Annual Financial Report

26 June 2026

AEW UK REIT plc

Announcement of Full Year Results for the year ended 31 March 2026

Robin Archibald, Chairman of AEW UK REIT plc, commented:

"I am pleased that the Company has continued to build on its strong track record of outperformance on total return and income delivery metrics during the year, which has enabled AEWU to pay a covered annual dividend of 8 pence per share. This level of dividend has now been paid for ten consecutive years, underlying the Board's commitment to providing a high and reliable income stream to investors.

Achieving an appropriate scale for AEWU's strategy remains an ongoing priority and the Board and Manager will continue to seek appropriate growth opportunities where possible, including the issuance of new equity where this is in shareholders' interests. As average UK property values are close to their lowest level since IPO, the Manager also wishes to capitalise on this opportune moment to selectively deploy capital in specific assets where income and growth can be maximised through asset allocation and selection, with a view to delivering strong returns over the medium to long term."

Financial Highlights

· Net Asset Value ('NAV') of £171.97 million and 108.38 pence per share ('pps') as at 31 March 2026 (31 March 2025: £174.44 million and 110.11 pps) down 1.42%.

· NAV Total Return for the period of 5.69% (31 March 2025: 15.29%).

· Operating profit before fair value changes of £14.145 million for the year (31 March 2025: £15.586 million) down 9.24%.

· Shareholder total return* for the year of 5.52% (31 March 2025: 28.68%).

· EPRA Earnings Per Share ('EPRA EPS')* for the year of 7.98 pps (year ended 31 March 2025: 9.00 pps), resulting in a dividend cover of 99.80%.

· Total dividends of 8.00 pps declared for the year (year ended 31 March 2025: 8.00 pps), consistently paid since Q1 2016 (42 consecutive quarters).

· The price of the Company's Ordinary Shares on the Main Market of the London Stock Exchange was 99.00 pps as at 31 March 2026 (31 March 2025: 101.4 pps).

· As at 31 March 2026, the Company had drawn £60.00 million (31 March 2025: £60.00 million) of a £60.00 million (31 March 2025: £60.00 million) term credit facility with AgFe and was geared to 25.21% of GAV (31 March 2025: 25.01%)***.

· The Company held cash and restricted cash balances totalling £15.17 million as at 31 March 2026 (31 March 2025: £27.78 million).

Property Highlights

· As at 31 March 2026, the Company's property portfolio had a valuation of £215.45 million across 34 properties (31 March 2025: £204.55 million across 33 properties) as assessed by the Valuer1 and a historical cost of £207.96 million (31 March 2024: £214.66 million).

· Over the year, the Company delivered 6.8% property total return for the year, higher than that of the MSCI benchmark performance of 4.81%, further building on the outperformance achieved in previous years.

· The Company won four awards, including the Citywire Investment Trust Award in the 'UK Property' category for the sixth successive year. The Company also won the 'Property' category at the 2025 Quoted Data Awards and was Highly Commended in the 'Property' category at the Investment Week Awards, having previously won this category in two earlier years.

· The Company acquired one property during the year for a total purchase price of £11.15 million, excluding acquisition costs. (year ended 31 March 2025: one for a purchase price of £10.00 million)

· The Company made one part-disposal during the year with total gross sale proceeds of £1.00 million (year ended 31 March 2025: one disposal and one part-disposal total gross sale proceeds of £32.55 million).

· The portfolio had an EPRA Vacancy Rate** of 9.43% as at 31 March 2026 (31 March 2025: 7.50%).

· Rental income generated in the year under review was £19.01 million (year ended 31 March 2025: £18.85 million). The number of tenants as at 31 March 2026 was 131 (31 March 2025: 124).

· EPRA Net Initial Yield ('NIY')** of 7.72% as at 31 March 2026 (31 March 2025: 7.97%).

· Weighted Average Unexpired Lease Term ('WAULT')* of 3.89 years to break (31 March 2025: 4.12 years) and 5.69 years to expiry (31 March 2025: 5.73 years).

[1] The valuation figure is reconciled to the fair value under IFRS in note 12 of the Annual Report.

* See KPIs on pages 13 to 16 of the Annual Report for definition of alternative performance measures.

** See Glossary on pages 166 to 169 of the Annual Report for definition of alternative performance measures.

*** See note 15 on pages 134 and 135 of the Annual Report for further details.

​

Contact details

Notes to Editors

About AEW UK REIT

AEW UK REIT plc ("AEWU") invests in and actively asset-manages a portfolio of high-yielding commercial properties in strong commercial locations across the UK. The investment objective is to deliver an attractive total return to shareholders. AEWU has paid a dividend of 8 pence per share per annum since 2016. AEWU's investment manager considers an asset's potential for investment returns based upon its individual merits and AEWU's commercial property strategy is therefore unconstrained by sector. The Company is invested in a value-focused portfolio of industrial, retail, office and leisure assets.

Since IPO in 2015, AEWU has won a number of awards based upon the strength of its returns: the MSCI UK Property Investment Awards 2023 and the Citywire Investment Trust Award in the 'UK Property' category 2020-2025 for the investment trust delivering the highest NAV total returns over an annualised three-year period. Past performance cannot be relied upon as a guide to future performance.

For more information please visit: www.aewukreit.com

LEI: 21380073LDXHV2LP5K50

About AEW

AEW is one of the world's largest real estate asset managers, with €74.2bn of assets under management as at 31 March 2026. AEW has over 815 employees, with its main offices located in Boston, London, Paris, and Singapore, and offers a wide range of real estate investment products, including comingled 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.

As at 31 March 2026, AEW managed €35.8bn of real estate assets in Europe on behalf of a number of strategies and separate accounts. AEW has over 510 employees based in 11 offices across Europe and has a long track record of implementing core, value-add, and opportunistic investment strategies on behalf of its clients. In the last five years, AEW has invested and divested a total volume of over €13bn of real estate across European markets.

www.aew.com

AEW UK Investment Management LLP is the Investment Manager. AEW is a group of companies that includes AEW Europe and its subsidiaries, as well as affiliated company AEW Capital Management, L.P. in North America and its subsidiaries. AEW Europe, 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 headquarters offices in Paris and London. AEW Europe 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.

Chairman's Statement

Overview

I present the results for AEW UK REIT Plc for the year ended 31 March 2026, which marks the Company's eleventh year of operations since inception. Despite continued economic and political challenges globally and at home, the Company has continued to build a strong track record of outperformance, both in total return and income delivery.

For the year ending 31 March 2026, the Company has maintained its quarterly dividend at 2.0p per share for the 42nd consecutive quarter, providing stable income for shareholders throughout changing market cycles and challenging market conditions. AEWU's property portfolio has delivered a strong track record of performance with an annualised 10 year total return of 9.1%, against the MSCI index at 4.4%, an outperformance of 4.7%. The Company is not sector or benchmark constrained and continues to be asset specific in its holdings and asset management initiatives, looking for income and capital opportunities rather than benchmark performance through allocation.

The consistency of the Company's performance highlights how its counter-cyclical investment strategy, combined with a proactive approach to asset management, can provide shareholders with market leading returns irrespective of economic conditions.

Investment and share price performance

The Company's share price total return demonstrates solid performance for the year of 5.52% (2025: 28.7%), albeit reflecting a decline in pricing towards the end of the period, along with the rest of the market, due to heightened political tensions in the Middle East. The year end saw the Company's share price decline to 99.0p from previous highs of 110p at various points during the period. Despite this, the Company's share price continues to trade at a consistently narrower discount to NAV than its peers, with the current discount being 8.65% versus a peer group average of 27.0%, and with an average discount over the year of 3.5%. Since year end, the share price has recovered to 104p.

AEW UK REIT plc Property Performance vs. Benchmark for 12 months to 31 March 2026

Whilst the IFRS NAV fell to £171.97m from £174.44m, the Company delivered a NAV total return of 5.69% (2025: 15.3%). The Company achieved a property total return of 6.80% (2025: 14.8%), a result that continues the Company's consistent track record of out-performance against the MSCI index, which delivered a total return of 4.81% during the period.

The Board is considering certain relatively minor amendments to the Company's investment policy, which remain subject to regulatory review and, if progressed, will be put to shareholders for approval at the forthcoming Annual General Meeting. Further details will be included in the Notice of Annual General Meeting.

Dividends

The Company has maintained its quarterly dividend of 2p per share throughout the year, marking the 42nd consecutive quarter of stable dividend payments, underlining the Board's commitment to providing a high and reliable level of income to shareholders.

The sustainability of this dividend remains a key focus of the Board and the Company's Investment Manager has shown significant expertise in maximising both income levels as well as the crystallisation of strong capital profits from sales, which can be used from time to time to support distributions to shareholders.

Gearing

The Company has a fully-drawn debt facility of £60m, which is due to mature in July 2027, with a fixed interest rate of 2.959%, representing a 25.21% Loan to Gross Asset Value ratio. Loan covenants all have significant headroom.

Given the Company's upcoming loan maturity, the Investment Manager is working proactively to secure competitive terms for refinancing, well in advance of the maturity date, with positive discussions having been held with a number of lenders, including the incumbent. The use of gearing within the Company is monitored closely by Board and Manager alike, particularly at the current time. It is expected that this refinancing will not create materially different earnings performance than the Company has been able to achieve over the previous 10 years. As a prudent step post-year end, the Company entered into a forward interest rate cap, running from July 2027 through to July 2030, to limit the SONIA rate on the Company's future borrowings to a maximum of 4.064% over the three-year term. More information is provided in the full Annual Report.

Portfolio

At year end, the Company held a diversified portfolio of 34 commercial properties spread geographically across the UK and across market sub-sectors. The average portfolio lot size was £6.3m, with occupancy of 92.6% from 131 tenants, as well as cash of £15.2m.

During the year, the Company part disposed of a single asset totalling £1.0m. Two purchases were made using proceeds from the £25.9m part sale of Coventry Central Six Retail Park that completed in the prior financial year.

The purchase of a high-street retail asset in Hitchin was completed in March 2025, with an attractive net initial yield of 8.3%. Deployment of the remainder of the disposal proceeds was completed with the acquisition of Freemans Leisure Park, Leicester, in June 2025 at an initial yield of 10.6%. The Company's Investment Manager continues to appraise high yielding opportunities in its investment pipeline that it considers could be accretive to the returns of the Company.

The part sale in Hitchin made during the year gives the Company the impressive record, since its inception, of 21 individual asset sales crystalised at an average premium to purchase price of 41% - the total realised return story.

Governance

The Board operates under established delegated authorities to highly competent agents and maintains strong governance practices and oversight across all aspects of the Company's operations.

The Management Engagement Committee has undertaken a thorough review of the performance and fee arrangements of the Investment Manager. We remain satisfied that the Investment Manager has the appropriate skills, resources and performance track record to manage the portfolio in the best interests of shareholders, and the Board supports its continued appointment. We also commend the Investment Manager for promoting the Company's interests and engaging with existing and future investors on what the Board considers to be excellent investment positioning. We believe that this strategy can justify greater scale without compromising the Company's performance record, and potentially enhancing it through lower proportionate costs, wider liquidity and a broader investment universe.

Katrina Hart will not stand for re-election at the Company's AGM in September 2026, having served the Company and Board for the last nine years since her appointment in 2017. Her colleagues and the Investment Manager thank her for her positive contribution. The Board is well advanced, using an independent external consultant, in a search for Katrina's replacement, and we are confident of identifying a candidate who will bring appropriate and valuable expertise to the Company, as well as meeting governance guidelines on how the Board might be structured going forward.

The Nomination and Remuneration Committee has conducted its review of Board remuneration, based on Board size and composition, the demands of an alternative asset company such as AEWU and referencing its listed peer group. Noting the small and very engaged Board, the demands of an alternative asset company such as AEWU, and comparing and contrasting with the peer group, it has made a number of recommendations which are set out in the Directors' Remuneration Report in the full Annual Report. These also take into account Board succession and the ability to attract and retain the correct balance of competence and diversity on the Board.

Corporate Activity

Achieving an appropriate scale for AEWU's strategy is considered to be a key ongoing priority of the Board, with expected benefits to shareholders from growth including enhanced liquidity in the Company's shares, a lower operating cost ratio as well as an expanded portfolio of investment opportunities. These factors are considered important to ensure that the Company and its strategy remain relevant at a time of much corporate activity and competition in the UK-listed property sector.

The Board and the Investment Manager will seek to take advantage of appropriate growth opportunities for the Company where possible, including the potential issuance of new equity. The protection of existing shareholders' interests, including in earnings potential, will remain paramount in anything examined or proposed.

With the above principles in mind, the Board and its advisers considered a possible offer for the share capital of Alternative Income REIT (AIRE), and reached an in-principal agreement of terms with the AIRE Board and its advisers during the period under review.

It is of regret to the AEW UK REIT Board that this opportunity did not proceed to an agreed position. AIRE's portfolio was believed to be consistent with the assets and management style applied within AEWU. In particular, AIRE's assets' inflation-linked income stream was felt to be complementary to the strong rental growth prospects offered by the portfolio of AEWU. The Board will continue to monitor the AIRE situation and other corporate opportunities.

Awards

During the year, the Company's performance and governance practices continued to be recognised through the receipt of four awards, underscoring the strength and consistency of its operational and financial results.

The Company received the Citywire Investment Trust Award in the 'UK Property' category for the sixth consecutive year. This award is presented to the investment company delivering the highest NAV total returns over an annualised three-year period. The Company also won the 'Property' category at the 2025 Quoted Data Awards and was Highly Commended in the 'Property' category at the Investment Week Awards, having previously won this category in two earlier years.

In addition, the Company was again recognised by the European Public Real Estate Association, receiving a gold award for the quality of its financial reporting for the sixth consecutive year, and, for the second time, a gold award for the standard of its sustainability reporting.

Outlook

With average UK property values remaining close to their lowest level since the Company's IPO, the Investment Manager maintains a positive outlook and considers this an opportune moment to deploy capital. Drawing on its expertise in both stock selection and asset management, the Investment Manager believes that investments made in the near term have the potential to generate strong returns over the medium to long term. We are not in the business of speculating on geopolitics or global economics, but in managing around them as best as we can.

In the context of a somewhat uncertain economic environment and continued geopolitical risks, the principal objectives of the Board and Investment Manager are to maintain disciplined management of the portfolio for income and capital growth, and to support a robust rating and liquidity in the Company's shares in the secondary market. These objectives will guide our strategic focus for 2026 and the years ahead, as we continue our close collaboration with AEW aimed at maintaining our strong performance.

Robin Archibald

Chairman of the Board

25 June 2026

Attribution Analysis of Financial Results

The Company's NAV as at March 2026 was £171.97m or 108.38 pps (31 March 2025: £174.44m or 110.11 pps). This represents a decrease of (1.73) pps or (1.57)% over the 12-month period, with the underlying movement in NAV set out in the table below:

Financing

As at 31 March 2026, the Company had a £60.00 million loan Facility with AgFe, which expires in July 2027, the details of which are presented below:

* including 100,000 treasury shares (2025:350,000)

Investment Manager's Report

Property performance summary

Despite the challenging backdrop, the Company delivered a property total return of 6.80% for the year, driven by a strong income return of 8.1%. This reflects the Investment Manager's income-focused strategy, where rents can be grown through active asset management. Although this performance is more muted than the previous year (2025: 14.8%), the portfolio continued to outperform the MSCI index, which returned 4.8% over the same period.

Whilst specific assets, particularly in the industrial and retail warehousing sectors, have seen notable valuation increases, overall gains have been constrained by valuation declines at assets where business plans are currently in progress. These include properties where tenants have vacated and refurbishment works are at an intermediate stage, particularly at Queens Square, Bristol, in the office sector.

During the period, NCP (National Car Parks Limited), the main tenant at Tanner Row, York, entered administration which, despite its continued occupation of and rental payments for the multi-storey car park, resulted in a valuation decline. With asset management being an integral focus of the Company's strategy, we look forward to letting vacant space and bringing business plan initiatives to fruition. This includes Tanner Row, York where alternative uses and alternative operators are currently being explored.

During the year, we completed the acquisition of the Freemans Leisure Park, Leicester, returning the Company to full investment. We continue to monitor an attractively priced investment pipeline that meets the Company's investment criteria, ready to deploy capital as and when it becomes available. The pipeline is focused on assets offering sustainable net initial yields of generally 8-10%, with lot sizes below £20 million where there remains limited competition from other investors. In order to protect investors' capital over the long term, the Company continues to target assets with low capital values relative to alternative use and vacant possession values, and low passing rents with potential for growth.

10 year property performance summary

During the period, the Company passed through the 10 year anniversary of its Initial Public Offering allowing us to demonstrate a 10 year track record of property outperformance against the MSCI/AREF PFI Balanced Funds Quarterly Property Index. At portfolio level, AEWU's assets have delivered an annualised 10 year total return of 9.1%, demonstrating 10 year annualised outperformance of 4.7%.

Property Total Return Vs. MSCI Benchmark

Industrial and Warehousing

Investment and occupational market conditions remain resilient, continuing the themes seen in 2024, but requiring a more selective, income-focused approach.

Asset liquidity remains robust with investment volumes reaching £1.64 billion in the first quarter of 2026, 5% above the 10 year pre-pandemic average. This followed an exceptionally strong £4.81 billion in the last quarter of 2025 driven by large portfolio deals and REIT M&A. Investment demand is strongest for prime stock with yields now at 5.25% while assets that require some management face a narrower buyer pool but can still offer attractive yields. This is encouraging for the Company and may signal a return to buying in the sector, having more recently been net sellers of industrials, particularly in single-let assets where the greatest yield advantage is seen.

The occupational market also remains active with a clear shift towards mid box units, with the 50,000- 250,000 sq. ft. size bands accounting for most space transacted during the period. This bodes well for the Company, given its average single let unit size of circa 110,000 sq. ft.

In early 2026, the industrial vacancy rate rose slightly to 8.3%, from 7.5% at the end of 2025. However, with speculative development under pressure from higher energy, material and financing costs, the pipeline of new build supply is expected to be constrained, helping to limit oversupply.

Rental growth expectations remain positive but are moderating from the stronger levels seen in 2024 and 2025. Average UK industrial rental growth is forecast to achieve 2.4% for 2026, down from 4.2% in 2025 and 5.5% in 2024, before easing further to 2.3% in 2027. Even so, constrained Grade A supply and rising build costs should continue to support rents for the best located space, reinforcing the sector's income driven appeal.

Despite several industrial disposals in recent years, the sector remains the largest single component of the Company's portfolio at 37.2%. The portfolio's outperformance of the benchmark in this sector during the period was driven by a high income return of 7.2% versus the benchmark's 4.3%. This was supported by successful asset management, including the settlement of ROM Group Limited's outstanding open market rent review at Brightside Lane, Sheffield, at £529,500 per annum - a 41.57% increase on the previous passing rent of £374,000 per annum. With a net initial yield of 6.83% and a reversionary yield of 9.53%, this sector of the portfolio is expected to continue to deliver strong income growth.

High street and retail warehousing

Retail warehousing investment volumes declined throughout the period with volumes in Q1 2026 being less than half the £896m recorded in Q1 2025. This primarily reflects a lack of available investment stock rather than weak investor demand, as landlords remain inclined to hold income and are therefore reluctant to bring assets to market. High Street investment volumes were £139.5m in Q1 2026, 28% lower than in Q4 2025; nonetheless, institutional investors are returning to the market, with prime High Street yields hardening by 25 bps in early 2026 to 6.25%.

The retail warehousing vacancy rate fell to 4.8% at the end of 2025, surpassing the previous record low of 4.9% in 2017. Second hand space released through CVAs and administrations has largely been reabsorbed, with new demand comfortably exceeding any rationalisation or downsizing. High Street vacancy rates also improved over the period, falling by 50 bps year on year to 13.2%.

The main headwinds for the retail sector are rising energy prices, which are increasing operating costs and adding to inflationary pressures, alongside April's rise in the minimum wage and business rates revaluations (both effective after year-end). These factors are expected to further squeeze occupier margins although are set against a backdrop of rising UK retail sales.

Over the past few years, the Company has been buying retail assets counter cyclically, increasing its portfolio weighting from 25% at 31 March 2022 to 34.6% at 31 March 2026. This has enabled access to higher yields, supporting outperformance in the sector relative to the benchmark. The Company delivered strong total returns of 12.1% from retail over the period, with capital returns largely driven by asset management activity at Barnstaple Retail Park, where a reversionary lease was completed with B&Q Limited, extending the lease to a 15-year term and increasing the income by £80,280 per annum. We remain confident that the existing retail assets in the portfolio will continue to perform strongly. We also continue to see an attractive pipeline of retail assets in the UK investment market, with our focus on strong locations underpinned by alternative use values and tenants known to trade profitably.

Offices

Office investment volumes across the UK regional cities rose markedly during the period with £531m transacted in the first quarter of 2026, the highest quarterly total since Q2 2022. Momentum is expected to build through 2026, with around £740m under offer at the end of March and a further £800m being marketed. The buyer pool remains relatively narrow but is starting to expand and is expected to broaden further as overseas capital and UK institutional investors return.

Prime regional office yields were stable throughout 2025 but continue to offer a meaningful premium to risk-free benchmarks such as 10-year gilts. Relative to London, where prime yields have reached 5.25% in the City and 3.75% in the West End, regional pricing looks increasingly compelling.

Occupational markets had a robust conclusion to the period, starting 2026 with 1.2m sq ft of take up during Q1, the strongest first quarter since 2022. Demand was led by Financial and Professional Services, responsible for 31% of take up, followed by the Public Sector at 24%. Flight to quality remains a defining theme with Grade A space accounting for 63% of take up.

As at Q1 2026, the office occupational outlook was supported by a healthy 3.9m sq ft pipeline of active requirements. Overall vacancy levels remained static at approximately 13.5% in early 2026 as compared to 12 months prior. However, due to polarisation of tenant demand Grade A stock vacancy sits significantly lower at 3.4%, indicating strong competition for the best space. Development activity remains constrained, limiting new supply in the near term.

Against this backdrop, prime rents continue to grow. The average regional prime rent has reached £41.50 per sq ft, representing annual growth of 7%, with the strongest increases in Birmingham (18%), Leeds (17%) and Bristol (8%) where the Company holds its largest office asset.

The Company has a low exposure to the office sector, representing just 10.78% of portfolio value across three assets, one of which includes retail and leisure at ground floor level. These assets have been selected for their strong locations, with investment values underpinned by alternative use potential.

Vacancy within the Company's office holdings is currently higher than usual, as asset management initiatives at Queen Square, Bristol, and Cambridge House, Bath progress. As a result, capital performance has been weak relative to the benchmark. However, income return has remained robust at 5.7%, outperforming the benchmark by 1.7%.

Alternatives

Despite the squeeze on discretionary spend, demand for the leisure sector has on the whole remained robust since the pandemic. Consumer spend on leisure has consistently outperformed long-term averages and statistics during the period demonstrate this well, with Barclaycard reporting an essential spending decline of 1.5% during 2025. At the same time, hospitality and leisure spending grew by 2.7% and restaurant spend by 1.6%.

Whilst in recent years leisure sub-sectors such as bowling and competitive social have stood out due to their robust performance, this is now being seen across other leisure sectors, too. The cinema sector has shown resilience during 2023, 2024 and 2025 with annual sales comfortably exceeding £900m each year. More recently, cinema admission figures increased by 7% in Q1 2026 with 10% growth expected for the full year. Additionally, the gym sub-sector continues to demonstrate strong trade with visits to health clubs having risen by 10% during 2025 and showing growth in demand from all age groups.

The leisure market constitutes 14% of the Company's portfolio with tenant exposure to the following subsectors: cinema, gymnasium, restaurant, bowling, bingo and nightclub. One acquisition was made during the year as the Company acquired the Freemans Leisure Park in Leicester, for £11,150,000, reflecting an attractive net initial yield of 10.6%. Tenants are known to trade strongly from the location and leases provide a weighted average unexpired lease term of greater than eight years. AEW continue to see buying opportunity within the sector where properties felt to have a strong occupational outlook can be acquired often at double digit yields and at low capital values as compared to their alternative use.

Elsewhere in the alternative sector, NCP, the tenant of the Company's Tanner Row car park in York, which represents 4.0% of the portfolio value, went into administration in March 2026, resulting in the property's valuation falling by 13.17% over the period. Despite this setback, the car park remains operational, and the Company continues to receive full rent payments. The strategically positioned 0.8 acre site in York's land-constrained city centre is expected to attract interest from alternative operators and offers potential for redevelopment given its prime location.

Sources: Savills UK | Spotlight: UK Leisure - 2026

UK screen sector recovery signals a more sustainable growth model - Blick Rothenberg

Savills UK | The UK cinema sector

UK Health and Fitness Market Report 2026 reveals visits to health and fitness clubs up 10% and 18% of the population now members | ukactive

www.ons.gov.uk

Knight Frank Real Estate Navigator, Q1 2026

Property Portfolio

Sector weighting by valuation - high industrial weighting and low exposure to offices

Geographic weighting by valuation - highly diversified across the UK

Like-For-Like Valuation Movement for the Year

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

AEW UK REIT Top Ten Assets

At year-end, the portfolio's top 10 assets constituted 49.3% of the overall portfolio value. As detailed in the full Annual Report, these are diversified across both sector and geography.

Investment Update

The Company made one acquisition during the year:

Leicester, Freemans Leisure Park

In June 2025, the Company completed the purchase of an 8.4-acre freehold site in the centre of Leicester for £11,150,000. The purchase price reflects an attractive net initial yield of 10.6% and a capital value of £103 per sq. ft.

The property occupies a prominent position on an arterial route one mile south of Leicester city centre, close to the University of Leicester's student campus.

The property is fully let to a well-known group of national tenants including Odeon Cinemas Ltd, Mecca Bingo Ltd, Spirit Pub Company Ltd and Nando's Chickenland Ltd, providing a weighted average unexpired lease term to expiry of greater than eight years. The Property presents various short-to-medium term asset management opportunities, including rental growth prospects through upcoming rent reviews; the possibility of an EV charging letting; and appraising alternative uses for areas of the site that have not already been developed.

The Company made one part-disposal during the year:

Hitchin, 3-4 Portmill Lane

On 14 October 2025, the Company completed the sale of 3-4 Portmill Lane, a vacant office block, located behind the main retail parade on Bancroft in Hitchin. Competitive pricing was secured from a local owner-occupier at £1,000,000 (£191 per sq. ft.), significantly above the asset's September 2025 book value of circa £497,000 (£95 per sq. ft.).

The decision to sell was driven by the office's non-core location, with limited demand for occupational use, which did not align with the three retail frontages on Bancroft. Additionally, there was a risk of incurring vacant holding costs while exploring alternative uses for the property.

Asset Management Update

The Company completed the following material asset management transactions during the year:

Hitchin, Bancroft

The Company completed a 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.

Nottingham, Wheeler Gate

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.

Costa Limited, whose lease expired in September 2025, paying a rent of £52,000 per annum, has renewed its lease at the same rent for a term of 10 years with a break on the anniversary of the sixth year. No incentive or rent-free period was granted to the tenant.

Sheffield, Fargate

The Company completed a new lease to Boots Opticians Professional Services & Seven Hills Optical Ltd, trading as Boots Opticians. The tenant has entered a 10-year lease, with a tenant break option on the expiry of the fifth year, paying a rent of £62,500 per annum. There will be a five-yearly open market upwards-only rent review. The tenant has been granted a nine-month rent-free period. Following completion of the letting, the property is now fully let.

Bristol, 40 Queen Square

The Company completed a lease renewal with Royal Bank of Canada (RBC), extending its 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.

Dagenham, London East Leisure Park

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 of £584,275 per annum is grown annually by RPI (2% collar and 4% cap), having previously been £625,000 per annum.

Southend, Odeon

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.

York, Tanner Row

On 16 March 2026 National Car Parks Limited (NCP) appointed joint administrators. 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 continues to trade with the administrators paying rent monthly, now at a total running yield of 10.12% (31 March 2025: 8.51%) 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 wide 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).

Barnstaple, Barnstaple Retail Park

The Company completed a reversionary lease with B&Q Limited (B&Q) for a duration of seven years and seven months, resulting in a new lease expiry of 31 December 2040 (15 years in total). As part of this agreement, B&Q also signed a Deed of Variation, increasing the rent from £348,000 per annum (£9.75 per sq. ft.) to £428,280 per annum (£12.00 per sq. ft.), reflecting an increase of £80,280 per annum. In return, the Company granted B&Q a six-month rent-free period, which started on 1 January 2026.

The Company completed a new lease to Wren Kitchens Limited, which has taken the former Poundland unit. Wren has signed a 10-year lease with a tenant break option on the expiry of the fifth year at a rent of £98,500 per annum (£17.25 per sq. ft.). On the expiry of the fifth year, the rent will be reviewed to the lower of open market or 2.5% per annum, compounded. Wren has been granted a 12-month rent-free period, with a further six months should it not exercise the break option.

Dewsbury, The Railway Centre

After protracted negotiations, the Company completed a five-year lease renewal with SportsDirect.com Retail Limited, commencing on 31 December 2025, at an annual rent of £140,000 (£9.10 per sq. ft.). The previous passing rent was £122,544 per annum (£7.96 per sq. ft.), reflecting an increase of £17,456 per annum. Six months rent-free was given as an incentive.

The Company also completed a lease renewal with Fieldrose Limited (Fieldrose), trading as KFC, whose lease expired on 23 December 2023. Fieldrose has signed a 15-year lease, which includes a tenant break option at the end of the tenth year, at an annual rent of £86,000. No rent-free period or tenant incentive was given. Additionally, the outstanding rent review from December 2018 has been settled at £67,000 per annum. The previous passing rent was £64,250 per annum.

Coventry, Central Six Retail Park (the Triangle Site)

Following the Company's freehold disposal of Units 1-11 for £26,250,000 in December 2024, the Freeholder (Friargate JV Projects Limited, known as Friargate) of the remaining site, known as the 'Triangle Site', which is still held on a long leasehold basis by the Company, has served notice to acquire the remaining site for a peppercorn. Friargate hold an option to acquire the Company's long leasehold interest of the Triangle Site which was granted in exchange for the Company's 2023 acquisition of the freehold interest in Units 1-11, which had previously been held by way of a long leasehold from Friargate.

In acquiring the freehold of Units 1-11, the liquidity of the asset was improved, as well as user restrictions removed, thus achieving the price of £26,250,000 which represented a 60% premium to the purchase price of the entire property, which was acquired in November 2021 for £16,411,000. The Triangle Site consists of three purpose-built retail warehousing units let to Salvation Army, Costa Ltd and TUI UK Retail Ltd, and a drive-thru restaurant let to Caspian Food Services Ltd, trading as Burger King, producing an annual rental income of £380,000 per annum.

Shrewsbury, Arrow Retail Park

The Company completed a new lease of Unit B to Summerhouse Solutions Limited (Summerhouse), trading as Summerhouse Interiors. Summerhouse has signed a five-year lease, which includes a tenant-only break option on the expiry of the third year, subject to a penalty of three months' rent. The annual rent is £32,000 (£6.96 per sq. ft.), and the letting includes an initial three-month rent-free incentive.

The Company completed a new lease of Unit C to Lifecycle Group Holdings Limited. The tenant has signed a 10-year lease, which includes a tenant-only break option on the expiry of the fifth year. The annual rent is £32,000 (£6.96 per sq. ft.), with no rent-free incentive being given.

Sheffield, 710 Brightside Lane

The Company settled ROM Group Limited's outstanding open market rent review at £529,500 per annum (£4.25 per sq. ft.) representing a 41.57% increase on the previous passing rent of £374,000 per annum (£3.00 per sq. ft.).

Redditch, Eagle Road, North Moons Industrial Estate

The Company settled Carrs Coatings Ltd's August 2025 annual uncapped RPI rent review at £319,519 per annum (£8.41 per sq. ft.), representing a £14,709 per annum (4.83%) increase.

The unit is single-let to Carrs Coatings Ltd until August 2028. The lease was entered into as a sale and leaseback in 2008 at an initial starting rent of £170,300 per annum (£4.50 per sq. ft.).

Wakefield, Diamond Business Park

The Company completed a new lease of Unit 10 to Machtech Technology Ltd. The tenant entered into a five-year lease with a tenant only break option in 2.5 years, paying a rent of £46,890 per annum (£4.50 per sq. ft.) which is £0.50 per sq. ft. above ERV. No rent-free period or capital contribution was given as an incentive.

The Company has commenced the demolition of Diamond House, an obsolete 1970s purpose-built office block consisting of 27,098 sq. ft., at a cost of £229,807 (inclusive of fees and contingency). The office became fully vacant earlier this year with the last remaining tenant surrendering its lease to vacate early. Refurbishment or conversion to residential use were also considered, with demolition being the most viable route forward, with the cleared land creating a 1.8 acres industrial open storage letting opportunity with an ERV of £50,000 per acre, as well as eliminating approximately £79,000 per annum of landlord shortfall costs.

Weston-super-Mare, Westlands Distribution Park

The Company completed a three-year lease renewal of Unit 4 with MCT Rehman Ltd at a rent of £95,000 per annum (£3.61 per sq. ft.), which increases to £100,000 per annum (£3.80 per sq. ft.) at the beginning of the second year, and £110,000 (£4.18 per sq. ft.) for the third year.

The Company has also completed a short-term lease renewal of Unit 2 with J N Baker Ltd, extending the term by an additional 12 months with a rolling tenant-only break option that allows for termination on one month's notice after the first three months of the term. The tenant will be paying a rent of £159,500 per annum (£2.28 per sq. ft.).

The Company has also completed a short-term lease of Units 2B and 2C with Colin Venn. The lease will be for a total term of one year with a rolling mutual break clause that allows termination at any time with one month's notice. The tenant will pay a rent of £6,000 per annum.

Runcorn, Sarus Court

The Company completed a speculative refurbishment project of Units 1002, formerly let to PS2 Print Ltd. The works comprised roof improvements, respraying of external elevations, internal strip-out and decoration, and replacing M&E services to improve the EPC ratings to a B. It is anticipated that the Company will crystalise significant rental growth from the previous rent following the unit being re-let. As a result of these initiatives, the value of the property has increased by £2.3m during the financial year.

Alternative Investment Fund Manager ('AIFM')

AEW UK Investment Management LLP is authorised and regulated by the FCA as a full-scope AIFM and provides its services to the Company.

The Company has appointed Langham Hall UK Depositary LLP ('Langham Hall') to act as the depositary to the Company, responsible for cash monitoring, asset verification, and oversight of the Company.

Information Disclosures under the AIFM Directive

Under the AIFM Directive, the Company is required to make disclosures in relation to its leverage under the prescribed methodology of the Directive.

Leverage

The AIFM Directive prescribes two methods for evaluating leverage, namely the 'Gross Method' and the 'Commitment Method'. The Company's maximum and actual leverage levels are as per below:

In accordance with the AIFM Directive, leverage is expressed as a percentage of the Company's exposure to its NAV and adjusted in line with the prescribed 'Gross' and 'Commitment' methods. The Gross method is representative of the sum of the Company's positions after deducting cash balances and without taking into account any hedging and netting arrangements. The Commitment method is representative of the sum of the Company's positions without deducting cash balances and taking into account any hedging and netting arrangements. For the purposes of evaluating the methods above, the Company's positions primarily reflect its current borrowings and NAV.

Remuneration

The AIFM has adopted a Remuneration Policy which accords with the principles established by AIFMD. AIFMD Remuneration Code Staff includes the members of the AIFM's Management Committee, those performing Control Functions, Department Heads, Risk Takers and other members of staff that exert material influence on the AIFM's risk profile or the AIFs it manages.

Staff are remunerated in accordance with the key principles of the firm's remuneration policy, which include:

- promoting sound risk management;

- supporting sustainable business plans;

- remuneration being linked to non-financial criteria for Control Function staff;

- incentivising staff performance over long periods of time;

- awarding guaranteed variable remuneration only in exceptional circumstances; and

- having an appropriate balance between fixed and variable remuneration.

As required under section 'Fund 3.3.5.R(5)' of the Investment Fund Sourcebook, the following information is provided in respect of remuneration paid by the AIFM to its staff for the year ended to 31 December 2025.

Fixed remuneration comprises basic salaries and variable remuneration comprises bonuses.

Strategy Commentary

AEWU invests in and actively asset manages a value-focused portfolio of high-yielding commercial properties across the UK.

The AEWU portfolio management team have proven their expertise in identifying these opportunities

across market cycles over a 10-year period.

These mispriced opportunities present significant potential for income growth and value creation through active asset management, as evidenced by the Company's market leading returns. The Company capitalises on value opportunities that arise from pricing inefficiencies.

We believe that a true value strategy is best enacted without sector constraint. AEWU seeks value across the entire UK commercial property universe and analyses investment opportunities based on their individual merits.

Investment Criteria

We typically target properties that meet the following criteria:

Net Initial Yields: We seek sustainable net initial yields at purchase ranging between 7-10%, in order to maintain a high level of income across the portfolio.

Rental Growth Potential: We focus on properties with low passing rents, which present opportunities for income growth.

Value Investment Style: We prioritise the acquisition of assets with low capital values at purchase when compared to their alternative use and vacant possession values. This provides optionality in business plans and protects capital throughout market cycles.

Lot Size: We typically invest in assets at purchase prices under £20 million as we find less competitive appetite in this lot size category leads to a greater propensity for mispricing.

Strong Commercial Locations: We focus on strong commercial locations, enabling us to leverage tenant demand and enhance the overall performance of our portfolio.

Active Asset Management

Once acquired, we employ a proactive asset management strategy that focuses on:

Growing Income Streams: Enhancing rental income through a dynamic approach to lease events and expert knowledge of markets.

Extending and Improving Tenant Leases: Negotiating longer leases and improved terms to secure stable income.

Adding Value through Planning: Utilising the planning system to enhance property value.

Refurbishing Properties: Undertaking refurbishments where necessary to maintain competitiveness and enhance appeal of the property.

Enhancing ESG Credentials: Improving the environmental, social, and governance (ESG) standards of our properties.

Sales: Having executed an asset's business plan, we dispose of lower-yielding assets with limited near-term prospects for rental growth or further value enhancement, crystallising asset management gains and recycling proceeds into higher-yielding assets that enhance earnings and create new value-add

opportunities.

Outcomes of Our Strategy

This comprehensive approach enables us to achieve the following:

Maximise Income

We have consistently paid a quarterly dividend of 2 pence per share since Q1 2016, currently delivering one of the highest dividend yields in the UK commercial property sector.

Unlock Capital Upside

Annualised total property return of 9.6% over the five years ending 31 March 2026.

Outperformance of the MSCI benchmark by 5.9% over the same period. 

Since inception, we have achieved an average sale price premium of 41% over purchase price from 21 asset sales, crystallising significant profits for shareholders.

At times, when the dividend is not fully covered by EPRA earnings, the Company supplements its net earnings  using distributable reserves derived from capital profits on property disposals, thereby utilising a key feature of the closed-ended structure.

AEW UK Investment Management LLP

25 June 2026

FURTHER INFORMATION

The financial information does not constitute the Company's financial statements for the periods ended 31 March 2026 or 31 March 2025 but is derived from those financial statements. Financial statements for the year ended 31 March 2025 have been delivered to the Registrar of Companies, and those for the year ended 31 March 2026 will be delivered following the Company's Annual General Meeting. The auditor's reports on both the 31 March 2025 and 31 March 2026 financial statements were unqualified; did not draw attention to any matters by way of emphasis; and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

AEW UK REIT PLC's annual report and accounts for the year ended 31 March 2026 will be available today on www.aewukreit.com.

It will also be submitted shortly in full, unedited text to the Financial Conduct Authority's National Storage Mechanism and will be available for inspection at data.fca.org.uk/#/nsm/nationalstoragemechanism in accordance with DTR 6.3.5(1A) of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

LEI: 21380073LDXHV2LP5K50

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