NewRiver REIT
plc
("NewRiver" or the "Company")
First Quarter Company
Update
Growth in
Capital Partnerships Accelerated
Allan Lockhart, Chief Executive,
commented: "The
strong operational performance delivered in our last financial year
continued into the first quarter of FY25 with leasing transactions
ahead of ERVs and occupancy and tenant retention rates maintained
at elevated levels. Our portfolio continues to perform well
underpinned by good occupational demand and the quality of our
asset management.
The acquisition of Ellandi, a
high-quality asset and development management business, in early
July accelerates the growth in our Capital Partnership business,
where we have now established a meaningful platform. We now own or
manage £2 billion of retail real estate assets, collecting nearly
£190 million of annual rent from over 3,000 tenants. This scale
provides us with an incredible insight into the consumer, retail
and capital markets.
Finally, our balance sheet is in a
good position with cash up to £134 million which provides us
significant deployment optionality."
Expansion of Capital Partnerships through acquisition of
Ellandi Management Limited
|
●
|
In July 2024, acquired Ellandi
Management Limited ('Ellandi'), an asset and development management
business focused on UK retail and regeneration, for an initial cash
consideration of £5 million, with additional cash consideration of
up to £4 million subject to EBITDA performance, including realising
savings through shared services, over a three year earn out
period
|
|
●
|
The transaction provides NewRiver's
existing Capital Partnership business with additional scale and
diversification, as well as introducing complementary experience of
managing destination shopping centres and regeneration projects,
and is consistent with NewRiver's strategy to deliver earnings
growth in a capital-light way
|
|
●
|
The Ellandi business brings with it
a portfolio of 16 shopping centre asset management mandates,
covering over 6.3 million sq ft, with 10 different partners as well
as extensive experience working with public sector owners to
deliver regeneration
|
|
●
|
During the year ended 30 April 2024,
Ellandi's fee income was £5.7 million1 and EBITDA was
£1.1 million1
|
|
●
|
The combined Capital Partnership
business has significantly increased scale, with Assets Under
Management ('AUM') of c.£1.5 billion across a portfolio of 21
shopping centres and 18 retail parks, with 13 different partners.
Including NewRiver's wholly owned portfolio of retail assets, this
increases total AUM to c.£2.0 billion across a portfolio of 43
shopping centres and 29 retail parks and an existing fee income
stream of £8.2 million2
|
Strong operational performance
|
●
|
Occupancy maintained at
97.3%
|
|
●
|
Completed 147,300 sq ft of leasing,
with long-term transactions +4.3% vs ERV with Weighted Average
Lease Expiry of 7.3 years; 5th consecutive quarter of
leasing outperformance vs ERV
|
|
●
|
Maintained consistently high leasing
retention rate of 95%
|
|
●
|
Average rent remains affordable at
£11.96 per sq ft
|
|
●
|
Further progress made with Work Out
disposal programme: of the five Work Out assets remaining at 31
March 2024, one further disposal has now completed, in-line with
March 2024 valuation
|
|
●
|
In May 2024, named in the Sunday
Times Best Places to Work 2024 for the second consecutive
year
|
Robust balance sheet underpinned by capital
discipline
|
●
|
Cash & cash equivalents
increased to £134 million at 30 June 2024 (proforma for Ellandi
initial cash consideration of £5 million) from £133 million at 31
March 2024
|
|
●
|
LTV as at 30 June 2024 of 30.8%
(using March 2024 portfolio valuation and proforma for Ellandi
initial cash consideration of £5 million), in-line with position at
31 March 2024
|
|
●
|
Currently considering opportunities
to allocate capital and in the meantime generating a 5% return on
the majority of cash holdings
|
|
●
|
Fully unsecured balance sheet with
interest rate fixed at 3.5% on drawn debt and no maturity on drawn
debt until March 2028
|
Possible Offer for Capital & Regional plc ("Capital &
Regional")
|
●
|
On 23 May 2024, the Board of
NewRiver confirmed that it had made a preliminary proposal to
Capital & Regional's majority shareholder, Growthpoint
Properties Limited, in relation to a possible offer in cash and
shares for the entire issued, and to be issued, share capital of
Capital & Regional plc ("Capital & Regional")
|
|
●
|
In accordance with Rule 2.6(a) of
the Code, NewRiver is required, by no later than 5:00 p.m. on 15
August 2024, either to announce a firm intention to make an offer
for Capital & Regional in accordance with Rule 2.7 of the City
Code on Takeovers and Mergers (the "Code") or to announce that it
does not intend to make an offer, in which case the announcement
will be treated as a statement to which Rule 2.8 of the Code
applies. In accordance with Rule 2.6(c) of the Code, this deadline
may be extended further at the request of the Board of Capital
& Regional and with the consent of the Takeover Panel.
There can be no certainty that any firm offer will be made for
Capital & Regional, nor as to the terms of any firm offer, if
made
|
Notes
|
1.
|
Consolidated Ellandi Management
Limited and Ellandi LLP
|
|
2.
|
The sum of Consolidated Ellandi
Management Limited and Ellandi LLP fee income for year ended 30
April 2024 and NewRiver REIT plc Asset management fees for the year
ended 31 March 2024
|
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
Giles Barrie
|
|
|
|
|
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 5.9 million sq ft and
comprises 23 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 21
shopping centres on behalf of Capital Partners, taking our total
Assets Under Management to £2 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 is listed on the equity
shares (commercial companies) segment ("ESCC") of the Official List
and admitted to trading on the Main Market of the London Stock
Exchange (ticker: NRR). Visit www.nrr.co.uk for further
information.
LEI Number:
2138004GX1VAUMH66L31