AEW UK REIT (AEWU) Q2 2026 earnings summary

Executive summary

• Achieved shareholder total return of 11.44% for the first half to 31 March 2026, with shares trading close to NAV and periods of premium pricing, reflecting strong portfolio and strategy performance in a subdued property market.

• Seven consecutive quarters of like-for-like portfolio valuation gains and a decade of uninterrupted annual dividends of 8p per share.

• Board and Investment Manager see compelling buying opportunities as UK commercial property valuations are at a 10-year low.

• Portfolio consists of 34 properties valued at £216.05 million, with a diversified sector and geographic mix.

Financial highlights

• Net Asset Value (NAV) at £172.82 million or 109.09 pence per share as of 30 September 2025, down from £174.44 million and 110.11 pps at 31 March 2025.

• NAV total return for the period was 2.70% (vs. 10.05% in the prior year period).

• Operating profit before fair value changes was £6.96 million (vs. £8.90 million prior year).

• Profit before tax was £4.71 million, with EPS of 2.98p (vs. £16.64 million and 10.30p prior year), impacted by a £1.47 million fair value loss on properties.

• EPRA EPS for the period was 3.91p (vs. 4.43p prior year).

• Total dividends of 4.00p per share declared for the period, maintaining 40 consecutive quarters of 2p per share.

• Cash balance at period end was £13.20 million (down from £25.99 million at 31 March 2025).

Outlook and guidance

• Board and Investment Manager are exploring growth opportunities and scaling the strategy to capitalize on current market conditions.

• Investment Manager expects strong future performance from new acquisitions as property values are at cyclical lows.

• Positive rental growth across all market sectors is expected to enhance UK property total returns into 2026.