AEW UK Long Lease REIT has reported an uptick in NAV per share and earnings for the second half of its 2018 financial year.
The REIT, which invests in alternatives including gyms, care homes and car showrooms, reported an increase in EPRA NAV per share to 97.46p in the six months to 31 December.
This compares to an equivalent of 92.27p as at 30 June 2017.
EPRA earnings per share were 2.69p, compared with an equivalent of 0.38p in the period from 18 April to 31 December 2017.
At 31 December the group’s property portfolio had a fair value of £112.23m, up on £99.1m as at 30 June 2018. This marked a 5.7% increase since the REIT’s IPO in 2017.
Profit before tax was £4.15m, compared with a loss of £4.24m in the period between April and December in 2017, of which £4.56m related to acquisition costs written off.
During the period, the group invested £106.2m in acquiring a portfolio of 18 commercial assets, excluding purchase costs.
Since the half-year ended, the group has upped its £30m loan facility with Canada Life Investments by an additional £11m.
The total loan drawn is now £41m. The weighted average interest cost of the group’s increased facility is 3.19% and the facility is repayable on 20 October 2025.
Steve Smith, chairman of AEW UK Long Lease REIT, said: “The diversification of the portfolio by sector, tenants and geographical regions is generating attractive yields and predictable income streams through long leases, of which 92% of income has contractual exposure to inflation.
“We continue to see a number of interesting market opportunities and as such are focussed on raising additional equity to support future growth.”
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