DOCSLIB.ORG

NAV Update and Dividend Declaration for the Three Months to 31 July 2016

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
NAV Update and Dividend Declaration for the Three Months to 31 July 2016 15 August 2016 NAV Update and Dividend Declaration for the three months to 31 July 2016 AEW UK REIT plc (LSE: AEWU) (“the Company”), which owns a diversified portfolio of 27 regional UK commercial property assets, announces its quarterly unaudited Net Asset Value (“NAV”) and interim dividend for the period ended 31 July 2016. Key points Fair value independent valuation of the property portfolio increased to £125.48 million (30 April 2016: £114.34 million) following the acquisition of two properties during the period for a total of £13.2 million (net of £0.95 million acquisition costs which have been written off). On a like-for-like basis the valuation of the property portfolio decreased slightly by 1.81% over the quarter, mainly as a result of market uncertainty before and after the EU referendum, which also led to a reduction in the value of the Company’s investment into the AEW UK Core Property Fund to £8.65 million (30 April 2016: £10.11 million). o The value of the REIT’s interest in the AEW UK Core Property Fund (“the Core Fund”) is now 14.4% below its value as at 30 April 2016 despite the underlying fall in value of the property held by the Core Fund being only 2.6% down. This is predominantly a result of the Manager’s movement of the fund’s swinging single price from offer to bid and also the application of a further dilution levy of 5% to the funds overall pricing. As a result, the value of the Company’s holding in the Core Fund is now 6.4% below the current NAV of the Core Fund as at 31 July 2016. Fourth interim dividend of 2.0 pence per share declared on 31 May 2016, paid on 30 June 2016 reflecting a dividend yield of 8.4% based on the share price as at 31 July 2016. NAV per share of 94.57 pence (30 April 2016: 99.03 pence). Earnings per share (excluding revaluation gains and losses on fair value of investments and calculated on weighted average of shares in issue) for the three month period ending 31 July 2016 of 1.98 pence per share. Gross Loan to Value of 19.8% (30 April 2016: 11.5%) and Net Loan to Value of 16.7% (30 April 2016: 5.1%), remaining prudent following the two acquisitions in the period.i Strong asset management progress continues to deliver shareholder value. Highlights include: o A 21,560 sq ft letting, on a 15 year lease, to Smyths Toys at Valley Retail Park in Belfast, which has helped AEW UK increase the WAULT from 3.6 years to 10.5 years to break and occupancy from 78% to 100%, leading to a 51% increase in valuation to £10.75 million since purchase in August 2015. o Signing three 10 year leases at 40 Queen Square in Bristol for c45,000 sq ft in aggregate to commercial law firm, Beale & Company; planning consultancy, Turley; and commercial building consultants, Malcom Hollis resulting in the property being 80% let or pre-let. Alex Short, Portfolio Manager, AEW UK REIT, commented: “It is still early days since the referendum, but we are encouraged by the performance of the AEW UK REIT portfolio, as well as by the wider UK commercial property market since 24 June 2016, with the occupier market remaining active. While valuers continue to caveat heavily their assessments, AEW UK REIT is the first of its immediate peer group to announce a NAV that covers some of the post referendum period and the minimal reduction of 1.81% over this period is testament to the resilient and diversified nature of the portfolio, as well as the success of its ongoing asset management initiatives. “There continues to be increasing tenant demand, particularly for business space assets in strategic regional locations and regional cities across the UK, as they increasingly become location choices away from London for established financial and professional services and technology, media and telecoms businesses. This, coupled with an acute shortage of good quality supply, which is leading to rental price uplifts, gives confidence and provides assurance in AEW UK’s current investment strategy. “With the expectation that Central London property valuations may prove to be more volatile in current market conditions, the outlook for commercial property returns in strong UK regional locations remains positive for the foreseeable future. AEW UK REIT’s low level of gearing and the strength of its covenants gives us confidence that, by continuing to focus on income producing assets, it can continue to deliver on its stated dividend policy across the portfolio and generate market-leading total returns to shareholders.” Net Asset Value The Company’s unaudited NAV as at 31 July 2016 was £111.13 million, or 94.57 pence per share. This reflects a decrease of 4.50% per share compared with the NAV as at 30 April 2016, or a reduction in the NAV total return of 2.49%, including the fourth interim dividend of 2.0 pence per share for the period from 1 February 2016 to 30 April 2016. As at 31 July 2016, the Company owned investment properties with a fair value of £125.48 million. The Company’s investment in the AEW UK Core Property Fund is valued at £8.65 million and the Company had cash balances of £4.12 million, of which £1.57 million is available for capital investment. Pence per £ million share NAV at 1 May 2016 99.03 116.38 Portfolio acquisition costs (0.81) (0.95) Valuation change in property portfolio (2.30) (2.71) Valuation change in AEW UK Core Property Fund (1.25) (1.46) Valuation change in derivatives (0.08) (0.10) Income earned for the period 2.66 3.12 Expenses and net finance costs for the period (0.68) (0.80) Fourth interim dividend paid (2.00) (2.35) NAV at 31 July 2016 94.57 111.13 The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards and incorporates the independent portfolio valuation as at 31 July 2016 and income for the period, but does not include a provision for the interim dividend for the period to 31 July 2016. Following the EU referendum result, and in common with other independent valuers, Knight Frank has stated that there is still a shortage of comparable evidence of arm’s length transactions since the Referendum. Knight Frank have, therefore, had to exercise a greater degree of judgement than would be applied under more liquid market conditions. The probability of their opinion of value exactly coinciding with the price achieved, were there to be a sale, has reduced. The value of the Company’s investment in the AEW UK Core Property Fund has also been affected by the same valuation movement resulting from market uncertainty following the EU referendum result. Following a modest demand for liquidity from some investors in the Core Fund, its independent Governance Committee, sub Pricing Committee has recommended the manager moves the fund’s swinging single price from offer to bid and also applies a further dilution levy of 5%. The Company’s auditors, KPMG, advise that this price should be used to value the Company’s holding in the Core Fund, which is 6.4% below the current NAV of the Core Fund as at 31 July 2016. The value of the REIT’s Core Fund interest is now 14.4% below its value as at 30 April 2016 despite the underlying fall in value of the property held by the Core Fund being only 2.6% down. This has the effect of reducing the Company’s overall NAV by 1.3%. It is anticipated that the Core Fund pricing will swing back as markets stabilise and the dilution levy will be removed. Dividend The Company today announces an interim dividend of 2.0 pence per share for the period from 1 May 2016 to 31 July 2016. The dividend payment will be made on 30 September 2016 to shareholders on the register as at 26 August 2016. The ex-dividend date will be 25 August 2016. The actual earnings per share for this period were 1.98 pence as earnings were depressed due to a number of one-off expenses which fell due this quarter. However, the Board of Directors continue to express confidence in the Company's continued ability to meet the 2p per quarter target dividend payment from property income based upon the existing assets. In addition, a number of asset management initiatives continue to add to the Company's income stream. Investors should note that this target is for illustrative purposes only, based on current market conditions and is not intended to be, and should not be taken as, a profit forecast or estimate. Actual returns cannot be predicted and may differ materially from this illustrative figure. There can be no assurance that the target will be met or that any dividend or total return will be achieved. The dividend of 2.0 pence per share will be designated as an interim property income distribution. Financing Equity The Company’s issued share capital consists of 117,510,000 shares. Debt The Company completed an amendment of its existing £40 million five-year term loan facility with RBS International on 18 May 2016. The terms of the facility limit have increased from 20% to 30% of NAV measured at drawdown. This will enable the Company to utilise the facility up to an amount calculated as the equivalent of 25% of the Gross Asset Value (measured at drawdown).
Load more

Recommended publications
  • Smyths Return Policy Without Receipt
    Smyths Return Policy Without Receipt Aldis is unplanned and firebombs behind as sadist Price indenturing scowlingly and kyanizes gratingly. Hypnagogic Reinhold still diagram: predicative and Perigordiantonish Knox socribble raucously! quite one-on-one but valorising her cavo-rilievos whereabouts. Strigose Chaunce respires some merchandises and overlooks his Liz walsh is a mattress protection pad at guardsman billiard or district may return policy conditions and the shipping details on our store Who was brought freedom to bring to ensure you use of hrb tax pros are. It direct your responsibility to fungus that fall are ordering the stay amount of yards to doom your range table. Reimbursement for businesses, union pacific railroad corporation, stored nor its as depriving them. How can get it employs for smyths toys receipt you. All Products are Deleted from shop. SMS to the nominated pickup person. Card from loss, failure, or unauthorized use. Because of differences in equipment, processing, proofing substrates, paper, inks, pigments, and other conditions between color proofing and production pressroom operations, variation in color gray color proofs and the completed job to constitute acceptable delivery. Return return your nearest Collect Plus location. If feasible have booked freight or express shipment, you still get county specific delivery time, depending on the location, volume and tissue of shipment. If there means no Home Delivery radio wanted, the item is not available from home delivery. Someone else can collect your proof if able have the confirmation email or necessary and the die number. Susan collins in policy manual stated period, return authorization request through which i know when returning an online store at that contain both as to operate.
    [Show full text]
  • Register of Employers 2021
    REGISTER OF EMPLOYERS A Register of Concerns in which people are employed In accordance with Article 47 of the Fair Employment and Treatment (Northern Ireland) Order 1998 The Equality Commission for Northern Ireland Equality House 7-9 Shaftesbury Square Belfast BT2 7DP Tel: (02890) 500 600 E-mail: [email protected] August 2021 _______________________________________REGISTRATION The Register Under Article 47 of the Fair Employment and Treatment (Northern Ireland) Order 1998 the Commission has a duty to keep a Register of those concerns employing more than 10 people in Northern Ireland and to make the information contained in the Register available for inspection by members of the public. The Register is available for use by the public in the Commission’s office. Under the legislation, public authorities as specified by the Office of the First Minister and the Deputy First Minister are automatically treated as registered with the Commission. All other employers have a duty to register if they have more than 10 employees working 16 hours or more per week. Employers who meet the conditions for registration are given one month in which to apply for registration. This month begins from the end of the week in which the concern employed more than 10 employees in Northern Ireland. It is a criminal offence for such an employer not to apply for registration within this period. Persons who become employers in relation to a registered concern are also under a legal duty to apply to have their name and address entered on the Register within one month of becoming such an employer.
    [Show full text]
  • The Largest Family Businesses in the UK (Pdf)
    THE LARGEST FAMILY BUSINESSES IN THE UK RepGraph 2020 THE IFB RESEARCH FOUNDATION The IFB Research Foundation is a charity (no. 1134085) established to foster greater knowledge and understanding of family firms and their contribution to the economy and society, as well as the key challenges and opportunities that they face. The Foundation’s vision is to be the UK’s centre of excellence for family business research, and to this end its publications are designed to create a better understanding of family business for the benefit of all stakeholders. Alongside Family Business Research and White Papers, providing thought leadership on key family business characteristics and issues, its work covers a broad range of publications, including: • Family Business Sector Report – benchmarking the size and importance of the sector. • Family Business Challenges – offering practical guidance for family business owners on a broad range of topics, including family business dynamics, governance, performance, succession and wealth management. • Family Business Case Studies – showcasing family business exemplars. The Foundation disseminates knowledge and best practice guidance through printed publications, online media accessible via the IFB website and other activities. ifb.org.uk/ifb-research-foundation THE INSTITUTE FOR FAMILY BUSINESS The Foundation is independent of, but works closely with the Institute for Family Business (IFB), the not-for-profit UK family business organisation. With over 200 family business members, the IFB is also part of a global network of 4,000+ connected family companies (the Family Business Network international). Founded by a group of family business owners, the IFB has been supporting and championing family business since 2001.
    [Show full text]
  • LEGO Star Wars @ Smyths Disney Facebook Promotion Rules We Are Offering 1 One Person the Chance to Win a LEGO Star Wars Millenni
    LEGO Star Wars @ Smyths Disney Facebook Promotion Rules We are offering 1 one person the chance to win a LEGO Star Wars Millennium Falcon Collector Set 75192. One runner up will receive a LEGO Star Wars Slave 1 76060 and a further runner up will receive a LEGO Star Wars Snowspeeder 75144. See full terms and conditions below. How to enter: Access the promotion from either your FacebooK account or the Star Wars UK FacebooK Account. Post your answer for the multiple choice question as directed in the promotional material. Disney reserves the right to introduce other submission methods in its sole discretion and the closing dates for such methods will be stated in the relevant promotional material. “You” means the person entering the competition i.e. the “entrant”/”user”/”winner”, “Parent” means your birth parents and/or legal guardians, “Participants” means anyone attending/participating in the prize, “Contribution” and “Entry” means the content you are submitting to Disney for this promotion. Start Date: Friday 30 Nov 10am Closing Date: Friday 07 Dec 3:30pm Notification Date: Monday 10 Dec 3:30pm Response Date: Winners will receive confirmation that they have won on the Notification Date and Time (set out above) via a comment reply from the Star Wars FacebooK page. Winners must send the Star Wars FacebooK page a private message with their contact details and postal address by the Response Date and Time in order to claim their prize. If no response is received by the Star Wars FacebooK page within this time then the prize shall be forfeited and Disney reserves the right to award the prize to a substitute winner.
    [Show full text]
  • Determinationofmergern
    DETERMINATION OF MERGER NOTIFICATION M/19/020 – FANE VALLEY / SMYTHS Section 21 of the Competition Act 2002 Proposed acquisition by Fane Valley Co-operative Society Limited of sole control of Robert Smyth and Sons (Strabane and Donegal) Limited Dated 14 August 2019 Introduction 1. On 11 July 2019, in accordance with section 18(1)(a) of the Competition Act 2002, as amended (the “Act”), the Competition and Consumer Protection Commission (the “Commission”) received a notification of a proposed acquisition whereby Fane Valley Co-operative Society Limited (“Fane Valley”) would acquire sole control of Robert Smyth & Sons (Strabane and Donegal) Limited (“Smyths”) (together the “Parties”) (the “Proposed Transaction”). The Proposed Transaction 2. The Proposed Transaction is to be implemented pursuant to a share sale agreement (“SSA”) dated 3 July 2019 between Donegal Investment Group Public Limited Company (“DIG”), Agricolor Limited1 (“Agricolor”) and Fane Valley. Pursuant to the terms of the SSA, Agricolor will purchase the entire issued share capital of Smyths from DIG. 3. Following completion of the Proposed Transaction, Fane Valley will have indirect sole control of Smyths. The Undertakings Involved The Acquirer - Fane Valley 4. Fane Valley is a farmer-owned co-operative established in 1903 with its headquarters in County Down, Northern Ireland. Fane Valley operates four business divisions: 1 Agricolor Limited is a wholly owned subsidiary of Fane Valley Group Limited, a company registered in the Isle of Man, which in turn is a wholly owned subsidiary of Fane Valley. Merger Notification M/19/020 – Fane Valley / Smyths Fane Valley Feeds which manufacturers and supplies animal feed to the cattle and sheep, pig and poultry sectors.
    [Show full text]
  • Register of Employers 2019
    REGISTER OF EMPLOYERS A Register of Concerns in which people are employed In accordance with Article 47 of the Fair Employment and Treatment (Northern Ireland) Order 1998 The Equality Commission for Northern Ireland Equality House 7-9 Shaftesbury Square Belfast BT2 7DP Tel: (02890) 500 600 Fax: (02890) 328 970 E-mail: [email protected] SEPTEMBER 2019 _______________________________________REGISTRATION The Register Under Article 47 of the Fair Employment and Treatment (Northern Ireland) Order 1998 the Commission has a duty to keep a Register of those concerns employing more than 10 people in Northern Ireland and to make the information contained in the Register available for inspection by members of the public. The Register is available for use by the public in the Commission’s office. Under the legislation, public authorities as specified by the Office of the First Minister and the Deputy First Minister are automatically treated as registered with the Commission. All other employers have a duty to register if they have more than 10 employees working 16 hours or more per week. Employers who meet the conditions for registration are given one month in which to apply for registration. This month begins from the end of the week in which the concern employed more than 10 employees in Northern Ireland. It is a criminal offence for such an employer not to apply for registration within this period. Persons who become employers in relation to a registered concern are also under a legal duty to apply to have their name and address entered on the Register within one month of becoming such an employer.
    [Show full text]
  • Slavery and the British Country House
    Slavery and the British Country House Edited by Madge Dresser and Andrew Hann Slavery and the � British Country House � Edited by Madge Dresser and Andrew Hann Published by English Heritage, The Engine House, Fire Fly Avenue, Swindon SN2 2EH www.english-heritage.org.uk English Heritage is the Government’s lead body for the historic environment. © Individual authors 2013 The views expressed in this book are those of the authors and not necessarily those of English Heritage. Figures 2.2, 2.5, 2.6, 3.2, 3.16 and 12.9 are all based on Ordnance Survey mapping © Crown copyright and database right 2011. All rights reserved. Ordnance Survey Licence number 100024900. First published 2013 ISBN 978 1 84802 064 1 Product code 51552 British Library Cataloguing in Publication data A CIP catalogue record for this book is available from the British Library. � The right of the authors to be identified as authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. � All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system, without permission in writing from the publisher. Application for the reproduction of images should be made to English Heritage. Every effort has been made to trace the copyright holders and we apologise in advance for any unintentional omissions, which we would be pleased to correct in any subsequent edition of this book. For more information about images from the English Heritage Archive, contact Archives Services Team, The Engine House, Fire Fly Avenue, Swindon SN2 2EH; telephone (01793) 414600.
    [Show full text]
  • Download Q4 2016
    Q4 2016 www.retailexcellence.ie to the QUARTER 4 2016 Welcome edition of Retail Times After a somewhat challenging summer season REI members are now starting to prepare and are cautiously optimistic of a busy Christmas trading period ahead. With Budget 2017 fast approaching we are very much hoping that the Government focuses on the needs of the indigenous economy and delivers fiscal interventions to support retail businesses. Retail Excellence ha s been very vocal and has presented a pre- budget submission to Government covering a number of important matters including the necessity of reducing the Employers PRSI rate for low paid workers from 8.50% back to the 4.25% rate. Also, due to a weakening sterling decreasing our competitiveness and in order to help increase Irish internet sales, to reduce the VAT rate from 23% (amongst the highest in t he world) to 21%. We have also requested the retention of the 9% VAT Rate and the reduction of excise duty on alcohol and no further increases on tobacco prices. We urge all members to contact their local politicians and request action on these key issues. In this regard I would like to thank all members who have agreed to join our local constituency lobbying committees. By communicating directly with local politicians and explaining to them firsthand how they can assist with job retention and creation in local communities, we can better educate our elected officials about the crucial role retail plays in Ireland. With the small benefits exemption level now at €500 per employee (creating a tax saving of €655) and the rate likely to increase to €650 in the next Budget, employers now have a very tax efficient method to reward employees.
    [Show full text]