During the quarter, the Company agreed to move its loan agreement to be linked to the Sterling Overnight Index Average ("SONIA") as a result of the FCA's expectation that LIBOR will no longer be available after 31 December 2021. The loan will attract interest at SONIA + 1.4% from the date of the next interest payment in July 2021. As at 30 June 2021 the Company's all-in interest rate was 1.49%.

To mitigate the risk of interest rates rising, the Company has interest rate caps effective for the remaining term of the loan, capping LIBOR at 1.0% on a notional value of GBP51.50 million. The interest rate caps will transition to SONIA on 31 December 2021.

Rent Collection

As at the date of this announcement, the Company had collected the following rental payments for the rental quarter commencing 24 June 2021 and for previous quarters since the onset of the COVID-19 pandemic, expressed as a percentage of the quarter's total rental income: 


Current Position as at 21 July 2021            Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 
Received                                       99%     99%     98%     98%     96%     75% 
Monthly Payments Expected Prior to Quarter End -       -       -       -       -       13% 
                                               99%     99%     98%     98%     96%     88% 
 
 
Under Negotiation 
                                                                       1%      3%      5% 
                                               1%      1%      1% 
                                               100%    100%    99%     99%     99%     93% 
Outstanding                                    0%      0%      1%      1%      1%      7% 
Total                                          100%    100%    100%    100%    100%    100%

It should be noted that this is an evolving picture with further payments being received each week.

For any amounts that remain outstanding that are owed by tenant companies who are known to have the ability to pay, the Company is pursuing these tenants.

Asset Management Update

During the quarter the Company completed the following asset management transactions:

Arrow Point Retail Park, Shrewsbury - We have extended British Heart Foundation's unexpired term to break by pushing their November 2021 break option out to December 2024 in return for 4 months' rent free. The majority of the rent free was used to write off rent arrears predating AEWU's ownership.

Diamond Business Park, Wakefield - We have completed a new 5 year ex-Act lease at GBP41,866 pa / GBP3.75 per sq ft on Unit 14, which reflects a rent 25% above the March 2021 ERV. 6 months' rent free was given as an incentive.

Bristol, 40 Queen Square - We have completed a new 5 year ex-Act lease to Brewin Dolphin at GBP103,770 pa / GBP30 per sq ft versus the previous passing rent of GBP22 per sq ft and the March 2021 ERV of GBP26 per sq ft. A 12 month rent free incentive was given. 


Enquiries 
AEW UK 
Alex Short                     alex.short@eu.aew.com 
                               +44(0) 20 7016 4848 
                               henry.butt@eu.aew.com 
Henry Butt 
                               +44(0) 20 7016 4855 
Nicki Gladstone                nicki.gladstone-ext@eu.aew.com 
                               +44(0) 7711 401 021 
Company Secretary 
Link Company Matters Limited   aewu.cosec@linkgroup.co.uk 
                               +44(0) 1392 477 500 
 
TB Cardew                      AEW@tbcardew.com 
Ed Orlebar                     +44 (0) 7738 724 630 
Tania Wild                     +44 (0) 7425 536 903 
Lucas Bramwell                 +44 (0) 7939 694 437 
 
Liberum Capital 
Darren Vickers / Owen Matthews +44 (0) 20 3100 2000

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 GBP15 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 UK Listing 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 UK Investment Management LLP

AEW UK Investment Management LLP employs a well-resourced team comprising 26 individuals covering investment, asset management, operations and strategy. It is part of AEW Group, one of the world's largest real estate managers, with EUR72.8bn of assets under management as at 31 March 2021. AEW Group comprises AEW SA and AEW Capital Management L.P., a U.S. registered investment manager and their respective subsidiaries. In Europe, as at 31 March 2021, AEW Group managed EUR35.7bn of real estate assets on behalf of a number of funds and separate accounts with over 430 staff located in 9 offices. The Investment Manager is a 50:50 joint venture between the principals of the Investment Manager and AEW. In May 2019, AEW UK Investment Management LLP was awarded Property Manager of the Year at the Pensions and Investment Provider Awards.

www.aewuk.co.uk ----------------------------------------------------------------------------------------------------------------------- 


ISIN:           GB00BWD24154 
Category Code:  MSCM 
TIDM:           AEWU 
LEI Code:       21380073LDXHV2LP5K50 
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State 
Sequence No.:   118148 
EQS News ID:    1220635 
 
End of Announcement  EQS News Service 
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(END) Dow Jones Newswires

July 21, 2021 05:35 ET (09:35 GMT)