AEW UK REIT (AEWU) investor relations material

Executive summary

• Portfolio strategy is sector-agnostic, focusing on value and sustainable high income across UK commercial property, with a nimble, countercyclical approach and active management to identify mispriced assets and maximize income and capital upside.

• Delivered 42 consecutive quarters of high dividends and strong total returns, consistently outperforming the MSCI UK index by 6.3% over five years and 5.0% over ten years.

• Consistent quarterly dividend of 2p per share since Q1 2016, targeting 8p per share annually.

• Annualized NAV total returns of 5.9% (1 year), 9.4% (5 years), and 9.0% (10 years) as of March 2026.

• Recent merger discussions with Alternative Income REIT ended without agreement; no further comment due to regulatory constraints.

Financial highlights

• Portfolio consists of 34 properties and 130 tenants, valued at £215.4m as of March 2026, providing strong income diversification.

• Net initial yield is 7.59% and reversionary yield is 8.87%; yield declined this quarter due to increased vacancies, but reversionary yield gap widened.

• Achieved a 0.5% overall portfolio valuation uplift this quarter, despite sector challenges and a significant down valuation from the NCP administration.

• Loan to GAV at 21%, loan to NAV at 25.2%, LTV at 27.8%, and cost of debt at 2.96% fixed.

• Cash balances of £15.2m and dividend for the quarter at 2.00p, annualized at 8.00p.

Outlook and guidance

• Capital values at their lowest point since IPO, with yield compression expected as investment appetite normalizes and interest rates fall.

• Expect initial yield and earnings to recover as vacancies are filled and refurbishments complete, particularly in Southampton and Bristol.

• Confident in successful refinancing of the term loan maturing in just over 12 months, with active engagement with lenders.

• Strong pipeline of high-yielding acquisition opportunities persists, with sustainable yields often exceeding 9%.

• Well positioned for share issuance or sector consolidation due to favorable share rating.