TIDMNRR
RNS Number : 0177Z
NewRiver REIT PLC
20 January 2022
NewRiver REIT plc
("NewRiver" or the "Company")
Third Quarter Company Update
NewRiver is today providing an update in respect of its third
quarter ended 31 December 2021.
-- Positive operational performance supported by improving
consumer backdrop, elevated leasing activity and increasing rent
collection rates
-- Retail park investment market maintains growth trajectory and
shopping centres seeing improved demand; disposals completed in Q3
ahead of book values
-- Strengthened balance sheet position and operational
performance recognised by Fitch Ratings through recently affirmed
Investment Grade credit ratings
Allan Lockhart, Chief Executive, commented : "We have continued
to deliver strong operational metrics in the third quarter,
supported by a backdrop of increasing consumer spend on essential
items over the Christmas period. Despite concerns of Omicron
restrictions, our rent collection and leasing activity remained
robust. Disposals during the quarter were aligned with our
reshaping objectives and completed at strong prices which
demonstrated the significant value generated by our asset
management and Regeneration activity. As expected, liquidity
continues to improve across the retail investment market which
offers further support for a stabilisation in asset values. The
affirmation of our Investment Grade Credit Rating demonstrates the
progress we have made this year in strengthening our balance sheet
and positioning the Company to deliver our 10% total accounting
return target."
Positive operational performance supported by strong Q3 leasing
activity
-- Strongest leasing quarter so far in FY22 in terms of volume
and rent secured; 289,000 sq ft of leasing activity, representing
GBP2.5 million of annualised rent
-- Q3 long term deals agreed on terms 8% ahead of valuers' ERV
with Core Shopping Centre deals on terms 20% ahead of ERV; long
term leases agreed in FY22 to date on average 10% ahead of ERV
-- High level of leasing activity has contributed to increased
occupancy of 96.3% (September 2021: 95.8%)
-- Average retail rent remains affordable at GBP11.66 per sq ft
(September 2021: GBP11.51 per sq ft)
Rent collection continues to increase as retailer confidence
grows
-- Rent collection rates for every quarter continue to increase as retailer trading improves
-- Q4 FY22 rent collection currently stands at 84%, ahead of
equivalent point for Q1-Q3 FY22 (on average 77%) and last year (Q4
FY21 was 70%)
-- Q1-Q3 FY22 rent collection improving and we are still
collecting rental arrears in respect of FY21 (cash collected rate
up 4% since FY21 results to 90%)
Recent disposals completed ahead of book value; Work Out asset
disposal programme on track
-- GBP25.1 million of disposals completed during Q3 at a 5%
premium to September 2021 valuations; GBP32.7 million disposals
completed in FY22 to date
-- Completed disposals in Q3 include two Work Out Shopping
Centres, a segment we remain on track to exit by the end of FY23, a
Regeneration Shopping Centre in Penge (sold at 35% premium to March
2021 valuation) and Poole Retail Park (held within our BRAVO
capital partnership and sold at 7% premium to latest valuation)
-- Disposals currently exchanged and under offer represent a
further GBP44.5 million, on average in-line with September 2021
valuations, taking total disposals completed, exchanged or under
offer to GBP77.2 million
-- Exchanged conditional contracts for disposal of Regeneration
Shopping Centre in Cowley, Oxford, for gross proceeds of GBP38.8
million (including escrow); disposal expected to complete in the
first quarter of 2022
-- Four further Work Out Shopping Centres either on the market
or undergoing preparation for sale
Strengthened balance sheet position recognised by Fitch Ratings
and continued progress on ESG
-- In October 2021 completed balance sheet transformation by
agreeing one-year extension on undrawn GBP125 million Revolving
Credit Facility ('RCF') to August 2024
-- Weighted average debt maturity improved to 5.0 years as at 31
December 2021 and no maturity on drawn debt until March 2028
-- Strength of balance sheet position recognised in December
2021 when Fitch Ratings reaffirmed our Long-Term Issuer Default
Rating (IDR) at 'BBB' with a Stable Outlook, senior unsecured
rating (relating to GBP300 million unsecured 2028 bond) at 'BBB+'
and Short-Term IDR at 'F2'
-- During the quarter we continued to make good progress on our
ESG objectives, improving our CDP score to a "B" from a "C" and
achieving Gold Level compliance with EPRA Sustainability Best
Practice Recommendations
Cash rent collection by quarter
Q1 Q2 Q3 Q4
As at 17 January 2022
(FY22) 90% 95% 94% 84%
---- ---- ---- ----
As at 15 January 2021
(FY21) 78% 83% 82% 70%
---- ---- ---- ----
For further information
+44 (0)20 3328
NewRiver REIT plc 5800
Allan Lockhart (Chief Executive)
Will Hobman (Chief Financial Officer)
Emily Meara (Head of Investor
Relations)
+44 (0)20 7251
Finsbury Glover Hering 3801
Gordon Simpson
James Thompson
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate
Investment Trust specialising in buying, managing and developing
essential retail and leisure assets throughout the UK.
Our GBP0.7 billion portfolio covers 8 million sq ft and
comprises 29 community shopping centres and 17 conveniently located
retail parks. We have hand-picked our portfolio to focus on
occupiers providing essential goods and services and to support the
development of thriving communities across the UK, while
deliberately avoiding structurally challenged sub-sectors such as
department stores and mid-market fashion. 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 stable income and capital growth
to our investors.
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 industry, 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 document. 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 document 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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