Replacement - Shareholder Update and Dividend

THIS ANNOUNCEMENT REPLACES THE ANNOUNCEMENT RELEASED UNDER RNS NUMBER 8362A AT 07:00 HOURS ON 17 APRIL 2026. THE NET ASSET VALUE TABLE HAS BEEN UPDATED TO AMEND THE 'CAPITAL EXPENDITURE' AND 'VALUATION CHANGE IN PROPERTY PORTFOLIO' WHICH WERE SHOWN INCORRECTLY. CLARIFICATION HAS ALSO BEEN PROVIDED THAT THE QUARTER'S PROPERTY VALUATION MOVEMENT WAS AN INCREASE. NO OTHER CHANGES HAVE BEEN MADE. THE CHANGES DO NOT IMPACT THE COMPANY'S NAV CALCULATION, NOR THE COMPANY'S REPORTED EARNINGS.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE OR OTHERWISE. THERE CAN BE NO CERTAINTY THAT ANY OFFER WILL BE MADE.

20 April 2026

AEW UK REIT plc

Shareholder Update and Dividend Declaration

AEW UK REIT plc (LSE: AEWU) ("AEWU" or the "Company"), which directly owns a value-focused, diversified portfolio of 34 UK commercial properties, announces its unaudited Net Asset Value ("NAV") as at 31 March 2026 and interim dividend for the three months ended 31 March 2026.

Highlights

·   NAV of £171.97 million or 108.38 pence per share as at 31 March 2026 (31 December 2025: £173.47 million or 109.32 pence per share).

·      NAV total return of 0.96% for the quarter (31 December 2025 quarter: 2.05%).

·      0.05% like-for-like portfolio valuation increase for the quarter (31 December 2025 quarter: 0.33% decrease).

·      EPRA earnings per share ("EPRA EPS") for the quarter of 1.71 pence (31 December 2025 quarter: 2.36 pence).

·    Interim dividend of 2.00 pence per share for the three months ended 31 March 2026, paid for 42 consecutive quarters and in line with the targeted annual dividend of 8.00 pence per share, representing a dividend yield of 8.1% as at quarter-end.

·    Loan to GAV ratio at the quarter end was 25.21% (31 December 2025: 25.06%). Significant headroom on all loan covenants.

·      The Company continues to benefit from a low fixed cost of debt of 2.959% until July 2027.

Laura Elkin, Portfolio Manager, AEW UK REIT, commented:

"We are pleased to report a steady quarter of performance, with another period of positive NAV total return, and valuation gains seen across the Company's retail, industrial and office sectors, resulting in an overall portfolio valuation increase of 0.05%. This marks the twelfth quarter of like-for-like valuation growth out of the past 13 quarters.

Capital growth this quarter has been driven principally by continued progress in major asset management business plans, namely at Queen Square in Bristol, and assets in Runcorn and St Helens. These initiatives, in both the office and industrial sectors, are expected to be accretive to the Company's earnings in future periods on an ongoing basis once they have completed.

Despite two new vacancies and Odeon's lease regear at a reduced rent impacting EPRA earnings this quarter, we are encouraged overall with our asset management progress. We are also pleased to report that one of the vacancies is already under offer and we are actively advancing an alternative use strategy for the other. In addition, although Odeon's rent was reduced, the lease extension has been secured at a sustainable level of rent and value has been added to the property.

As has been the case across equities markets, the Company's shares have seen a greater amount of volatility during the period as compared to recent quarters, because of global geopolitical events. We will, of course, continue to monitor transactions and tenants closely as we progress through this period of current market volatility.  There remain attractive buying opportunities in the UK real estate market, and we remain confident about the outlook for AEWU's strategy. With this in mind, our Board has, for the 42^nd consecutive quarter, announced the Company's dividend payment of 2.00 pence per share."

Possible offer to acquire Alternative Income REIT plc ("AIRE")

On 24 March 2026, the Board noted the announcement by AIRE and confirmed that it was considering an all-share offer to acquire the entire issued and to be issued share capital of AIRE.

There can be no certainty that an offer will ultimately be made for AIRE, nor as to the terms on which an offer may be made. Shareholders are urged to take no action at this time. A further announcement will be made as and when appropriate.

In accordance with Rule 2.6(a) of the Code, AEWU has until 5.00pm on 21 April 2026, to either announce a firm intention to make an offer for AIRE in accordance with Rule 2.7 of the Code or announce that it does not intend to make such an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.

Valuation Movement

As at 31 March 2026, the Company owned investment properties with a total fair value of £215.45 million, as assessed by the Company's independent valuer, CBRE. The like-for-like valuation increase for the quarter of £0.11 million (0.05%) is broken down as follows by sector:

* This is the overall weighted average like-for-like valuation increase of the portfolio.

Portfolio Manager's Review

This quarter, the Company's portfolio achieved a like-for-like valuation increase of 0.05%, reinstating its consistent trend of quarterly valuation growth. This return to positive valuation performance follows a brief dip in the previous quarter and importantly marks the twelfth quarter of like-for-like valuation gains out of the past 13 quarters. The Company's portfolio again outperformed CBRE's Quarterly UK Index, which, for the same period, reported 0.00% capital value growth and a total return of 0.8%.

Performance this quarter was primarily driven by the Company's office and industrial sectors. Queen Square in Bristol (office) experienced significant growth, with its value increasing by 7.59%. This increase was primarily driven by the ongoing refurbishment of 11,681 sq. ft. of vacant space, which is expected to conclude next quarter in anticipation of a major incoming occupier.

In the industrial sector, both Sarus Court in Runcorn and Walkers Lane in St Helens reported strong like-for-like valuation increases of 4.03% and 5.03%, respectively, as ongoing asset management initiatives neared completion and rental growth is crystalised. These gains were partially offset by a valuation decline of 3.79% at Brockhurst Crescent, Walsall, attributed to an approaching lease expiry for one of its two tenants later this year. We view upcoming lease events as opportunities to enhance income and add value, particularly within the industrial sector, where the net initial yield and reversionary yields stand at 6.83% and 9.53%, respectively. Additionally, the average passing rent for the portfolio's industrial sector is notably low at £3.65 per sq. ft. versus an ERV of £4.87 per sq. ft.

Similar to the situation at Walsall, several leisure assets experienced valuation declines this quarter as lease events approached. This was particularly evident with Mecca Bingo Limited at London East Leisure Park, Dagenham, which saw a valuation decrease of 2.15%. However, we view the portfolio's relatively short Weighted Average Unexpired Lease Term (WAULT) to break of 3.9 years and to expiry of 5.7 years as an opportunity for valuation creation, providing the ability to engage proactively with tenants seeking lease extensions. For example, this quarter the Company completed a five-year reversionary lease with Odeon Cinemas Limited at Southend, extending the lease term to 28 September 2032, leading to a valuation uplift of 2.31%.     

Assets in the high street retail and retail warehousing sectors experienced a relatively quiet quarter, characterised by minimal overall valuation movement and only two leasing transactions. The Company completed a straight five-year lease renewal with Next Holdings Limited on Bancroft in Hitchin at an annual rent of £150,000 in exchange for six months' rent free. Additionally, a five-year lease renewal was completed with Lakeland Limited at Pearl House, Nottingham, commencing at £82,500 per annum and increasing to £90,000 per annum by the fourth anniversary. Although no asset management transactions were completed in the retail warehousing sector this quarter, the Manager is considering the disposal of Barnstaple Retail Park. This follows the completion of a 15-year lease re-gear with B&Q Limited in the previous quarter, which included a £80,280 per annum rent increase to £428,280 per annum (£12.00 per sq. ft.).

Following the announcement on 16 March that National Car Parks Limited (NCP) had appointed joint administrators, the valuation of Tanner Row, York, which sits in the portfolio's Other sector, is down by 7.94% compared to the previous quarter. The car park remains operational, with the administrators confirming their intention for NCP to continue trading from the property, with rent being paid monthly in arrears. The Company is actively obtaining further information from the administrator and is concurrently exploring interest from alternative operators and potential alternative uses for this centrally located, 0.8-acre mixed-use site.

Net Asset Value

The Company's unaudited NAV at 31 March 2026 was £171.97 million, or 108.38 pence per share. This reflects a decrease of 0.87% compared with the NAV per share at 31 December 2025. The Company's NAV total return, which includes the interim dividend of 2.00 pence per share for the period from 1 January 2026 to 31 March 2026, was 0.96% for the three-month period ended 31 March 2026.

The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards. It incorporates the independent portfolio valuation at 31 March 2026 and income for the period, but does not include a provision for the interim dividend declared for the three-month period to 31 March 2026.

Share Price

The closing ordinary share price at 31 March 2026 was 99.00p, a decrease of 8.16% compared with the share price of 107.8p at 31 December 2025. The closing share price represents a discount to the NAV per share of 8.86% which remains the tightest within the peer group, despite widening from 1.39% at the end of the previous quarter. The Company's share price has subsequently increased to 106.0p as at close on 16 April 2026, resulting in a tightening of the discount to approximately 2.2%. The Company's share price total return, which includes the interim dividend of 2.00 pence per share for the period from 1 January 2026 to 31 March 2026, was 1.19% for the three-month period ended 31 March 2026.

Dividend

Dividend declaration

The Company today announces an interim dividend of 2.00 pence per share for the period from 1 January 2026 to 31 March 2026. The dividend payment will be made on 28 May 2026 to shareholders on the register as at 1 May 2026. The ex-dividend date will be 30 April 2026. The Company operates a Dividend Reinvestment Plan ("DRIP"), which is managed by its registrar, MUFG Corporate Markets Limited. For shareholders who wish to receive their dividend in the form of shares, the deadline to elect for the DRIP is 6 May 2026.

The dividend of 2.00 pence per share will be designated 2.00 pence per share as an interim property income distribution ("PID").

The Company has now paid a 2.00 pence quarterly dividend for 42 consecutive quarters¹, providing consistently high levels of income to our shareholders.

¹For the period 1 November 2017 to 31 December 2017, a pro rata dividend of 1.33 pence per share was paid for this two-month period, following a change in the accounting period end.

Dividend outlook

It remains the Company's intention to continue to pay dividends in line with its dividend policy. In determining future dividend payments, regard will be given to the financial circumstances prevailing at the relevant time, as well as the Company's requirement, as a UK REIT, to distribute at least 90% of its distributable income annually.

Financing

Equity:

At 31 March 2026, the Company's share capital comprised 158,674,746 ordinary shares in issue, with 100,000 shares held in treasury.

Debt:

The Company has a £60.00 million, five-year term loan facility with AgFe, a leading independent asset manager specialising in debt-based investments. The loan is priced as a fixed rate loan with a total interest cost of 2.959% until July 2027.

The loan was fully drawn at 31 March 2026, producing a Loan to GAV ratio of 25.21%.

Headroom on the debt facility's 60% loan to value ("LTV") covenant continues to be conservative. For those properties secured under the loan, a 53.14% fall in valuation would be required before the LTV covenant were to be breached.

The Manager is engaged already in productive discussions with potential lenders, including the incumbent, well in advance of the term date on the existing debt in July 2027.

Investment Update

No acquisitions or disposals were made during the quarter.

Asset Management Update

The Company completed the following asset management transactions during the quarter:

13/13A, 114-119, 121-123 Bancroft, Hitchin (retail) - The Company completed a straight five-year lease renewal with Next Holdings Limited at a rent of £150,000 per annum in return for six months' rent free. The unit is located in the centre of Hitchin's high-street retail pitch. Hitchin is a busy market town located in Hertfordshire with an affluent catchment. The town is served by rail connections to both London and Cambridge, underpinning its attractiveness as a commuter location.

Pearl House, Nottingham (retail) - The Company completed a five-year lease renewal with Lakeland Limited (Lakeland). The annual rent starts at £82,500, increasing to £83,750 in year two and £85,000 in year three. From the fourth anniversary, the rent will be £90,000 per annum. Lakeland has a break option at the end of year three, contingent on a £18,750 penalty. No rent free period was provided. The overall valuation of the asset was up by 4.59% for the quarter.  

Queen's Square, Bristol (office) - The Company completed a lease renewal with Royal Bank of Canada (RBC), extending their lease, which expires on 16 June 2026, by a further two years. From 17 June, the rent will increase from £103,770 per annum (£30 per sq. ft.) to £130,000 per annum (£37.50 per sq. ft.). RBC has a tenant break option on the anniversary of the first year, subject to six months notice. The aim of this short-term extension is to potentially facilitate a larger letting of approximately 6,000 sq. ft. to RBC in two years' time if more space is available in the building.

London East Leisure Park, Dagenham (leisure) - The Company settled a historic rent review with Mecca Bingo Limited (Mecca), dating back to 18 September 2022. The passing rent, for the purpose of the review, was reduced to £500,000 per annum grown annually by RPI (2% collar and 4% cap). The agreed rent is £584,275 per annum, having previously been £625,000 per annum.

Odeon, Southend (leisure) - The Company completed a five-year reversionary lease to Odeon Cinemas Limited (Odeon), extending the lease term to 28 September 2032. In doing so, a Deed of Variation was entered into, decreasing Odeon's rent from £535,000 per annum (£13.16 per sq.ft.) to £400,000 per annum (£9.84 per sq. ft.) from 1 January 2026. No rent free period or tenant incentive was provided. Despite the decrease in rent, the valuation increased by 2.31% for the period due to the longer unexpired lease term and sustainable level of rent.   

Tanner Row, York (other) - On 16 March 2026 National Car Parks Limited (NCP) appointed joint administrators (administrators). Subsequent to that announcement, the administrators announced that 22 sites would permanently close on 27 March 2026.  

The Company owns one property, Tanner Row in York, where NCP is a tenant, representing 78% of the annual rent currently received from this property. The car park has not closed, with the administrators confirming their intention for NCP to continue trading from the property as part of the administration strategy, paying rent monthly, now at a total running yield of 10.12% based on the asset's current valuation.

The Company is in the process of obtaining further information from the administrator, while also exploring interest from other operators, as well as alternative uses. The mixed-use property comprises an 0.8 acre site which is centrally located in York, servicing a wider range of customers. It is expected to be of particular occupational interest due to the land constrained nature of its location within the York city walls. At the time of purchase in March 2025, the price paid for the asset was assessed to be close to its value as a redevelopment site for alternative uses, highlighting the benefits of the Company's value investment approach.

As at 31 March 2026, annual rental income due to the Company from NCP totalled £733,057 and represented 4.05% of AEWU's total contracted income (equivalent to approximately 0.12 pence per share per quarter). All amounts due to the Company by NCP for the December quarter have been paid. The overall valuation for the period was down 7.94% from the December 2025 quarter.

Glossary of Commonly Used Terms

Industry specific terms used in the Company's communications are defined in the glossary of commonly used terms which can be found on the Company's website: https://www.aewukreit.com/investors/glossary

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

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

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.

Important information

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities whether pursuant to this announcement or otherwise, or the solicitation of any vote in favour or approval of any offer in any jurisdiction where to do so would constitute a violation of the laws of such jurisdiction and any such offer (or solicitation) may not be extended in any such jurisdiction.

Any securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, or with any securities regulatory authority of any state of the United States and may not be offered or sold in the United States absent registration or an applicable exemption from registration thereunder.

This announcement has been prepared in accordance with English law and the Code, and information disclosed may not be the same as that which would have been prepared in accordance with laws outside of the United Kingdom. The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

The directors confirm that the EPRA EPS for the quarter ending on 31 March 2026 has been properly compiled on the basis of the assumptions stated and that the basis of accounting used is consistent with the Company's accounting policies.

Disclaimer

Panmure Liberum Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and for no one else in connection with the matters set out in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to any matter referred to herein.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

No investment recommendation

This announcement is not intended to be and does not constitute or contain any investment recommendation as defined by Regulation (EU) No 596/2014 (as it forms part of the domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018). No information in this announcement should be construed as recommending or suggesting an investment strategy. Nothing in this announcement or in any related materials is a statement of or indicates or implies any specific or probable value outcome in any particular circumstance.

Publication on a website

In accordance with Rule 26.1 of the Code, a copy of this announcement will be made available, subject to certain restrictions relating to persons resident in restricted jurisdictions, on the AEWU website (www.aewukreit.com) no later than 12 noon (London time) on the first business day following the date of this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.