NewRiver REIT
plc
("NewRiver" or the "Company")
Full Year Trading Update -
Strong Operational Performance and Stable
Valuation
NewRiver is today providing a
trading update for the year ended 31 March 2024 ahead of the
announcement of its Full Year Results in early June
2024.
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Continued strong operational metrics
with increased occupancy and strong leasing performance
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Portfolio valuation stable in H2
FY24
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LTV maintained at c.31%, with no
maturity on drawn debt until 2028
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Strong liquidity with cash &
cash equivalents of c.£133 million
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FY24 Underlying Funds From
Operations ('UFFO') per share and EPRA Net Tangible Assets ('NTA')
per share expected to be in-line with analyst
consensus1
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Allan Lockhart, Chief Executive commented:
"During the fourth quarter, we have seen a
continuation of the positive operational momentum that has built
over recent years, which is reflective of both the steadily
improving health of our underlying market and the inherent
strengths of our business.
Our retail portfolio, which
demonstrated valuation stability in the second half of the year, is
ideally positioned to benefit from consumers increasingly seeking
value and convenience and the investment we have made into our
specialist asset management platform means we are well placed to
ramp up our Capital Partnerships activities, supported by our
strong cash and liquidity position."
Strong operational performance
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Record occupancy of 98.0% (30
September 2023: 97.7%, 31 March 2023: 96.7%)
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785,100 sq ft of leasing in FY24;
long-term transactions +3.6% vs ERV and +1.8% vs previous
rent
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Tenant retention rate of 94% vs 92%
in FY23; average rent affordable at £11.82 per sq ft at March
2024
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Work Out assets reduced from 11% of
total portfolio at March 2023 to 6% at March 2024 following the
completion of two disposals and two turnaround strategies during
H2, with one further disposal exchanged
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Launched search for new Capital
Partner to target UK retail parks, which will enable us to
co-invest to generate rental income and asset management fees;
meetings commenced in February 2024 and early engagement has been
positive
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Stable portfolio valuation
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The independent valuers have
concluded their work on NewRiver's property portfolio as at 31
March 2024, valuing the portfolio at £544 million, with the £9
million reduction in H2 due to £7 million of completed Work Out
disposals and a modest c.0.4% reduction in capital values (net of
capex)
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Core Portfolio now accounts for 93%
of Total Portfolio, up from 88% in March 2023
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Valuations in Core Portfolio broadly
stable; Core Shopping Centres, 44% of the total portfolio,
increased by c.0.3% in H2; Retail Parks, 25% of the total
portfolio, recorded a c.0.7% increase; Regeneration portfolio, 24%
of the total portfolio, recorded a c.0.8% reduction, a significant
improvement on H1 reduction of 7.9%
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Balance sheet positioned for growth
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Cash & cash equivalents of
c.£133 million at 31 March 2024 (31 March 2023: £111
million)
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LTV at 31 March 2024 is expected to
be c.31% (31 March 2023: 33.9%)
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Fully unsecured balance sheet with
interest rate fixed at 3.5% on drawn debt and no maturity on drawn
debt until March 2028
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1. Current
analyst consensus for 31 March 2024 UFFO is £24.2 million / 7.7
pence per share, comprising five analyst forecasts ranging from
£23.7 million to £25.3 million / 7.6 pence per share to 8.1 pence
per share. Current analyst consensus for 31 March 2024 EPRA NTA per
share is 116 pence per share, comprising five analyst forecasts
ranging from 113 pence per share to 118 pence per share.
For
further information
NewRiver REIT plc
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+44
(0)20 3328 5800
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Allan Lockhart (Chief
Executive)
Will Hobman (Chief Financial
Officer)
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FGS
Global
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+44
(0)20 7251 3801
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Gordon Simpson
James Thompson
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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 £0.54
billion UK wide portfolio covers 6.1 million sq ft and
comprises 24 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