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AEW UK REIT (LSE:AEWU) Financial Strength : 6 (As of Sep. 2023)


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What is AEW UK REIT Financial Strength?

AEW UK REIT has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate AEW UK REIT's interest coverage with the available data. AEW UK REIT's debt to revenue ratio for the quarter that ended in Sep. 2023 was 2.68. Altman Z-Score does not apply to banks and insurance companies.


AEW UK REIT Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

AEW UK REIT's Interest Expense for the months ended in Sep. 2023 was £-0.90 Mil. Its Operating Income for the months ended in Sep. 2023 was £0.00 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was £59.80 Mil.

AEW UK REIT's Interest Coverage for the quarter that ended in Sep. 2023 is

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

AEW UK REIT's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 59.796) / 22.324
=2.68

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


AEW UK REIT  (LSE:AEWU) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

AEW UK REIT has the Financial Strength Rank of 6.


AEW UK REIT Financial Strength Related Terms

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AEW UK REIT (LSE:AEWU) Business Description

Traded in Other Exchanges
Address
65 Gresham Street, 6th Floor, London, GBR, EC2V 7NQ
AEW UK REIT PLC is a real estate investment company. The company's investment objective is the attractive total return to shareholders from investing mainly in a portfolio of smaller commercial properties in the UK. To achieve this objective the firm invests in office properties, retail warehouses, high street retail, and industrial warehouse properties. Geographically, it operates only in the United Kingdom. The company derives revenue from rental income and other property income.