(Alliance News) - NewRiver REIT PLC on Thursday said it aims for resilient retail parks and core shopping centres to represent 90% of its portfolio in the medium term.
The London-based company also said it assessed its current portfolio and will actively exit its at risk "Work Out" assets by the end of March 2023.
The real estate investment trust said rent collection figures have further improved since its last update in July. Occupiers continued to make payments due under Covid deferral agreements, increasing NewRiver REIT's rent collection rate, with the most recent quarter rate now exceeding 90%.
The company also noted that recent leasing transactions continue to be completed at pricing ahead of March, while occupancy remains high at 97%.
In addition, NewRiver REIT said it has made further progress with its disposal of non-core retail assets following the successful disposal of Hawthorn which completed in August. In financial year-to-date, NewRiver REIT said it has either completed, exchanged or is under offer on GBP93 million of disposals, increased from GBP73 million reported in July.
These disposals will provide the capital which the company said it plans to redeploy in line with its capital allocation policy. The company expects its disposal programme over the next five years to amount to over GBP290 million.
NewRiver REIT shares were trading 3.1% higher in London on Thursday at 83.00 pence each.
"Our board is acutely aware that our shares are trading at material discount to net asset value," said Chief Executive Allan Lockhart. "We expect that with valuations stabilising, an improving market backdrop, a significantly strengthened balance sheet, a reinstated dividend and our clear strategy to deliver attractive returns, the discount should narrow."
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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NewRiver (NRR)