AEW UK REIT has reported a 4.5% drop in net asset value in its fourth quarter.
The company’s portfolio also posted a 1.81% like-for-like fall in the three months to 31 July.
The value of AEW’s interest in the AEW UK Core Property Fund has fallen by 14.4% since April, although the value of the property in the fund was only down by 2.6%.
The REIT said this came from the manager’s movement of the fund’s swinging single price from offer to bid and a 5% dilution levy on the fund’s pricing.
The gross loan-to-value ratio rose from 11.5% to 19.8% during the period, while net LTV rose from 5.1% to 16.7%.
Alex Short, portfolio manager at AEW UK REIT, said: “With the expectation that central London property valuations may prove to be more volatile in current market conditions, the outlook for commercial property returns in strong UK regional locations remains positive for the foreseeable future.
“AEW UK REIT’s low level of gearing and the strength of its covenants gives us confidence that, by continuing to focus on income-producing assets, it can continue to deliver on its stated dividend policy across the portfolio and generate market-leading total returns to shareholders.”
From 5 August: AEW UK REIT secures three lettings in Bristol town centre >>
From 1 June: AEW UK REIT invests full equity >>
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