AEW UK REIT (AEWU) Q4 2025 earnings summary

Executive summary

• Value investing strategy and sector flexibility have driven outperformance versus UK commercial property peers for nearly 10 years.

• NAV at 31 March 2025 was £174.44 million or 110.11p per share, up from £174.30 million or 110.02p per share at 31 December 2024.

• Portfolio valuation increased by 1.42% this quarter, with notable gains in industrial and high street retail sectors.

• Interim dividend of 2.00p per share declared for the 38th consecutive quarter, with 94% average coverage since IPO.

• Acquisition of a high-street retail asset in Hitchin for £10 million, reflecting a net initial yield of 8.31%.

Financial highlights

• Portfolio valuation stands at £204.5 million, up 1.42% quarter-on-quarter.

• Net Asset Value (NAV) is £174.44 million, or £1.10 per share; shares trade at a 6–7.91% discount to NAV.

• One-year NAV total return is 14.5%, with a five-year NAV total return of 10.5%.

• EPRA earnings per share for the quarter were 1.71p, down from 2.35p in the previous quarter, impacted by disposal proceeds held as cash.

• Share price total return for the quarter was 2.99%.

Outlook and guidance

• Management sees the current market as the best opportunity for value investing since IPO, with a robust pipeline and imminent acquisitions.

• Commitment to the 2.00p quarterly dividend, in line with the targeted annual dividend of 8.00p per share.

• Further acquisitions are expected as remaining disposal proceeds are under negotiation.

• The company is considering raising additional capital, potentially via new equity issuance.

• Ongoing focus on redeploying cash from recent disposals into high-yielding assets.