TIDMNRR

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 GBP137m 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 GBP62.6 
       million (NRR share: GBP31.3 million) 
 --   The disposal brings the total sale receipts from Napier to GBP76.0 
       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 GBP137 million from GBP111 
       million at 31 March 2023 and net debt reduced to GBP164 million 
       from GBP201 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

 
                                                     +44 (0)20 3328 
     NewRiver REIT plc                                5800 
     Allan Lockhart (Chief Executive) 
      Will Hobman (Chief Financial Officer) 
     Lucy Mitchell (Communications 
      & Investor Relations) 
 
 
                               +44 (0)20 7251 
     FGS Global                 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 GBP0.6 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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July 26, 2023 02:00 ET (06:00 GMT)

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