(Correcting the share price of AEW UK Long Lease.)
(Alliance News) - AEW UK Long Lease REIT PLC said Tuesday a number of contractual changes means costs are set to be halved.
AEW UK Long Lease, a commercial property investor, has appointed Liverpool-based Mason Owen & Partners Ltd as its investment adviser from April 9, also taking the role of property manager from March.
Langham Hall Fund Management LLP will act as alternative investment fund manager, with King Capital Consulting Ltd appointed consultant portfolio manager.
London-based AEW UK Long Lease has picked Hanway Advisory Ltd as its company secretary, replacing Link Company Matters Ltd.
Lastly, Westlake Clark Ltd will become administrator, replacing Link Alternative Fund Administrators Ltd.
"The board's actions, together with the group's contracted rental income from our portfolio, enables the board to reaffirm its current target annual dividend of 5.5 pence per share but one that it expects will be on a fully cash covered basis from July 2020 with effect from the financial year commencing July 2020," said AEW UK Long Lease Chair Steve Smith.
"The board is confident the changes to the company's service providers will achieve a saving in the region of half of the company's historic level of recurring annual overhead cost, whilst potentially enhancing service levels."
"The company is now well-placed to deliver to our shareholders attractive, sustainable and fully cash-covered dividends over the short and longer term, together with the potential for income growth from its diversified portfolio of UK property investments, the majority of which are let on long leases that contain inflation-linked rent uplifts."
"The board, along with the group's advisers, is continuing to seek longer term solutions to expand the group, including the introduction of new capital, and to deliver further shareholder value," Smith continued.
AEW UK Long Lease shares were 0.3% higher on Wednesday morning at 74.22 pence each.
By George Collard; georgecollard@alliancenews.com
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