AEW UK Interim Profit Jumps On Increase In Value Of Property Portfolio

LONDON (Alliance News) - AEW UK REIT PLC on Thursday reported a sharp rise in first half pretax ...

Alliance News 7 December, 2017 | 11:08AM
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LONDON (Alliance News) - AEW UK REIT PLC on Thursday reported a sharp rise in first half pretax profit on the back of an increase in value of investment properties, and said that it will change its financial year-end to March 31 from April 30.

The real estate investment trust recorded pretax profit of GBP7.0 million, or 5.60 pence per share, for the six months to October 31, up from GBP493,000 pretax profit in the year ago period. The fair value of the company's property portfolio stood at GBP2.48 million versus GBP3.7 million loss a year ago.

Net asset value per share stood at 97.80 pence per share versus 95.47p a year ago.

During the period the trust raised GBP28.1 million through the issuing of 27.9 million shares at a price of 100.5p each, to improve liquidity in the shares and reduce the ongoing charges ratio in a period of Brexit-related uncertainty.

AEW UK REIT declared an interim dividend of 4.00 pence per share, in-line with the prior year.

"Looking forward, our focus remains on continuing to grow the company with further share issues as part of the 12 month share issuance programme as set out in the company's prospectus. The company has a strategy to raise funds at intervals in order to minimise cash drag," said Chairman Mark Burton.

"The investment manager continues to focus on adding value to the existing portfolio and on finding future acquisitions which will deliver an attractive return as part of a well-diversified portfolio. We look forward to announcing new acquisitions and asset management deals in the near future," Burton added.

Shares in AEW UK REIT were down 0.2% at 100.50 pence.

By Dayo Laniyan;

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
AEW UK REIT Ord 94.40 GBX 0.75 -
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