London real estate investment trust "strategically placed" despite 76.5% profit drop

A London real estate investment trust has reported a drop in profit of nearly £12m for 2020.

AEW UK REIT, which holds a portfolio of 35 commercial investment properties throughout the UK, earned profit before tax of £3.65m this financial year, down 76.5 per cent from 2019’s £15.54m.

However, its operating profit increased by nearly £1m to £14.47m, and says that “a number” of asset management transactions are being negotiated.

It said today that it is strategically placed to deliver a robust performance going forward.

It also increased its cash balance from £2.13m to £9.87m during the period, and built on that again since the year-end with the disposal of a property on Geddington Road.

Mark Burton, chairman of AEW UK REIT,  commented: “We are pleased with the overall performance of the company, which, for a second consecutive year, has improved its performance in EPRA EPS, while also achieving a dividend of 8 pence per share.

“The end of the financial year saw the outbreak of COVID-19 and the focus of the board and investment manager has been on minimising the impact on the company and stakeholders.

“We believe the company’s assets are strategically placed to continue to provide investors with robust performance over the medium and long term.

“The board is encouraged by the fact that, despite the uncertainty that has been caused by the outbreak of COVID-19, a number of ongoing asset management transactions are currently being negotiated by the manager whose active management style is a principal feature of the company’s strategy seeking to maximise both income and capital returns to shareholders.

“With a number of these key discussions ongoing it is hoped that further value can be added.”

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