TIDMNRR
RNS Number : 1779N
NewRiver REIT PLC
19 January 2023
NewRiver REIT plc
("NewRiver" or the "Company")
Third Quarter Company Update
Resilient operational metrics, expanding capital partnerships
and strong balance sheet
Allan Lockhart, Chief Executive, commented : "During the third
quarter we once again delivered consistently resilient operating
metrics across leasing, rent collection and occupancy. Our
portfolio, focused on providing value for money on essential goods
and services to customers, is a key strength of our business as
evidenced by the strong Christmas trading performance of many of
the leading retailers in our portfolio such as B&M,
Sainsbury's, M&S, JD Sports and Poundland. Overall, Christmas
trading for retailers was at the upper end of market expectations,
especially for those operating multi-channel and store-based
models, reflecting the importance of a physical store network to
successful retailers and that the UK consumer is perhaps more
resilient than expected.
We were pleased that the quality of our asset management
platform was recognised during the quarter with the appointment by
M&G Real Estate to manage a portfolio of 16 retail parks and
one shopping centre. Furthermore, Fitch reaffirmed our Investment
Grade Credit Rating recognising NewRiver's strong balance sheet and
differentiated position in the UK retail real estate market,
focused on providing essential goods and services to consumers on
rental terms affordable to retailers.
Our focus on resilient retail, alongside our best-in-class
operating platform and the strength and flexibility of our balance
sheet, means we continue to feel well positioned despite the
challenging economic backdrop."
Consistently strong portfolio metrics underpin sustainability of
operational cashflows
-- High level of retail occupancy increased further to 96.5% from
96.3% in September 2022 and 95.6% in March 2022
-- 673,300 sq ft of new lettings and renewals agreed in FY23 to date
with long-term transactions on average 2.7% ahead of ERV and 2.3%
ahead of previous rent; 180,100 sq ft of new lettings and renewals
completed during Q3 with long-term transactions on average 0.9%
ahead of ERV and in-line with previous rent
-- Average rent remains affordable at GBP11.58 per sq ft, with overall
occupational cost affordability to improve from April 2023 when
retailers will benefit from a 19% saving in business rates across
our portfolio
-- Rent collection for Q1-Q3 FY23 of 97%; Q4 FY23 trending in-line
with prior FY23 quarters, currently at 88%
-- Maintained our CDP score at "B" and maintained Gold Level compliance
with EPRA Sustainability Best Practice Recommendations
Recurring earnings enhanced through new capital light
partnership
-- In November 2022, NewRiver was appointed by M&G Real Estate to
manage a retail portfolio including 16 retail parks and one shopping
centre in the UK
-- The appointment is for a term of three years and includes leasing
and property management responsibilities in return for a fee calculated
with reference to the rental income of the portfolio
-- NewRiver is not required to commit any capital under this agreement,
and the appointment is aligned with our strategic aim to use our
specialist retail platform to enhance earnings in a capital light
way by working in partnership with institutions and other capital
providers
-- This additional portfolio comprising predominately retail parks
has an occupier profile aligned with NewRiver's portfolio and
increases its retail parks under management to 31
-- Appointment follows the expansion and extension of the Canterbury
City Council asset management agreement for Whitefriars Shopping
Centre and The Riverside, and the addition of The Moor, Sheffield,
to the Joint Venture with BRAVO during the last financial year
Balance sheet strength maintained and Investment Grade Credit
Rating reaffirmed by Fitch Ratings
-- 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 debt compares to portfolio Net Initial Yield of 7.9% as
at 30 September 2022, one of the highest spreads in the real estate
sector
-- Strength of balance sheet position recognised in December 2022
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'
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)
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 GBP0.6 billion UK wide portfolio covers 8 million sq ft and
comprises 28 community shopping centres and 15 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
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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END
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