Intention to issue new equity
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, CANADA, JAPAN, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
This announcement is not an offer to sell, or a solicitation of an offer to acquire, securities in the United States or in any other jurisdiction. Neither this announcement nor any part of it shall form the basis of or be relied on in connection with or act as an inducement to enter into any contract or commitment whatsoever.
AEW UK REIT PLC
11 September 2017
Intention to issue new equity
AEW UK REIT plc (the "Company") is pleased to announce that it intends to undertake a 12 month share issuance programme (the "Issuance Programme"). The Issuance Programme will commence with an issue of ordinary shares (the "Shares"), currently anticipated to close around mid October 2017 (the "Initial Issue"). The Initial Issue is expected to be undertaken by way of a placing, offer for subscription and intermediaries offer.
The Company is seeking to raise a target amount of £40 million under the Initial Issue, with the ability to increase the size of the Initial Issue, up to a maximum of £60 million, if the Directors, on advice from AEW UK Investment Management LLP (the "Investment Manager"), believe it is appropriate to do so in light of the pipeline of properties and the expected speed of deployment of the net proceeds of the Initial Issue.
The Initial Issue price will be set by reference to the prevailing net asset value ("NAV") per Share and Share price at the last practicable date prior to the publication of the prospectus in relation to the Initial Issue and Issuance Programme (the "Prospectus").
The target Initial Issue size has been set with regard to the pipeline of available stock reviewed by the Investment Manager at yields which would be accretive to the Company's current portfolio. The Investment Manager remains focused on searching for properties in locations that exhibit healthy levels of tenant demand and low levels of supply for competing stock. There is a particular focus on keeping investment values at a level where they are significantly supported by the underlying long term value of a property and, therefore, assets will be less exposed to capital erosion in the event of tenant default.
The current pipeline includes a diverse range of geographical locations and property sectors. Over recent weeks the Investment Manager has seen an increased number of attractive opportunities in retail and other sectors and therefore expects that future acquisitions will represent a more balanced spread of property sectors, rather than being concentrated in the industrial sector as seen over past quarters. In line with the Company's strategy the Investment Manager continues to focus on finding future acquisitions which will deliver an attractive return as part of a well-diversified regional portfolio.
Further details of the Initial Issue, including definitive timing and the Initial Issue price, will be announced on the publication of the Prospectus, alongside a circular convening a general meeting to seek shareholder approval for the Issuance Programme, later this month, subject to receipt of regulatory approvals. Subject to shareholder approval, the new Shares under the Initial Issue will be issued and commence trading by the end of October 2017.
Change of Accounting Reference Date
The Company announces a change to its accounting reference date from 30 April to 31 March. The current interim reporting period to 31 October for this financial period will remain unchanged and, therefore, the Company's next financial reporting event will be interim results for the 6 month period from 1 May 2017 to 31 October 2017 and the next audited results will be for the 11-month period from 1 May 2017 to 31 March 2018.
Thereafter, the Company will revert to an annual reporting calendar based on a 31 March year end with the interim reporting period to 30 September.
The Board does not foresee any material financial implications for the Company as a result of the change to the accounting reference date, nor is there any other matter of significance that needs to be brought to the attention of the Company's shareholders in this regard. The change in accounting reference date is being made to align the Company's quarterly NAV reporting dates with those of its peers in the UK commercial property sector.
The next NAV will be calculated in respect of the three month period ending 31 October 2017, consistent with the Company's interim reporting period for the current financial period and with the intended dividend policy (see below). Subsequent to this, the Company's NAV will be calculated for the two months ending 31 December 2017 (rather than the 3 months ending 31 January 2018), and thereafter on a rolling 3 month basis.
Dividend Policy
In order to align dividend payments with the Company's new accounting period, in respect of the 3 month period to 31 October 2017 the Company intends to pay a dividend of 2 pence per Share and then, in respect of the 2 month period to 31 December 2017, it intends to pay a further dividend at a rate of two-thirds of the 2 pence per Share dividend currently being paid for a three month period (reflecting the 2 month period since the previous dividend payment).
From March 2018 the Company anticipates resuming quarterly dividends with dividends declared in January, April, July and October of each year. The Directors will declare dividends taking into account the level of the Company's net income and the Directors' view on the outlook for sustainable recurring earnings. As such the level of dividends paid may increase or decrease from the current annual dividend, which is 8 pence per Share over the 12 months ending 30 April 2017.
Based on the current market conditions, the Company expects to pay an annualised dividend of 8 pence per Share in respect of the financial period ending 31 March 2018 and for the interim financial period to 30 September 2018.1
1 The figures in relation to dividends are indicative only and are not intended to be, and should not be taken as, a profit forecast or estimate. Actual returns cannot be predicted and may differ materially from these figures. There can be no assurance that they will be met.
This announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.
For further information, please contact:
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AEW UK Investment Management LLP Alex Short Laura Elkin
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020 7016 4880 |
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Fidante Capital Katie Standley
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020 7832 0900 |
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Media Enquiries: Temple Bar Advisory (Financial PR advisor) Ed Orlebar Tom Allison Lucy Featherstone
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0207 002 1510
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Company Secretary Capita Company Secretarial Services Limited |
0207 954 9547
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This information is provided by RNS
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