REG - NewRiver REIT plc - First Quarter Company Update

Newriver ReitAnnouncement

26/07/2023 07:00

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RNS Number : 1612H  NewRiver REIT PLC  26 July 2023

 

NewRiver REIT plc

("NewRiver" or the "Company")

 

First Quarter Company Update

 

Strong operational performance, enhanced balance sheet strength and well
positioned for growth

 

NewRiver will hold its Annual General Meeting ("AGM") at 10:00am today and is
providing the following trading update in respect of the first quarter ended
30 June 2023.

 

Allan Lockhart, Chief Executive, commented: "The excellent operational
performance that we delivered in our last financial year has continued into
our first quarter with a good leasing performance leading to a further
increase in occupancy and a leasing retention rate of nearly 100%. We continue
to see strong occupational demand underpinned by a resilient UK consumer.

 

Our cash position during the quarter increased to £137m driven by disciplined
capital recycling and our excellent operational performance further enhancing
what we believe to be one of the strongest balance sheets in our sector and a
market leading yield gap.

 

We now have significant growth opportunities available to us - underpinned by
our substantial cash holdings and through the expansion of our capital
partnerships, driven by our extensive sector expertise. We will allocate our
capital wisely as and when attractive opportunities arise; in the meantime we
are generating a return on the majority of our cash holdings of 5%."

 

Strong operational performance and growth in capital partnerships

 

 ●    Completed 177,300 sq ft of leasing, with long-term transactions +13.7% versus
      the previous rent and in-line with ERV
 ●    Occupancy increased to 97.1% vs 96.7% at 31 March 2023 and Retention rate on
      lease expiry or break increased to 98% during Q1 FY24 (FY23: 92%) reflecting
      strong occupational demand
 ●    FY23 rent collection has now increased to 99% from 98% at the time of full
      year results in June and Q1 FY24 rent collection is tracking in-line with Q4
      FY23
 ●    Business rates reductions of 16% across NRR portfolio, benefitting tenants
      from 1 April 2023
 ●    Capital partnership with M&G Real Estate expanded in April with the
      appointment to manage an additional shopping centre taking total number of
      assets managed under this arrangement to 16 retail parks and two shopping
      centres

 

Profitable capital recycling further enhancing balance sheet strength

 

 ●    In June 2023, completed the disposal of Kittybrewster Retail Park in Aberdeen
      and Glendoe and Telford Retail Parks in Inverness, the final properties in the
      Napier Joint Venture, for £62.6 million (NRR share: £31.3 million)
 ●    The disposal brings the total sale receipts from Napier to £76.0 million, 26%
      higher than the price paid when NewRiver acquired the portfolio in June 2019,
      and delivering an IRR since acquisition of 16%
 ●    Cash & cash equivalents increased to £137 million from £111 million at
      31 March 2023 and net debt reduced to £164 million from £201 million at 31
      March 2023
 ●    LTV as at 30 June 2023 of 29.1% (using March 2023 portfolio valuation) reduced
      from 33.9% at 31 March 2023 following Napier disposal
 ●    Currently considering opportunities to allocate capital and in the meantime
      now generating a return on the majority of cash holdings of 5%
 ●    Fully unsecured balance sheet with interest rate fixed at 3.5% on drawn debt
      and no maturity on drawn debt until March 2028

 

For further information

 

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

 Will Hobman (Chief Financial Officer)
 Lucy Mitchell (Communications & Investor Relations)

 

 

 

 FGS Global             +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 resilient retail assets
throughout the UK.

 

Our £0.6 billion UK wide portfolio covers 7 million sq ft and comprises 26
community shopping centres and 12 conveniently located retail parks occupied
by tenants predominately focused on essential goods and services. 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

 

 

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