(Alliance News) - NewRiver REIT PLC shares rose on Thursday morning after the real estate investment trust reported improving market sentiment, which is set to support higher valuation for its properties.
NewRiver shares were up 17% to 86.90 pence each in London on Thursday morning.
NewRiver is a real estate investment trust focused on UK retail and leisure property. It posted an EPRA net tangible assets per share at September 30 of 131 pence, falling 13% from 151p at the end of March.
Pretax loss for the six months that ended September 30 narrowed to GBP16.6 million from GBP80.3 million last year. The company's net valuation loss narrowed to GBP24.6 million from GBP80.6 million.
Revenue slipped 8.6% to GBP36.0 million from GBP39.4 million.
"We have sustained the resilient operational performance achieved during the pandemic. Rent collection is moving to a normalised position, and we have maintained our leasing momentum," Chief Executive Allan Lockhart said.
The rent collection rate in financial 2022 to date is tracking at 89%.
"This represents a material improvement compared with the same point last year. Despite the extension of the UK government's rental moratorium until March 2022, we have managed to achieve rent collection figures approaching pre-pandemic periods," the company said.
NewRiver brought back an interim dividend of 4.1p per share.
Looking ahead, NewRiver said: "Coupled with an improvement in the consumer and retailer backdrop, liquidity in the retail real estate market has shown a clear improvement this year. This is particularly the case in the retail park sector where 2021 is expected to record the second highest deal volume in the past 10 years. Transaction volumes for shopping centres are already three times higher than the whole of 2020. The improving liquidity across the retail asset class, driven by private investors in shopping centres and increasingly institutional investors in retail parks, offers support for further valuation growth.
"With improving market sentiment, a strengthened balance sheet and resilient retail strategy we are well positioned to achieve our objectives and deliver attractive shareholder returns."
By Greg Roxburgh; gregroxburgh@alliancenews.com
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NewRiver (NRR)