REG - NewRiver REIT plc - Fitch Affirms NewRiver REIT plc’s Credit Ratings

Newriver ReitAnnouncement

14/12/2021 07:00

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RNS Number : 5131V  NewRiver REIT PLC  14 December 2021

NewRiver REIT plc

("NewRiver" or the "Company" or the "Group")

Fitch Affirms NewRiver REIT plc's Investment Grade Credit Ratings

 

 

Fitch Ratings has affirmed NewRiver REIT plc's Long-Term Issuer Default Rating
(IDR) at 'BBB' with a Stable Outlook, senior unsecured rating at 'BBB+' and
Short-Term IDR at 'F2'. The senior unsecured rating applies to NewRiver's
£300 million unsecured bond dated 2028.

 

This rating follows a transformative FY22 for NewRiver's unsecured balance
sheet, which has included the disposal of the Hawthorn pub business, the
repayment or cancellation of £335 million of bank facilities and the one-year
extension of our undrawn Revolving Credit Facility ('RCF').

 

These actions mean that NewRiver's Loan to Value ('LTV') is back within
management guidance of under 40%, with 39.4% reported at 30 September 2021
(March 2021: 50.6%) which reduced to 38.0% on a pro-forma basis including the
additional £16.8 million of retail disposals completed by 25 November when we
reported our results for the six months ended 30 September 2021.

 

The significant debt repayment has also reduced annual finance costs by £7
million, improving earnings efficiency and covenant headroom. In addition, we
are now in compliance with all five of our financial policies, with balance
sheet gearing reduced to 65% and Net debt: EBITDA improved to 6.9x at 30
September 2021. The extension of our undrawn £125 million RCF to August 2024
increased our weighted average debt maturity to 5.2 years at 30 September
2021, with the earliest maturity on drawn debt in 2028.

 

Will Hobman, Chief Financial Officer commented: "We have worked hard since the
start of the financial year to transform our balance sheet. Our actions mean
that LTV is now back within management guidance, finance costs have been
reduced, debt maturity has been extended and critically our balance sheet
remains fully unsecured with substantial available liquidity. We are pleased
that these achievements, combined with our strong operational performance and
portfolio positioning, have resulted in the affirmation of our investment
grade credit rating."

 

Fitch Ratings' Rating Action Commentary can be read in full on the Fitch
Ratings website.

 

https://www.fitchratings.com/research/corporate-finance/fitch-affirms-newriver-reit-plc-idr-at-bbb-senior-unsecured-at-bbb-13-12-2021
(https://www.fitchratings.com/research/corporate-finance/fitch-affirms-newriver-reit-plc-idr-at-bbb-senior-unsecured-at-bbb-13-12-2021)

 

For further information

 

 NewRiver REIT plc                                 +44 (0)20 3328 5800
 Allan Lockhart (Chief Executive)

 Will Hobman (Chief Financial Officer)
 Emily Meara (Head of Investor Relations)

 Finsbury                                          +44 (0)20 7251 3801
 Gordon Simpson

 James Thompson

 

About NewRiver

 

NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust
specialising in buying, managing and developing essential retail and leisure
assets throughout the UK.

 

Our £0.7 billion portfolio covers 8 million sq ft and comprises 30 community
shopping centres and 18 conveniently located retail parks. We have hand-picked
our portfolio to focus on occupiers providing essential goods and services and
to support the development of thriving communities across the UK, while
deliberately avoiding structurally challenged sub-sectors such as department
stores and mid-market fashion. 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 stable income and
capital growth to our investors.

 

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

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