REG - NewRiver REIT plc - Full Year Trading Update

Newriver ReitAnnouncement

Tue 07:00

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RNS Number : 5135G  NewRiver REIT PLC  29 April 2025

 

NewRiver REIT plc

("NewRiver" or the "Company")

 

Full Year Trading Update

 

Operational strength, portfolio valuation increased and on track to deliver
significant earnings growth

 

NewRiver today provides a trading update for the year ended 31 March 2025
ahead of its Full Year Results, which will be announced in June 2025.

 ●    Transformational acquisition of Capital & Regional completed in December
      2024; assets performing well and integration progressing in-line with
      expectations
 ●    Another strong operational quarter with increased occupancy and excellent
      leasing performance during Q4
 ●    Continued consumer spend outperformance(1)
 ●    Portfolio returned to capital growth in H2 FY25
 ●    LTV at c.42%, in-line with post Capital & Regional acquisition proforma;
      to reduce to within NRR guidance of <40% with modest disposals
 ●    FY25 Underlying Funds From Operations ('UFFO') per share and EPRA Net Tangible
      Assets ('NTA') per share expected to be in-line with analyst consensus(2)

 

Allan Lockhart, Chief Executive, commented: "We are pleased to end a
successful and busy FY25 with another excellent quarter of operational and
leasing performance. The benefits of the corporate transactions that we
completed in the year, especially the Capital & Regional acquisition, are
starting to flow through. Our portfolio has been performing well for some
time, which is a reflection of the underlying strength of our retail
occupiers, and, together with the benefits of our corporate activity means we
are firmly on track to deliver sector leading earnings growth."

 

Capital & Regional portfolio performing well and integration on track

 ●    In December 2024 NewRiver completed the acquisition of Capital & Regional
      for £151 million, funded through a combination of cash and shares; the
      acquisition increased the size of NewRiver's portfolio by 65% through the
      combination of high-quality, complementary assets with similarly low-risk
      tenant profile
 ●    The Capital & Regional assets have now fully transferred onto NewRiver's
      operating platform and continued progress has been made in unlocking annual
      cost synergies identified; expected to deliver mid-to high-teens accretion to
      UFFO per share and to be fully unlocked within 12 months of completion on an
      annualised basis

 

Strong demand and limited vacancy leading to excellent leasing performance

 ●    Portfolio occupancy of 96.1% vs 95.9% at 31 December 2024
 ●    939,700 sq ft of leasing in FY25; long-term transactions +8.8% vs ERV and
      +17.5% vs previous rent
 ●    Leasing performance in Q4 was particularly strong; with a highlight
      transaction completed at Cuckoo Bridge Retail Park in Dumfries, where
      Sainsbury's has taken a new 15 year lease on the 48,100 sq ft former Homebase
      store at a rent 60% above both the previous rent and valuer's ERV
 ●    In March 2025 NewRiver was announced as the first commercial partner with
      Royal Mail on the roll out of its new parcel locker network

 

Continued consumer spend outperformance(1)

 ●    Total in store spend growth within the NewRiver portfolio was +4.3%
      year-on-year in the twelve months to March 2025. This was a significant
      outperformance relative to the UK average growth in retail and supermarket
      spend of +1.5%
 ●    Accounting for an online spend contribution where the customer had previously
      spent in store, the year-on-year growth figure rises to 4.9%
 ●    Healthy spend growth at NewRiver assets leading to highly affordable portfolio
      Occupational Cost Ratio of 8.3%

 

Portfolio returned to capital growth in H2

 ●    The independent valuers have concluded their work on NewRiver's property
      portfolio as at 31 March 2025, valuing the portfolio at £897 million; this is
      increased from £540 million in September 2024 due to the Capital &
      Regional acquisition and a c.0.6% increase in capital values (net of capex)
 ●    Core Shopping Centres, 73% of the total portfolio, increased by c.0.6% in H2
      and c.0.2% in FY25; Retail Parks, 21% of the total portfolio, recorded a
      c.1.7% increase in H2 and c.3.5% in FY25

 

 1.                          NewRiver analysis, informed by Lloyds Bank data on consumer spend representing
                             85% of the NewRiver portfolio by value.
 2.                          Current analyst consensus for 31 March 2025 UFFO is £29.4 million / 7.8 pence
                             per share, comprising five analyst forecasts ranging from £29.2 million to
                             £29.7 million / 7.7 pence per share to 8.0 pence per share. Current analyst
                             consensus for 31 March 2025 EPRA NTA per share is 103 pence per share,
                             comprising five analyst forecasts ranging from 101 pence per share to 107
                             pence per share.

 

 

For further information

 

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

 Will Hobman (Chief Financial Officer)

 

 

 FTI Consulting        +44 (0)20 3727 1000
 Dido Laurimore

 Giles Barrie

 

 

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.

 

Following the completion of its acquisition of Capital & Regional in
December 2024, NewRiver has a £0.9 billion UK wide portfolio covering 8.2
million sq ft, comprising 28 community shopping centres and 13 conveniently
located retail parks occupied by tenants predominately focused on essential
goods and services. In addition, we manage 22 shopping centres and 18 retail
parks on behalf of Capital Partners, taking our total Assets Under Management
to £2.5 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 to deliver long-term attractive recurring
income returns and capital growth for our shareholders.

 

NewRiver is listed on the Equity shares (commercial companies) category of 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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