AEW REIT has reported climbs in net asset value and pre-tax profit in full-year results.
The REIT reported a 6% climb in net asset value to £157.08m and a sixfold increase pre-tax profit, collecting £22m for the year.
The investor has a diversified portfolio of 34 commercial assets – including industrial, office, retail and leisure.
Disposals saw its portfolio drop to £179m, compared with £189.3m a year earlier. Rental income dipped 10% to £15.71m. The drop in rent saw earning per share dip to 6.19 pps, against 8.67 a year earlier.
AEW REIT was successful in legal action to recover unpaid rent, with 94% collected for each quarter since the start of the pandemic.
At the end of March, AEW had 99 tenants and a vacancy rate of 9%. Excluding one asset in Glasgow that it is selling, vacancy is 6%. Its WAULT is 4.43 years to break and 6.71 years to expiry.
Mark Burton, chairman of AEW UK REIT, said: “Our cautious approach to cash management, and the significant gains realised on the disposal of two assets enabled the company to meet [dividend] payments, while maintaining a comfortable cash and gearing position.
“We have been assiduous in our pursuit of rent from tenants that have been able but unwilling to pay, while pursuing a prudent policy for provision against expected credit losses.”
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