4th Nov 2019 18:22
(Alliance News) - AEW UK Long Lease REIT PLC on Monday said its net asset value declined in the second quarter to the end of September.
The investment firm reported NAV per share as at September 30 of 94.482 pence a share, down 0.4% from 94.810p at the end of June.
AEW UK declared an interim dividend of 1.375 pence a share for the quarter, which it intends to pay on November 29. The company said it is targeting a dividend of 5.50p a share for the year to the end of June 2020.
As at September 30, the trust's portfolio was valued at GBP113.1 million, up from GBP113.0 million it was worth at the end of June.
"Despite the backdrop of ongoing political and economic uncertainty, the value of the group's property portfolio, as independently assessed by third party valuer Knight Frank, has remained robust this quarter," said Portfolio Manager Alex Short.
Looking ahead, AEW UK said it is taking steps to reduce its costs with the objective of delivering a fully cash covered dividend with effect from the financial 2020.
"Looking forward, the portfolio's income is well placed to achieve strong growth relative to traditional property sectors over the coming years due to 92% of all income currently contracted benefiting from growth linked to inflation," added Short.
AEW UK shares closed 1.6% higher in London on Monday at 76.44 pence each.
By Evelina Grecenko; [email protected]
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