(Alliance News) - Retail and leisure real estate investor NewRiver REIT PLC on Tuesday reported a "robust" start to the financial year following the sale of its community pub business to Admiral Taverns for GBP222.3 million.
"Our operational metrics including rent collection, leasing activity and occupancy have remained strong throughout the first quarter, and, most significantly, the company has agreed terms to dispose of its Hawthorn pub business, which delivers on a key strategic priority announced in April 2021," said Chief Executive Allan Lockhart ahead of the firm's annual general meeting on Tuesday.
NewRiver's rent collected or alternative payment terms agreed has increased by 87% in the first quarter ended 30 June 2021 from the same period in 2020.
Looking forward, 79% of second quarter rent has either been collected or had alternative payment terms agreed. The firm expects figures to continue tracking ahead as it progresses through the year.
The real estate specialist said the government's moratorium on commercial rents until March 2022 has meant little impact on its portfolio.
It hopes the disposal of its pub chain Hawthorn will provide "firepower" to reshape its portfolio. The firm thus far has GBP74.3 million of disposals completed, exchanged or under offer.
In the first quarter of the current financial year, NewRiver completed 252,500 square feet of leasing deals, with 92,200 sq ft of the deals long-term and signed to date, accounting for GBP900,000 of annualised rent. Its average retail rent has maintained the price of GBP11.54 per sq ft.
In addition, the company revealed "in light of an improved trading environment", it repaid GBP70 million of revolving credit during its first quarter.
It had GBP84 million cash reserves and GBP115 million undrawn revolving credit facilities as at June 30, keeping the company's total accessible liquidity position at GBP199 million - equal to the amount at year ended March 31.
Shares in NewRiver were down 2.0% at 87.45 pence in London on Tuesday.
By Josie O'Brien; josieobrien@alliancenews.com
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NewRiver (NRR)