AEW UK REIT has posted a double-digit boost to net asset value as the company now looks to take advantage of post-pandemic opportunities in the investment market.
The REIT’s results for the six months to 30 September showed NAV of £174.3m, with rising values for industrial assets helped to give a near-10% lift to the portfolio valuation, at £206.7m. Pre-tax profit was £23.5m, up from £5.7m a year ago, driven by a £16m gain on investment property values.
The REIT made two acquisitions over the six months: Arrow Point Retail Park in Shrewsbury for £8.4m and a retail site, 15-33 Union Street in Bristol, for £10.2m. During the period the company sold Langthwaite Industrial Estate in South Kirkby for £10.8m and has since exited Wella Warehouse in Basingstoke for £5.9m, both above book value.
At the end of the period the company had £9.5m of its loan facility to draw down and cash balances of £15.2m.
Chairman Mark Burton said: “The easing of most of the remaining Covid-19 restrictions, combined with the continued rollout of the vaccination programme, has lifted most economists’ outlook for the post Covid-19 rebound in the second half of 2021.
“In light of this, the property market has experienced a gradual recovery, with rent collection levels greatly improving, as cash flow pressures on tenants ease. With its strong cash position and borrowing covenant headroom, the company is well positioned to take advantage of attractive opportunities coming to the market.”
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