LSE:AEWL

Stock Analysis Report

Executive Summary

AEW UK Long Lease REIT plc (the 'Company') is a closed ended Real Estate Investment Trust ('REIT') incorporated on 18 April 2017 and domiciled in the UK and is registered in England and Wales.


Snowflake Analysis

Undervalued second-rate dividend payer.

Share Price & News

How has AEW UK Long Lease REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AEWL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

AEWL

-3.0%

GB REITs

-4.4%

GB Market


1 Year Return

-18.2%

AEWL

9.4%

GB REITs

1.4%

GB Market

Return vs Industry: AEWL underperformed the UK REITs industry which returned 9.4% over the past year.

Return vs Market: AEWL underperformed the UK Market which returned 1.4% over the past year.


Shareholder returns

AEWLIndustryMarket
7 Day0.3%-3.0%-4.4%
30 Day-0.7%-2.9%-6.3%
90 Day-0.3%0.7%-2.7%
1 Year-12.1%-18.2%14.2%9.4%6.7%1.4%
3 Yearn/a23.9%6.5%12.6%-1.5%
5 Yearn/a23.8%-0.8%28.8%-0.7%

Price Volatility Vs. Market

How volatile is AEW UK Long Lease REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AEW UK Long Lease REIT undervalued compared to its fair value and its price relative to the market?

49.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AEWL (£0.74) is trading below our estimate of fair value (£1.45)

Significantly Below Fair Value: AEWL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AEWL is good value based on its PE Ratio (14.1x) compared to the REITs industry average (15.2x).

PE vs Market: AEWL is good value based on its PE Ratio (14.1x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AEWL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AEWL is good value based on its PB Ratio (0.8x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

How is AEW UK Long Lease REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

25.8%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as AEW UK Long Lease REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has AEW UK Long Lease REIT performed over the past 5 years?

123.8%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: AEWL has high quality earnings.

Growing Profit Margin: AEWL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if AEWL's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

Accelerating Growth: Unable to compare AEWL's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: AEWL has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (-20.8%).


Return on Equity

High ROE: AEWL's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AEW UK Long Lease REIT's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AEWL has a high level of physical assets or inventory.

Debt Coverage by Assets: AEWL's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: AEWL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AEWL has a sufficient allowance for bad loans.

Low Risk Liabilities: AEWL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AEWL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AEWL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AEWL has an appropriate level of bad loans.


Next Steps

Dividend

What is AEW UK Long Lease REIT's current dividend yield, its reliability and sustainability?

7.43%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%1.9%markettop25%5.3%industryaverage3.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AEWL's dividend (7.43%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: AEWL's dividend (7.43%) is in the top 25% of dividend payers in the UK market (5.34%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AEWL has been paying a dividend for less than 10 years.

Growing Dividend: AEWL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.1%), AEWL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Robert Wilkinson 0

0

Mr. Robert Wilkinson serves as a European Chief Executive Officer of AEW Europe at AEW UK Long Lease REIT Plc. Mr. Wilkinson has 26 years of experience in real estate and corporate finance. Since joining t ...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.


Top Shareholders

Company Information

AEW UK Long Lease REIT plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AEW UK Long Lease REIT plc
  • Ticker: AEWL
  • Exchange: LSE
  • Founded: 2017
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£59.570m
  • Shares outstanding: 80.50m
  • Website: https://www.aewukllreit.com

Location

  • AEW UK Long Lease REIT plc
  • 65 Gresham Street
  • 6th Floor
  • London
  • Greater London
  • EC2V 7NQ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEWLLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 2017

Biography

AEW UK Long Lease REIT plc (the 'Company') is a closed ended Real Estate Investment Trust ('REIT') incorporated on 18 April 2017 and domiciled in the UK and is registered in England and Wales. The registered office of the Company is located at 6th Floor, Gresham Street, London, EC2V 7NQ.The Company's Ordinary Shares were listed on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange on 6 June 2017. The Company is the ultimate parent company of the AEW UK Long Lease REIT Group. Its primary activity is to hold shares in subsidiary companies and invest in direct property investments. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:15
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.