Half-Yearly Results
Summary by AI BETAClose X
21 November 2025
AEW UK REIT plc
Announcement of Unaudited Half Yearly Results for the period ended 30 September 2025
Robin Archibald, Chairman of AEW UK REIT plc, commented:
"The Board is pleased to report shareholder total return of 11.44% for the first half of our financial year to 31 March 2026, reflecting the strength and resilience of both the portfolio and investment strategy in a subdued property market. The Company's shares traded close to NAV, with periods of premium pricing, highlighting growing market confidence in AEWU's consistent outperformance against the benchmark and its peers. With seven consecutive quarters of like-for-like portfolio valuation gains and a decade of uninterrupted annual dividends of 8p per share, AEWU continues to deliver exceptional value to shareholders, and we wish to congratulate the Investment Manager on its outstanding 10-year track record. Looking forward, the Investment Manager sees compelling buying opportunities in UK commercial property as valuations are at their lowest in 10 years. As a result, the Board is actively considering ways to scale the strategy and capitalise on AEWU's proven track record of value creation through careful stock selection and disciplined asset management."
Financial Highlights
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Net Asset Value ('NAV') of £172.82 million and of 109.09 pence per share ('pps') as at 30 September 2025 (31 March 2025: £174.44 million and 110.11 pps). |
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NAV Total Return* for the period of 2.70% (six months ended 30 September 2024: 10.05%). |
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Operating profit before fair value changes of £6.96 million for the period (six months ended 30 September 2024: £8.90 million). |
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Profit Before Tax ('PBT')** of £4.71 million and earnings per share ('EPS') of 2.98 pps for the period (six months ended 30 September 2024: £16.64 million and 10.30 pps). PBT includes a £1.47 million loss arising from changes to the fair values of investment properties in the period (six months ended 30 September 2024: £7.03 million gain) and £0.02 million realised loss on disposal of investment properties (six months ended 30 September 2024: £1.48 million gain). |
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EPRA Earnings Per Share ('EPRA EPS')* for the period of 3.91 pps (six months ended 30 September 2024: 4.43 pps). |
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Total dividends* of 4.00 pps declared in relation to the period (six months ended 30 September 2024: 4.00 pps), bringing the total number of uninterrupted quarters in which the 2 pps dividend has been paid to 40. |
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Shareholder Total Return* for the period of 11.44% (six months ended 30 September 2024: 19.35%). |
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The price of the Company's Ordinary Shares on the London Stock Exchange was 109.00 pps as at 30 September 2025 (31 March 2025: 101.40 pps). |
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As at 30 September 2025, the Company had drawn £60.00 million (31 March 2025: £60.00 million) of its £60.00 million (31 March 2025: £60.00 million) loan facility with AgFe and was geared to 25.17% of GAV (31 March 2025: 25.01%). See note 15 in the Annual Report for the year ended 31 March 2025 for further detail. |
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The Company held cash balances totalling £13.20 million as at 30 September 2025 (31 March 2025: £25.99 million). |
Property Highlights
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As at 30 September 2025, the Company's property portfolio had a valuation of £216.05 million across 34 properties (31 March 2025: £204.55 million across 33 properties) as assessed by the valuer(1) and a historical cost of £220.52 million (31 March 2025: £207.96 million). |
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The Company acquired one property during the period for a purchase price of £11.15 million excluding acquisition costs (year ended 31 March 2025: one property for a purchase price of £10.00 million, excluding acquisition costs). |
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The Company made no disposals during the period (year ended 31 March 2025: two properties for gross sale proceeds of £32.55 million). |
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The portfolio had an EPRA vacancy rate** of 6.32% as at 30 September 2025 (31 March 2025: 7.50%). |
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Rental income generated during the period was £9.53 million (six months ended 30 September 2024: £9.57 million). |
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EPRA Net Initial Yield ('EPRA NIY')** of 8.18% as at 30 September 2025 (31 March 2025: 7.97%). |
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Weighted Average Unexpired Lease Term ('WAULT')* of 3.95 years to break and 5.61 years to expiry (31 March 2025: 4.12 years to break and 5.73 years to expiry). |
* See the KPIs in the Annual Report for the year ended 31 March 2025 for the definition of alternative performance measures.
** See the glossary in the Annual Report for the year ended 31 March 2025 for the definition.
(1) The valuation figure is reconciled to the fair value under IFRS in note 9.
Contact details
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AEW UK Laura Elkin |
+44(0) 20 7016 4880
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AEW Investor Relations |
investor_relations@eu.aew.com |
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Company Secretary |
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MUFG Corporate Governance Limited |
aewu.cosec@cm.mpms.mufg.com |
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+44 (0) 333 300 1932
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Cardew Group |
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Tania Wild Henry Crane |
+44 (0) 7425 536 903 +44 (0) 7918 207 157
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Panmure Liberum |
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Darren Vickers |
+44 (0) 20 3100 2222 |
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Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE: AEWU) aims to deliver an attractive total return to shareholders by investing predominantly in smaller commercial properties (typically less than £15 million), on shorter occupational leases in strong commercial locations across the United Kingdom. The Company is currently invested in office, retail, industrial, and leisure assets, with a focus on active asset management, repositioning the properties, and improving the quality of income streams. AEWU is currently paying an annualised dividend of 8p per share. The Company was listed on the Official List of the Financial Conduct Authority and admitted to trading on the Main Market of the London Stock Exchange on 12 May 2015.
LEI: 21380073LDXHV2LP5K50
About AEW
AEW is one of the world's largest real estate asset managers, with €78.8bn of assets under management as at 31 March 2025. AEW has over 920 employees, with its main offices located in Boston, London, Paris, and Singapore, and offers a wide range of real estate investment products, including comingled funds, separate accounts, and securities mandates across the full spectrum of investment strategies. AEW represents the real estate asset management platform of Natixis Investment Managers, one of the largest asset managers in the world.
As at 31 March 2025, AEW managed €37.2bn of real estate assets in Europe on behalf of a number of strategies and separate accounts. AEW has over 515 employees based in 11 offices across Europe and has a long track record of implementing core, value-add, and opportunistic investment strategies on behalf of its clients. In the last five years, AEW has invested and divested a total volume of €18.5bn of real estate across European markets.
AEW UK Investment Management LLP is the Investment Manager. AEW is a group of companies that includes AEW Europe SA and its subsidiaries, as well as affiliated company AEW Capital Management, L.P. in North America and its subsidiaries. AEW Europe SA, together with its subsidiaries AEW UK Investment Management LLP, AEW S.à.r.l., AEW Invest GmbH, and AEW SAS, is a European real estate investment manager with headquarters offices in Paris and London. AEW Europe SA and AEW Capital Management, L.P. are owned by Natixis Investment Managers. Natixis Investment Managers is an international asset management group based in Paris, France, that is principally owned by Natixis, a French investment banking and financial services firm. Natixis is principally owned by BPCE, France's second-largest banking group.
Attribution Analysis of Financial Results
The Company's NAV as at 30 September 2025 was £172.82 million or 109.09 pps (31 March 2025: £174.44 million or 110.11 pps). This represents a decrease of 1.02 pps or 0.93 % over the six-month period, with the underlying movement in NAV set out in the table below:
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Pps |
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NAV as at 1 April 2025 |
110.11 |
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Capital expenditure |
(0.59) |
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Valuation changes in property portfolio |
(0.35) |
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Income earned for the period |
6.16 |
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Expenses for the period |
(2.24) |
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Dividends paid |
(4.00) |
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NAV as at 30 September 2025 |
109.09 |
Financing
As at 30 September 2025, the Company has a £60.00 million loan Facility with AgFe, in place until May 2027, the details of which are presented below:
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30 September 2025 |
31 March 2025 |
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Facility |
£60.00 million |
£60.00 million |
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Drawn |
£60.00 million |
£60.00 million |
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Gearing (Loan to GAV) |
25.17% |
25.01% |
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Gearing (Loan to NAV) |
34.72% |
34.40% |
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Interest rate |
2.959% fixed |
2.959% fixed |
Chairman's Statement
Overview
The Company ("AEWU") has delivered robust total return performance during the period, despite continued political and economic uncertainty, most notably in relation to the upcoming UK Budget later this month. May 2025 marked the Company's tenth anniversary, a decade during which it has consistently paid annualised dividends of 8p per share and realised significant capital profits on disposals from its portfolio. The Investment Manager is to be congratulated on an outstanding record over the decade in absolute and relative terms against peers and property indices alike.
AEWU has delivered strong returns using its diversified, value-focused and sector agnostic investment approach, acquiring mispriced assets throughout varying market cycles. In the current environment, average commercial property capital values are at their lowest point since the Company launched. The Investment Manager believes this presents an exciting prospect for AEWU, with a broad range of attractively priced opportunities which could be pursued, should the Company have available cash to deploy, a subject which the Board is actively exploring with its advisers.
Investment and share price performance
Shareholder total return amounted to 11.4% for the first half of the year (9.0% on a 10-year annualised basis), driven by robust portfolio performance and a commensurate uplift in share price. At period end, the Company's shares were trading at close to NAV, being at a 0.08% discount. On several occasions, the Company's shares traded at a premium to NAV, allowing the recent reissuance of 150,000 treasury shares. We are delighted that the market is starting to recognise our achievement of seven consecutive quarters of like-for-like valuation gain in the Company's portfolio during a period when property markets have remained subdued.
The Investment Manager has achieved total return outperformance against both the MSCI benchmark and its peers in the UK diversified REIT space. With a property total return for the period of 3.2% versus the 3.0% produced by the MSCI benchmark (9.4% vs 4.7% on a 10-year annualised basis), the significant benefit of the Company's income-focused and value-driven strategy is apparent.
AEW UK REIT plc Property Performance vs. Benchmark for the six months to 30 September 2025
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Performance Metric |
AEW UK REIT (%) |
Benchmark (%)* |
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Capital Growth |
(0.7) |
0.8 |
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Income Return |
3.9 |
2.3 |
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Total Return |
3.2 |
3.0 |
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Source: MSCI 30 September 2025 |
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*The Benchmark refers to MSCI/AREF PFI Balanced Funds Quarterly Property Index |
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Dividends
The Company continues to pay quarterly dividends of 2p per share (as it has done now for 40 consecutive quarters), which were 98% covered by the earnings of 3.91p for the period. Earnings continue to be bolstered by the completion of asset management initiatives, which crystallised £473,349 per annum of additional rental income during the period. The Company's cost base continues to underpin robust earnings, with low incurrence of bad debt and void costs reflecting the quality and stability of the portfolio. Sustainability of the dividend, as well as its potential growth, continue to be areas of Board focus.
The Company remains committed to paying its quarterly dividend of 2p per share predominantly from net income but also using a total return approach where required, and realised capital profits from disposals.
Gearing
The Company has a fully drawn debt facility of £60 million, which is due to mature in May 2027, with a fixed interest rate of 2.959%, representing a 25.17% Loan to Gross Asset Value ratio. The loan covenants all have significant headroom.
The use of gearing and the Company's ability to refinance is monitored closely by the Board and the Investment Manager alike. The Investment Manager has a specialist in-house debt team. When practical and most effective to do so, the Company will be refinanced. We recognise that the expected interest cost on a future facility is unlikely to be as competitive as it was when the current facility was secured. That said, it is currently expected that any refinancing will not lead to materially different earnings and capital performance compared with what the Company has been able to achieve over the past 10 years.
Portfolio
At period end, the Company had a diversified portfolio of 34 UK commercial properties. The average lot size was £6.4 million, with occupancy of 93.7% from 132 tenants. The Company had cash of £13.2 million, including its usual £5 million cash buffer. Most of the cash balance above the buffer has been earmarked for capital expenditure or other asset management initiatives.
During the period, the Company completed the purchase of an 8.4-acre freehold leisure asset in Leicester for £11,150,000. The purchase price reflected an attractive net initial yield of 10.6% and a capital value of £103 per sq. ft. The acquisition completed the Company's redeployment of sale proceeds from the disposal of Central Six Retail Park in Coventry in December 2024.
No disposals were made by the Company during the period.
Awards
The Board is delighted that the Company's market leading performance and investment approach have been recognised in the winning of two awards during the period. The Company has once again been awarded by EPRA, the European Public Real Estate Association, a gold medal for its high standard of financial reporting, as well as a gold medal for standards of sustainability reporting.
Post period-end, the Company won two further awards. The first was the Citywire Investment Trust Award in the 'UK Property' category for the sixth consecutive year. This is awarded to the Company with the highest NAV total returns over an annualised three-year period. The Company also won the 'Best for Property' category in the QuotedData Investors' Choice Awards 2025, voted for by retail investors.
These awards are testament to the consistently strong performance delivered by the Company, which AEW, as Investment Manager, looks forward to building upon in the future.
Outlook
The Board and Investment Manager continue to explore growth opportunities for the Company that would be beneficial to shareholder interests. Appropriate scaling of AEWU's strategy is expected to bring shareholder benefits, including improved liquidity in the Company's shares and a reduction in the operating cost ratio.
The Investment Manager has conviction in the current buying opportunities seen in the UK commercial real estate market, and believes that now is an ideal time to deploy capital, as property values are at their lowest point since the Company's IPO. With a proven track record of stock selection, the Investment Manager expects that any acquisitions made in the near-term would yield strong performance and shareholder returns in the future.
Robin Archibald
Chairman
20 November 2025
Investment Manager's Report
Property Market Overview
Despite continuing political and economic uncertainty, valuations in UK commercial property remained largely stable during the six months to 30 September 2025, with the exception of regional secondary offices where weak investor sentiment and pricing discovery persists. The period signifies a rebound for retail, with some yield tightening on the high street, as leading retailers reaffirm their commitment to physical locations and report strong trading updates that reflect improving occupational dynamics, notwithstanding a host of additional cost pressures. With Rachel Reeves' postponed Budget looming, investment activity - which has been steadily improving, underpinned by early signs of capital growth and a return to positive real returns - is expected to be muted for the remainder of the calendar year. There remains strong continued investor focus on rental growth. Positive rental growth across all market sectors should enhance UK property total returns going into 2026.
Industrial
A total of £1.9 billion in transactions was recorded in the UK in Q3. This brings the year-to-date total to £5.75 billion, down marginally (2%) on the same period last year. Investors are facing challenging conditions due to ongoing geopolitical uncertainty. However, according to CBRE's European Investor Intentions Survey, investment volumes are expected to rise during the second half of the year, although yields are anticipated to remain stable for the rest of 2025, with yield compression likely pushed out into 2026.
Average rents for UK industrial properties continue to increase, albeit at a slower pace compared to last year. The annual growth rate for the year ending September 2025 was 4.6%, slowing from 4.8% in August, and 6.2% a year ago. Rental growth is expected to continue to decelerate throughout the rest of 2025, with a forecast annual growth rate of 4.2% in 2025. This trend is projected to slow further in 2026, with a growth forecast of 3.1%, before picking up again between 2027 and 2029.
We believe that the Company's industrial portfolio, with a low average passing rent of £3.80 per sq. ft. compared to an ERV of £4.71 per sq. ft. and a reversionary yield of 9.57% (initial yield of 7.16%), is well-positioned, despite the anticipated slowdown in rental growth.
Retail
The period has presented a mixed bag of messages. Retail sales in Q2 increased by 3.2% year-on-year, with volumes up by 1.9%. However, this quarterly figure masks erratic monthly performance, with strong trading in April followed by a downturn in May. Sales volumes also rose in Q3, increasing by 5.6% when comparing September 2025 to September 2024, with good weather in July and August boosting the sale of clothes. Despite several retail-unfriendly measures, such as higher National Insurance contributions and minimum wage increases being implemented in April, the UK's retail vacancy rate continues to decline gradually, accompanied by rental growth of 2.0%. Fashion brand Next, a tenant in two properties owned by the Company, reported a stronger than expected 10.5% increase in full-price sales for its third quarter. This has prompted Next to raise its full-year pre-tax profit guidance for the fourth time in eight months (now projected to exceed £1.1 billion by the end of January 2026).
The retail investment markets remain constrained by a lack of stock, primarily driven by ongoing geopolitical uncertainty rather than negative sentiment. With larger institutions continuing to act as net sellers rather than buyers, we still consider the sector attractive, albeit only for 'best-in-class' assets where there is strong demand from occupiers.
Offices
Unsurprisingly, the investment market continued to struggle in the first half of 2025, with transaction volumes totalling £373.5 million across the main regional cities. This figure is 25% lower than at the same point in 2024 and 48% below the five-year H1 average. Secondary locations, out-of-town parks and buildings that require significant modernisation continue to be most out of favour. However, following a period of substantial value adjustments, investors are beginning to re-engage, as the gap between buyer and seller expectations narrows.
During the first six months of 2025, leasing activity maintained momentum, with take-up reaching 2.5 million square feet across the 10 main UK regional cities tracked by Knight Frank. This figure represents a 7% increase compared to the same period in 2024 and is also 7% above the five-year average for the first half of the year. Additionally, it marks the strongest H1 performance recorded since 2022. Grade A space accounted for 55% of the total office take-up, highlighting the sustained demand for high-quality accommodation. Competition for this limited market segment is intensifying, with vacancy rates at just 3.1% of total office stock.
The Company's office sector, which is its lowest sector weighting of 11%, has had a quiet period while it carries out the refurbishment of vacant space and the reception at Queens Square in Bristol. The timing of these works is opportune with occupier markets gathering momentum.
Alternatives
Across the alternative sectors, visibility of performance in trading updates is key to investor demand. Despite rising labour costs from the higher minimum wage and National Insurance contributions, leisure spend remains strong as consumers prioritise it over other discretionary spend. According to Barclaycard data, hospitality and leisure spending continued to grow overall in Q2 2025, with increases of 6.7% in April, 3.3% in May and 2.1% in June. The mini boom in April mirrored the spike in retail sales, yet the leisure sector did not experience the same downturn as retail in May.
CBRE anticipates operators increasing prices to improve margins, but as demand for experiential operators outpaces supply, rental growth and a softening of landlord contributions is predicted going into 2026. Most cinema operators are now predicting a return to profitability, which is expected to have a positive impact on the investment market.
Demand for leisure assets, particularly those priced at around £10 million, strengthens as buyers anticipate yield compression and believe that pricing has bottomed out. We continue to view the leisure sector as attractive on a selective basis, especially for assets that offer superior income returns and larger land holdings, or for sites in urban areas that may benefit from alternative use values, most likely residential.
Sources:
UK Real Estate Navigator
Knight Frank UK Logistics Market Dashboard - September 2025
UK Real Estate Market Outlook Mid-Year Review 2025 Report
Retail sales, Great Britain - Office for National Statistics
BBC News
UK Operational Real Estate
Property Portfolio
Sector weighting by valuation - high industrial weighting and low exposure to offices
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Sector |
Percentage |
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Industrial |
37% |
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High Street Retail |
20% |
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Other |
18% |
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Retail Warehouse |
14% |
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Offices |
11% |
Geographical weighting by valuation - highly diversified across the UK
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Region |
Percentage |
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South West |
27% |
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Yorkshire and Humberside |
17% |
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North West |
10% |
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South East |
9% |
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Eastern |
9% |
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West Midlands |
8% |
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East Midlands |
7% |
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Wales |
7% |
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Rest of London |
5% |
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Scotland |
1% |
Like-For-Like Valuation Movement for the Period
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Valuation as at 30 September 2025
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Like-For-Like Valuation Movement for the Period |
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Sector |
(£m) |
% of Portfolio |
(£m) |
(%) |
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Industrial |
80.41 |
37.22 |
1.82 |
2.31 |
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High Street Retail |
44.32 |
20.52 |
0.53 |
1.20 |
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Other |
38.71 |
17.92 |
(1.34) |
(4.62) |
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Retail Warehouses |
29.28 |
13.55 |
0.63 |
2.18 |
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Office |
23.33 |
10.79 |
(1.28) |
(5.18) |
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Total |
216.05 |
100.00 |
0.36 |
0.17* |
* This is the overall weighted average like-for-value valuation increase of the portfolio.
Top Ten Assets
At period-end, the portfolio's top 10 assets constituted 49.6% of the overall portfolio value. As detailed in the Annual Report, these are diversified across both sector and geography.
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Property |
Sector |
Sq. Ft |
Market Value Range (£m) |
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1. |
Wrexham, Gresford Industrial Estate |
Industrial |
279,541 |
10.0 - 15.0 |
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2. |
Bath, Northgate House |
High Street Retail |
67,020 |
10.0 - 15.0 |
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3. |
Dagenham, London East Leisure Park |
Other |
102,400 |
10.0 - 15.0 |
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4. |
Leicester, Freemans Leisure Park |
Other |
108,771 |
10.0 - 15.0 |
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5. |
Bristol, 40 Queen Square |
Office |
36,433 |
10.0 - 15.0 |
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6. |
Bath, Cambridge House |
Office |
51,132 |
10.0 - 15.0 |
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7. |
Hitchin, Bancroft |
High Street Retail |
46,905 |
5.0 - 10.0 |
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8. |
York, 25 George Hudson Street |
Other |
18,599 |
5.0 - 10.0 |
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9. |
Runcorn, Sarus Court |
Industrial |
82,379 |
5.0 - 10.0 |
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10. |
Peterborough, Storey's Bar Road |
Industrial |
184,114 |
5.0 - 10.0 |
Investment Update
The Company made one acquisition during the period:
Freemans Leisure Park, Leicester (other) - In June, the Company completed the purchase of an 8.4-acre freehold site in the centre of Leicester (the "Property"), for £11,150,000. The purchase price reflects an attractive net initial yield of 10.6% and a capital value of £103 per sq. ft.
The property occupies a prominent position on an arterial route one mile south of Leicester city centre, close to the University of Leicester's student campus, and totals 108,771 sq. ft. across five units along with service yards and 582 car parking spaces.
The property is fully let to a well-known group of national tenants including Odeon Cinemas Ltd, Mecca Bingo Ltd, Spirit Pub Company Ltd and Nando's Chickenland Ltd, providing a weighted average unexpired lease term to expiry of greater than eight years. The property presents various short-to-medium term asset management opportunities, including rental growth prospects through upcoming rent reviews; the possibility of an EV charging letting; and appraising alternative uses, such as hotel and restaurant, for areas of the site that have not already been developed.
Leicester benefits from high levels of footfall as the largest city in the East Midlands with one of the fastest growing populations in the UK. The city is served by rail connections to London, Birmingham and Nottingham, and is situated at the midpoint between London and Leeds on the M1 motorway.
The acquisition completes the Company's redeployment of sale proceeds from the disposal of Central Six Retail Park in Coventry.
There were no disposals during the period.
Asset Management Update
The Company completed the following material asset management transactions during the period:
11-15 Fargate, Sheffield (retail) - The Company completed a new lease to Boots Opticians Professional Services & Seven Hills Optical Ltd, trading as Boots Opticians. The tenant has entered a 10-year lease, with a tenant break option on the expiry of the fifth year, paying a rent of £62,500 per annum. There will be a five-yearly open market upwards-only rent review. The tenant has been granted a nine-month rent free period. Following completion of the letting the property is now fully let.
Central Six Retail Park (the Triangle Site), Coventry (retail warehouse) - Following the freehold disposal of Units 1-11 for £26,250,000 in December 2024, the Freeholder (Friargate JV Projects Limited, known as Friargate) of the remaining site, known as the 'Triangle Site', which is still held on a long leasehold by the Company, served notice to acquire the remaining site from 29 July 2025 for a peppercorn.
The Triangle Site consists of three purpose-built retail warehousing units let to Salvation Army, Costa Ltd and TUI UK Retail Ltd, and a drive-thru restaurant let to Caspian Food Services Ltd, trading as Burger King, producing an annual rental income of £380,000.
Diamond Business Park, Wakefield (industrial) - The Company completed a new lease of Unit 10 to Machtech Technology Ltd. The tenant has entered into a five-year lease with a tenant only break option in 2.5 years, paying a rent of £46,890 per annum (£4.50 psf), which is £0.50 per sq. ft. above ERV. No rent free or capital contribution was given as an incentive.
The Company completed the demolition of Diamond House, an obsolete 1970s purpose-built office block consisting of 27,098 sq. ft., at a cost of £229,807 (inclusive of fees and contingency). The office became fully vacant earlier this year with the last remaining tenant surrendering its lease to vacate early. Refurbishment or conversion to residential use were also considered, with demolition being the most viable route forward, with the cleared land creating a 1.8 acres IOS (industrial open storage) letting opportunity with an ERV of £50,000 per acre, as well as eliminating approximately £79,000 per annum of landlord shortfalls.
Westlands Distribution Park, Weston-super-Mare (industrial) - The Company has completed a three-year lease renewal of Unit 4 with MCT Rehman Ltd at a rent of £95,000 per annum (£3.61 per sq. ft.), which increases to £100,000 per annum (£3.80 per sq. ft.) at the beginning of the second year, and £110,000 (£4.18 per sq. ft) in the third year.
The Company has also completed a short-term lease renewal of Unit 2 with J N Baker Ltd, extending the term by an additional 12 months with a rolling tenant-only break option that allows for termination on one month's notice after the first three months of the term. The tenant will be paying a rent of £159,500 per annum (£2.28 per sq. ft).
The Company has also completed a short-term lease of Units 2B and 2C with Colin Venn. The lease will be for a total term of one year with a rolling mutual break clause that allows termination at any time with one month's notice. The tenant will pay rent of £6,000 per annum.
Sarus Court, Runcorn (industrial) - The Company completed a speculative refurbishment project of units 1002, formerly let to PS2 Print Ltd. The works comprised roof improvements, respraying of external elevations, internal strip-out and decoration, and replacing M&E services to improve the EPC rating to a B. The cost of the works was £426,000, including professional fees. It is anticipated that the Company will crystalise significant rental growth from the previous rent following the unit being re-let.
710 Brightside Lane, Sheffield (industrial) - The Company settled ROM Group Limited's (ROM) outstanding 13 April 2025 open market rent review at £529,500 per annum (£4.25 per sq. ft.) representing a 41.57% increase in the previous passing rent of £374,000 per annum (£3.00 per sq. ft.). The valuation of the asset subsequently increased by 21.51%.
ROM Group is a specialist supplier of steel reinforcement solutions primarily for the construction industry. ROM will occupy the 124,577 sq. ft. manufacturing facility for a further 4.5 years.
Carrs Coatings, Eagle Road, Redditch (industrial) - The Company settled Carrs Coatings Ltd's August 2025 annual uncapped RPI rent review at £319,519 per annum (£8.41 per sq. ft.), representing a £14,709 per annum (4.83%) increase.
The unit is single-let to Carrs Coatings Ltd until August 2028. The lease was entered into as a sale and leaseback in 2008 at an initial starting rent of £170,300 per annum (£4.50 per sq. ft.).
Barnstaple Retail Park, Barnstaple (retail warehousing) - The Company completed a new lease to Wren Kitchens Limited, which has taken the former Poundland unit. Wren has signed a 10-year lease with a tenant break option on the expiry of the fifth year at a rent of £98,500 per annum (£17.25 per sq. ft.). On the expiry of the fifth year, the rent will be reviewed to the lower of open market or 2.5% per annum, compounded. Wren has been granted a 12-month rent free period, with a further six months should it not exercise the break option.
Railway Centre, Dewsbury (retail warehousing) - After protracted negotiations, the Company completed a lease renewal with Fieldrose Limited (Fieldrose), trading as KFC, whose lease expired on 23 December 2023. Fieldrose has signed a 15-year lease, which includes a tenant break option at the end of the tenth year, at an annual rent of £86,000. No rent-free period or tenant incentive was given. Additionally, the outstanding rent review from December 2018 has also been settled at £67,000 per annum. The previous passing rent was £64,250 per annum.
Unit B, Arrow Retail Park, Shrewsbury (retail warehousing) - The Company completed a new lease of Unit B to Summerhouse Solutions Limited (Summerhouse), trading as Summerhouse Interiors. Summerhouse has signed a five-year lease which includes a tenant-only break option on the expiry of the third year, subject to a penalty of three months' rent. The annual rent is £32,000 (£6.96 per sq. ft.), and the letting includes an initial three-month rent-free incentive.
Unit C, Arrow Retail Park, Shrewsbury (retail warehousing) - The Company completed a new lease of Unit C to Lifecycle Group Holdings Limited. The tenant has signed a 10-year lease which includes a tenant-only break option on the expiry of the fifth year. The annual rent is £32,000 (£6.96 per sq. ft.), with no rent-free incentive being given.
AEW UK Investment Management LLP
20 November 2025
PRINCIPAL RISKS AND UNCERTAINTIES
The Company's principal risks and uncertainties have not materially changed since the 2025 Annual Report and can be found on pages 36 to 43 of that Report.
The principal risks faced by the Company include the property market, property valuation, tenant default, asset management initiatives, due diligence, fall in rental rates, breach of borrowing covenants and availability and cost of debt. In addition, the Board continues to monitor a number of emerging risks that could potentially impact the Company, the principal ones being geopolitical risk and climate change risk.
Interim Management Report and Directors' Responsibility Statement
Interim Management Report
The important events that have occurred during the period under review, the key factors influencing the financial statements and the principal risks and uncertainties for the remaining six months of the financial year are set out in the Chairman's Statement and the Investment Manager's Report above and the Principal Risks and Uncertainties set out in the 2025 Annual Report.
Responsibility Statement
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the UK;
· the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year;
and
(b) DTR 4.2.8R, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so.
On behalf of the Board
Robin Archibald
Chairman
20 November 2025
Financial Statements
Condensed Statement of Comprehensive Income
for the six months ended 30 September 2025
|
|
Notes |
Period from 1 April 2025 to 30 September 2025 (unaudited) £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) £'000 |
Year ended 31 March 2025 (audited) £'000 |
|
Income |
|
|
|
|
|
Rental and other property income |
3 |
10,535 |
10,913 |
22,677 |
|
Property operating expenses |
4 |
(1,787) |
(2,023) |
(5,818) |
|
Impairment (loss)/ gain on trade receivables |
10 |
(330) |
469 |
430 |
|
Other income |
3 |
- |
1,056 |
1,082 |
|
Net rental and other income |
|
8,418 |
10,415 |
18,371 |
|
|
|
|
|
|
|
Other operating expenses |
5 |
(1,463) |
(1,511) |
(2,785) |
|
|
|
|
|
|
|
Operating profit before fair value changes and gains on disposals |
|
6,955 |
8,904 |
15,586 |
|
|
|
|
|
|
|
Change in fair value of investment properties |
9 |
(1,465) |
7,031 |
6,861 |
|
Realised (loss) / gains on disposal of investment properties |
9 |
(21) |
1,482 |
3,230 |
|
|
|
|
|
|
|
Operating profit |
|
5,469 |
17,417 |
25,677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance Income |
|
207 |
194 |
624 |
|
Finance expense |
|
(962) |
(973) |
(1,931) |
|
|
|
|
|
|
|
Profit before tax |
|
4,714 |
16,638 |
24,370 |
|
Taxation |
6 |
- |
(313) |
(26) |
|
|
|
|
|
|
|
Profit after tax |
|
4,714 |
16,325 |
24,344 |
|
Other comprehensive income |
|
|
- |
- |
|
|
|
|
|
|
|
Total comprehensive profit for the period |
|
4,714 |
16,325 |
24,344 |
|
|
|
|
|
|
|
Earnings per share (pence) (basic and diluted) |
7 |
2.98 |
10.30 |
15.37 |
|
|
|
|
|
|
The notes below form an integral part of these condensed financial statements.
Condensed Statement of Changes in Equity
for the six months ended 30 September 2025
|
For the period 1 April 2025 to 30 September 2025 (unaudited) |
Notes |
Share capital £'000 |
Share premium account £'000 |
Capital reserve and retained earnings £'000* |
Treasury Shares £'000 |
Total capital and reserves attributable to owners of the Company £'000 |
|
|
|
|
|
|
|
|
|
Balance as at 1 April 2025 |
|
1,587 |
56,578 |
116,543 |
(265) |
174,443 |
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
- |
- |
4,714 |
- |
4,714 |
|
Dividends paid |
8 |
- |
- |
(6,337) |
- |
(6,337) |
|
Balance as at 30 September 2025 |
|
1,587 |
56,578 |
114,920 |
(265) |
172,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the period 1 April 2024 to |
|
|
|
|
|
|
|
30 September 2024 (unaudited) |
Notes |
|
|
|
|
|
|
Balance at 1 April 2024 |
|
1,587 |
56,578 |
104,852 |
(265) |
162,752 |
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
- |
- |
16,325 |
- |
16,325 |
|
Other distribution |
|
- |
- |
21 |
- |
21 |
|
Dividends paid |
8 |
- |
- |
(6,337) |
- |
(6,337) |
|
Balance as at 30 September 2024 |
|
1,587 |
56,578 |
114,861 |
(265) |
172,761 |
|
For the year ended 31 March 2025 (audited) |
Notes |
Share capital £'000 |
Share premium account £'000 |
Capital reserve and retained earnings* £'000 |
Treasury Shares £'000 |
Total capital and reserves attributable to owners of the Company £'000 |
|
|
|
|
|
|
|
|
|
Balance at 1 April 2024 |
|
1,587 |
56,578 |
104,852 |
(265) |
162,752 |
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
- |
- |
24,344 |
- |
24,344 |
|
Other distribution |
|
- |
- |
21 |
- |
21 |
|
Dividends paid |
8 |
- |
- |
(12,674) |
- |
(12,674) |
|
Balance as at 31 March 2025 |
|
1,587 |
56,578 |
116,543 |
(265) |
174,443 |
* The capital reserve has arisen from the cancellation of part of the Company's share premium account and is a distributable reserve.
The notes below form an integral part of these condensed financial statements.
Condensed Statement of Financial Position
as at 30 September 2025
|
|
Notes |
As at 30 September 2025 (unaudited) £'000 |
As at 30 September 2024 (unaudited) £'000 |
As at 31 March 2025 (audited) £'000 |
|
Assets |
|
|
|
|
|
Non-Current Assets |
|
|
|
|
|
Investment property |
9 |
211,724 |
186,638 |
200,429 |
|
Receivables and prepayments |
10 |
3,738 |
3,991 |
3,956 |
|
|
|
215,462 |
190,629 |
204,385 |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
Investment property held for sale |
9 |
469 |
24,793 |
- |
|
Receivables and prepayments |
10 |
11,506 |
11,387 |
9,281 |
|
Cash and cash equivalents |
|
13,203 |
14,471 |
25,993 |
|
Other financial assets held at fair value |
|
- |
- |
1,790 |
|
|
|
25,178 |
50,651 |
37,064 |
|
Total assets |
|
240,640 |
241,280 |
241,449 |
|
Non-Current Liabilities |
|
|
|
|
|
Interest bearing loans and borrowings |
11 |
(59,828) |
(59,719) |
(59,773) |
|
Lease obligations |
13 |
(174) |
(174) |
(174) |
|
|
|
(60,002) |
(59,893) |
(59,947) |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Payables and accrued expenses |
12 |
(7,805) |
(8,613) |
(7,046) |
|
Lease obligations |
13 |
(13) |
(13) |
(13) |
|
|
|
(7,818) |
(8,626) |
(7,059) |
|
|
|
|
|
|
|
Total Liabilities |
|
(67,820) |
(68,519) |
(67,006) |
|
|
|
|
|
|
|
Net Assets |
|
172,820 |
172,761 |
174,443 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
|
1,587 |
1,587 |
1,587 |
|
Treasury shares |
|
(265) |
(265) |
(265) |
|
Share premium account |
|
56,578 |
56,578 |
56,578 |
|
Capital reserve and retained earnings |
|
114,920 |
114,861 |
116,543 |
|
|
|
|
|
|
|
Total capital and reserves attributable to equity holders of the Company |
|
172,820 |
172,761 |
174,443 |
|
|
|
|
|
|
|
Net Asset Value per share (pence) |
7 |
109.09 |
109.05 |
110.11 |
|
EPRA Net Tangible Assets per share (pence) |
7 |
109.09 |
109.05 |
110.11 |
The notes below form an integral part of these condensed financial statements.
Condensed Statement of Cash Flows
for the six months ended 30 September 2025
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) £'000 |
Year ended 31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Profit before tax |
4,714 |
16,638 |
24,370 |
|
|
|
|
|
|
Adjustment for: |
|
|
|
|
Finance income |
(207) |
(194) |
(624) |
|
Finance costs |
962 |
973 |
1,931 |
|
Loss/(gain) from change in fair value of investment property |
1,465 |
(7,031) |
(6,861) |
|
Realised loss/ (gains) on disposal of investment property |
21 |
(1,482) |
(3,230) |
|
Increase in other receivables and prepayments |
(2,272) |
(1,504) |
(3,162) |
|
Decrease/ (increase) in restricted cash |
1,790 |
- |
(1,790) |
|
Increase/ (decrease) in other payables and accrued expenses |
1,012 |
(1,432) |
(1,988) |
|
Net cash flow generated from operating activities |
7,485 |
5,968 |
8,646 |
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
Purchase of and additions to investment property |
(12,965) |
(2,024) |
(13,335) |
|
Disposal of investment property |
(21) |
6,250 |
33,941 |
|
Finance income |
207 |
194 |
624 |
|
|
|
|
|
|
Net cash (used in) / generated from investing activities |
(12,779) |
4,420 |
21,230 |
|
Cash flows from financing activities |
|
|
|
|
Withholding tax paid on distributions |
- |
- |
(782) |
|
Finance costs |
(893) |
(964) |
(1,807) |
|
Dividends paid |
(6,603) |
(6,350) |
(12,691) |
|
|
|
|
|
|
Net cash flow used in financing activities |
(7,496) |
(7,314) |
(15,280) |
|
Net (decrease)/ increase in cash and cash equivalents |
(12,790) |
3,074 |
14,596 |
|
Cash and cash equivalents at start of the period/year |
25,993 |
11,397 |
11,397 |
|
Cash and cash equivalents at end of the period/year |
13,203 |
14,471 |
25,993 |
The notes below form an integral part of these condensed financial statements.
Notes to the Condensed Financial Statements
for the six months ended 30 September 2025
1. Corporate information
AEW UK REIT plc (the 'Company') is a closed ended Real Estate Investment Trust ('REIT') incorporated on 1 April 2015 and domiciled in the UK.
2. Accounting policies
2.1 Basis of preparation
These interim condensed unaudited financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the UK, and should be read in conjunction with the Company's last financial statements for the year ended 31 March 2025. These condensed unaudited financial statements do not include all information required for a complete set of financial statements proposed in accordance with IFRS as adopted by the UK ('IFRS'). However, selected explanatory notes have been included to explain events and transactions that are significant in understanding changes in the Company's financial position and performance since the last financial statements.
The financial information contained in this Interim Report and Financial Statements for the six months
ended 30 September 2025 and the comparative information for the year ended 31 March 2025 does not constitute statutory accounts as defined in sections 435(1) and (2) of the Companies Act 2006. Statutory accounts for the year ended 31 March 2025 have been delivered to the Registrar of Companies. The Auditor reported on those accounts. Its report was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The comparative figures disclosed in the condensed unaudited financial statements and related notes have been presented for both the six month period ended 30 September 2024 and year ended 31 March 2025 and as at 30 September 2024 and 31 March 2025.
These condensed unaudited financial statements have been prepared under the historical-cost convention, except for investment property that have been measured at fair value. The condensed unaudited financial statements are presented in Sterling and all values are rounded to the nearest thousand pounds (£'000), except when otherwise indicated.
The Company is exempt by virtue of section 402 of the Companies Act 2006 from the requirement to prepare group financial statements. These financial statements present information solely about the Company as an individual undertaking.
2.2 Significant accounting judgements and estimates
The preparation of financial statements in accordance with IAS 34 requires the Directors of the Company to make judgements, estimates and assumptions that affect the reported amounts recognised in the financial statements. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability in the future.
i) Valuation of investment property
The Company's investment property is held at fair value as determined by the independent valuer on the basis of fair value in accordance with the internationally accepted Royal Institution of Chartered Surveyors ('RICS') Appraisal and Valuation Standards. Further detail in respect to the fair valuations of investment property is included within Note 9.
2.3 Segmental information
The Board of Directors retains overall control of the Company but the Investment Manager (AEW UK
Investment Management LLP) has certain authorities and fulfils the function of allocating resource to,
and assessing the performance of the Company's operating segments and is therefore considered to be the Chief Operating Decision Maker ('CODM'). In accordance with IFRS 8, the Company considers each of its properties to be an individual operating segment. The CODM allocates resources, and reviews the performance of, the Company's portfolio on a property-by-property basis and discrete financial information is available for each individual property.
These operating segments have similar economic characteristics and, as such, are aggregated into one
reporting segment, being investment in property and property-related investments in the UK.
2.4 Going concern
The Directors assessed the Company's ability to continue as a going concern, which takes into consideration current economic uncertainty, as well as the Company's cashflows, financial position, liquidity and borrowing facilities.
As at 30 September 2025, the Company had a cash balance of £13.20 million and had sufficient headroom against its borrowing covenants. The Company's loan is held with AgFe and is a £60.00 million facility with a five-year term. This is priced as a fixed rate loan with a total interest cost of 2.959% and associated 10% projected debt yield and 60% LTV covenants. The Company reported an LTV of 28.05% at period end. This provides room for a £113.93 million (circa 53%) fall in portfolio valuation (for those assets within the debt pool) before breaching the 60% hard LTV covenant. Moreover, based on the £60.00 million of debt drawn as at period end, the Company had a projected debt yield of 31.25%, comfortably in excess of the 10% covenant.
The Company benefits from a secure, diversified income stream from a tenancy profile which is not overly reliant on any one tenant or sector, which reduces risk. The Directors also noted that:
• The Company's rent collection has been strong, with over 95% of contracted rent either having been collected, or payment plans agreed, for the September 2025 quarter.
• Based on the contracted rent as at 30 September 2025, a reduction of 68% in net rental income could be accommodated before breaching the debt yield covenant in the Company's re-financed debt arrangements.
• Based on the property valuation at 30 September 2025, the Company had room for a £113.93 million fall in portfolio valuation before breaching the maximum LTV hard covenant in the Company's re-financed debt arrangements.
• The Company's cash flow can also be significantly managed through the adjustment of dividend payments, to the extent that this does not breach the REIT regime requirements for distributions.
Taking this into consideration, the Directors have reviewed a number of scenarios over 12 months from the date of approval of these financial statements, including a worst-case plausible downside scenario which makes the following assumptions:
• a reduction in net rental income of 30%;
• no new lettings or renewals, other than those where terms have already been agreed;
• a 20% fall in property valuations; and
• no new acquisitions or disposals.
In the above scenario, the Company is forecast to generate a positive cash flow before dividend payments, however it would generate a cash flow much lower than its target dividend of 8 pps per annum. Moreover, the Company is forecast to pass the debt yield covenant during the 12-month period with a minimum projected yield of 20%, compared with the limit of 10%, assuming that no repayments of the facility were to be made.
Given the Company's substantial headroom against its borrowing covenants, the Directors believe that the Company is well placed to manage its financing and business risks. The Directors are confident that the Company will have sufficient funds to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore the financial statements have been prepared on a going concern basis.
2.5 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are consistent with those applied within the Company's Annual Report and Financial Statements for the year ended 31 March 2025.
3. Rental and other income
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) £'000 |
Year ended 31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Rental income |
9,530 |
9,565 |
18,328 |
|
Insurance income |
589 |
611 |
1,194 |
|
Service charge income |
399 |
661 |
2,436 |
|
Other property income |
17 |
8 |
13 |
|
Turnover rents |
- |
- |
526 |
|
Dilapidation income received |
- |
68 |
180 |
|
Total rental and other property income |
10,535 |
10,913 |
22,677 |
|
Other income |
- |
1,056 |
1,082 |
|
Total rental and other income |
10,535 |
11,969 |
23,759 |
|
|
|
|
|
4. Property operating expenses
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) £'000 |
Year ended 31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Other property expenses |
817 |
249 |
1,191 |
|
Recoverable insurance expense |
589 |
611 |
1,194 |
|
Recoverable service charge expense |
399 |
661 |
2,436 |
|
Non-recoverable service change expense |
(18) |
502 |
997 |
|
|
|
|
|
|
Total property operating expenses |
1,787 |
2,023 |
5,818 |
|
|
|
|
|
5. Other operating expenses
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) £'000 |
Year ended 31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Investment management fee |
732 |
729 |
1,379 |
|
Operating costs |
525 |
542 |
973 |
|
Audit remuneration |
118 |
120 |
237 |
|
Directors' remuneration |
88 |
84 |
160 |
|
ISRE 2410 review (interim review fee) |
- |
36 |
36 |
|
|
|
|
|
|
Total other operating expenses |
1,463 |
1,511 |
2,785 |
|
|
|
|
|
6. Taxation
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) £'000 |
Year ended 31 March 2025 (audited) £'000 |
|
Tax charge comprises: |
|
|
|
|
Corporation tax payable |
- |
313 |
68 |
|
Prior year over accrual |
- |
- |
(42) |
|
Total tax charge |
- |
313 |
26 |
|
|
|
|
|
|
Analysis of charge in the period |
|
|
|
|
Profit before tax |
4,714 |
16,638 |
24,370 |
|
|
|
|
|
|
Theoretical tax at UK corporation tax standard rate of 25% (30 September 2024: 25%; 31 March 2025: 25%) |
1,179 |
4,159 |
6,093 |
|
|
|
|
|
|
Adjusted for: |
|
|
|
|
Exempt REIT income |
(1,550) |
(2,031) |
(3,570) |
|
Non taxable investment losses/ (gains) |
371 |
(2,128) |
(2,523) |
|
Corporation tax payable |
- |
313 |
68 |
|
Prior year over accrual |
- |
- |
(42) |
|
Total |
- |
313 |
26 |
7. Earnings per share and NAV per share
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) |
Period from 1 April 2024 to 30 September 2024 (unaudited) |
Year ended 31 March 2025 (audited) |
|
Earnings per share: |
|
|
|
|
Total comprehensive income (£'000) |
4,714 |
16,325 |
24,344 |
|
Weighted average number of shares |
158,424,746 |
158,424,746 |
158,424,746 |
|
Earnings Per Share (basic and diluted) (pence) |
2.98 |
10.30 |
15.37 |
|
|
|
|
|
|
|
|
|
|
|
EPRA earnings per share: Total comprehensive income (£'000) |
4,714 |
16,325 |
24,344 |
|
Adjustment to total comprehensive income: |
|
|
|
|
Change in fair value of investment property (£'000) |
1,465 |
(7,031) |
(6,861) |
|
Realised gain on disposal of investment property (£'000) |
21 |
(1,482) |
(3,230) |
|
Other income |
- |
(1,056) |
- |
|
Corporation tax charge on other income |
- |
264 |
- |
|
Total EPRA Earnings (£'000) |
6,200 |
7,020 |
14,253 |
|
EPRA earnings per share (basic and diluted) (pence) |
3.91 |
4.43 |
9.00 |
|
|
|
|
|
|
NAV per share: |
|
|
|
|
Net assets (£'000) |
172,820 |
172,761 |
174,443 |
|
Ordinary Shares |
158,424,746 |
158,424,746 |
158,424,746 |
|
NAV per share (pence) |
109.09 |
109.05 |
110.11 |
Earnings per share amounts are calculated by dividing profit for the period attributable to ordinary equity holders of the Company by the weighted average number of Ordinary Shares in issue during the period.
|
As at 30 September 2025 |
EPRA NTA £'000 |
EPRA NRV £'000 |
EPRA NDV £'000 |
|
IFRS NAV attributable to shareholders |
172,820 |
172,820 |
172,820 |
|
Real estate transfer tax1 |
- |
14,259 |
- |
|
Adjustment for the fair value of bank borrowings |
- |
- |
(2,152) |
|
At 30 September 2025 |
172,820 |
187,079 |
170,668 |
|
Number of Ordinary Shares |
158,424,746 |
158,424,746 |
158,424,746 |
|
NAV per share |
109.09 |
118.09 |
107.73 |
|
As at 30 September 2024 |
EPRA NTA £'000 |
EPRA NRV £'000 |
EPRA NDV £'000 |
|
IFRS NAV attributable to shareholders |
172,761 |
172,761 |
172,761 |
|
Real estate transfer tax1 |
- |
14,232 |
- |
|
Adjustment for the fair value of bank borrowings |
- |
- |
(3,625) |
|
At 30 September 2024 |
172,761 |
186,993 |
169,136 |
|
Number of Ordinary Shares |
158,424,746 |
158,424,746 |
158,424,746 |
|
NAV per share |
109.05p |
118.03p |
106.76p |
|
As at 31 March 2025 |
EPRA NTA £'000 |
EPRA NRV £'000 |
EPRA NDV £'000 |
|
IFRS NAV attributable to shareholders |
174,443 |
174,443 |
174,443 |
|
Real estate transfer tax and other purchasers' costs1 |
- |
13,500 |
- |
|
Adjustment for the fair value of bank borrowings |
- |
- |
(2,927) |
|
At 30 September 2025 |
174,443 |
187,943 |
171,516 |
|
Number of Ordinary Shares |
158,424,746 |
158,424,746 |
158,424,746 |
|
NAV Per share |
110.11 |
118.63 |
108.26 |
Earnings per share amounts are calculated by dividing profit for the period attributable to ordinary equity holders of the Company by the weighted average number of Ordinary Shares in issue during the period.
1 EPRA NTA and EPRA NDV are calculated using property values in line with IFRS, where values are net of Real Estate Transfer Tax ('RETT') and other purchasers' costs. RETT and other purchasers' costs are added back when calculating EPRA NRV and have been estimated at 6.6% of the net valuation provided by CBRE/ Knight Frank.
8. Dividends paid
|
Dividends paid during the period |
Period from 1 April 2025 to 30 September 2025 £'000 |
Period from 1 April 2024 to 30 September 2024 £'000 |
Year ended 31 March 2025 £'000 |
|
|
|
|
|
|
Represents two/two/four interim dividends of 2.00 pps each |
6,337 |
6,337 |
12,674 |
|
|
|
|
|
|
|
Period from |
Period from |
|
|
|
1 April 2025 to |
1 April 2024 to |
Year ended |
|
|
30 September |
30 September |
31 March |
|
|
2025 |
2024 |
2025 |
|
Dividends relating to the period |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
Represents two/two/four interim dividends of 2.00 pps each |
6,337 |
6,337 |
12,674 |
|
|
|
|
|
Dividends paid relate to Ordinary Shares. The Statement of Cash Flows for dividends paid includes £266,000 withholding tax paid which was payable at 31 March 2025 and excludes £nil withholding tax which is payable at 30 September 2025.
9. Investments
9.a) Investment property
|
|
Period from 1 April 2025 to 30 September 2025 (unaudited) |
|
|||
|
Investment properties freehold £'000 |
Investment properties leasehold £'000 |
Total £'000 |
Period from 1 April 2024 to 30 September 2024 (unaudited) Total £'000 |
Year ended 31 March 2025 (audited) Total £'000 |
|
|
UK Investment property |
|
|
|
|
|
|
|
|
|
|
|
|
|
As at beginning of period |
168,495 |
36,050 |
204,545 |
210,690 |
210,690 |
|
Purchases in the period |
12,038 |
- |
12,038 |
- |
10,533 |
|
Capital expenditure in the period |
543 |
384 |
927 |
2,024 |
2,802 |
|
Disposals in the period |
- |
- |
- |
(4,750) |
(26,893) |
|
Revaluation of investment property |
349 |
(1,809) |
(1,460) |
7,671 |
7,413 |
|
|
|
|
|
|
|
|
Valuation provided by CBRE |
181,425 |
34,625 |
216,050 |
215,635 |
204,545 |
|
|
|
|
|
|
|
|
Adjustment to carrying value for lease incentive debtor |
(4,044) |
(4,391) |
(4,303) |
||
|
Adjustment for lease obligations* |
187 |
187 |
187 |
||
|
Total Investment property |
212,193 |
211,431 |
200,429 |
||
|
|
|
|
|
|
|
|
Classified as: |
|
|
|
|
|
|
Investment property held for sale** |
469 |
24,793 |
- |
||
|
Investment property |
|
|
211,724 |
186,638 |
200,429 |
|
|
|
|
212,193 |
211,431 |
200,429 |
|
|
|
|
|
|
|
|
Change in fair value of investment property |
|
|
|
||
|
Change in fair value before adjustments for lease incentives |
(1,460) |
7,671 |
7,413 |
||
|
Adjustment for movement in the period: |
|
|
|
||
|
in value of lease incentive debtor |
(5) |
(640) |
(552) |
||
|
|
|
|
(1,465) |
7,031 |
6,861 |
|
Gains realised on disposal of investment property |
|
|
|
||
|
Net proceeds from disposals of investment property during the period*** |
(21) |
6,232 |
30,123 |
||
|
Fair value at beginning of period |
- |
(4,750) |
(26,893) |
||
|
(Losses) / gains realised on disposal of investment property |
(21) |
1,482 |
3,230 |
||
* Adjustment in respect of minimum payment under head leases separately included as a liability within the Statement of Financial Position.
** A vacant office block at 114-120 Bancroft, Hitchin has been classified as held for sale as at 30 September 2025.
*** Net proceeds include deductions for topped up rents and rent free periods of £nil (30 September 2024: £19,000, 31 March 2025: £1,642,000).
Valuation of investment property
Valuation of investment property is performed by CBRE, an accredited external valuer with recognised and relevant professional qualifications and recent experience of the location and category of the investment property being valued.
The valuation of the Company's investment property at fair value is determined by the external valuer on the basis of market value in accordance with the internationally accepted RICS Valuation - Professional Standards (incorporating the International Valuation Standards).
The determination of the fair value is based upon the income capitalisation approach. This approach involves applying capitalisation yields to current and future rental streams net of income voids arising from vacancies or rent-free periods and associated running costs. These capitalisation yields and estimated rental values are based on comparable property and leasing transactions in the market using the valuer's professional judgement and market observation. Other factors taken into account in the valuations include the tenure of the property, tenancy details, capital values of fixtures and fittings, environmental matter and the overall repair and condition of the property.
9.b) Fair value measurement hierarchy
The following table provides the fair value measurement hierarchy for non-current assets:
|
Assets measured at fair value |
Quoted prices in active markets (Level 1) £'000 |
Significant observable inputs (Level 2) £'000 |
Significant unobservable inputs (Level 3) £'000 |
Total £'000 |
|
|
|
|
|
|
|
30 September 2025 |
|
|
|
|
|
Investment property |
- |
- |
212,193 |
212,193 |
|
|
|
|
|
|
|
30 September 2024 |
|
|
|
|
|
Investment property |
- |
- |
211,431 |
211,431 |
|
|
|
|
|
|
|
31 March 2025 |
|
|
|
|
|
Investment property |
- |
- |
200,429 |
200,429 |
Explanation of the fair value hierarchy:
Level 1 - Quoted prices for an identical instrument in active markets;
Level 2 - Prices of recent transactions for identical instruments and valuation techniques using observable market data; and
Level 3 - Valuation techniques using non-observable data.
There have been no transfers between Level 1 and Level 2 during either period, nor have there been any transfers in or out of Level 3.
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the entity's portfolios of investment properties are:
1) ERV
2) Equivalent yield
Increases/(decreases) in the ERV (per sq ft per annum) in isolation would result in a higher/(lower) fair value measurement. Increases/(decreases) in the discount rate/ yield in isolation would result in a lower/(higher) fair value measurement.
The significant unobservable inputs used in the fair value measurement, categorised within Level 3 of the fair value hierarchy of the portfolio of investment property are:
|
|
Significant unobservable inputs |
||||
|
Sector |
Fair Value £'000 |
ERV range (per sq ft per annum) |
Weighted Average ERV (per sq ft per annum) |
Equivalent Yield range |
Weighted Average Equivalent Yield
|
|
|
|
|
|
|
|
|
As at 30 September 2025 |
|
|
|
|
|
|
Industrial |
80,415 |
£3.74 - £10.00 |
£5.24 |
6.80% - 10.13% |
8.16% |
|
Retail |
73,600 |
£0.00 - £21.38 |
£13.39 |
7.00% - 11.64% |
8.30% |
|
Office |
23,325 |
£1.16 - £15.38 |
£27.97 |
9.01% - 9.50% |
9.27% |
|
Alternatives |
38,710 |
£0.16 - £42.48 |
£17.79 |
8.55% - 13.73% |
9.32% |
|
Portfolio* |
216,050 |
£0.00 - £42.48 |
£12.72 |
6.80% - 13.73% |
8.99% |
|
|
|
|
|
|
|
|
As at 30 September 2024 |
|
|
|
|
|
|
Industrial |
75,825 |
£0.00 - £41.00 |
£4.58 |
6.82% - 10.93% |
7.61% |
|
Retail |
85,490 |
£0.00 - £85.00 |
£11.48 |
6.85% - 11.12% |
8.31% |
|
Office |
25,250 |
£8.50 - £39.98 |
£21.92 |
8.61% - 8.98% |
8.80% |
|
Alternatives |
29,070 |
£0.00 - £41.04 |
£10.84 |
7.68% - 9.66% |
8.52% |
|
Portfolio** |
215,635 |
£0.00 - £85.00 |
£7.63 |
6.82% - 11.12% |
8.37% |
|
|
|
|
|
|
|
|
As at 31 March 2025 |
|
|
|
|
|
|
Industrial |
78,600 |
£0.50 - £10.00 |
£4.60 |
6.83% -10.94% |
8.14% |
|
Retail |
72,450 |
£4.00 - £94.00 |
£11.74 |
7.09% - 10.88% |
8.61% |
|
Office |
24,600 |
£8.50 - £40.00 |
£21.93 |
8.60% - 8.99% |
8.81% |
|
Alternatives |
28,895 |
£8.50 - £42.43 |
£10.86 |
7.54% - 9.58% |
8.43% |
|
Portfolio** |
204,545 |
£0.50 - £94.00 |
£7.57 |
6.83% - 10.94% |
8.42% |
* Fair value per CBRE.
** Fair value per Knight Frank LLP.
Where possible, sensitivity of the fair values of Level 3 assets are tested to changes in unobservable inputs to reasonable alternatives.
Gains and losses recorded in profit or loss for recurring fair value measurements categorised within Level 3 of the fair value hierarchy are attributable to changes in unrealised gains or losses relating to investment property and investments held at the end of the reporting period.
With regards to both investment property and investments, gains and losses for recurring fair value measurements categorised within Level 3 of the fair value hierarchy, prior to adjustment for rent free debtor and rent guarantee debtor, where applicable, are recorded in profit and loss.
The tables below set out a sensitivity analysis for each of the key sources of estimation uncertainty with the resulting increase/(decrease) in the fair value of investment property.
|
|
Change in ERV |
Change in equivalent yield |
||||
|
|
£'000 |
£'000 |
£'000 |
£'000 |
||
|
|
|
|
|
|
||
|
Sensitivity Analysis |
+5% |
-5% |
+5% |
-5% |
||
|
|
|
|
|
|
||
|
30 September 2025 |
219,233 |
201,436 |
199,266 |
222,483 |
||
|
|
|
|
|
|
||
|
30 September 2024 |
224,460 |
206,878 |
204,730 |
227,675 |
||
|
|
|
|
|
|
||
|
31 March 2025 |
213,044 |
196,182 |
194,227 |
215,985 |
||
|
|
Change in ERV |
Change in equivalent yield |
||
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
Sensitivity Analysis |
+10% |
-10% |
+10% |
-10% |
|
|
|
|
|
|
|
30 September 2025 |
228,275 |
192,608 |
189,249 |
236,035 |
|
|
|
|
|
|
|
30 September 2024 |
233,300 |
198,157 |
194,828 |
241,066 |
|
|
|
|
|
|
|
31 March 2025 |
221,537 |
187,827 |
184,841 |
228,686 |
|
|
Change in ERV |
Change in equivalent yield |
|||
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
|
|
Sensitivity Analysis |
+15% |
-15% |
+15% |
-15% |
|
|
|
|
|
|
|
|
|
30 September 2025 |
237,363 |
183,838 |
180,109 |
251,188 |
|
|
|
|
|
|
|
|
|
30 September 2024 |
242,253 |
189,504 |
185,791 |
256,036 |
|
|
|
|
|
|
|
|
|
31 March 2025 |
230,146 |
179,541 |
176,276 |
242,887 |
|
10. Receivables and prepayments
|
- Non Current |
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Receivables |
|
|
|
|
Lease incentive debtor |
3,738 |
3,991 |
3,956 |
|
|
|
|
|
|
Total |
3,738 |
3,991 |
3,956 |
|
- Current |
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Receivables |
|
|
|
|
Rent agent float account |
7,247 |
4,624 |
5,635 |
|
Rent receivable |
1,295 |
1,310 |
1,287 |
|
Recoverable service charge receivable |
684 |
1,299 |
1,156 |
|
Other receivables |
487 |
2,052 |
251 |
|
Recoverable insurance receivable |
237 |
684 |
166 |
|
Completion proceeds due on sale of property |
- |
- |
350 |
|
Allowance for expected credit losses |
(512) |
(445) |
(459) |
|
|
9,438 |
9,524 |
8,386 |
|
Lease incentive debtor* |
306 |
400 |
347 |
|
|
9,744 |
9,924 |
8,733 |
|
|
|
|
|
|
Prepayments |
|
|
|
|
Property related prepayments |
1,637 |
1,388 |
495 |
|
Other prepayments |
125 |
75 |
53 |
|
|
1,762 |
1,463 |
548 |
|
Total |
11,506 |
11,387 |
9,281 |
The aged debtor analysis of receivables is as follows:
|
|
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
|
|
|
|
|
Less than three months due |
7,683 |
8,964 |
6,610 |
|
Between three and six months due |
1,755 |
560 |
1,776 |
|
|
|
|
|
|
Total |
9,438 |
9,524 |
8,386 |
The Company applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables. To measure expected credit losses on a collective basis, trade receivables are assessed on an individual tenant-by-tenant basis. The risk of credit loss applied to each tenant is assessed based on information including, but not limited to: external credit ratings; financial statements; press information; previous experience of losses or late payment; discussions with the property manager and the tenant.
The expected credit loss provision as at 30 September 2025 was £512,000 (30 September 2024: £445,000, 31 March 2025: £459,000). No reasonably possible changes in the assumptions underpinning the expected credit loss provision would give rise to a material expected credit loss.
The movement in the allowance for impairment in respect of trade receivables during the period was as follows:
|
|
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
Opening provision for impairment of trade receivables |
459 |
2,177 |
2,177 |
|
Increase/(decrease) during the period/year |
348 |
(350) |
(338) |
|
Unused amounts reversed |
(18) |
(119) |
(92) |
|
Movement in provision for impairment during the period/year |
330 |
(469) |
(430) |
|
Prior year receivable written off during the period/year as uncollectible |
(277) |
(1,263) |
(1,288) |
|
|
53 |
(1,732) |
(1,718) |
|
At the end of the period/year |
512 |
445 |
459 |
11. Interest bearing loans and borrowings
|
|
Bank borrowings drawn |
||
|
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
|
At the beginning of the period |
60,000 |
60,000 |
60,000 |
|
Interest bearing loans and borrowings |
60,000 |
60,000 |
60,000 |
|
|
|
|
|
|
Unamortised loan arrangement fees |
(172) |
(281) |
(227) |
|
At the end of the period |
59,828 |
59,719 |
59,773 |
|
|
|
|
|
|
Repayable between two and five years |
60,000 |
60,000 |
60,000 |
|
Bank borrowings available but undrawn in the period |
- |
- |
- |
|
|
|
|
|
|
Total facility available |
60,000 |
60,000 |
60,000 |
|
|
|
|
|
|
|
|
|
|
The Company has a £60.00 million (31 March 2024: £60.00 million) credit facility with AgFe, a leading independent asset manager specialising in debt-based investments. As of 30 September 2025, the Company had utilised £60.00 million (31 March 2024: £60.00 million). The loan is a fixed rate loan with a total interest cost of 2.959% and has a five year term, maturing in May 2027.
The Company has a target gearing of 35% Loan to NAV. As at 30 September 2025, the Company's gearing was 34.72% Loan to NAV (31 March 2025: 34.40%).
At 30 September 2025 the fair value of the loan was £57,848,000 (30 September 2024: £56,375,000, 31 March 2025: £57,070,000).
12. Payables and accrued expenses
|
|
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
Deferred income |
5,135 |
4,887 |
3,991 |
|
Other creditors |
1,562 |
2,221 |
1,423 |
|
Accruals |
897 |
1,389 |
1,257 |
|
Recoverable service charge payable |
178 |
85 |
266 |
|
Recoverable insurance payable |
33 |
31 |
109 |
|
Total |
7,805 |
8,613 |
7,046 |
13. Lease obligation as lessee
Leases as lessee are capitalised at the lease's commencement at the present value of the minimum lease payments. The present value of the corresponding rental obligations are included as liabilities.
The following table analyses the present value of the minimum lease payments under non-cancellable
finance leases:
|
|
30 September 2025 (unaudited) £'000 |
30 September 2024 (unaudited) £'000 |
31 March 2025 (audited) £'000 |
|
Current |
13 |
13 |
13 |
|
Non Current |
174 |
174 |
174 |
|
|
|
|
|
|
Total |
187 |
187 |
187 |
14. Issued share capital
There was no change to the issued share capital during the period. The number of ordinary shares allotted, called up and fully paid remained 158,774,746 of £0.01 each, of which 350,000 ordinary shares were held in treasury.
On 1 October 2025, the Company sold from treasury 150,000 of its ordinary shares for cash at a price of 109.41 pence per ordinary share. As at 1 October 2025, there were 158,574,746 ordinary shares in issue and 200,000 ordinary shares held in treasury.
15. Transactions with related parties
As defined by IAS 24 Related Party Disclosures, parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.
For the six months ended 30 September 2025, the Directors of the Company are considered to be the key management personnel. Directors' remuneration is disclosed in note 5.
The Company is party to an Investment Management Agreement with the Investment Manager, pursuant to which the Company has appointed the Investment Manager to provide investment management services relating to the respective assets on a day-to-day basis in accordance with their respective investment objectives and policies, subject to the overall supervision and direction of the Board of Directors.
Under the Investment Management Agreement, the Investment Manager receives a quarterly management fee which is calculated and accrued monthly at a rate equivalent to 0.9% per annum of NAV (excluding uninvested proceeds from fundraising).
During the period from 1 April 2025 to 30 September 2025, the Company incurred £732,000 (six months ended 30 September 2024: £729,000) of investment management fees and expenses of which £368,437 was outstanding at 30 September 2025 (31 March 2025: £335,510).
16. Events after reporting date
Dividend
On 23 October 2025, the Board declared its second interim dividend of 2.00 pps in respect of the period from 1 July 2025 to 30 September 2025. The dividend payment will be made on 28 November 2025 to shareholders on the register as at 31 October 2025. The ex-dividend date was 30 October 2025.
Property Sale
On 14 October 2025, the Company completed the sale of a 5,225 sq. ft. vacant office block, located to the rear of 114-120 Bancroft, being the main retail parade acquired by the Company in March 2025 for £10 million (£213 psf) / 8.31% NIY.
Issue of shares from treasury
On 1 October 2025, the Company sold from treasury 150,000 of its ordinary shares for cash at a price of 109.41 pence per ordinary share.
FURTHER INFORMATION
The financial information contained in these interim results does not constitute full statutory accounts as defined in section 435 of the Companies Act 2006. The half-yearly report for the period ended 30 September 2025 has been neither audited nor reviewed by the Company's Auditor. Statutory accounts for the year ended 31 March 2025 have been delivered to the Registrar of Companies. The Auditor reported on those accounts. Its report was unqualified and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
The unaudited half yearly results for the period ended 30 September 2025 will also be available today on www.aewukreit.com.
It will also be submitted shortly to the Financial Conduct Authority's National Storage Mechanism and will be available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Disclaimer
This communication cannot be relied upon as the basis on which to make a decision to invest in AEWU. This communication does not constitute an invitation or inducement to subscribe to any particular investment. Issued by AEW UK Investment Management LLP, 8 Bishopsgate, London, EC2N 4BQ.
Company number: OC367686 England. Authorised and regulated by the Financial Conduct Authority.
LEI: 21380073LDXHV2LP5K50
END
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