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(Alliance News) - NewRiver REIT PLC on Thursday said that despite the restrictions that have been in place in the UK to combat the Omicron variant of Covid-19, rent collection and leasing activity have remained "robust".
The London-based real estate investment trust is focused on retail and leisure properties. It owns 29 community shopping centres and 17 retail parks.
NewRiver said its financial third quarter was the strongest leasing quarter so far in its 2022 financial year. NewRiver's current 2022 financial year ends March 31.
In the company's third quarter, which ended December 31, NewRiver said it achieved 289,000 square feet of leasing activity, representing GBP2.5 million in annualised rent. In the same quarter the previous year, NewRiver completed 291,900 square feet representing GBP1.2 million of annualised rent.
Rent collection rates for each quarter have continued to increase, NewRiver highlighted. Rent collection in its fourth quarter currently stands at 84%, up from 70% during the same period the previous year.
NewRiver added that fourth-quarter rent collection was ahead of the equivalent points for its first, second, and third quarter in financial 2022 which averaged 77%.
Some GBP25.1 million of disposals were completed during its third quarter, NewRiver explained this represented a 5% premium to its valuations in September. GBP32.7 million of disposals completed in financial 2022 to date.
Chief Executive Allan Lockhart said: "We have continued to deliver strong operational metrics in the third quarter, supported by a backdrop of increasing consumer spend on essential items over the Christmas period. Despite concerns of Omicron restrictions, our rent collection and leasing activity remained robust. Disposals during the quarter were aligned with our reshaping objectives and completed at strong prices which demonstrated the significant value generated by our asset management and Regeneration activity.
"As expected, liquidity continues to improve across the retail investment market which offers further support for a stabilisation in asset values. The affirmation of our investment grade credit Rating demonstrates the progress we have made this year in strengthening our balance sheet and positioning the company to deliver our 10% total accounting return target."
Shares in NewRiver were down 0.7% at 96.99 pence on Thursday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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