AEW UK REIT PLC
Moderate
The Investment Manager has endeavoured to ensure Impact:
The future ability of the Company to successfully pursue that the principal members of its management team Moderate to
its investment objective and investment policy may, are suitably incentivised. High
among other things, depend on the ability of the
Investment Manager to retain its existing staff and/or Movement: No
to recruit individuals of similar experience and change
calibre.
13. Ability to meet objectives
The Company may not meet its investment objective to
deliver an attractive total return to shareholders from
investing predominantly in a portfolio of smaller The Company has an investment policy to achieve a Probability:
commercial properties in the United Kingdom. balanced portfolio with a diversified asset and High
tenant base. The Company also has investment
restrictions in place to limit exposure to Impact: High
potential risk factors. These factors mitigate
Poor relative total return performance may lead to an the risk of fluctuations in returns. Movement: No
adverse reputational impact that affects the Company's change
ability to raise new capital.
TAXATION RISKS
14. Company REIT status
The Company has a UK REIT status that provides a
tax-efficient corporate structure.
The Company monitors REIT compliance through the
If the Company fails to remain a REIT for UK tax Investment Manager on acquisitions; the Probability:
purposes, its profits and gains will be subject to UK Administrator on asset and distribution levels; Low
corporation tax. the Registrar and Broker on shareholdings and the
use of third-party tax advisers to monitor REIT Impact: High
compliance requirements.
Movement: No
Any change to the tax status or UK tax legislation could change
impact on the Company's ability to achieve its
investment objectives and provide attractive returns to
shareholders.
POLITICAL/ECONOMIC RISKS
15. General political/economic environment The Board considers the impact of political and
macroeconomic events when reviewing strategy.
Political and macroeconomic events present risks to the Probability:
real estate and financial markets that affect the High
Company and the business of its tenants. The level of
uncertainty that such events bring has been highlighted The UK's exit from the EU is not considered to Impact: High
in recent times, most pertinently the effects of the generate any risks specific to the Company and is
UK's exit from the EU in January 2021. not considered to have any material effect on the Movement: No
financial statements. change
16. COVID-19 The Manager is in close contact with tenants. The Probability:
Investment Manager has put in place social High
The economic disruption arising from the COVID-19 virus distancing measures as advised by the UK
could impact rental income receipts from tenants, the government. The Manager has maintained a close Impact: High
ability to access funding at competitive rates, maintain relationship with RBSi to ensure continuing
the Company's dividend policy and its adherence to the dialogue around covenants. Movement:
HMRC REIT regime, particularly if the UK government Decreasing
restrictions are in place for a prolonged period. Stakeholder Engagement
s172 Statement
The Directors' overarching duty is to promote the success of the Company for the benefit of its shareholders, having regard to the interests of its stakeholders, as set out in section 172 of the Companies Act 2006 (the 'Act'). The Directors have considered each aspect of this section of the Act and consider that the information set out below is particularly relevant in the context of the Company's business as an externally managed investment company which does not have any employees or suppliers.
We set out in the table below our key stakeholders, the nature of their relationship with the Company and Board, their key interests and how we engage with those stakeholders.
Our relationships with stakeholders are factored into Board discussions and decisions made by the Board will consider the impact on the stakeholders, in accordance with s172 of the Act.
Stakeholder
Interests Engagement
- Sustainable growth of
the Company and
Investors achieving target returns
- AGM, Annual Report,
Our shareholders are impacted directly by the financial performance of - Good relationship with regulatory
the Company the Company and Board announcements
through dividends and share price movements.
- Effective structure - Quarterly update
and control Framework report and other key
They also play an important role in monitoring the governance of the information published
Company. on the website
- Impact of the Company
on the wider community
and environment - Roadshows, meetings
and presentations via
the Investment Manager
- Reputation of the
Company
- Relationship with the
Service providers Company and Board
- Effective and regular
communication
Key functions of the Company are outsourced to third-party suppliers, - Fair contract terms
including investment management, property management, administration, and service-level
company secretarial, registrar, depositary and legal services. It is agreements
important to develop strong long-term working relationships with these - Service-level
providers to enhance the efficiency of the Company's operations, as agreements
well as that of the providers themselves.
- Reputation of the
Company
- Formal tender
processes where
appropriate
- The Company's
performance and
long-terms prospects
- Good communication and
relationship with the - Site visits and face
Company as landlord to face meetings
Tenants through the Investment
Manager
- Fair lease terms
The Company's strategy in relation to its individual assets will (MORE TO FOLLOW) Dow Jones Newswires
June 24, 2021 02:03 ET (06:03 GMT)
