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What is a REIT?

Real estate investment trusts (REITs) are investment companies (or groups of companies) that invest in certain qualifying property assets. The majority of their income stream must derive from rents from their qualifying property rental business, while they also seek capital growth. Listed REITs are liquid and enable investors to participate in this asset class, without owning the assets directly.

As REITs are required to distribute 90% of the profits of their qualifying property rental business via property income dividends, REITs can be tax-efficient vehicles, particularly when compared with corporate ownership of property, as qualifying property rental business income and qualifying gains are exempt from corporation tax in the hands of the REIT itself.

Property income dividends are taxed in the hands of the shareholder as property rental business income such that the shareholder is able to be taxed as if they owned the property rental business directly. This means they can be a source of potentially high-yielding returns that provide a steady and regular income stream for investors.

Their low correlation to equities and bonds helps with portfolio diversification. For an externally managed REIT, a non-executive Board is responsible for determining the company’s investment policy and investment objective. The Board has overall responsibility for the company's activities, including the review of investment activity and performance and supervision of the Investment Manager. Investment management services are delegated to the Investment Manager; however, the Board has certain matters reserved for its consideration. The non-executive Board is independent of the Investment Manager.

The statements set out above are intended only as a general guide to certain aspects of current UK tax law and HMRC published practice as at the current date. This summary does not purport to be a complete analysis or listing of all the potential tax implications of investing in a REIT and should not be used as a substitute for making decisions, or used in place of, professional tax advice.

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TERMS AND CONDITIONS

THE MATERIALS CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO U.S. PERSONS OR IN OR INTO THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR THE REPUBLIC OF SOUTH AFRICA OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

The information contained herein does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or in any jurisdiction or jurisdictions in which such offers or sales are unlawful. The securities referred to herein and on the pages that follow have not been nor will they be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, within the United States or to or for the account or benefit of U.S. Persons (as defined in Regulation S of the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws of any state or other jurisdiction of the United States. The information contained herein does not constitute a public offer of securities in the United States, Canada, Japan, Australia or the Republic of South Africa or any jurisdiction in which such an offer would constitute a violation of the relevant laws or regulations of such jurisdiction. AEW UK REIT plc has not been and will not be registered under the U.S. Investment Company Act of 1940, as amended, and investors are not entitled to the benefits of that Act.

Subject to certain exceptions, the securities referred to herein and on the pages that follow may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in Canada, Japan, Australia or the Republic of South Africa or to any resident or citizen of Canada, Japan, Australia or the Republic of South Africa. The securities referred to herein have not been and will not be registered under the applicable securities laws of Canada, Japan, Australia or the Republic of South Africa.

Recipients of this information in any other jurisdiction should inform themselves about and observe any applicable legal requirements in their jurisdiction.

It should be remembered that the price of shares in AEW UK REIT plc and the income from them can go down as well as up.

AEW UK REIT plc is managed by AEW UK Investment Management LLP ("AEW"). No warranty is made by AEW as to the accuracy or completeness of any information on this website. Any price information or indications of past performance on this website are for information purposes only, are subject to change without notice and can in no way be construed as a guarantee of future performance.

AEW UK REIT plc currently conducts its affairs so that its securities can be recommended by IFAs to ordinary retail investors in accordance with the Financial Conduct Authority’s rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The securities are excluded from the Financial Conduct Authority’s restrictions which apply to non-mainstream investment products because they are shares in a real estate investment trust.

This website provides general information about AEW UK REIT plc only. It does not constitute investment advice and should not be relied upon as such by any person. AEW has not considered the suitability of this investment against a potential investor's individual needs and risk tolerance. To ensure potential investors understand whether our product is suitable, they should read the fund specific risks in the Key Investor Document (KID) which gives more information about the risk profile of any potential investment. Prospective investors should take advice from an authorised financial adviser to assess whether an investment in AEW UK REIT plc is suitable.

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