Last checked at 25 Apr 2024 07:00
NewRiver REIT plc
("NewRiver" or the "Company")
Full Year Trading Update - Strong Operational Performance and Stable Valuation
NewRiver is today providing a trading update for the year ended 31 March 2024 ahead of the announcement of its Full Year Results in early June 2024.
● | Continued strong operational metrics with increased occupancy and strong leasing performance |
● | Portfolio valuation stable in H2 FY24 |
● | LTV maintained at c.31%, with no maturity on drawn debt until 2028 |
● | Strong liquidity with cash & cash equivalents of c.£133 million |
● | FY24 Underlying Funds From Operations ('UFFO') per share and EPRA Net Tangible Assets ('NTA') per share expected to be in-line with analyst consensus1 |
Allan Lockhart, Chief Executive commented: "During the fourth quarter, we have seen a continuation of the positive operational momentum that has built over recent years, which is reflective of both the steadily improving health of our underlying market and the inherent strengths of our business.
Our retail portfolio, which demonstrated valuation stability in the second half of the year, is ideally positioned to benefit from consumers increasingly seeking value and convenience and the investment we have made into our specialist asset management platform means we are well placed to ramp up our Capital Partnerships activities, supported by our strong cash and liquidity position."
Strong operational performance
● | Record occupancy of 98.0% (30 September 2023: 97.7%, 31 March 2023: 96.7%) |
● | 785,100 sq ft of leasing in FY24; long-term transactions +3.6% vs ERV and +1.8% vs previous rent |
● | Tenant retention rate of 94% vs 92% in FY23; average rent affordable at £11.82 per sq ft at March 2024 |
● | Work Out assets reduced from 11% of total portfolio at March 2023 to 6% at March 2024 following the completion of two disposals and two turnaround strategies during H2, with one further disposal exchanged |
● | Launched search for new Capital Partner to target UK retail parks, which will enable us to co-invest to generate rental income and asset management fees; meetings commenced in February 2024 and early engagement has been positive |
Stable portfolio valuation
● | The independent valuers have concluded their work on NewRiver's property portfolio as at 31 March 2024, valuing the portfolio at £544 million, with the £9 million reduction in H2 due to £7 million of completed Work Out disposals and a modest c.0.4% reduction in capital values (net of capex) |
● | Core Portfolio now accounts for 93% of Total Portfolio, up from 88% in March 2023 |
● | Valuations in Core Portfolio broadly stable; Core Shopping Centres, 44% of the total portfolio, increased by c.0.3% in H2; Retail Parks, 25% of the total portfolio, recorded a c.0.7% increase; Regeneration portfolio, 24% of the total portfolio, recorded a c.0.8% reduction, a significant improvement on H1 reduction of 7.9% |
Balance sheet positioned for growth
● | Cash & cash equivalents of c.£133 million at 31 March 2024 (31 March 2023: £111 million) |
● | LTV at 31 March 2024 is expected to be c.31% (31 March 2023: 33.9%) |
● | Fully unsecured balance sheet with interest rate fixed at 3.5% on drawn debt and no maturity on drawn debt until March 2028 |
1. Current analyst consensus for 31 March 2024 UFFO is £24.2 million / 7.7 pence per share, comprising five analyst forecasts ranging from £23.7 million to £25.3 million / 7.6 pence per share to 8.1 pence per share. Current analyst consensus for 31 March 2024 EPRA NTA per share is 116 pence per share, comprising five analyst forecasts ranging from 113 pence per share to 118 pence per share.
For further information
NewRiver REIT plc | +44 (0)20 3328 5800 | |||
Allan Lockhart (Chief Executive) Will Hobman (Chief Financial Officer) |
FGS Global | +44 (0)20 7251 3801 | |||
Gordon Simpson James Thompson |
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About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing resilient retail assets throughout the UK.
Our £0.54 billion UK wide portfolio covers 6.1 million sq ft and comprises 24 community shopping centres and 12 conveniently located retail parks occupied by tenants predominately focused on essential goods and services. In addition we manage 18 retail parks and 5 shopping centres on behalf of Capital Partners, taking our total Assets Under Management to £1.3 billion. Our objective is to own and manage the most resilient retail portfolio in the UK, focused on retail parks, core shopping centres, and regeneration opportunities in order to deliver long term attractive recurring income returns and capital growth for our shareholders.
NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31