LONDON (Alliance News) - Retail property investor NewRiver Retail Ltd on Tuesday said it has increased its assets under management in the first quarter, after having made a number of acquisitions and disposing of two pubs.
NewRiver made GBP140.0 million acquisitions in the three months ended June 30, including Broadway Shopping Centre and Broadway Square Retail Park in Bexleyheath, south-east London, for GBP120.3 million. the company said its disposals totalled GBP1.2 million in the period, after it sold two pubs, delivering 39% above purchase price and 10% above March 2016 valuation.
As such, its assets under management rose to GBP1.20 billion at the end of June from GBP1.10 billion at the end of March, whilst its rent roll under management rose to GBP107.5 million per year, compared to the GBP95.5 million posted at the end of March. The weighted average lease expiry for its retail portfolio increased to 7.4 years, from 7.2 year at the end of March, whilst its occupancy rate rose to 97% from 96%.
NewRiver said occupier demand remained strong for its convenience-led portfolio, delivering 43 long-term new leases in the first quarter, and added that it had made good progress across its 1.5 million square foot mixed-use development pipeline.
The company said it was offering a 5.00 pence per share dividend for the first quarter, up from 4.50p per share offered in the first quarter a year earlier.
"We believe that consumers are ultimately price-driven and with our convenience-led specialism, strong operational metrics, rigorous cost-control and conservative balance sheet we feel well-positioned to withstand market uncertainties following the EU referendum result. Importantly, since the referendum the business has remained active, progressing a number of leasing deals with major national retailers who are continuing to take space as planned," said Chief Executive David Lockhart.
Shares in NewRiver were up 3.2% at 295.38p on Tuesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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NewRiver (NRR)