AEW UK REIT (AEWU) Investor Update summary

Strategic overview and investment approach

• Celebrated 10 years of outperformance and consistent high dividends, with a strategy rooted in value investment principles and sector-agnostic asset selection.

• Maintains a market-leading dividend of £0.02 per share per quarter, paid for 39 consecutive quarters, and strong total returns versus peers and the wider UK commercial property market.

• Focuses on high-yielding, sustainable locations, low book values, and flexible business plans to ensure income and capital appreciation over multi-year holds.

Portfolio performance and market trends

• Portfolio valued at £215.8 million as of June 30, with 34 properties and a current investment yield of 8.13%.

• Retail holdings, especially High Street and retail warehousing, drove valuation stability, with vacancy rates stabilizing and strong Q1 retail sales.

• Vacancy rate is just under 7%, mainly due to refurbishments and ongoing lettings, with expectations for improved occupancy in the autumn.

• Fully invested after recent acquisitions, with sector allocation shifting from industrial to increased retail exposure due to attractive pricing.

Financial and operational highlights

• Five-year annualized net total return of 11.4% and 6.6% outperformance over the nearest peer.

• Consistent outperformance against benchmarks across all time periods, winning the MSCI award for three-year annualized property total return.

• Disciplined approach to asset disposals, reinvesting proceeds into high-yielding properties and leveraging alternative uses for value creation.