AEW UK REIT sees property pressures easing

AEW UK REIT has posted a rise in net asset value, profit and returns as its new chairman says pressures are easing on the commercial property market. The company’s results for the six months to 30 September showed net asset value up by 6.2% at £172.7m, with a NAV return of more than 10% versus 4.3% a year ago. The REIT turned a profit of £16.6m, more than double that of the same period in 2023. New chairman Robin Archibald said the period “saw the economic and political pressures that have constrained the UK commercial real estate market begin to subside”. “In the near term, the board and investment manager will adopt a cautious approach towards managing the company, while markets digest the recent UK and US elections, as well as the autumn Budget,” he added. “With two interest rate cuts actioned by the Bank of England this year, the outlook for commercial property values is broadly more positive than it was a year ago, and we will ensure that the company is optimally positioned to capitalise on this for the benefit of its shareholders.”