AEW UK REIT (AEWU) Q3 2025 earnings summary

Executive summary

• Focus on high income and active asset management, targeting diversified UK core plus properties with net initial yields between 7% and 10%.

• NAV increased to £174.30 million (110.02p per share) at 31 Dec 2024, up from £172.76 million (109.05p) at 30 Sep 2024.

• Over the past four quarters, GBP 1.73 million of new income added through material lease events, supporting stable earnings and dividends.

• Dividend of GBP 0.02 per quarter (2.00p per share) maintained for 37 consecutive quarters, equating to an 8% yield.

• Recent disposal of Central Six Coventry crystallized asset management gains, with proceeds to be reinvested.

Financial highlights

• Portfolio valuation up 1.22% this quarter, following a 3% rise in the previous quarter, driven by ERV growth in industrial assets.

• Net initial yield at 8.16%, reversionary yield at 8.88%, indicating further rental growth potential.

• Vacancy rate just under 9%, or 6.8% when factoring in exchanged lease agreements.

• Net performance of 2.73% for the quarter, with a five-year annualized net total return of 10.3%.

• EPRA EPS for the quarter was 2.35p, down from 2.68p in the previous quarter.

Outlook and guidance

• GBP 25 million in capital available for reinvestment following recent asset sale.

• Intention to maintain dividends in line with policy, subject to prevailing financial conditions and REIT distribution requirements.

• Market conditions seen as a buying opportunity due to softened investment sentiment and high gilt yields.

• Expectation to maintain high-income strategy and continue capturing rental growth.

• Capital from Coventry sale to be deployed into new acquisitions, with a significant pipeline already under offer.