AEW UK REIT (AEWU) AI Stock Analysis

• Market Cap: £171.37M
• Dividend Yield: 7.43%
• Average Volume (3M): 356.47K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.65
• Revenue Growth: -10.95%
• EPS Growth: -30.09%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 158,674,740
• 10 Day Avg. Volume: 288,377
• 30 Day Avg. Volume: 356,474
• PEG Ratio: 0.04
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 5.13
• P/FCF Ratio: 18.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 118.00p ▲(10.28% Upside)

The score is driven primarily by improved financial strength (notably the move to zero reported debt) and a strong latest-year earnings rebound, supported by an attractive income valuation (high dividend yield with a reasonable P/E). These positives are tempered by weaker 2025 cash flow versus profits and historically choppy results, while technical signals are neutral rather than strongly bullish.

Positive Factors

Cash Flow Strength

Strong cash flow growth indicates effective cash management, supporting sustainable operations and potential for reinvestment.

Strategic Asset Management

Strategic acquisitions enhance portfolio quality and income potential, reflecting a proactive approach to market opportunities.

Dividend Consistency

Consistent dividends demonstrate financial stability and commitment to returning value to shareholders, enhancing investor confidence.

Negative Factors

Historical Income Fluctuations

Past revenue volatility can signal potential instability, affecting long-term investor confidence and planning.

Moderate Growth Potential

Moderate growth potential may limit future expansion and competitive positioning, impacting long-term strategic goals.

Subdued EPRA Earnings

Lower earnings from core operations can affect profitability and reinvestment capacity, posing challenges to growth and expansion.

AEW UK REIT Business Overview & Revenue Model

Company Description

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 was listed on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange on 12 May 2015, raising £100.5m. Since IPO it has raised a further £58m.

How the Company Makes Money

AEW UK REIT generates revenue primarily through the rental income derived from its portfolio of commercial properties. The company leases these properties to various tenants across different sectors, ensuring a steady and diversified income stream. In addition to rental income, AEW UK REIT may also realize gains from the strategic acquisition and disposal of properties within its portfolio. The company's partnership with AEW Group provides access to extensive market insights and expertise, aiding in the effective management and enhancement of property values, which can further contribute to its earnings.

AEW UK REIT Financial Statement Overview

Summary

Strong latest-year rebound in revenue and net income, plus a materially de-risked balance sheet with reported debt reduced to £0. Offsetting factors include volatile multi-year profitability (including a loss year) and weaker cash conversion in 2025 as operating/free cash flow fell despite the earnings surge, with some reported data inconsistencies reducing confidence.

Income Statement

Revenue growth accelerated in the latest annual period (2025: ~30% vs. 2024: ~17%), and profitability rebounded strongly with net income rising to ~£24.3m (net margin ~78%) from ~£9.0m in 2024 (net margin ~37%). However, results have been volatile across years (including a net loss in 2023), and several reported margin fields appear internally inconsistent in places (e.g., EBIT margin shown as 0% in 2025 despite positive EBIT), which reduces confidence in trend smoothness.

Balance Sheet

Leverage improved materially: total debt fell to £0 in 2025 from ~£59.9m in 2024, driving the debt-to-equity ratio to 0.0 and lowering balance-sheet risk. Equity is sizable (~£174.4m) against total assets (~£241.4m), and return on equity improved to ~14% in 2025 from ~6% in 2024. The main drawback is historical variability in returns (negative in 2023), which suggests sensitivity to valuation/income swings typical for REITs.

Cash Flow

Operating cash flow and free cash flow were positive in 2025 (~£8.6m), but declined sharply year over year (free cash flow growth ~-40%). Cash generation has been positive across the periods shown, yet cash flow has not scaled with the 2025 earnings surge, implying weaker cash conversion in the latest year versus reported profits. (The provided operating cash flow coverage figure is shown as 0.0 in 2025 despite positive operating cash flow, indicating a data-quality inconsistency that limits precision.)

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.30M	31.30M	24.34M	20.72M	19.91M	17.49M
Gross Profit	7.97M	31.30M	17.48M	12.27M	12.62M	12.51M
EBITDA	6.96M	0.00	13.35M	-29.12M	12.52M	10.72M
Net Income	12.73M	24.34M	9.05M	-11.32M	46.70M	22.17M
Balance Sheet
Total Assets	240.64M	241.45M	232.41M	233.77M	252.31M	200.83M
Cash, Cash Equivalents and Short-Term Investments	13.20M	25.99M	11.40M	14.31M	6.77M	17.45M
Total Debt	0.00	0.00	59.85M	59.74M	53.94M	39.81M
Total Liabilities	67.82M	67.01M	69.66M	66.67M	61.21M	43.75M
Stockholders Equity	172.82M	174.44M	162.75M	167.10M	191.10M	157.08M
Cash Flow
Free Cash Flow	7.69M	8.65M	11.73M	9.82M	12.32M	10.46M
Operating Cash Flow	7.69M	8.65M	11.73M	9.82M	12.32M	10.46M
Investing Cash Flow	3.39M	21.23M	-430.00K	6.94M	-24.99M	23.07M
Financing Cash Flow	-13.73M	-15.28M	-14.21M	-9.21M	1.99M	-25.95M

AEW UK REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 107.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AEWU, the sentiment is Positive. The current price of 107 is above the 20-day moving average (MA) of 106.88, above the 50-day MA of 106.86, and above the 200-day MA of 103.50, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 44.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AEWU.

AEW UK REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIRE	73 Outperform	£60.38M	8.31	10.96%	8.23%	8.48%	207.85%
AEWU	71 Outperform	£171.37M	13.43	7.37%	7.43%	-10.95%	-30.09%
PCA	66 Neutral	£42.88M	23.07	4.34%	7.14%	-41.22%	―
SREI	66 Neutral	£274.88M	―	―	6.64%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RLE	54 Neutral	£55.43M	48.03	1.28%	5.02%	-9.28%	―
TOWN	46 Neutral	£51.35M	-14.90	-2.97%	3.94%	16.08%	56.94%

AEW UK REIT Corporate Events

AEW UK REIT Confirms Total Voting Rights at Year-End 2025

AEW UK REIT plc has reported that, as at 31 December 2025, it had 158,674,746 ordinary shares in circulation, each carrying one voting right, resulting in a total of 158,674,746 voting rights, with an additional 100,000 shares held in treasury without voting rights. The company noted that this total voting rights figure should be used by shareholders as the denominator for assessing whether they are required to notify changes in their holdings under the FCA’s Disclosure Guidance and Transparency Rules, ensuring transparency and regulatory compliance in the ownership of its shares.

The most recent analyst rating on (GB:AEWU) stock is a Buy with a £118.00 price target. To see the full list of analyst forecasts on AEW UK REIT stock, see the GB:AEWU Stock Forecast page.

AEW UK REIT Sells Treasury Shares at Premium

AEW UK REIT plc announced the sale of 100,000 ordinary shares from treasury at a price of 109.64 pence per share, a premium over the company’s latest net asset value per share. This transaction adjusts the company’s issued share capital to 158,774,746 ordinary shares, with 158,674,746 shares in circulation, impacting the total voting rights and potentially influencing shareholder notifications under the Financial Conduct Authority’s rules.

AEW UK REIT Reports Strong Half-Year Returns Amid Challenging Market Conditions

AEW UK REIT reported an 11.44% shareholder total return for the first half of the financial year ending March 2026, showcasing resilience in a challenging property market. The company continues to outperform its peers, with a decade of uninterrupted dividends and seven consecutive quarters of portfolio valuation gains. Despite a slight decrease in NAV and profit before tax compared to the previous year, AEW UK REIT sees opportunities in the current low valuation environment and plans to leverage its proven investment strategy for future growth.

AEW UK REIT Announces Total Voting Rights for October 2025

AEW UK REIT plc announced its total voting rights as of October 31, 2025, in compliance with the FCA’s Disclosure Guidance and Transparency Rules. The company reported a total of 158,574,746 voting rights, which shareholders can use to determine their notification requirements regarding their interests in the company.

AEW UK REIT Enters Closed Period Ahead of Half-Year Results

AEW UK REIT plc has entered a closed period as of 22 October 2025, in compliance with the UK Market Abuse Regulation, ahead of announcing its half-year results for the period ending 30 September 2025. The company has disclosed all relevant inside information to a Regulatory Information Service and, unless new undisclosed information arises, is not restricted from trading its own securities during this period.

AEW UK REIT Reports Strong Quarter with Consistent Dividend and Portfolio Growth

AEW UK REIT plc reported a strong quarter with a net asset value of £172.82 million, reflecting a 2.04% total return. The company declared an interim dividend of 2.00 pence per share, marking 40 consecutive quarters of dividend payments. The portfolio saw a modest 0.11% valuation increase, with industrial and retail warehousing sectors showing notable gains. The company’s strategic asset management and counter-cyclical investment approach have contributed to its consistent performance, as evidenced by its recent award for ‘Best for Property’ in the QuotedData Investors’ Choice Awards 2025.

AEW UK REIT Announces Upcoming Capital Markets Event

AEW UK REIT plc announced it will host a Capital Markets Event for analysts and institutional investors on November 12, 2025. The event will feature discussions on the company’s ten-year track record, investment strategy, and current market opportunities, although no new material information will be disclosed. This event underscores AEWU’s commitment to transparency and engagement with stakeholders, highlighting its strategic focus and potential market positioning.