objective of Impact:
timings of the Company's realisations. These risks spreading and mitigating risk. Moderate to
could have a material adverse effect on the ability High
of the Company to achieve its investment objective.
Movement:
Decrease
2. Property valuation
Property and property-related assets are inherently
difficult to value due to the individual nature of
each property. Probability:
The Company uses an independent external valuer Low
(Knight Frank LLP) to value the properties at fair
value in accordance with accepted RICS appraisal and Impact: Low
There may be an adverse effect on the Company's valuation standards. to Moderate
profitability, the NAV and the price of Ordinary
Shares in cases where properties are sold whose Movement:
valuations have previously been materially Decrease
overstated.
Comprehensive due diligence is undertaken on all new
tenants. Tenant covenant checks are carried out on Probability:
3. Tenant default all new tenants where a default would have a Moderate
significant impact.
Failure by tenants to fulfil their rental Impact:
obligations could affect the income that the Moderate to
properties earn and the ability of the Company to High
pay dividends to its shareholders. Asset management team conducts ongoing monitoring and
liaison with tenants to manage potential bad debt Movement:
risk. Decrease
4. Asset management initiatives
Probability:
Asset management initiatives, such as refurbishment
works, may prove to be more extensive, expensive and Costs incurred on asset management initiatives are Low to
take longer than anticipated. Cost overruns may have closely monitored against budgets and reviewed in Moderate
a material adverse effect on the Company's regular presentations to the Investment Management
profitability, the NAV and the share price. Committee of the Investment Manager. Impact: Low
to Moderate
Movement: No
change
5. Due diligence
Due diligence may not identify all the risks and Probability:
liabilities in respect of an acquisition (including The Company's due diligence relies on work (such as Low
any environmental, structural or operational legal reports on title, property valuations,
defects) that may lead to a material adverse effect environmental and building surveys) outsourced to Impact:
on the Company's profitability, the NAV and the third parties who have expertise in their areas. Such Moderate
price of the Company's Ordinary Shares. third parties have professional indemnity cover in
place. Movement: No
change
6. Fall in rental rates
Rental rates may be adversely affected by general UK
economic conditions and other factors that depress
rental rates, including local factors relating to The Company builds a diversified property and tenant
particular properties/locations (such as increased base with subsequent monitoring of concentration to Probability:
competition). individual occupiers (top ten tenants) and sectors Moderate to
(geographical and sector exposure). High
Impact:
Any fall in the rental rates for the Company's Moderate to
properties may have a material adverse effect on the The Investment Manager holds quarterly meetings with High
Company's profitability, the NAV, the price of the its Investment Strategy Committee and regularly meets
Ordinary Shares and the Company's ability to meet the Board of Directors to assess whether any changes Movement: No
interest and capital repayments on any debt in the market present risks that should be addressed change
facilities. in the Company's strategy.
BORROWING RISKS
7. Breach of borrowing covenants
The Company has entered into a term credit facility Probability:
with RBSi.
Low to
The Company monitors the use of borrowings on an Moderate
ongoing basis through weekly cash flow forecasting
Material adverse changes in valuations and net and quarterly risk monitoring to monitor financial Impact:
income may lead to breaches in the Loan to Value covenants. Moderate to
('LTV') and interest cover ratio covenants. High
Movement:
Decrease
8. Interest rate rises The Company uses interest rate caps on a significant Probability:
notional value of the loan to mitigate the adverse
The Company's borrowings through a term credit impact of possible interest rate rises. Moderate to
facility are subject to interest rate risk through High
changing SONIA rates. Any increases in SONIA rates
may have an adverse effect on the Company's ability Impact: Low
to pay dividends. The Investment Manager and Board of Directors monitor to Moderate
the level of hedging and interest rate movements to
ensure that the risk is managed appropriately. Movement: No
change
The Company maintains a good relationship with the
bank providing the term credit facility.
9. Availability and cost of debt Probability:
The term credit facility expires in October 2023. In The Company monitors the projected usage and Moderate
the event that RBSi does not renew the facility, the covenants of the credit facility on a quarterly
Company may need to sell assets to repay the basis. Impact:
outstanding loan. Any increase in the financing Moderate to
costs of the facility on renewal would adversely High
impact on the Company's profitability.
The Company actively monitors the loan term and Movement:
engages in loan extension negotiations far in advance Increase
of expiry.
CORPORATE RISKS
10. Dependence on Investment Manager and other third
party service providers
The Company has no employees and is reliant upon the
performance of its Investment Manager and third
party service providers. Failure by the Investment The Investment Manager has endeavoured to ensure that Probability:
Manager and/or any service provider to carry out its the principal members of its management team are Moderate to
obligations to the Company in accordance with the suitably incentivised. The performance of service High
terms of its appointment could have a materially providers in conjunction with their service level
detrimental impact on the operation of the Company. agreements is monitored via regular calls and Impact:
The future ability of the Company to successfully face-to-face meetings and the use of key performance Moderate
pursue its investment objective and investment indicators, where relevant.
policy may, among other things, depend on the Movement: No
ability of the Investment Manager to retain its change
existing staff and/or to recruit individuals of
similar experience and calibre.
11. Ability to meet objectives
The Company may not meet its investment objective to
deliver an attractive total return to shareholders Probability:
from investing predominantly in a portfolio of The Company has an investment policy to achieve a Moderate to
smaller commercial properties in the United Kingdom. balanced portfolio with a diversified asset and High
tenant base. The Company also has investment
restrictions in place to limit exposure to potential Impact:
risk factors. These factors mitigate the risk of Moderate to
Poor relative total return performance may lead to fluctuations in returns. High
an adverse reputational impact that affects the
Company's ability to raise new capital. Movement:
Decrease
12. Business interruption The Investment Manager and other service providers' Probability:
staff are capable of working remotely for an extended Low to
Cyber-attacks on the Investment Manager's and/or time period. The Investment Manager's and other Moderate
other service providers' IT systems, could lead to service providers' IT systems are protected by
disruption, reputational damage, regulatory anti-virus software and firewalls that are updated Impact:
(including GDPR) or financial loss to the Company. regularly. Fire protection and access security Moderate
procedures exist at all the Company's managed
properties, along with the offices of its Investment Movement:
Manager and other service providers. Increase
TAXATION RISKS
13. Company REIT status
The Company has a UK REIT status that provides a
tax-efficient corporate structure.
Probability:
If the Company fails to remain a REIT for UK tax The Company monitors REIT compliance through the Low
purposes, its profits and gains will be subject to Investment Manager on acquisitions; the Administrator
UK corporation tax. on asset and distribution levels; the Registrar and Impact:
Broker on shareholdings and the use of third-party Moderate to
tax advisers to monitor REIT compliance requirements. High
Any change to the tax status or UK tax legislation Movement: No
could impact on the Company's ability to achieve its change
investment objectives and provide attractive returns
to shareholders.
POLITICAL/ECONOMIC RISKS
14. General political and economic risks
Political and macroeconomic events present risks to Probability:
the real estate and financial markets that affect The Board considers the impact of political and Moderate to
the Company and the business of its tenants. The macroeconomic events when reviewing strategy. The High
level of uncertainty that such events bring has been UK's exit from the EU is not considered to generate
highlighted in recent times, most pertinently the any risks specific to the Company and is not Impact:
effects of the UK's exit from the EU in January considered to have any material effect on the Moderate to
2021. financial statements. High
Movement: No
change
15. COVID-19
The economic disruption arising from the COVID-19 Probability:
virus could impact rental income receipts from Low to
tenants, the ability to access funding at The Investment Manager is in close contact with Moderate
competitive rates, maintain the Company's dividend tenants. The Investment Manager has put in place
policy and its adherence to the HMRC REIT regime, social distancing measures as advised by the UK Impact:
particularly if the UK government restrictions are government. The Investment Manager has maintained a Moderate to
in place for a prolonged period. close relationship with RBSi to ensure continuing High
dialogue around covenants.
Movement:
Decrease
ENVIRONMENTAL RISKS
The Company has engaged specialist environmental
consultants to advise the Board on compliance with
16. Environmental transition risk regulatory requirements and adopting best practice
where possible. All prospective acquisitions and
Failure to identify and mitigate the transition risk asset management initiatives are influenced by Probability:
for climate change could lead to the Company holding environmental assessments undertaken by the Company, Moderate
stranded assets and lead to a negative impact on its such as ensuring they are in conformance with the
reputation. Failure by the Company to meet required Minimum Energy Efficiency Standard ('MEES') Impact:
regulatory standards could Regulations. An Asset Sustainability Action Plan Moderate
('ASAP') initiative has been introduced by the
lead to increased stakeholder concern and negative Company, which tracks ESG initiatives across the Movement:
feedback. portfolio on an asset-by-asset basis for targeted, Increase
relevant and specific implementation of ESG
improvements.
17. Physical risk to properties Probability:
The Company obtains environmental surveys for all Low
The risk of physical damage to properties as a acquisitions, which mitigate the short-term risk of
result of environmental factors such as flooding and climate related damage to properties owned. The Impact:
natural fires. In the long-term, changes in climate Investment Manager's asset management team perform Moderate to
and/or weather systems may mean properties become regular site visits to the Group's properties in High
unviable to tenants. order to continually assess the physical risk posed
to them. Movement:
Increase
Interim Management Report and Directors' Responsibility
Statement
Interim Management Report
The important events that have occurred during the period under
review, the key factors influencing the financial statements and
the principal risks and uncertainties for the remaining six months
of the financial year are set out above.
Responsibility Statement
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim FinancialReporting as adopted by
the UK;
-- the interim management report includes a fair review of the
information required by: a. DTR 4.2.7R, being an indication of
important events that have occurred during the first six months of
thefinancial year and their impact on the condensed set of
financial statements; and a description of the principalrisks and
uncertainties for the remaining six months of the year; and b. DTR
4.2.8R, being related party transactions that have taken place in
the first six months of the currentfinancial year and that have
materially affected the financial position or performance of the
Company during thatperiod; and any changes in the related party
transactions described in the last Annual Report that could do
so.
On behalf of the Board
Mark Burton
Chairman
16 November 2021
Independent Review Report to AEW UK REIT PLC
Introduction
We have been engaged by the Company to review the condensed set
of Financial Statements in the Interim Report and Financial
Statements for the six months ended 30 September 2021 which
comprises the Condensed Statement of Comprehensive Income,
Condensed Statement of Changes in Equity, Condensed Statement of
Financial Position, Condensed Statement of Cash Flows and related
notes.
We have read the other information contained in the Interim
Report and Financial Statements and considered whether it contains
any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
Directors' responsibilities
The Interim Report and Financial Statements is the
responsibility of and has been approved by the Directors. The
Directors are responsible for preparing the Interim Report and
Financial Statements in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
As disclosed in note 2, the annual financial statements of the
Company will be prepared in accordance with UK adopted
international accounting standards. The condensed set of financial
statements included in this Interim Report and Financial Statements
has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of Financial Statements in the Interim Report and
Financial Statements based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity", issued by the Financial Reporting Council for use
in the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of Financial Statements
in the Interim Report and Financial Statements for the six months
ended 30 September 2021 is not prepared, in all material respects,
in accordance with UK adopted International Accounting Standard 34
and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Use of our report
Our report has been prepared in accordance with the terms of our
engagement to assist the Company in meeting its responsibilities in
respect of half-yearly financial reporting in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority and for no other purpose. No person is
entitled to rely on this report unless such a person is a person
entitled to rely upon this report by virtue of and for the purpose
of our terms of engagement or has been expressly authorised to do
so by our prior written consent. Save as above, we do not accept
responsibility for this report to any other person or for any other
purpose and we hereby expressly disclaim any and all such
liability.
BDO LLP
Chartered Accountants
London
United Kingdom
16 November 2021
BDO LLP is a limited liability partnership registered in England
and Wales (with registered number OC305127).
Financial Statements
Condensed Statement of Comprehensive Income
for the six months ended 30 September 2021
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
Income
Rental and other income 3 8,630 8,838 17,491
Property operating expenses 4 (1,760) (1,777) (3,754)
Impairment loss on trade receivables 188 (156) (944)
Net rental and other income 7,058 6,905 12,793
Other operating expenses 5 (1,179) (971) (2,058)
Operating profit before fair value changes 5,879 5,934 10,735
Change in fair value of investment properties 10 16,596 (3,328) 5,324
Realised gains on disposal of investment properties 10 2,273 3,670 7,043
Realised loss on disposal of investment property held for sale 10 (829) - -
Operating profit 23,919 6,276 23,102
Finance expense 6 (372) (552) (930)
Profit before tax 23,547 5,724 22,172
Taxation 7 - - -
Profit after tax 23,547 5,724 22,172
Other comprehensive income - - -
Total comprehensive income for the period 23,547 5,724 22,172
Earnings per share (pence) (basic and diluted) 8 14.86 3.61 13.98
The notes below form an integral part of these condensed
financial statements.
Condensed Statement of Changes in Equity
for the six months ended 30 September 2021
Total capital
Capital and reserves
Share reserve and attributable to
Share premium retained Buyback owners of
For the period 1 April 2021 to capital account earnings reserve the Company
30 September 2021 (unaudited) Notes GBP'000 GBP'000 GBP'000* GBP'000 GBP'000
Balance as at 1 April 2021 1,587 56,578 99,179 (265) 157,079
Total comprehensive income - - 23,547 - 23,547
Dividends paid 9 - - (6,337) - (6,337)
Balance as at 30 September 2021 1,587 56,578 116,389 (265) 174,289
Total capital
Capital and reserves
Share reserve and attributable to
Share premium retained Buyback owners of
For the period 1 April 2020 to capital account earnings* reserve the Company
30 September 2020 (unaudited) Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April 2020 1,587 56,578 89,698 - 147,863
Total comprehensive income - - 5,724 - 5,724
Dividends paid 9 - - (6,351) - (6,351)
Balance as at 30 September 2020 1,587 56,578 89,071 - 147,236
Total capital
Capital and reserves
Share reserve and attributable to
Share premium retained Buyback owners of
capital account earnings* reserve the Company
For the year ended 31 March 2021 (audited)
Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1 April 2020 1,587 56,578 89,698 - 147,863
Total comprehensive income - - 22,172 - 22,172
Ordinary shares bought back - - - (263) (263)
Share buyback costs - - - (2) (2)
Dividends paid 9 - - (12,691) - (12,691)
Balance as at 31 March 2021 1,587 56,578 99,179 (265) 157,079
* The capital reserve has arisen from the cancellation of part
of the Company's share premium account and is a distributable
reserve.
The notes below form an integral part of these condensed
financial statements.
Condensed Statement of Financial Position
as at 30 September 2021
As at
As at As at
30 September
30 September 2020 31 March 2021
2021
(unaudited)
(unaudited) (audited)
Notes GBP'000
GBP'000 GBP'000
Assets
Non-Current Assets
Investment property 10 191,336 160,601 169,092
191,336 160,601 169,092
Current Assets
Investment property held for sale 10 12,931 8,212 7,251
Receivables and prepayments 11 10,198 9,063 6,977
Cash and cash equivalents 15,159 13,357 17,450
Other financial assets held at fair value 12 112 49 61
38,400 30,681 31,739
Total assets 229,736 191,282 200,831
Non-Current Liabilities
Interest bearing loans and borrowings 13 (50,171) (39,082) (39,131)
Lease obligations 15 (635) (635) (635)
(50,806) (39,717) (39,766)
Current Liabilities
Payables and accrued expenses 14 (4,593) (4,281) (3,938)
Lease obligations 15 (48) (48) (48)
(4,641) (4,329) (3,986)
Total Liabilities (55,447) (44,046) (43,752)
Net Assets 174,289 147,236 157,079
Equity
Share capital 1,587 1,587 1,587
Buyback reserve (265) - (265)
Share premium account 56,578 56,578 56,578
Capital reserve and retained earnings 116,389 89,071 99,179
Total capital and reserves attributable to equity holders of the 174,289 147,236 157,079
Company
Net Asset Value per share (pence) 8 110.01 92.73 99.15
EPRA Net Tangible Assets per share (pence) 8 109.94 92.70 99.11
The financial statements were approved by the Board of Directors
on 16 November 2021 and were signed on its behalf by:
Mark Burton
Chairman
AEW UK REIT plc
Company number: 09522515
The notes below form an integral part of these condensed
financial statements.
Condensed Statement of Cash Flows
for the six months ended 30 September 2021
Period from
Period from
1 April 2021 to Year ended
1 April 2020 to
30 September 31 March
30 September 2020
2021 2021
(unaudited)
(unaudited) (audited)
GBP'000
GBP'000 GBP'000
Cash flows from operating activities
Profit before tax 23,547 5,724 22,172
Adjustment for:
Finance expenses 372 552 930
(Gain)/loss from change in fair value of investment property (16,596) 3,328 (5,324)
Realised gains on disposal of investment property (2,273) (3,670) (7,043)
Realised loss on disposal of investment property held for sale 829 - -
(Increase)/decrease in other receivables and prepayments (3,419) (1,573) 374
Increase/(decrease) in other payables and accrued expenses 537 (463) (647)
Net cash generated from operating activities 2,997 3,898 10,462
Cash flows from investing activities
Purchase of and additions to investment property (19,539) (106) (5,983)
Disposal of investment property 10,796 18,676 29,049
Costs in respect of investment property held for sale
(829) - -
Net cash (used in)/generated from investing activities (9,572) 18,570 23,066
Cash flows from financing activities
Share buyback cash paid - - (263)
Share buyback costs - - (2)
Loan drawdown/(repayment) 11,000 (12,000) (12,000)
Arrangement loan facility fee paid - (13) (13)
Premium for interest rate caps - (63) (63)
Finance costs (379) (557) (919)
Dividends paid (6,337) (6,351) (12,691)
Net cash flow generated from/(used in) financing activities 4,284 (18,984) (25,951)
Net (decrease)/increase in cash and cash equivalents (2,291) 3,484 7,577
Cash and cash equivalents at start of the period/year 17,450 9,873 9,873
Cash and cash equivalents at end of the period/year 13,357 17,450
15,159
The notes below form an integral part of these condensed
financial statements.
Notes to the Condensed Financial Statements
for the six months ended 30 September 2021
1. Corporate information
AEW UK REIT plc (the 'Company') is a closed ended Real Estate
Investment Trust ('REIT') incorporated on 1 April 2015 and
domiciled in the UK.
2. Accounting policies
2.1 Basis of preparation
These interim condensed unaudited financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting as
adopted by the UK, and should be read in conjunction with the
Company's last financial statements for the year ended 31 March
2021. These condensed unaudited financial statements do not include
all information required for a complete set of financial statements
proposed in accordance with IFRS as adopted by the UK ('IFRS').
However, selected explanatory notes have been included to explain
events and transactions that are significant in understanding
changes in the Company's financial position and performance since
the last financial statements.
The financial information contained in this Interim Report and
Financial Statements for the six months
ended 30 September 2021 and the comparative information for the
year ended 31 March 2021 does not constitute statutory accounts as
defined in sections 435(1) and (2) of the Companies Act 2006.
Statutory accounts for the year ended 31 March 2021 have been
delivered to the Registrar of Companies. The Auditor reported on
those accounts. Its report was unqualified and did not contain a
statement under section 498(2) or (3) of the Companies Act
2006.
A review of the interim financial information has been performed
by the Auditor of the Company for issue on 16 November 2021.The
comparative figures disclosed in the condensed unaudited financial
statements and related notes have been presented for both the six
month period ended 30 September 2020 and year ended 31 March 2021
and as at 30 September 2020 and 31 March 2021.
These condensed unaudited financial statements have been
prepared under the historical-cost convention, except for
investment property and interest rate derivatives that have been
measured at fair value. The condensed unaudited financial
statements are presented in Sterling and all values are rounded to
the nearest thousand pounds (GBP'000), except when otherwise
indicated.
The Company is exempt by virtue of section 402 of the Companies
Act 2006 from the requirement to prepare group financial
statements. These financial statements present information solely
about the Company as an individual undertaking.
New standards, amendments and interpretations
The Company has considered and applied the following new
standards and amendments to existing standards which are required
for the accounting period beginning on 1 April 2021:
* Amendments to IFRS 16 Covid-19 Related Rent Concessions beyond
30 June 2021; and
* Interest Rate Bench Reform - Phase 2 (Amendments to various
standards: IFRS 9 'Financial Instruments', IAS 39 'Financial
Instruments: Recognition and Measurement, IFRS 7 'Financial
Instruments: Disclosures', IFRS 4 'Insurance Contracts' and IFRS 16
'Leases').
The Company has applied the new standards and there has been no
significant impact on the financial statements.
There are a number of new standards and amendments to existing
standards which have been published and are mandatory for the
Company's accounting periods beginning on or after 1 April 2022 or
later. The Company has not early adopted any of these new or
amended standards.
2.2 Significant accounting judgements and estimates
The preparation of financial statements in accordance with IAS
34 requires the Directors of the Company to make judgements,
estimates and assumptions that affect the reported amounts
recognised in the financial statements. However, uncertainty about
these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of the asset
or liability in the future.
i) Valuation of investment property
The Company's investment property is held at fair value as
determined by the independent valuer on the basis of fair value in
accordance with the internationally accepted Royal Institution of
Chartered Surveyors ('RICS') Appraisal and Valuation Standards.
2.3 Segmental information
The Board of Directors retains overall control of the Company
but the Investment Manager (AEW UK Investment Management LLP) has
certain authorities and fulfils the function of allocating resource
to, and assessing the performance of the Company's operating
segments and is therefore considered to be the Chief Operating
Decision Maker ('CODM'). In accordance with IFRS 8, the Company
considers each of its properties to be an individual operating
segment. The CODM allocates resources, and reviews the performance
of, the Company's portfolio on a property-by-property basis and
discrete financial information is available for each individual
property.
These operating segments have similar economic characteristics
and, as such, are aggregated into one reporting segment, being
investment in property and property-related investments in the
UK.
2.4 Going concern
The Directors assessed the Company's ability to continue as a
going concern, which takes into consideration the uncertainty
surrounding the outbreak of COVID-19, as well as the Company's
cash
flows, financial position, liquidity and borrowing
facilities.
In that assessment the Directors' considered that the Company
benefits from a diversified income stream from numerous tenants and
sectors, which reduces risk. They also noted that:
* The Company's rent collection has been strong, with 99% of
contracted rent collected for the March and June 2021 quarters. At
least 87% of contracted rent has either been collected, or payment
plans agreed, for the September 2021 quarter. Based on the
contracted rent as at 30 September 2021, a reduction of 66% in
total rents could be accommodated before breaching the ICR covenant
in the Company's debt arrangements;
* Based on the property valuation at 30 September 2021, the
Company had room for a GBP62.10 million fall in NAV before reaching
the maximum LTV covenant in the Company's debt arrangements. If
certain conditions are met, such as providing security, a further
GBP20.40 million fall in NAV could be accommodated.
Finally, the Directors' note that the Company's cash flow can
also be significantly managed through the
adjustment of dividend payments.
Taking this into consideration, the Directors have reviewed a
number of scenarios over 12 months, including a severe but
plausible downside scenario which makes the following
assumptions:
* A reduction in rental income of 30%;
* No new lettings or renewals, other than those where terms have
already been agreed; and
* A 10% fall in property valuations.
Given the Company's financial position and headroom on
covenants, the Directors do not consider that
there are any material uncertainties in relation to the
Company's ability to meets its liabilities as they fall due and
continue in operation for a period of 12 months from the date of
approval of these financial statements. They therefore consider the
going concern basis adopted in the preparation of the interim
financial statements is appropriate.
2.5 Summary of significant accounting policies
The principal accounting policies applied in the preparation of
these financial statements are consistent with those applied within
the Company's Annual Report and Financial Statements for the year
ended 31 March 2021 except for the changes as detailed in note
2.1.
3. Revenue
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Rental income 7,866 8,124 15,714
Service charge income 485 674 1,535
Dilapidation income received 272 40 197
Other property income 7 - -
Surrender premium received - - 45
Total rental and other income 8,630 8,838 17,491
4. Property operating expenses
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-recoverable service charge expense 644* 601 1,166
Recoverable service charge expense 485 674 1,535
Other property expenses 631 502 1,053
Total property operating expenses 1,760 1,777 3,754
* Of the c. GBP644,000 non-recoverable service charge
expenditure (30 September 2020: GBP601,000) c. GBP552,000 relates
to Bank Hey Street, Blackpool (30 September 2020: GBP394,000) which
includes costs relating to the remedial works as detailed in the
Investment Manager's Report.
5. Other operating expenses
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Investment management fee 732 579 1,229
Operating costs 289 289 594
Audit fee 82 30 110
ISRE 2410 review (interim review fee) 28 25 25
Directors' remuneration 48 48 100
Total other operating expenses 1,179 971 2,058
6. Finance expense
Period from Period from
1 April 2021 1 April 2020 Year
to to ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Interest payable on loan borrowings 344 438 722
Amortisation of loan arrangement fee 41 49 97
Commitment fee payable on loan borrowings 38 37 95
423 524 914
Change in fair value of interest rate derivatives (51) 28 16
Total 372 552 930
7. Taxation
Period from Period from
Year
1 April 2021 1 April 2020
to to ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Analysis of charge in the period
Profit before tax 23,547 5,724 22,172
Theoretical tax at UK corporation tax standard rate of 19% (30 September 2020:
19%; 31 March 2021: 19%) 1,088
4,474 4,213
Adjusted for:
Exempt REIT income (1,046) (1,023) (1,863)
Non taxable investment gains (3,428) (65) (2,350)
Total - - -
8. Earnings per share and NAV per share
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
Earnings per share:
Total comprehensive income (GBP'000) 23,547 5,724 22,172
Weighted average number of shares 158,424,746 158,774,746 158,620,910
Earnings Per Share (basic and diluted) (pence) 14.86 3.61 13.98
EPRA earnings per share:
5,724
Total comprehensive income (GBP'000) 23,547 22,172
Adjustment to total comprehensive income:
Change in fair value of investment property (GBP'000) 3,328
(16,596) (5,324)
Realised gain on disposal of investment property (GBP'000) (3,670)
(2,273) (7,043)
Realised loss on disposal of investment property held for sale -
829 -
Change in fair value of interest rate derivatives (GBP'000) 28
(51) 16
Total EPRA Earnings (GBP'000) 5,456 5,410 9,821
EPRA earnings per share (basic and diluted) (pence)
3.45 3.41 6.19
NAV per share:
Net assets (GBP'000) 174,289 147,236 157,079
Ordinary Shares 158,424,746 158,774,746 158,424,746
NAV per share (pence) 110.01 92.73 99.15
Earnings per share amounts are calculated by dividing profit for
the period attributable to ordinary equity holders of the Company
by the weighted average number of Ordinary Shares in issue during
the period.
Current measures Previous measures
EPRA EPRA EPRA EPRA EPRA
NTA NRV NDV NAV NNNAV
As at 30 September 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
IFRS NAV attributable to shareholders 174,289 174,289 174,289 174,289 174,289
Mark-to-market adjustment of derivatives (112) (112) - (112) -
Real estate transfer tax1 - 13,642 - - -
At 30 September 2021 174,177 187,819 174,289 174,177 174,289
Number of Ordinary Shares 158,424,746 158,424,746 158,424,746 158,424,746 158,424,746
NAV per share 109.94p 118.55p 110.01p 109.94p 110.01p
Current measures Previous measures
EPRA EPRA EPRA EPRA EPRA
NTA NRV NDV NAV NNNAV
As at 30 September 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
IFRS NAV attributable to shareholders 147,236 147,236 147,236 147,236 147,236
Mark-to-market adjustment of derivatives (49) (49) - (49) -
Real estate transfer tax and other purchasers' costs1 - 11,309 - - -
At 30 September 2020 147,187 158,496 147,236 147,187 147,236
Number of Ordinary Shares 158,774,746 158,774,746 158,774,746 158,774,746 158,774,746
NAV per share 92.70p 99.82p 92.73p 92.70p 92.73p
Earnings per share amounts are calculated by dividing profit for
the period attributable to ordinary equity holders of the Company
by the weighted average number of Ordinary Shares in issue during
the period.
1 EPRA Net Tangible Assets ('EPRA NTA') and EPRA Net Disposal
Value ('EPRA NDV') are calculated using property values in line
with IFRS, where values are net of Real Estate Transfer Tax
('RETT') and other purchasers' costs. RETT and other purchasers'
costs are added back when calculating EPRA Net Reinstatement Value
('EPRA NRV') and have been estimated at 6.6% of the net valuation
provided by Knight Frank.
Current measures Previous measures
EPRA EPRA EPRA EPRA EPRA
NTA NRV NDV NAV NNNAV
As at 31 March 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
IFRS NAV attributable to shareholders 157,079 157,079 157,079 157,079 157,079
Mark-to-market adjustment of derivatives (61) (61) - (61) -
Real estate transfer tax and other purchasers' costs1 - 11,814 - - -
At 31 March 2021 157,018 168,832 157,079 157,018 157,079
Number of Ordinary Shares 158,424,746 158,424,746 158,424,746 158,424,746 158,424,746
NAV Per share 99.11p 106.57p 99.15p 99.11p 99.15p
1 EPRA NTA and EPRA NDV are calculated using property values in
line with IFRS, where values are net of RETT and other purchasers'
costs. RETT and other purchasers' costs are added back when
calculating EPRA NRV and have been estimated at 6.6% of the net
valuation provided by Knight Frank.
9. Dividends paid
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
Dividends paid during the period GBP'000 GBP'000 GBP'000
Represents two/two/four interim dividends of 2.00 pps each 6,351
6,337 12,691
Period from Period from
1 April 2021 to 1 April 2020 to Year ended
30 September 30 September 31 March
2021 2020 2021
Dividends relating to the period GBP'000 GBP'000 GBP'000
Represents two/two/four interim dividends of 2.00 pps each 6,351
6,337 12,684
Dividends paid relate to Ordinary Shares.
10. Investments
10.a) Investment property
Period from 1 April 2021 to
30 September 2021 (unaudited)
Period from
1 April 2020 Year ended
Investment Investment
to 30
properties properties Total September 31 March
freehold leasehold GBP'000 2020 2021
GBP'000 GBP'000 (unaudited) (audited)
Total Total
GBP'000 GBP'000
UK Investment property
As at beginning of period 160,750 18,250 179,000 189,300 189,300
Purchases and capital expenditure in the period
8,948 10,588 19,536 106 5,983
Disposals in the period (8,208) - (8,208) (15,006) (22,006)
Revaluation of investment property
15,060 1,302 16,362 (3,045) 5,723
Valuation provided by Knight Frank
176,550 30,140 206,690 171,355 179,000
Adjustment to carrying value for lease incentive debtor
(3,106) (3,225) (3,340)
Adjustment for lease obligations*
683 683 683
Total Investment property
204,267 168,813 176,343
Classified as:
Investment property held for sale**
12,931 8,212 7,251
Investment property 191,336 160,601 169,092
204,267 168,813 176,343
Change in fair value of investment property
Change in fair value before adjustments for lease incentives
16,362 (3,045) 5,723
Adjustment for movement in the period:
in value of lease incentive debtor
234 (283) (399)
16,596 (3,328) 5,324
Gains realised on disposal of investment property
Net proceeds from disposals of investment property during the
period
10,481 18,676 29,049
Fair value at beginning of period
(8,208) (15,006) (22,006)
Gains realised on disposal of investment property
2,273 3,670 7,043
Realised loss on disposal of investment property held for
sale
829 - -
* Adjustment in respect of minimum payment under head leases
separately included as a liability within the Condensed Statement
of Financial Position.
**225 Bath Street, Glasgow and Wella Warehouse, Basingstoke,
have been classified as held-for-sale as at 30 September 2021.
Contracts to sell 225 Bath Street were exchanged in October 2020
and its expected that the transaction will be completed within the
next 12 months. Contracts to sell Wella Warehouse were exchanged in
August 2021, with the transaction completed post period-end, in
October 2021.
Valuation of investment property
Valuation of investment property is performed by Knight Frank
LLP, an accredited external valuer with recognised and relevant
professional qualifications and recent experience of the location
and category of the investment property being valued.
The valuation of the Company's investment property at fair value
is determined by the external valuer on the basis of market value
in accordance with the internationally accepted RICS Valuation -
Professional Standards (incorporating the International Valuation
Standards).
The determination of the fair value is based upon the income
capitalisation approach. This approach involves applying
capitalisation yields to current and future rental streams net of
income voids arising from vacancies or rent-free periods and
associated running costs. These capitalisation yields and estimated
rental values are based on comparable property and leasing
transactions in the market using the valuer's professional
judgement and market observation. Other factors taken into account
in the valuations include the tenure of the property, tenancy
details, capital values of fixtures and fittings, environmental
matter and the overall repair and condition of the property.
10.b) Fair value measurement hierarchy
The following table provides the fair value measurement
hierarchy for non-current assets:
Quoted prices
Significant Significant
in active
observable unobservable
markets
inputs inputs
(Level 1)
(Level 2) (Level 3) Total
Assets measured at fair value GBP'000
GBP'000 GBP'000 GBP'000
30 September 2021
Investment property - - 204,267 204,267
30 September 2020
Investment property - - 168,813 168,813
31 March 2021
Investment property - - 176,343 176,343
Explanation of the fair value hierarchy:
Level 1 - Quoted prices for an identical instrument in active
markets;
Level 2 - Prices of recent transactions for identical
instruments and valuation techniques using observable market data;
and
Level 3 - Valuation techniques using non-observable data.
There have been no transfers between Level 1 and Level 2 during
either period, nor have there been any transfers in or out of Level
3.
Sensitivity analysis to significant changes in unobservable
inputs within Level 3 of the hierarchy
The significant unobservable inputs used in the fair value
measurement categorised within Level 3 of the fair value hierarchy
of the entity's portfolios of investment properties are: 1. ERV
2) Equivalent yield
Increases/(decreases) in the ERV (per sq ft per annum) in
isolation would result in a higher/(lower) fair value measurement.
Increases/(decreases) in the discount rate/ yield in isolation
would result in a lower/(higher) fair value measurement.
The significant unobservable inputs used in the fair value
measurement, categorised within Level 3 of the fair value hierarchy
of the portfolio of investment property are:
Significant
Fair value Valuation unobservable
Class GBP'000 technique inputs Range
30 September 2021
ERV GBP0.50-GBP75.00
Investment property* Income capitalisation
206,690 Equivalent yield 5.00%-10.89%
30 September 2020
ERV GBP0.50-GBP95.00
Investment property* Income capitalisation
171,355 Equivalent yield 6.23%-10.48%
31 March 2021
ERV GBP0.50-GBP75.00
Investment property* Income capitalisation
179,000 Equivalent yield 5.76%-10.37%
* Fair value per Knight Frank LLP.
Where possible, sensitivity of the fair values of Level 3 assets
are tested to changes in unobservable inputs to reasonable
alternatives.
Gains and losses recorded in profit or loss for recurring fair
value measurements categorised within Level 3 of the fair value
hierarchy are attributable to changes in unrealised gains or losses
relating to investment property and investments held at the end of
the reporting period.
With regards to both investment property and investments, gains
and losses for recurring fair value measurements categorised within
Level 3 of the fair value hierarchy, prior to adjustment for rent
free debtor and rent guarantee debtor, where applicable, are
recorded in profit and loss.
The tables below set out a sensitivity analysis for each of the
key sources of estimation uncertainty with the resulting
increase/(decrease) in the fair value of investment property.
Fair value Change in ERV Change in equivalent yield
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Sensitivity Analysis +5% -5% +5% -5%
30 September 2021 206,690 216,848 197,385 195,342 213,527
30 September 2020 171,355 176,434 161,957 163,582 179,481
31 March 2021 179,000 183,818 168,394 170,487 187,847
Fair value Change in ERV Change in equivalent yield
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Sensitivity Analysis +10% -10% +10% -10%
30 September 2021 206,690 228,192 188,975 186,439 222,802
30 September 2020 171,355 183,940 154,933 156,710 188,744
31 March 2021 179,000 191,699 160,864 162,986 197,965
Fair value Change in ERV Change in equivalent yield
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Sensitivity Analysis +15% -15% +15% -15%
30 September 2021 206,690 240,861 181,295 177,574 232,104
30 September 2020 171,355 191,497 147,893 150,433 199,087
31 March 2021 179,000 199,642 153,345 156,136 209,264
11. Receivables and prepayments
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Receivables
Rent debtor 3,566 3,469 3,252
Allowance for expected credit losses (607) (207) (995)
Rent agent float account 2,212 2,056 724
Other receivables 1,593 368 627
Dilapidations receivables - 69 -
6,764 5,755 3,608
Lease incentive debtor 3,106 3,225 3,340
9,870 8,980 6,948
Property related prepayments 296 29 4
Other prepayments 32 54 25
328 83 29
Total 10,198 9,063 6,977
The aged debtor analysis of receivables as follows:
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Less than three months due 6,251 4,206 3,416
Between three and six months due 513 1,549 192
Total 6,764 5,755 3,608
Expected credit losses have been assessed on receivables
balances on an individual tenant-by-tenant basis. The risk of
credit loss applied to each tenant is assessed based on information
including, but not limited to: external credit ratings; financial
statements; press information; previous experience of losses or
late payment; discussions with the property manager and the
tenant.
This assessment identified a number of receivables balances due
from tenants known to be in financial difficulty or having already
entered into a Company Voluntary Arrangement ('CVA') or
administration. In these instances, a provision against the full
balance of the receivable has been applied.
The assessment also identified receivables balances subject to
dispute by tenants who are financially stable but unwilling to pay.
The recoverability of these balances was subject to a decision by
the Court, and as such, an assessment of the probability of a
positive decision was made in reassessing the expected cash flows
in relation to these balances and other receivables. Post
period-end, these balances were recovered in full..
The below table presents the exposure to these classes of
identified credit risk and the associated provision made against
the receivables balances:
Provision Provision Provision
30 September 30 September 31 March
Receivables Rate 2021 2020 2021
GBP'000 % GBP'000 GBP'000 GBP'000
Identified financial difficulties 177 100 177 207 415
Subject to Court ruling 717 60 430 - 580
No Identified financial difficulties 9,583 - - - -
Total 10,477 607 207 995
12. Interest rate derivatives
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
At the beginning of the period 61 14 14
Changes in fair value of interest rate derivatives 51 (28) (16)
Interest rate cap premium paid - 63 63
At the end of the period 112 49 61
The Company is protected from a significant rise in interest
rates as it currently has interest rate caps in effect which cap
the interest rate at 1.00% on a notional value of GBP51.50 million.
As a result, the loan was 102% hedged as at 30 September 2021 (31
March 2021: 130%).
Fair Value hierarchy
The following table provides the fair value measurement
hierarchy for interest rate derivatives:
Assets measured at fair value
Quoted prices Significant Significant
in active observable unobservable
markets input inputs
(Level 1) (Level 2) (Level 3) Total
Valuation date GBP'000 GBP'000 GBP'000 GBP'000
30 September 2021 - 112 - 112
30 September 2020 - 49 - 49
31 March 2021 - 61 - 61
The fair value of these contracts is recorded in the Condensed
Statement of Financial Position as at the period end.
There have been no transfers between Level 1 and Level 2 during
the period, nor have there been any transfers between Level 2 and
Level 3 during the period.
13. Interest bearing loans and borrowings
Bank borrowings drawn
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
At the beginning of the period 39,500 51,500 51,500
Bank borrowings drawn in the period 11,000 - -
Bank borrowings repaid in the period - (12,000) (12,000)
Interest bearing loans and borrowings 50,500 39,500 39,500
Unamortised loan arrangement fees (329) (418) (369)
At the end of the period 50,171 39,082 39,131
Repayable between two and five years 50,500 39,500 39,500
Bank borrowings available but undrawn in the period 20,500
9,500 20,500
Total facility available 60,000 60,000 60,000
The Company has a GBP60.00 million (31 March 2021: GBP60.00
million) credit facility with RBSi of which GBP50.50 million (31
March 2021: GBP39.50 million) has been utilised as at 30 September
2021.
The Company has a target gearing of 35% Loan to NAV, which is
the maximum gearing on drawdown under the terms of the facility. As
at 30 September 2021, the Company's gearing was 28.97% Loan to NAV
(31 March 2021: 25.15%).
Borrowing costs associated with the credit facility are shown as
finance costs in note 6 to these financial statements.
14. Payables and accrued expenses
30 31
30 September
September March
2020
2021 2021
(unaudited)
(unaudited) (audited)
GBP'000
GBP'000 GBP'000
Deferred income 2,990 2,835 2,567
Accruals 835 991 783
Other creditors 768 455 588
Total 4,593 4,281 3,938
15. Lease obligation as lessee
Leases as lessee are capitalised at the lease's commencement at
the present value of the minimum lease payments. The present value
of the corresponding rental obligations are included as
liabilities.
The following table analyses the present value of the minimum
lease payments under non-cancellable finance leases:
30 September 30 September 31 March
2021 2020 2021
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Current 48 48 48
Non Current 635 635 635
Lease liabilities included in the Statement of Financial Position at 30 September
2021
683 683 683
16. Issued share capital
There was no change to the issued share capital during the
period. The number of ordinary shares allotted, called up and fully
paid remains 158,774,746 of GBP0.01 each, of which 350,000 ordinary
shares are held in treasury.
17. Transactions with related parties
As defined by IAS 24 Related Party Disclosures, parties are
considered to be related if one party has the ability to control
the other party or exercise significant influence over the other
party in making financial or operational decisions.
For the six months ended 30 September 2021, the Directors of the
Company are considered to be the key management personnel.
Directors' remuneration is disclosed in note 5.
The Company is party to an Investment Management Agreement with
the Investment Manager, pursuant to which the Company has appointed
the Investment Manager to provide investment management services
relating to the respective assets on a day-to-day basis in
accordance with their respective investment objectives and
policies, subject to the overall supervision and direction of the
Board of Directors.
Under the Investment Management Agreement, the Investment
Manager receives a quarterly management fee which is calculated and
accrued monthly at a rate equivalent to 0.9% per annum of NAV
(excluding uninvested proceeds from fundraising).
During the period from 1 April 2021 to 30 September 2021, the
Company incurred GBP732,204 (six months ended 30 September 2020:
GBP578,821) of investment management fees and expenses of which
GBP362,931 was outstanding at 30 September 2021 (31 March 2021:
GBP315,825).
18. Events after reporting date
Dividend
On 21 October 2021, the Board declared its second interim
dividend of 2.00 pps in respect of the period from 1 July 2021 to
30 September 2021. The dividend payment will be made on 19 November
2021 to shareholders on the register as at 29 October 2021. The
ex-dividend date was 28 October 2021.
Property Sales
The Company completed the sale of Wella Warehouse on 15 October
2021 for gross proceeds of GBP5.86 million.
Property Acquisition
On 5 November 2021, the Company acquired Central Six Retail Park
in Coventry for a purchase price of GBP16.41 million.
EPRA Performance Measures
Detailed below is a summary table showing the EPRA performance
measures of the Company.
All EPRA performance measures have been calculated in line with
EPRA Best Practices Recommendations Guidelines which can be found
at www.epra.com.
MEASURE AND DEFINITION PURPOSE PERFORMANCE
A key measure of a company's underlying GBP5.46 million/3.45 pps
1. EPRA Earnings operating results and an indication of the
extent to which current dividend payments EPRA earnings for the six month
Earnings from operational activities. are supported by earnings. period ended 30 September 2021
(six month period ended 30
September 2020: GBP5.41 million/
3.41 pps)
The EPRA NAV set of metrics make adjustments
2. EPRA Net Tangible Assets ('NTA') to the NAV per the IFRS financial statements
to provide stakeholders with the most GBP174.18 million/109.94 pps EPRA
Assumes that entities buy and sell relevant information on the fair value of NTA as at 30 September 2021 (At
assets, thereby crystallising certain the assets and liabilities of a real estate 31 March 2021: GBP157.02 million/
levels of unavoidable deferred tax. investment company, under different 99.11 pps)
scenarios.
3. EPRA Net Reinstatement Value ('NRV')
Assumes that entities never sell assets GBP187.82 million/118.55 pps EPRA
and aims to represent the value required NRV as at 30 September 2021
to rebuild the entity. See above
(At 31 March 2021: GBP168.83
million/106.57 pps)
4. EPRA Net Disposal Value ('NDV')
Represents the shareholders' value under
a disposal scenario, where deferred tax,
financial instruments and certain other GBP174.29 million/110.01 pps EPRA
adjustments are calculated to the full See above NDV as at 30 September 2021 (As
extent of their liability, net of any at 31 March 2021: GBP157.08 million
resulting tax. /99.15pps)
5. EPRA Net Initial Yield ('NIY)
Annualised rental income based on the 6.69%
cash rents passing at the balance sheet A comparable measure for portfolio
date, less non-recoverable property valuations. This measure should make it EPRA NIY
operating expenses, divided by the easier for investors to judge themselves,
market value of the property, increased how the valuation of portfolio X compares as at 30 September 2021
with (estimated) purchasers' costs. with portfolio Y.
(At 31 March 2021: 7.37%)
6. EPRA 'Topped-Up' NIY
A comparable measure for portfolio 7.07%
This measure incorporates an adjustment valuations. This measure should make it
to the EPRA NIY in respect of the easier for investors to judge themselves, EPRA 'Topped-Up' NIY
expiration of rent-free periods (or how the valuation of portfolio X compares
other unexpired lease incentives such as with portfolio Y. as at 30 September 2021
discounted rent periods and step rents).
(At 31 March 2021: 8.12%)
7. EPRA Vacancy 8.59%/5.43% excluding vacancy
rate contributed by Glasgow* EPRA
Estimated Market Rental Value ('EMRV') vacancy as at 30 September 2021
of vacant space divided by ERV of the A 'pure' (%) measure of investment property (At 31 March 2021: 8.96%/5.58%
whole portfolio. space that is vacant, based on ERV. excluding vacancy contributed by
Glasgow)
28.53% EPRA Cost Ratio (including
direct vacancy costs) as at 30
8. EPRA Cost Ratio September 2021 (At 30 September
2020: 27.15%)
Administrative and operating costs
(including and excluding costs of direct A key measure to enable meaningful
vacancy) divided by gross rental income. measurement of the changes in a company's
operating costs. 14.80% EPRA Cost ratio (excluding
direct vacancy costs) as at 30
September 2021 (At 30 September
2020: 16.70%)
9. EPRA Capital Expenditure
Property which has been held at both the
current and comparative balance sheet GBP19.54 million for the period
dates for which there has been no A measure used to illustrate change in ended 30 September 2021 (31 March
significant development. comparable capital values. 2021: GBP5.98 million)
10. EPRA like-for-like Rental Growth
Net income generated by assets which
were held by the Company throughout both GBP0.04 million/0.57% for the
the current and comparable periods which A measure used to illustrate change in period ended 30 September 2021
there has been no significant comparable income values. (31 March 2021: (GBP1.08 million)/
development which materially impacts (6.80%))
upon income.
* Glasgow has exchanged to be sold with the condition of vacant
possession.
Calculation of EPRA NTA, EPRA NRV and EPRA NDV
In October 2019, EPRA issued new Best Practice Recommendations
for financial guidelines on its definitions of NAV measures: EPRA
NTA, EPRA NRV and EPRA NDV.
The Company considers EPRA NTA to be the most relevant NAV
measure for the Company and we are now reporting this as our
primary NAV measure, replacing our previously reported EPRA NAV and
EPRA NNNAV per share metrics. EPRA NTA excludes the cumulative fair
value adjustments for debt-related derivatives which are unlikely
to be realised.
Current measures Previous measures
EPRA EPRA EPRA EPRA EPRA
NTA NRV NDV NAV NNNAV
As at 30 September 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
IFRS NAV attributable to shareholders 174,289 174,289 174,289 174,289 174,289
Mark-to-market adjustment of derivatives (112) (112) - (112) -
Real estate transfer tax and other purchasers' costs1 - 13,642 - - -
At 30 September 2021 174,177 187,819 174,289 174,177 174,289
Number of Ordinary Shares 158,424,746 158,424,746 158,424,746 158,424,746 158,424,746
NAV per share 109.94p 118.55p 110.01p 109.94p 110.01p
Current measures Previous measures
EPRA EPRA EPRA EPRA EPRA
NTA NRV NDV NAV NNNAV
As at 30 September 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
IFRS NAV attributable to shareholders 147,236 147,236 147,236 147,236 147,236
Mark-to-market adjustment of derivatives (49) (49) - (49) -
Real estate transfer tax and other purchasers' costs1 - 11,309 - - -
At 30 September 2020 147,187 158,496 147,236 147,187 147,236
Number of Ordinary Shares 158,774,746 158,774,746 158,774,746 158,774,746 158,774,746
NAV per share 92.70p 99.82p 92.73p 92.70p 92.73p
1 EPRA NTA and EPRA NDV are calculated using property values in
line with IFRS, where values are net of Real Estate Transfer Tax
('RETT') and other purchasers' costs. RETT and other purchasers'
costs are added back when calculating EPRA NRV and have been
estimated at 6.6% of the net valuation provided by Knight
Frank.
Current measures Previous measures
EPRA EPRA EPRA EPRA EPRA
NTA NRV NDV NAV NNNAV
As at 31 March 2021
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
IFRS NAV attributable to shareholders 157,079 157,079 157,079 157,079 157,079
Mark-to-market adjustment of derivatives (61) (61) - (61) -
Real estate transfer tax and other purchasers' costs1 - 11,814 - - -
At 31 March 2021 157,018 168,832 157,079 157,018 157,079
Number of Ordinary Shares 158,424,746 158,424,746 158,424,746 158,424,746 158,424,746
NAV per share 99.11p 106.57p 99.15p 99.11p 99.15p
1 EPRA NTA and EPRA NDV are calculated using property values in
line with IFRS, where values are net of RETT and other purchasers'
costs. RETT and other purchasers' costs are added back when
calculating EPRA NRV and have been estimated at 6.6% of the net
valuation provided by Knight Frank.
Calculation of EPRA NIY and 'topped up' NIY
30 30 31
September September March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Investment property - wholly-owned 206,690 171,355 179,000
Allowance for estimated purchasers' costs at 6.6%
13,642 11,652 11,814
Grossed-up completed property portfolio valuation (B) 220,332 183,007 190,814
Annualised cash passing rental income 15,699 14,144 15,051
Property outgoings (958) (955) (993)
Annualised net rents (A) 14,741 13,189 14,058
Add: notional rent expiration of rent free periods or other lease incentives*
846 2,169 1,439
'Topped-up' net annualised rent (C) 15,587 15,358 15,497
EPRA NIY (A/B) 6.69% 7.21% 7.37%
EPRA 'topped-up' NIY (C/B) 7.07% 8.39% 8.12%
* Rent-free periods expire by June 2022.
EPRA NIY basis of calculation
EPRA NIY is calculated as the annualised net rent, divided by
the gross value of the completed property portfolio.
The valuation of grossed up completed property portfolio is
determined by our external valuers as at 30 September 2021, plus an
allowance for estimated purchasers' costs. Estimated purchasers'
costs are determined by the relevant stamp duty liability, plus an
estimate by our valuers of agent and legal fees on notional
acquisition. The net rent deduction allowed for property outgoings
is based on our valuers' assumptions on future recurring
non-recoverable revenue expenditure.
In calculating the EPRA 'topped-up' NIY, the annualised net rent
is increased by the total contracted rent from expiry of rent-free
periods and future contracted rental uplifts.
Calculation of EPRA Vacancy Rate
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Annualised potential rental value of vacant premises (A)
1,521 1,330 1,482
Annualised potential rental value for the completed property portfolio (B)
17,704 16,211 16,538
EPRA Vacancy Rate (A/B) 8.59% 8.21% 8.96%
Calculation of EPRA Cost Ratios
30 September 30 September 31 March
2021 2020 2021
GBP'000 GBP'000 GBP'000
Administrative/operating expense per IFRS income statement
2,267 2,230 5,221
Less: ground rent costs (33) (33) (66)
EPRA costs (including direct vacancy costs) (A) 2,234 2,197 5,155
Direct vacancy costs (1,075) (846) (1,622)
EPRA costs (excluding direct vacancy costs) (B)
1,159 1,351 3,533
Gross rental income less ground rent costs - per IFRS
7,833 8,091 15,648
Gross rental income less ground rent costs (C)
7,833 8,091 15.648
EPRA Cost Ratio (including direct vacancy costs) (A/C)
28.53% 27.15% 32.94%
EPRA Cost Ratio (excluding direct vacancy costs) (B/C)
14.80% 16.70% 22.58%
The Company has not capitalised any overhead or operating
expenses in the accounting period disclosed above.
Only costs directly associated with the purchase or construction
of properties as well as all subsequent value-enhancing capital
expenditure are capitalised.
Like-for-like rental growth
The table below sets out the like-for-like rental growth of the
portfolio, by sector, in accordance with EPRA Best Practices
Recommendations.
Rental income from
Rental income from
like-for-like
like-for-like
portfolio for
portfolio for
period 1 October 2020
period 1 April 2021 to
to 31
30 September
March
2021 Like-for-like
2021 Like-for-like rental growth
GBPm rental growth
GBPm GBPm
Sector %
Industrial 4.20 4.10 0.10 2.42
Office 1.15 1.13 0.02 1.83
Alternatives 0.73 0.77 (0.04) (5.01)
Standard retail 1.02 1.04 (0.02) (1.76)
Retail warehouses 0.29 0.31 (0.02) (6.93)
Total 7.39 7.35 0.04 0.57
The like-for-like rental growth is based on changes in rental
income for those properties which have been held for the duration
of both the current and comparative reporting. This represents a
portfolio valuation, as assessed by the valuer of GBP187.50 million
(31 March 2021: GBP179.00 million).
Capital Expenditure
The table below sets out the capital expenditure of the
portfolio in accordance with EPRA Best Practice
Recommendations.
30 September 30 September
2021 2020 31 March 2021
Sector
GBP'000 GBP'000 GBP'000
Acquisitions 19,468 - 5,778
Investment properties - no incremental lettable space 68 106 205
Total purchases and capital expenditure 19,536 106 5,983
Company Information
Shareholder Enquiries
The register for the Ordinary Shares is maintained by Link
Group. In the event of queries regarding your holding, please
contact the Registrar on +44 (0)371 664 0391 or email:
enquiries@linkgroup.co.uk
Changes of name and/or address must be notified in writing to
the Registrar, at the address shown below. You can check your
shareholding and find practical help on transferring shares or
updating your details at www.signalshares.com . Shareholders
eligible to receive dividend payments gross of tax may also
download declaration forms from that website.
Share Information
Ordinary GBP0.01 Shares 158,424,746
(excluding treasury shares)
SEDOL Number BWD2415
ISIN Number GB00BWD24154
Ticker/TIDM AEWU
The Company's Ordinary Shares are traded on the Main Market of
the London Stock Exchange.
Annual and Interim Reports
Copies of the Annual and Interim Reports are available from the
Company's website: www.aewukreit.com.
Provisional Financial Calendar
31 March 2022 Year end
June 2022 Announcement of annual results
September 2022 Annual General Meeting
30 September 2022 Half-year end
November 2022 Announcement of interim results
Dividends
The following table summarises the dividends declared in
relation to the period:
GBP
Interim dividend for the period 1 April 2021 to 30 June 2021 (payment made on 31 August 2021) 3,168,495
Interim dividend for the period 1 July 2021 to 30 September 2021 (payment to be made on 19 November 2021) 3,168,495
Total 6,336,990
Independent Directors
Mark Burton (Non-executive Chairman)
Bimaljit ('Bim') Sandhu (Non-executive Director and Chairman of
the Audit Committee)
Katrina Hart (Non-executive Director)
Registered Office
6th Floor
65 Gresham Street
London
EC2V 7NQ
Investment Manager and AIFM
AEW UK Investment Management LLP
33 Jermyn Street
London
SW1Y 6DN
Tel: 020 7016 4880
Website: www.aewuk.co.uk
Property Manager
Mapp
180 Great Portland Street
London
W1W 5QZ
Corporate Broker
Liberum
Ropemaker Place
25 Ropemaker Street
London
EC2Y 9LY
Legal Adviser
Gowling WLG (UK) LLP
4 More London Riverside
London
SE1 2AU
Depositary
Langham Hall UK LLP
8th Floor
1 Fleet Place
London
EC4M 7RA
Administrator
Link Alternative Fund Administrators Limited
Beaufort House
51 New North Road
Exeter
EX4 4EP
Company Secretary
Link Company Matters Limited
6th Floor
65 Gresham Street
London
EC2V 7NQ
Registrar
Link Group
10th Floor
Central Square
28 Wellington Street
Leeds
LS1 4DL
Auditor
BDO LLP
55 Baker Street
London
W1U 7EU
Valuer
Knight Frank LLP
55 Baker Street
London
W1U 8AN
Frequency of NAV publication:
The Company's NAV is released to the London Stock Exchange on a
quarterly basis and is published on the Company's website.
National Storage Mechanism
A copy of the Interim Report will be submitted shortly to the
National Storage Mechanism ('NSM') and will be available for
inspection at
https://www.fca.org.uk/markets/primary-markets/regulatory-disclosures/
national-storage-mechanism.
LEI: 21380073LDXHV2LP5K50
-----------------------------------------------------------------------------------------------------------------------
ISIN: GB00BWD24154
Category Code: IR
TIDM: AEWU
LEI Code: 21380073LDXHV2LP5K50
OAM Categories: 1.2. Half yearly financial reports and audit reports/limited reviews
Sequence No.: 126970
EQS News ID: 1249566
End of Announcement EQS News Service
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