Business
Interest Rate Cap Acquired
Interest Rate Cap Acquired.
About this update from Aew Uk Reit Plc
3 June 2026 AEW UK REIT plc Interest Rate Cap Acquired Ahead of 2027 Refinancing AEW UK REIT plc (LSE: AEWU) ('AEWU' or the 'Company') announces that it has bought an interest rate cap to protect against the risk of higher interest rates when its fixed‑rate debt facility with AgFe expires on 20 July 2027. The cap has been acquired as a prudent measure given the uncertainty over the medium‑term outlook for interest rates. It will run from 20 July 2027 to 20 July 2030 and will cover £30.0 million of borrowings, equivalent to 50% of the Company's current debt. The Company has paid a one‑off premium of £638,000 for the cap, which limits the SONIA rate on the Company's borrowings to a maximum of 4.064% over the three-year term. The purchase of the cap is expected to help protect both the Company's future earnings and shareholder distributions if UK interest rates increase, while allowing the Company to benefit if overnight SONIA is below 4.064%. Laura Elkin, Portfolio Manager of AEW UK REIT plc, commented: "Against a backdrop of continued uncertainty around the medium‑term path of UK interest rates, the Board and the Manager believe it is prudent to take proactive steps to manage the Company's future refinancing costs. The interest rate cap we have put in place on £30.0 million of notional exposure from July 2027 provides cost‑effective protection on half of our anticipated refinancing, while preserving the Company's ability to benefit from lower interest rates if the rate environment improves. This action is consistent with our disciplined approach to risk management and is intended to support the sustainability of earnings and dividends for shareholders over the medium term." AEW UK Laura Elkin Henry Butt [email protected] [email protected] AEW Investor Relations [email protected] Company Secretary MUFG Corporate Governance Limited [email protected] Cardew Group [email protected] Ed Orlebar Tania Wild +44 (0) 7738 724 630 +44 (0) 7425 536 903 Panmure Liberum Darren Vickers +44 (0) 20 3100 2222 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 prop...