Alternative use potential across AEW’s UK portfolio has protected its net asset value, the REIT has said.
The company, which has a portfolio of 34 assets spread across the UK, reported an NAV of £147.2m at 30 September, a marginal drop on its 30 June NAV of £148.2m. The firm added that it had collected 88% of its rents due for the quarter ended 29 September, with a further 3% due to be received under longer-term payment plans. Just 1% of Q1 rent remains outstanding and 4% and 5% of Q2 and Q3 rents, respectively.
Portfolio manager Laura Elkin said: “The company’s relatively stable NAV performance reflects the fact that many of the portfolio assets benefit from viable alternative use potential which acts as a value stabiliser limiting downside risk and volatility.
“Seeking asset purchases where pricing is supported by either a higher or equal alternative use value has always been a feature of our stock selection process, and we expect to see an increasing number of opportunities such as these due to newly introduced changes to the national planning regime which increase flexibility of use.”
The REIT said it had identified a pipeline of acquisition opportunities that would boost both its NAV and earnings and expected to make further announcements on those during the quarter.
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