AEW UK REIT (LSE:AEWU) has declared a 2.00p interim dividend for the quarter to 30 September 2026, its 44th consecutive quarterly payment, and reported a small fall in net asset value per share alongside a positive quarterly NAV total return.

What was announced

On 28 October 2026 AEW UK REIT plc (LSE:AEWU) published a shareholder update and dividend declaration for the quarter ended 30 September 2026. The unaudited net asset value (NAV) was £170.50 million, or 107.45p per share, compared with £171.05 million, or 107.80p per share, at 30 June 2026. That represents a 0.32% decrease in NAV per share over the quarter.

The NAV total return for the quarter, which includes the dividend paid, was 1.53%, compared with 1.31% in the previous quarter. The shareholder total return for the quarter was 0.57%, against 7.47% in the prior quarter.

The company declared an interim dividend of 2.00p per share for the period from 1 July to 30 September 2026, designated as a property income distribution. The shares go ex-dividend on 5 November 2026, with a record date of 6 November and a payment date of 4 December. The deadline for dividend reinvestment plan elections is 13 November. The company said it remains its intention to continue paying dividends in line with its dividend policy, which targets 8.00p a year.

The numbers

EPRA earnings per share were 1.78p for the quarter, compared with 1.89p in the previous quarter. On the disclosed figures, this covers about 89% of the 2.00p quarterly dividend.

The portfolio of 33 UK commercial properties was valued by CBRE at £214.02 million. Like-for-like valuations fell 0.09% over the quarter, compared with a 0.9% fall in capital values in the CBRE UK index. By sector, high street retail rose 1.01% and retail warehouses 1.97%, while industrial was broadly flat and offices fell 2.93%. The company said the office decline was entirely attributable to Queen Square in Bristol, where refurbished space is being let through an IWG managed office arrangement that was about 31% occupied.

In the NAV bridge, income added 2.98p per share and a gain on sale 0.26p, while property valuation movements reduced NAV by 0.54p and expenses and finance costs by 1.26p.

Cardiff sale and asset management

On 23 July 2026 the company completed the sale of Circuit, Greyfriars Road, Cardiff, for £1.475 million, reflecting a net initial yield of 14.78%. The price was about 42% above the 31 March 2026 valuation of £1.035 million. The asset had been bought in February 2022 for £3.625 million.

Other activity included planning consent at Apollo Business Park, Basildon, to replace existing space with a 58,588 sq ft warehouse, with the company planning to sell the site to a developer. A unit at Northgate House, Bath, was let to Loake Brothers at £65,000 a year on a ten-year lease, above the estimated rental value of £50,000. At Tanner Row, York, the tenant NCP, which pays £733,057 a year, was acquired out of administration after the period end by Martin Property Group.

Portfolio manager Laura Elkin said: "The portfolio's valuation declined modestly during the quarter," adding: "We remain confident in AEWU's strategy."

Financing and what to watch next

Loan to gross asset value was 25.42%, compared with 25.33% at 30 June. The £60.00 million AgFe facility is fully drawn at a fixed total interest cost of 2.959% until July 2027, with a 60% loan-to-value covenant. The company has purchased an interest rate cap on £30.0 million from July 2027 to July 2030 and is in refinancing discussions with lenders, including the incumbent. The outcome of that refinancing is the main item to watch, alongside the manager's stated plan to recycle capital and explore expanding the shareholder base where it is in shareholders' best interests.