REG - AEW UK REIT PLC - Interest Rate Cap Acquired

Aew UK ReitAnnouncement

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RNS Number : 7095G  AEW UK REIT PLC  03 June 2026

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                        laura.elkin@eu.aew.com

 Henry Butt                         henry.butt@eu.aew.com (mailto:henry.butt@eu.aew.com)

 AEW Investor Relations             investor_relations@eu.aew.com

 Company Secretary
 MUFG Corporate Governance Limited  aewu.cosec@cm.mpms.mufg.com

 Cardew Group                       AEW@cardewgroup.com (mailto:AEW@cardewgroup.com)
 Ed Orlebar                         +44 (0) 7738 724 630

 Tania Wild                         +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 properties
(typically less than £15 million), on shorter occupational leases in strong
commercial locations across the United Kingdom. The Company is currently
invested in office, retail, industrial and leisure assets, with a focus on
active asset management, repositioning the properties and improving the
quality of income streams.  AEWU is currently paying an annualised dividend
of 8p per share.

The Company was listed on the Official List of the Financial Conduct Authority
and admitted to trading on the Main Market of the London Stock Exchange on 12
May 2015. www.aewukreit.com (http://www.aewukreit.com/)

 

LEI: 21380073LDXHV2LP5K50

 

About AEW

 

AEW is one of the world's largest real estate asset managers, with €73.1
billion of assets under management as at 31 December 2025. AEW has over 820
employees, with its main offices located in Boston, London, Paris and
Singapore and offers a wide range of real estate investment products including
commingled funds, separate accounts and securities mandates across the full
spectrum of investment strategies. AEW represents the real estate asset
management platform of Natixis Investment Managers, one of the largest asset
managers in the world.

AEW managed £1.2 billion of assets under management in the UK as at 31
December 2025, across a number of real estate funds and separate account
mandates. The UK team comprises over 55 employees and has a long track record
of successfully implementing core, value add and opportunistic strategies on
behalf of its clients.

www.aew.com (http://www.aew.com)

AEW UK Investment Management LLP is the Investment Manager.  AEW is a group
of companies which includes AEW Europe SA and its subsidiaries as well as
affiliated company AEW Capital Management, L.P. in North America and its
subsidiaries. AEW Europe SA, together with its subsidiaries AEW UK Investment
Management LLP, AEW S.à.r.l., AEW Invest GmbH and AEW SAS, is a European real
estate investment manager with headquarter offices in Paris and London. AEW
Europe SA and AEW Capital Management, L.P. are owned by Natixis Investment
Managers. Natixis Investment Managers is an international asset management
group based in Paris, France, that is principally owned by Natixis, a French
investment banking and financial services firm. Natixis is principally owned
by BPCE, France's second largest banking group.

 

Disclaimer

This communication cannot be relied upon as the basis on which to make a
decision to invest in AEWU. This communication does not constitute an
invitation or inducement to subscribe to any particular investment. Issued by
AEW UK Investment Management LLP, 8 Bishopsgate, London, EC2N 4BQ.

Company number: OC367686 England. Authorised and regulated by the Financial
Conduct Authority.

 

 

 

 

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