Interest Rate Cap Acquired
3 June 2026
AEW UK REIT plc
Interest Rate Cap Acquired Ahead of 2027 Refinancing
AEW UK REIT plc (LSE: AEWU) ('AEWU' or the 'Company') announces that it has bought an interest rate cap to protect against the risk of higher interest rates when its fixed‑rate debt facility with AgFe expires on 20 July 2027.
The cap has been acquired as a prudent measure given the uncertainty over the medium‑term outlook for interest rates. It will run from 20 July 2027 to 20 July 2030 and will cover £30.0 million of borrowings, equivalent to 50% of the Company's current debt. The Company has paid a one‑off premium of £638,000 for the cap, which limits the SONIA rate on the Company's borrowings to a maximum of 4.064% over the three-year term.
The purchase of the cap is expected to help protect both the Company's future earnings and shareholder distributions if UK interest rates increase, while allowing the Company to benefit if overnight SONIA is below 4.064%.
Laura Elkin, Portfolio Manager of AEW UK REIT plc, commented: "Against a backdrop of continued uncertainty around the medium‑term path of UK interest rates, the Board and the Manager believe it is prudent to take proactive steps to manage the Company's future refinancing costs. The interest rate cap we have put in place on £30.0 million of notional exposure from July 2027 provides cost‑effective protection on half of our anticipated refinancing, while preserving the Company's ability to benefit from lower interest rates if the rate environment improves. This action is consistent with our disciplined approach to risk management and is intended to support the sustainability of earnings and dividends for shareholders over the medium term."
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AEW UK Laura Elkin Henry Butt |
laura.elkin@eu.aew.com
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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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Cardew Group |
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Ed Orlebar Tania Wild |
+44 (0) 7738 724 630 +44 (0) 7425 536 903
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Panmure Liberum |
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Darren Vickers |
+44 (0) 20 3100 2222 |
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. www.aewukreit.com
LEI: 21380073LDXHV2LP5K50
About AEW
AEW is one of the world's largest real estate asset managers, with €73.1 billion of assets under management as at 31 December 2025. AEW has over 820 employees, with its main offices located in Boston, London, Paris and Singapore and offers a wide range of real estate investment products including commingled 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.
AEW managed £1.2 billion of assets under management in the UK as at 31 December 2025, across a number of real estate funds and separate account mandates. The UK team comprises over 55 employees and has a long track record of successfully implementing core, value add and opportunistic strategies on behalf of its clients.
AEW UK Investment Management LLP is the Investment Manager. AEW is a group of companies which 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 headquarter 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.
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.
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