REG - NewRiver REIT plc - Q3 Company Update

Newriver ReitAnnouncement

18/01/2024 07:00

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RNS Number : 0556A  NewRiver REIT PLC  18 January 2024

 

NewRiver REIT plc

("NewRiver" or the "Company")

 

Third Quarter Company Update

 

Continued strong operational performance

 

Allan Lockhart, Chief Executive, commented: "Our strong operational
performance continued into the third quarter, reflecting that our occupational
market is, in our opinion, in its best shape for five years. This view is
endorsed by the Christmas trading results reported to date by NewRiver's top
10 retailers, including B&M, M&S, Boots, Superdrug and Sainsburys,
which have been excellent. The continued importance of the physical store is
becoming increasingly clear to best-in-class retailers, be they omni-channel
operators with a clear understanding of the role of the physical store in the
fulfilment of online orders, or retailers operating right-sized store-based
models.

 

We delivered another quarter of positive leasing performance, a further
expansion of our Capital Partnerships and have seen an increase in potential
acquisition opportunities delivering attractive returns which we believe will
be supportive of the future growth of our business. In the meantime, our
activities continue to be underpinned by our clear strategy, well-positioned
portfolio and the strength of our balance sheet."

 

Strong operational metrics underpinning growth potential

 

 ●    Record occupancy maintained at 97.9%
 ●    Continued strong leasing performance during Q3 with 222,900 sq ft of leasing
      transactions; long-term transactions +2.6% vs previous rent and +1.6% vs ERV;
      year to date in FY24 we have completed 587,500 sq ft of leasing transactions;
      long-term transactions +6.8% vs previous rent and +1.5% vs ERV
 ●    Maintained consistently high leasing retention rate of 97%
 ●    Average rent remains affordable at £11.70 per sq ft
 ●    Rent collection stable at 97% vs 97% at the equivalent point in FY23
 ●    Capital Partnerships expanded further in Q3: appointed to manage an additional
      large retail park taking the total number of assets managed on behalf of
      M&G Real Estate to 17 retail parks and two shopping centres
 ●    Major regeneration planning application submitted in Grays to redevelop the
      shopping centre for a high-density residential-led redevelopment of up to 850+
      homes
 ●    Further progress made with Work Out disposal programme: of the four assets
      identified for disposal by the end of FY24, one disposal has now completed,
      one disposal has exchanged and one is under offer
 ●    GRESB score improved to 72 from 70 and maintained Gold Level for EPRA
      Sustainability Best Practice Recommendations

 

Balance sheet strength maintained and Investment Grade Credit Rating
reaffirmed by Fitch Ratings

 

 ●    Refinanced £100 million undrawn Revolving Credit Facility to extend maturity
      to November 2026 at reduced cost
 ●    Fully unsecured balance sheet with interest rate fixed at 3.5% on drawn debt
      and no maturity on drawn debt until March 2028
 ●    Cost of drawn debt compares favourably to portfolio Net Initial Yield of 7.9%
      as at 30 September 2023, one of the highest spreads in the real estate sector
 ●    Strength of balance sheet position recognised in December 2023 when Fitch
      Ratings reaffirmed our Long-Term Issuer Default Rating (IDR) at 'BBB' with a
      Stable Outlook, senior unsecured rating (relating to £300 million unsecured
      2028 bond) at 'BBB+' and Short-Term IDR at 'F2'

 

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

 

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 6.4 million sq ft and comprises
25 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

 

Forward-looking statements

 

The information in this announcement may include forward-looking statements,
which are based on current projections about future events. These
forward-looking statements reflect the directors' beliefs and expectations and
are subject to risks, uncertainties and assumptions about NewRiver REIT plc
(the 'Company'), including, amongst other things, the development of its
business, trends in its operating environment, returns on investment and
future capital expenditure and acquisitions, that could cause actual results
and performance to differ materially from any expected future results or
performance expressed or implied by the forward-looking statements.

 

None of the future projections, expectations, estimates or prospects in this
announcement should be taken as forecasts or promises nor should they be taken
as implying any indication, assurance or guarantee that the assumptions on
which such future projections, expectations, estimates or prospects have been
prepared are correct or exhaustive or, in the case of the assumptions, fully
stated in the announcement. As a result, you are cautioned not to place
reliance on such forward-looking statements as a prediction of actual results
or otherwise. The information and opinions contained in this announcement are
provided as at the date of this document and are subject to change without
notice. No one undertakes to update publicly or revise any such forward
looking statements. No statement in this announcement is or is intended to be
a profit forecast or profit estimate or to imply that the earnings of the
Company for the current or future financial years will necessarily match or
exceed the historical or published earnings of the Company.

 

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