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Better times lie ahead for these high-yield property trusts

One Reit has dropped sharply in but offers a solid yield while another plans to return cash to shareholders
January 24, 2023
  • Industrial property portfolio declines 15.4 per cent in final quarter of 2022
  • Property portfolio now worth £209mn
  • Net asset value (NAV) per share of 104.9p
  • 36 per cent loan-to-value ratio with significant headroom on all loan covenants

AEW UK Reit (AEWU:101p), a valued focused Reit that holds a portfolio of 37 regional UK commercial property assets, has reported a 10.8 per cent like-for-like valuation decline in the final quarter of 2022.

It wasn’t entirely unexpected, hence why AEW’s share price is up since I covered the interim results when I rated the shares a hold at 94p (‘Positioning for a commercial property downturn’, 16 November 2022). The portfolio also outperformed the benchmark CBRE monthly index, which registered a cumulative decline of 14.57 per cent in the same three-month period.

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