27th Sep 2019 10:07
(Alliance News) - AEW UK Long Lease REIT PLC said Friday its net asset value dipped in its recently ended financial year, even as it swung to a profit in the period on a higher portfolio value.
As at June 30, the real estate investment trust's net asset value was 94.81 pence per share, down 0.1% from 94.83p the same date the year before.
This was in spite of AEW UK's property portfolio rising in value by 14% to GBP113.0 million across 19 properties, compared to GBP99.1 million across 16 properties.
During the year, AEW UK Long Lease acquired three properties for GBP12.7 million.
Financially, AEW UK reported pretax profit of GBP4.2 million, compared to a loss of GBP895,000 the year before, on net rental and other income that rose by 91% to GBP6.7 million from GBP3.5 million.
AEW UK Long Lease declared a dividend of 5.50 pence per share in line with its IPO target, up 69% from 3.25p the year before.
"The group has assembled a sound portfolio of assets, diversified by sector and generally in segments of the market where occupational demand remains firm. The portfolio is well diversified geographically, generates a predictable income stream, which is subject to long leases and increases in line with inflation," said Chair Steve Smith.
"The group is much closer to delivering a fully cashcovered dividend but the year's rent free on the Meridian Steel sites will delay this being achieved until the year ending June 2021. We are focused on a longer-term solution to the scale issue and in the coming period, the board will continue to explore opportunities which may deliver the required growth in scale," Smith added.
Shares in AEW UK Long Lease were down 0.6% at 69.57 pence on Friday.
By Dayo Laniyan; [email protected]
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