Solid growth and income with this high-yielding Reit

Simon Thompson: It is significantly outperforming rivals and the benchmark thanks to shrewd portfolio management

Published on November 28, 2024

First half NAV up 6.2 per cent to £173mn (109p)
NAV total return of 10.1 per cent
Portfolio valued on EPRA net initial yield of 8.1 per cent
8.3 per cent dividend yield

AEW UK Reit (AEWU:96p) has significantly outperformed both its rivals and the MSCI benchmark, a reflection of income growth, active portfolio management and a weighting to growth sectors.

A strength of AEW’s active asset management approach is that, despite subdued transactional activity which is symptomatic of wider commercial property conditions, it has produced strong capital and income growth by investing in the existing portfolio, rather than relying on disposals and acquisitions.

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