REG - NewRiver REIT plc - Third Quarter Company Update

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RNS Number : 6231Q  NewRiver REIT PLC  28 January 2026

 

NewRiver REIT plc

("NewRiver" or the "Company")

 

Third Quarter Company Update

 

Positive leasing activity, rising occupancy & capital recycling underpin
strong quarter

 

Allan Lockhart, Chief Executive, commented: "We delivered another strong
quarter of operational performance, with growing demand across our core
markets driving strong leasing activity and rising occupancy. We remained
disciplined in recycling capital, improving our portfolio quality and
strengthening our financial position.

 

With market conditions becoming more supportive and our portfolio in its best
shape since before the pandemic, we move into FY27 with real momentum. We are
confident in our ability to deliver further earnings growth and a well covered
dividend."

 

Another strong quarter of leasing performance

 ●    During Q3 completed 234,500 sq ft of new lettings and renewals, securing £2.1
      million in annualised income across 98 transactions; long-term transactions
      were completed in-line with ERV and +56.9% vs prior rent
 ●    Key leasing transactions in Q3 include deals with Boots and B&M in
      Middlesbrough and H&M in Bexleyheath
 ●    Year to date completed 650,800 sq ft of leasing, with long-term transactions
      +8.2% vs ERV and +31.1% vs prior rent
 ●    Ongoing constructive discussions to mitigate the impact of H1 retailer
      restructurings and no subsequent restructurings announced

 

Operational metrics trending positively supported by resilient consumer spend
data(1)

 ●    Occupancy increased to 96.1% (vs 95.3% at 30 September 2025) and retailer
      retention rate remains high at 91%
 ●    Total in-store customer spending in the important Christmas quarter was
      in-line with last year. We saw strong performance in Grocery which is our
      largest spending segment with +6.2% vs same quarter last year
 ●    Total in-store customer spending for the year to December 2025 was also
      in-line with last year; Non-Food Discount delivered +7.2% sales growth,
      F&B +4.0% and Health & Beauty +2.4%, offsetting some weakness in Value
      Fashion at -1.1%
 ●    As of 1 April 2026, the new rateable values across our portfolio are expected
      to increase by 7%, which is more than offset by the recently announced
      discount for retail, hospitality, and leisure properties, resulting in an 11%
      reduction in rates payable for our tenants. This is positive for our tenants
      and supports our rental affordability
 ●    Snozone performance ahead of prior year and budget with Q3 delivering EBITDA
      of £2.0 million vs loss of £1.6 million in H1 due to seasonality; year to
      date EBITDA £0.4 million, again ahead of prior year and budget with most
      profitable quarter to come in Q4

 

On target to complete c.£40 million of disposals in H2 in-line with book
values

 ●    During Q3, completed the disposals of The Marlowes in Hemel Hempstead and
      Sprucefield Retail Park in Lisburn for combined proceeds of £12.6 million
      (NRR share); The Marlowes was the smallest asset acquired as part of the
      Capital & Regional transaction, accounting for 2% of the acquired
      portfolio by value; Sprucefield Retail Park was held in our Capital
      Partnership with BRAVO and its disposal means only one asset remains in this
      partnership (The Moor in Sheffield)
 ●    In January 2026, exchanged contracts on the disposal of Cuckoo Bridge Retail
      Park in Dumfries for proceeds of £26.5 million, subject to conditions
      expected to be discharged during Q4

 

Significant Regeneration and Work Out progress

 ●    In December 2025, entered into a conditional agreement to form a JV with Mid
      Sussex District Council to deliver the mixed-use regeneration of The Martlets
      shopping centre in Burgess Hill, Mid Sussex; the JV is expected to be
      formalised by the end of March 2026 once a series of conditions have been
      realised, including the sale of the residential site which is under offer, and
      pre-lets of the food store and hotel for which the legal negotiations are well
      advanced
 ●    In January 2026, agreement for lease signed with experiential leisure operator
      on c.80,000 sq ft which will re-position the Capitol Centre in Cardiff as a
      Core asset and reduces the portfolio weighting to Work Out and Other to 1%
      from 3% at 30 September 2025

 

 1.          NewRiver analysis, informed by Lloyds Bank data on customer spend representing
             94% of the portfolio by value. Christmas period includes the 3 months to
             December

 

 

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

 Eve Kirmatzis

 

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 £0.8 billion UK wide portfolio covering 7.1
million sq ft, comprising 24 community shopping centres and 12 conveniently
located retail parks occupied by tenants predominately focused on essential
goods and services. In addition, we manage 19 shopping centres and 17 retail
parks on behalf of Capital Partners, taking our total Assets Under Management
to £2.3 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 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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