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(Alliance News) - NewRiver REIT PLC on Thursday said it has decided not to pay a fourth interim dividend as it looks to take a "prudent approach to preserving cashflow" during the Covid-19 crisis.
Shares in the company dropped 19% to 68.09 pence each in London on Thursday morning.
The real estate investment trust said it has GBP72 million of unrestricted cash at its disposal, as well as GBP45 million in undrawn credit.
NewRiver also outlined its "wholly unsecured balance sheet". It has no bank refinancing event due before August 2023 and no repayment on its GBP300 million corporate bond is due until 2028.
Not paying a fourth quarter dividend will save it GBP17 million in cash.
NewRiver added: "The company is also taking a prudent approach to preserving cashflow and reducing operational costs. These measures include the suspension of all non-essential capital expenditure projects, which will improve cashflow over the next 12 months by GBP24 million, and the suspension of business rates and marketing in our shopping centres and our pubs which will improve cashflow by a further GBP4 million.
"NewRiver remains a financially sound business with significant covenant headroom and a capital structure that is well placed to absorb a prolonged period of uncertainty."
By Eric Cunha; ericcunha@alliancenews.com
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