(Alliance News) - NewRiver REIT PLC on Thursday reported a lower net asset value, citing high construction and finance costs.
The London-based real estate investment trust said NAV as at September 30 fell to 117 pence from 122p at March 31.
Portfolio was valued at GBP553 million as at September 30, down 6.8% from GBP593.6 million at March 31 and 14% lower than GBP643.2 million a year prior. It delivered a return over the six months of 1.7%, outperforming the MSCI ALL Retail index, which had a total return of 0.3%.
"The overall portfolio valuation movement was concentrated at our South-East London shopping centre and retail park in Bexleyheath which forms the largest component of our Regeneration portfolio. It has been impacted by inflation through higher estimated construction and finance costs and, more recently, the slowdown in the housing market," the firm said.
NewRiver REIT declared an interim dividend of 3.4 pence per share, down 2.9% from 3.5p a year prior.
Looking ahead, the company said: "The portfolio is performing well, supported by a highly experienced and motivated team underpinned by arguably one of the strongest balance sheets in the listed real estate sector and so we are confident, while remaining alert to the wider macro risks, of our prospects as we move into 2024."
NewRiver REIT shares were 0.2% lower at 87.30 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News slot editor
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NewRiver (NRR)