Aew Uk REIT (LSE:AEWU) — Q4 Update

0:00 Good morning, ladies and gentlemen, and welcome to the AEW UK REIT PLC Q4 update. Throughout today's recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time just using the Q and A tab situated on the right hand corner of your screen. Please simply type in your questions at any time and press send. Before we begin, we'd like to submit the following poll and as usual, we'd be grateful for your participation. I'd now like to hand over to today's management team, Henry, Laura. Good morning. Thanks, Mark. And thanks everyone for joining us today. As Mark said, this is our q four update on the company. And before we start today, I'd just like to address, perhaps some of you have seen some announcements or press articles linking AEW UK REIT with a possible merger with Alternative Income REIT in recent weeks.

0:51 It was announced by both of the companies yesterday afternoon that a recommendable position between the two boards hadn't been reached. And I would urge shareholders to have a look at both of the 2.8 announcements, the withdrawal announcements from those discussions by both companies yesterday afternoon for more information in respect to that. Now, what what what we can say is governed by the the the regulations of the city code on mergers and takeovers. So I'm afraid I can't say any more than that to you today. But please do look at those announcements and you will understand that, of course, we can't take questions on that matter either. But irrespective of any other part of the presentation today, please do submit your questions and we can take those at the end.

1:47 So for anyone who I haven't met before or spoken to before, I'm Laura Elkin. I'm the portfolio manager for AEWU. Henry and I have been managing AEW at AEW UK now for coming up to eleven years. It's the same strategy that we have been running throughout that time. We are sector agnostic value investors, which means that we can look with an AEW strategy across the whole of The UK commercial property market to find value at various times in time. And we like to think that that is key to the outperformance of AEWU strategy over the course of the last eleven years. And the outperformance has really been sustained.

2:33 And we think that's because the strategy is nimble, able to operate counter cyclically between the different property subsectors. So being not constrained by sector, we think is is a really key part of our strategy being able to deliver that high income and outperformance to our shareholders. We also think that that that strategy really speaks to the strengths of our team. So as as value stock pickers, as value asset managers, We we we think that those are are some key strengths of our team and and hopefully displayed to you in the high level of dividend that we have paid out now for forty two consecutive quarters. And also in the attractive, very strong total returns, showing very strong outperformance over the MSCI index in The UK over that ten year period.

3:31 Just just just pointing to the things that we do buy. When we're looking for assets to acquire, we have a very strong focus on location. And again, we think that helps to future proof our assets and our business plans. If if, you know, through through the course of a hold period which can last for for numerous years, things change and perhaps tenants businesses change. It is that location which which clearly in these real assets cannot change. So it's it's something that we focus on very strongly at purchase. Also, because we deliver that high level of dividend, we like to buy high levels of income. Now, we think there are a lot of opportunities to buy high income, but actually relatively few that that deliver that income stream sustainably.

4:23 We think it is absolutely our job, our main homework on deciding which assets to acquire is choosing those that we think have that sustainable income stream that can deliver that that continue to deliver that high income and high high earnings level, which feeds through to the dividend into perpetuity during our hold period. Just moving on to the next slide, which shows a snapshot of our financials as at the end of March, which was our financial year end. We have 34 properties in the portfolio, a 130 tenants. So showing a really strong level of of granularity and diversification in our income stream there.

5:09 We always point you to our initial yield and reversionary yield differential, which is figures which are decided by our independent valuer CBRE. And you'll see that that gap is is is clearly wide, demonstrating the company's ability to to grow income. Actually, this quarter that gap is wider than normal. Our net initial yield for this quarter has come down slightly because we have a number of vacancies in the portfolio. You will have noticed our earnings for the quarter are down slightly and and and that is what's represented here. So I'm gonna just touch on a few properties which are leading to that. So we have tenant in Southampton, Barclays, who would be in a long term tenant of the company who vacated.

5:59 We have that unit under offer to another tenant to take occupation. So we expect the initial yield to increase in future periods because of that. We also have some quite significant vacancy at the moment in an asset in Queens Square Bristol, which has been a long term hold of ours. We are actively doing some refurbishment work at that property at the moment with a view that we have a tenant who will take space in in in that building once these works complete and hoping that that will complete next quarter. So whilst the initial yield has come down leading to earnings being slightly down in the quarter, we expect that and have a clear route to to seeing some strong recovery in that in in coming periods.

6:44 And obviously then the differential up to the rest of the reversion re yield demonstrating really strong potential for rental growth. And Henry will talk about some examples of where we expect that to come from on slides coming up. So again, as I've just described, our vacancy rate is up slightly again this quarter, but we do expect that to come down in in future periods and and in fact, by next quarter as those business plans continue to progress. I'm just gonna touch on our debt position. We have a single term loan in the company with a current a very favorable rate of just under 3%. Now, that loan does come to maturity in just over twelve months time.

7:33 We have an in house debt team at AEW who you will have heard us refer to before. And they are continuously sourcing, debt products for other activities going on at AEW UK. And for me, that provides an awful lot of comfort to know that this team is very well tapped into the market. We have already spoken to a number of of lenders, including our incumbent lender, to gain terms. And we we have every confidence that we will achieve a successful refinancing over the course of the next twelve months. I'll hand over to Henry who can talk through some of our performance. Thank you, Laura, and good morning, everyone.

8:20 So this first slide, looks at our, NAV total return versus the peer group, a 9.45 annualized NAV total return and a nine percent ten year annualized NAV total return. Many of you will have seen this slide before and it's good to see those lines still diverging on the right hand side as at June 25. We'll provide a more up to date version of this in the next presentation. I think the main two themes that I kind of want to touch on here is where our performance diverges from the peer group and that happened around kind of '9 twenty nineteen, twenty twenty and the reason for that was one because of our high weighting in sheds about 55% at the time. We also had a low weighting to retail.

9:14 Obviously, at that time, we had the COVID pandemic. There was a move to e commerce away from traditional retail and we had some really strong valuation performance then. And also because we have shorter lease profiles, roughly kind of three years to break, five years to expiry, it's no coincidence that our performance moves away in 2019, to 2020 because that is when we are engaging with tenants, extending leases and adding income. This slide looks at the property total return versus the MSCI benchmark and looks at our outperformance. Just looking at the right hand side of this slide first, I think what is great to see here is the consistency of the performance and outperformance over a seven and ten year period, both at 9.4% total property return.

10:13 Over the five year period, performance was the strongest and that is no surprise because that is when we had the highest weighting of industrials. Over three years, the outperformance is the strongest and that was because we had our very successful sale for an alternative use at Oxford Business Park which we sold for life sciences. More recently, the performance is a little bit more muted but it's worth bearing in mind that we weren't fully invested for the last twelve month period. We sold Coventry in December 2024 and we reinvested those proceeds in March with the asset purchase in Hitchin and then June with the asset purchase in Leicester. There's quite a lot going on in this slide, but I think all this information is important because it really does show the journey that we have been on over the past ten years.

11:10 There are sort of three themes that I like to touch on when I present this slide. I think the first is the consistency of the income. It's that blue bar running right through the middle of this chart. As you can see, that income is consistently at around 8%, which is no surprise given the dividend policy that the board pays out. And the the income does slightly drop off a little bit, kind of 2021, 2022. That is because we are a total return strategy and we had to take on a higher vacancy to maximize value at a number of assets, the most relevant one being the Oxford business part which I mentioned shortly ago. I think the second theme here is a countercyclical strategy. We are buying sheds in two thousand seventeen, two thousand eighteen. We're selling them in kind of 2022, 2023.

12:02 We are buying retail when it's sort of going through the eye of the storm, we think there's some really good value there. More recently, we've been buying leisure and we had a low waiting in offices. We have a low waiting in offices more recently and obviously, you know, people are still figuring out the return to office, but it's good to see more and more people returning to the offices. I think the third theme here is just like knowing when to sell your assets. You know, we are constantly sort of at least fortnightly, monthly having sell and hold meetings and we take the decision to cash in our chips and sell the assets at the right time, which obviously leads to this strong performance. And here are all the disposals since the beginning of AEWU.

12:50 As you can see, a 41% average sale to purchase price premium. I suppose the general theme here is that more recently we've been selling out of lower yielding industrials for yields kind of in the low sixes and recycling that cash into high yielding assets eight to 9% plus. Most recent disposal was actually a small vacant office which was included when we bought a chunk of retail in Hitchin. And we sold that in a couple of quarters ago, for twice what it was held in the book value at a million pounds. Thanks, Henry. I'm just going to take over here and touch on what we believe here is this kind of persisting purchase opportunity that exists in the market and and has been running for quite some time now.

13:44 But we looking at our pipeline, we believe that this is still a strong opportunity today. So this very wiggly red line that we're showing you on the chart is using the CBRE average value index. CBRE being The UK's largest valuer of commercial properties, so effectively using their kind of value index as a proxy for values across the whole commercial property market. And you can see here over the last twenty odd years, some significant peaks and troughs as you would have expected to see associated with these quite significant, global and and UK political events. We've marked right in the middle of the chart there, AEWU's IPO.

14:31 And clearly, have have been quite sort of tumultuous during that time as well. So actually, what this chart reminds me is that, I I feel that our strategy has performed very strongly in order to be able to deliver the kind of total return performance that it has done during a time when values have have been this challenging. But if we look at the last three years of this chart, we'll see that red line wiggle down quite significantly post the Truss Lizz Truss premiership to below the average line and and having not recovered since then. Now, of course, interest interest rates have been a a significant factor in that. And, you know, the outlook there has really sort of wobbled over the course of the last quarter with with kind of global political events.

15:28 And we will see how that progresses. But something else is kind of underlying this. And that has been quite a significant reduction in the volume of of investment transactions taking place in UK commercial property. Property. And actually, this is is more more sort of centered than than than the overall numbers would suggest because a strong concentration of those transactions that have to have taken place have been in the prime industrial market. So outside of that, with overall volumes being lower, actually, the volumes in other sectors have been quite significantly lower because of that strong concentration. So in the types of sectors which AEWU strategy leads us to at the moment, those that are high yielding, those that we think are kind of trading below their long term fundamentals, actually is showing even stronger value than than we see across the general market.

16:29 So when we look at our pipeline today, for the reasons that I've just set out, we see strong strong ability to buy sustainable yield, often at levels in excess of 9%, we see assets that we think represent significant value. So just to demonstrate to you here that that is still persisting through today. Now, we sometimes get asked the question if we would just look to sell out from significant parts of our portfolio in order to access that pipeline. Of course, though, with with values being lower, therefore, isn't a general seller's market either. We look to, and as Henry's just demonstrated in the previous chart, make sales from our assets at opportune times where we think the value of those assets can be maximized in the current market. So so that is why we will not look to make a kind of blanket sale from our portfolio in order to access this pipeline opportunity.

17:30 But, of course, the property subsectors move independently from each other. And there are certain sectors in which we might look to sell assets. And we have talked before about how we may look to be net sellers in retail warehousing. Henry's got an asset coming up where we have recently completed some significantly strong asset management. So that that could be a candidate for that. Handing back to Henry with more asset management. Thank you, Laura. And here is that asset, Barnesville Retail Park. We've owned this for a while now. We bought it back in June 2018. We bought it off an eight and a half percent net initial yield.

18:16 We liked it. It was fully let off sensible rents with a decent unexpired lease term, attractive yield profile and an established location. I mean, we tend to like retail warehousing because it is well located on kind of the edges of large urban areas and they have typically low side densities, which means intensification of that use is a possibility, whether that be drive through pods, EV charging, or actually if you sort of the use in its existing state is obsolete, you could, you know, redevelop for last mile logistics or they are typically quite good residential sites. We do like retail warehousing, and that sector is particularly buoyant at the moment. Hence, one of the reasons why we are considering selling this asset alongside some most recent asset management activity.

19:09 As you can see here, we've carried out three letting events. We did a new letting to Farm Foods, a new fifteen year lease. We did a new ten year lease to Wren. And actually, we considered selling this asset at the end of last year, but what it actually did, it acted as a catalyst for a lease regear with B Q. We did that regear last quarter, so apologies if a lot of this information you've already heard. So it's more for sort of new listeners, but we've successfully completed that deal with B and Q and now we are considering selling this asset. So sort of keep your eyes peeled for news over the next three to six months.

19:56 This is our asset in Hitchin. We bought it, as I said, in March last year. We've kind of hit the ground running on asset management here. And this quarter, we've reported that we've done a five year lease renewal with Next, obviously, a very well known high street retailer at a 150 k. So really good to secure one of those anchor tenants alongside with M and S here. It's positioned on Bancroft, which is the main retail section in Hitchin, which is a affluent commuter town and only sort of twenty five minutes from Central London on a train. And last quarter, we also reported that we sold off the vacant office which sat at the back of this retail to a local investor.

20:47 And in doing so, we have driven that net initial yield. We bought it off an 8.3% net initial yield and that running yield now is at 8.7 having sold off that vacancy. Finally, I thought it was important to include a slide on York. You would have seen that we announced earlier this month that NCP had gone into administration. So PLC were appointed on the March 16 and then subsequent to that on the March 27, NCP shut 22 sites permanently. Just wanted to let you all know that NCP continued to operate from Tanner Road in York and they are paying rent monthly in arrears rather than paying it quarterly.

21:42 So it's still operational and we're still collecting rent. However, you know, you understand that AEW is a very active asset manager, so we're considering all opportunities here. That is obviously, of course, working with PLC and NCP, but also considering that short to medium term scenario alongside other asset management options, whether that be other operators or potential alternative uses. And that alternative use being a particularly important point, we acquired this asset off a good high yield, but also off a relatively low capital value per square foot, a £100 a square foot. We bought it off. And, you know, and that is very much a theme of AEWU's investment style.

22:29 When we're buying investments, we are also looking at vacant possession values and alternative use values, which means that in the event of something like this happening, a significant amount of value doesn't fall away. As you'll see, we only lost 7.94% of value this quarter following the announcement of the administration and that is because the asset was hold off a relatively low cap valve per square foot and therefore there are options that we can explore here. Finally, slide here just touches on our industrial sector, the metrics here are probably sort of more acute than they are portfolio wide. So we have a smaller will to break and to expiry in the industrial sector then across the portfolio. So two point five three years to break and four point five eight to expiry.

23:30 We have a stronger reversionary potential in the mid nine percents from a lower net initial yield of around six and three quarters. So that means there's a lot of rental growth that the asset management team are looking to go and capture. We have a low passing rent of £3.65 per square foot compared to £4.87 and I think it's worth noting that that ERV is CBRE, our independent valuers assessment of ERV, And quite typically, we are doing better than those ERVs. So there's an argument that the reversion potential is stronger than what these metrics show here. And just going back to that sort of point about capital value per square foot, which I've just referred to on York, the industrial assets are held off a cap valve per square foot of £48 a square foot, which is relatively really cheap.

24:23 If you compare that to what it costs to build industrial properties at a £120 a square foot, which excludes the value of land, we're in a really, really strong position here. And there are three assets here and much of these leasing events we have reported in previous quarters, but I've continued to keep them in because I think it's you know, they illustrate the opportunity going forward. As you can see at Bradford, we significantly moved the rent on from £3.50 when we bought the asset to rent as high as £5.75 today. At Saras Court, in the past year or so, we have actually carried out a number of refreshments here. We bought this asset off rents of £5 a square foot, which was deemed rack rented at the time. And more recently, we've achieved a letting at £8.50.

25:10 We have two more units which we are currently under offer on and looking to beat that rate per square foot of £8.50 and hopefully we can report good news on that in due course. And then at Sheffield, we bought this large manufacturing unit which produces reinforced steel for HS2 off a relatively really low rent of £2.78 pounds and last quarter or so we increased the rent to four pounds twenty five pounds so some really strong rental growth coming through in more recent years. Handing back to Laura to conclude the presentation. Thank you very much. Thanks, Henry. And thank you all for joining us today. Hopefully, we've been able to demonstrate our confidence in the portfolio going forward.

25:57 Clearly, with these real assets, there are hurdles to manage over the course of time as we've clearly faced this quarter with NCP. But because our strategy is based on strong fundamentals of location, as I set out at the start of the presentation, and just ensuring that even if these unexpected things or or unwanted things happen during an assets business plan, we have other routes to to securing value. And because of the strong location there in York and because of the low capital value at which we acquired that asset, we have a number of of active business plans that we are working on at the moment, which we believe will show full, if not a very strong level of recovery of the assets capital value.

26:49 So we have strong confidence in our portfolio. We believe it still represents a value proposition as of today. And and hopefully, you're all encouraged by the continuation of our market leading level of dividend this quarter as decided by the board. That's great, Laura Henry. Thank you very much indeed for updating investors. Ladies and gentlemen, please do continue to submit your questions just using the q and a tab situated on the right hand corner of your screen. A full recording of today's presentation will be available via your investment company dashboard. Laura Henry, you've had a number of questions from investors this morning. Thank you to everybody for your engagement. If I may just hand back to you, ask you to read the questions, and then I'll pick up from you at the end. Yeah. Thanks, Mark.

27:39 Just having a look through these. So there's an interesting question been put forward by Steven r. And Steven says, in the recent update, there have been valuation declines, a rent free period to secure a letting and two new vacancies. Do we consider this to be a sign of growing weakness in in our sector of the market or just a a a sort coincidence of unfortunate events occurring at the same time. You know, I'll perhaps kind of just start to answer that and then I'll kind of hand over to you for your thoughts as well, Henry. But, you know, I think it's probably important to point out that overall in this quarter, our portfolio has seen valuation uplift. And and at overall level, that's uplift of half a percent, which might not sound very material, but I think against the backdrop of what's happened globally this quarter and also considering what we've been through this quarter with NCP and seeing a significant down valuation of of that asset alone, to still come out come out of this quarter with an overall valuation uplift.

28:49 I actually think that is a signal of strength in our in our portfolio. And and we pointed to it in the announcement that we put out last Friday that a lot of a lot of that sort of valuation strength and valuation uplift is continuing to be delivered by or driven by ongoing process in our asset management business plans. And Henry's pointed to some of them there in his last slide. So that's in Runcorn with hopefully more rental growth being seen in lettings coming up. That's work a lot of work that we've doing in Square in Bristol, which will lead to a significant letting, hopefully take very soon there. So I actually read a lot of positivity into our activity recently.

29:38 But, yeah, anything to add there, Henry? Sorry, I've probably walked Yeah, of course. On for obviously agree with all of what Laura said. I mean, just on the sort of letting activity, you know, it's very typical when you carry out a letting transaction or renewal or a lease regear that there is going to be an incentive. That typically comes in the form of a rent free period, but quite often it can come also in the form of capital incentive. That CapEx which is put on the table is more typical when an incoming tenant has a significant fit out. So it's very much a part of the property industry that these incentives are given. And just touching on the void periods, Laura referred to our vacancy rate at the beginning of the presentation which is just shy of 10%.

30:32 That vacancy rate tends to yo yo between about 105% And actually, if you factor in business plan vacancies, I. E. Assets which we potentially would like to demolish to create an iOS, which is an industrial open storage opportunity or residential, and the opportunity at Bristol, that vacancy rate is about as low as 5%. So it really does sort of fluctuate quarter on quarter. But I think the important thing which sort of also points me in the direction of our lower weighted average unexpired lease term is that having void periods and shorter lease lengths is not a bad thing. Like, it is and, you know, it's a point in time where you can move on value and grow rents.

31:19 And the Runcorn example is classically that. You know, we unfortunately had a tenant vacate, two units came back, that tenant was paying £6 a square foot. We're now doing lettings at £8.50 and we might go beyond that. So, you know, it's not a bad thing. It is an opportunity in short to medium term. Yeah. Agreed. I'd just point to as well, We we've talked about how and you will have seen our our earnings were lower this quarter than they had been, I think in the past two quarters. And specifically last quarter, the company's earnings were, off the top of my head, about 2.3p. So whilst, yes, we have reported slightly lower earnings this quarter and we're pointing to improvement in that hopefully in the future.

32:08 Yeah. Let let's be cognizant of the fact that they were our dividend was more than covered by earnings last quarter. I'm gonna turn to a question from Matt h who is asking, how much upside is there from leasing rent reviews or repositioning of these existing assets. So, in order to answer that question, I think the best way that we can do that, is to look at, the difference between our initial yield and our reversion yield as determined by CBRE. So that is our independent valuer. So these are not our own numbers. And hopefully, that brings, you know, having also pointed to the fact during this presentation that CBRE are The UK's largest valuer of commercial property.

32:54 That hopefully that brings an element of of kind of security to those numbers to our shareholders. And that significant difference between the initial yield and reversion re yield being the amount of income upside that there is in the portfolio. And and to what Henry's just said there, that with our shorter than average weighted unexpired lease term of of around three to four years rather than some competitors which have longer. That simply means that we are able to access that reversion yield more quickly. And, yes, in the last quarter, we have seen some rents come down and that those would have been estimated to drop for some time. The reversionary yields on those properties would have been lower.

33:43 We were perhaps benefiting from excess yield on those assets, I a significantly higher level of yield in the shorter term because we had knowledge that that reversionary yield was going to come down. So that kind of overall blended reversionary yield on the portfolio being significantly higher, hopefully, provides you with a significant amount of comfort that we can capture rental growth in future periods. I'm just going to pick up generally on the subject of of possible mergers between AEW and another listed or or or for that matter, private companies. Now, I said at the start of the presentation, of course, we are not able to comment on specifics here and and, of course, activity of the past few weeks. Plea please do go and look at the announcements that were put out yesterday for more information on that.

34:41 Now, others are asking, you know, what would be the advantages to the company of of of trying to to complete some m and a or a merger with with another company, whether that's listed or otherwise. And and, of course, we can talk more generally about that. And and to say that we would like to be able to access a greater capital pool such that we could access those pipeline assets and the current market opportunity that we have described to you, on that slide where we were talking about the strength of our pipeline at the moment. We would also like to achieve greater scale in the company. We believe that some of our competitors do have, a lower operating cost ratio due to their size.

35:30 Now, I absolutely don't believe that ours isn't favorable, but scale would assist in bringing that down, which is something that our board and AEW believe would be favorable to our shareholders. And in addition to that, we would also look for, any company, which we would possibly merge with, to to bring accretion to our performance on a forward looking basis. And, of course, if we were able to secure a transaction which achieved that, then that would be beneficial to our shareholders as well. So we are not looking to you would have heard our our chairman, if you've heard him speak, say before, as he had said numerous times, and I think it's probably in our annual report, that we are not looking to grow for growth's sake. We are looking to grow where there is a strongly well, accretive or beneficial position for the for the shareholders.

36:31 And and, you know, we believe that, you know, it it wouldn't be right to do that if that wasn't the case. So we so we have that motivation behind taking those actions. Paul w has asked a question about the the nightclub that we own in Cardiff and its trade. There was a recent update within the company about that. Do you want to to answer that question? Yeah. So we redid the lease a number of years ago. We signed the lease actually from the previous operator who went to administration to Phoenix Co. And since that nightclub has been trading pretty well, I think worth noting that the nightclub sort of industry in general has changed quite a lot and is having to sort of roll the punches and sort of try and sort of think of new ideas to sort of bring people into their nightclubs.

37:34 But we all know that Cardiff has a large student population. It's, you know, a buzzing city, particularly when when the rugby's on. And we've seen some good turnover rent come through on this asset on top of the base rent at around £50,000 a year. And, you know, worth noting that when we were doing that lease regear, you know, the tenant is not going to agree to a level of turnover rent which it feels that it is going to be financially punitive to them. They're going to agree to a sensible turnover rent which obviously we assessed alongside previous turnover projections. So it's good to be getting a turnover rent because, you know, were potential sort of projections that actually a turnover might not have been coming, but it's good to see. And let's see what we get in the not so distant future.

38:27 I can just see that someone else has asked a question about whether or not we we have some urgency behind trying to scale our strategy prior to a refinancing. I'm just going to state that that those those two events aren't linked. We don't feel well, we know from conversations that we've had with lenders about refinancing, including our incumbent finance there is no requirement to have have scale there before that's completed. So those two things are are not linked at all. I'm just going to take final question from Alan T, who is asking the question It seems to be to to compare us to a competitor REIT and asking which one he he he should perhaps be buying.

39:25 I'm not going to name which competitor he's mentioned there. I would simply point to perhaps our dividend level is higher. And I would urge anyone sort of in that position asking themselves that question to have a look at the property total returns that respective companies are delivering here. Because ours, as Henry has demonstrated on these slides, has been consistently one of the strongest, if not the strongest in the peer group and and has delivered that on an annualized basis over a good few number of years now. So, yeah, I think we'll I think we'll leave that there. Thank you very much everyone for joining. It's very good to be able to update you again this quarter and we look forward to doing so next quarter as well.

40:15 That's great. Henry Laura, thank you very much indeed for updating investors. If I could please ask investors not to close this session as we'll now automatically redirect you in order that you can provide your feedback. On behalf of the team from AEW UK REIT PLC, thank you once again for your time, and enjoy the rest of your day.