Aew Uk Reit Plc · LSE:AEWU
Aew Uk Reit — Mello Event 2019
30 slides from Aew Uk Reit's conference presentation, May 2019
Slide 1: AEW UK REIT PLC
AEW UK REIT PLC MAY 2019 www.aewukreit.com FOCUSED ON THE FUTURE OF REAL ESTATE
Slide 2: AEW Corporate Overview
SECTION 1 AEW CORPORATE OVERVIEW Focused on the Future of Real Estate 2
Slide 3: AEW: North America, Europe and Asia Pacific
AEW NORTH AMERICA, EUROPE AND ASIA PACIFIC Over 30 years’ real estate NORTH AMERICA Boston EUROPE Paris Luxembourg • 275 staff Los Angeles • 401 staff London Milan investment management Düsseldorf Madrid • 2 offices • 9 offices Frankfurt Prague experience Warsaw One of the largest real estate in
Slide 4: AEW UK: Funds and Separate Accounts
AEW UK: FUNDS AND SEPARATE ACCOUNTS ASSETS UNDER MANAGEMENT AND CAPITAL RAISED Total Assets Under Management Institutional Funds Separate Accounts £1.8bn £766m £1.0bn EXPECTED RETURN/ VOLITILITY AEW UK Urban Real Estate Fund (Value Add 2) Closed-ended, value add 6 year life Target IRR 12% AEW
Slide 5: About AEW UK REIT
SECTION 2 ABOUT AEW UK REIT Focused on the Future of Real Estate 5
Slide 6: AEW UK REIT PLC
AEW UK REIT PLC Highest yielding dividend in peer group Highly experienced team with over 25 years track record of outperformance A highly diversified portfolio with defensive characteristics Over 12 months to December 2018, AEWU has out performed the MSCI/IPD Total RETURN Benchmark by 5.48%
Slide 7: Portfolio Overview as at March 2019
AEW UK REIT PLC PORTFOLIO OVERVIEW AS AT 31 MARCH 2019 PORTFOLIO OVERVIEW REGIONAL EXPOSURE SECTOR EXPOSURE NAV £149.5m Standard retail Rest of London 11.918 4.352 6.073 15.194 NAV PPS 98.61p 7.502 South East 3.391 15.106 Retail Warehouse South West Number of 35 17.813 Eastern properties West Midlan
Slide 8: Performance
SECTION 3 AEW UK REIT PERFORMANCE Focused on the Future of Real Estate 8
Slide 9: AEW UK REIT PLC – Company Performance
AEW UK REIT PLC – COMPANY PERFORMANCE Share price, total return and dividends paid 130 2.5 Over 12 months to December 120 2018, AEWU has out 2 performed the MSCI/IPD Total Pence per Quarter 110 1.5 RETURN Benchmark by 5.48% Index value 100 1 90 Highest yielding dividend in Change of accounting p
Slide 10: AEW UK REIT PLC – Direct Asset Level Performance
AEW UK REIT PLC – DIRECT ASSET LEVEL PERFORMANCE Annualised Direct Property Including Transaction Costs 12.0 11.0 10.5 10.1 10.0 10.4 9.6 On like for like direct 10.0 9.1 9.7 10.3 8.3 basis the portfolio 8.0 7.5 9.6 8.4 9.3 total return since 6.9 7.0 6.0 6.0 inception is 11.2% 5.6 6.2 6.7 4.6 4.4
Slide 11: Dividend Yield % Performance Comparison
AEW UK REIT PERFORMANCE COMPARISON STRONG DIVIDEND YIELD 10.0 9.0 8.6 8.0 7.7 7.0 6.6 6.0 5.7 5.3 5.3 5.3 DIVIDEND YIELD % 5.0 5.0 4.6 4.2 4.0 4.0 3.0 2.0 1.0 0.0 AEW UK REIT Regional REIT Drum Income Custodian REIT Ediston Standard Life F&C UK Real F&C Schroder Real UK Commercial Picton Property Or
Slide 12: Case Studies
SECTION 5 CASE STUDIES Focused on the Future of Real Estate 12
Slide 13: Indicative Recent Acquisition: Parkside Industrial Estate, Leeds
INDICATIVE RECENT ACQUISITION PARKSIDE INDUSTRIAL ESTATE, LEEDS PROPERTY TYPE Industrial PROPERTY SIZE 187,794 sq ft ACQUIRED February 2019 CURRENT VALUE £7.0m PRICE PER SQ FT £38 TRIPLE NET YIELD 7.7% REVERSIONARY YIELD 8.0 % INVESTMENT ATTRIBUTES Attractive income yield Established industrial
Slide 14: Significant Rental Growth from Secondary Warehousing
SIGNIFICANT RENTAL GROWTH FROM SECONDARY WAREHOUSING PARTICULARLY FOR ASSETS WITH LOW PASSING RENTS AND IN AREAS WITH CONSTRAINED SUPPLY UNIT 1005, SARUS COURT, RUNCORN APOLLO BUSINESS PARK, PAYCOCK ROAD, BASILDON AEW UK REIT Passing rent at acquisition of £4.50 psf weighting to low Passing rent
Slide 15: Indicative Recent Acquisition: Geddington Road, Corby
INDICATIVE RECENT ACQUISITION GEDDINGTON ROAD, CORBY PROPERTY TYPE Industrial PROPERTY SIZE 35 Acres ACQUIRED February 2018 CURRENT VALUE £12.9m PRICE PER ACRE £350k TRIPLE NET YIELD 9.6% REVERSIONARY YIELD 7.0% INVESTMENT ATTRIBUTES Attractive income yield at circa 10% Long term redevelopment o
Slide 16: Indicative Recent Acquisition: Leisure Park, Dagenham
INDICATIVE RECENT ACQUISITION EAST LONDON, LEISURE PARK, DAGENHAM PROPERTY TYPE Leisure PROPERTY SIZE 71,720 sq ft ACQUIRED February 2018 CURRENT VALUE £12.0m PRICE PER SQ FT £167 TRIPLE NET YIELD 7.5% REVERSIONARY YIELD 6.6% INVESTMENT ATTRIBUTES Prominent east London location, easily accessible
Slide 17: Asset Management Case Study: Queen Square, Bristol
ASSET MANAGEMENT CASE STUDY 40 QUEEN SQUARE, BRISTOL PROPERTY TYPE Office PROPERTY SIZE 36,230 sq ft ACQUIRED December 2015 CURRENT VALUE £12.1m PRICE PER SQ FT £334 TRIPLE NET YIELD 5.7% REVERSIONARY YIELD 6.6% INVESTMENT ATTRIBUTES Vacancy level 46% at acquisition in December 2015 now fully let
Slide 18: Asset Management Case Study: Valley Retail Park, Belfast
ASSET MANAGEMENT CASE STUDY VALLEY RETAIL PARK, BELFAST VALLEY RETAIL PARK,BELFAST PROPERTY NAME Valley Retail Park, Newtownabbey PROPERTY TYPE Retail warehouse AREA 100,413 sq ft ACQUIRED August 2015 PURCHASE PRICE £7.15m (£71 psf) YIELD ON PURCHASE 12.8% SOLD October 2017 £11.1m (£111 psf) + Surre
Slide 19: Conclusion
SECTION 7 CONCLUSION Focused on the Future of Real Estate 19
Slide 20: Conclusion
AEW UK REIT PLC PERFORMANCE CONCLUSION Target Dividend Payment – 8pps per annum Target geographical diversification Target net yields of 8-10% Tenant diversification Target debt – 20/30% of NAV Highly experienced team with over 25 years track record of outperformance Over the 12 months
Slide 21: Contacts
CONTACTS ALEX SHORT PORTFOLIO MANAGER AEW UK REIT +44 (0)20 7016 4838 Alex.short@eu.aew.com DOUGLAS ROWLANDS DIRECTOR INVESTOR RELATIONS +44 (0)20 7016 4831 Douglas.rowlands@eu.aew.com Focused on the Future of Real Estate 21
Slide 22: AEW Office Addresses
BOSTON LONDON PARIS HONG KONG +1 617 261 9000 +44 20 7016 4800 +33 1 78 40 92 00 +852 2107 3500 Two Seaport Lane 33 Jermyn Street 8-12 rue des Pirogues de 8 Queen’s Road, Central AEW.COM Boston, MA 02210 London, SW1Y6 DN Bercy 15/F Focused on the Future of Real Estate United Kingdom 75012 Paris Hong
Slide 23: AEW UK Core Property Fund Track Record 2012-2018
AEW UK CORE PROPERTY FUND TRACK RECORD 2012-2018 CORE REAL ESTATE – ABOVE 2% P.A. AVERAGE PUT PERFORMANCE OVER 20 YEARS AEW UK REAL RETURN FUND UK Core Property Fund Annual Return 12.0 AREF/IPD All Balanced Property Funds Index 25.0 22.1 10.0 20.0 8.8 8.8 16.9 17.2 8.0 15.2 7.0 6.7 15.0 14.2 % Retur
Slide 24: Why AEW UK?
WHY AEW UK? WE HAVE WORKED WITH PENSION SCHEME INVESTORS FOR MORE THAN 20 YEARS AEW committed to real estate – we only invest in real estate HIGHLIGHTS Strong alignment with investors – 50% equity owners, personal co-investment in Funds from key individuals via SIPPS AEW UK Core Property Fund
Slide 25: Investment Process
INVESTMENT PROCESS INVESTMENT PROCESS: A BLEND OF TOP DOWN RESEARCH AND TRADITIONAL VALUE INVESTING Primary research into long-term thematics Investment strategy and research Primary research into sector Research Team fundamentals Hans Vrensen – Head of Research Capital flows Investment Management C
Slide 26: Biographies
BIOGRAPHIES BOARD OF DIRECTORS Mark Burton – Non-Executive Chairman Mark was appointed as a Director on 9 April 2015. He currently serves as a board member of Value Retail plc. He also sits on the real estate advisory board for Norges Bank Investment Management, is a member of the investment advisor
Slide 27: Biographies
BIOGRAPHIES BOARD OF DIRECTORS & INVESTMENT MANAGEMENT COMMITTEE MEMBER James Hyslop – Non Executive Non Independent Director James was appointed as a Director on 9 April 2015. He has 52 years of investment industry experience. He is currently a member of the investment committee of Paloma Real Esta
Slide 28: Team Biographies
TEAM BIOGRAPHIES AEW UK INVESTMENT MANAGEMENT COMMITTEE Rob Wilkinson – European CEO, AEW Europe Rob is the European CEO of AEW Group and Chairman of the European Investment Committee, with overall responsibility for defining and implementing strategy. Prior to being appointed European CEO in 2014,
Slide 29: Team Biographies
TEAM BIOGRAPHIES AEW UK PORTFOLIO MANAGEMENT Alex Short – Portfolio Manager to the Company Alex is Portfolio Manager of AEW UK REIT plc and has 22 years' industry experience. From 2010 to 2013, she was a Managing Director at UBS Global Asset Management and held a business and client management role,
Slide 30: Disclaimer
DISCLAIMER IMPORTANT INFORMATION This presentation (the "Presentation") has been prepared by AEW UK Investment Management LLP (the "Investment Manager") and is for information purposes only. Any recipient of this Presentation must: (a) limit the recipients of copies of the Presentation or summaries