NewRiver upbeat on strengthening retail sector

21st Jun 2024 09:37

(Sharecast News) - NewRiver Reit said it remained confident for the future on Friday, on the back of a strengthening retail sector and a "strong" operational performance.

The London-based real estate investment trust said it was well-positioned to deliver future growth, "underpinned by the strongest operational and financial position the business has been in for several years".

It continued: "This position is supported by the fact that our underlying occupational market has been steadily improving over the last few years, our portfolio continues to perform well and our balance sheet is in excellent shape, providing future optionality for growth."

The update came as NewRiver, which owns, manages and develops retail assets across the UK, posted results for the year to 31 March.

It said occupancy reached 98% during the year, up from 96.7% a year previously, with tenant retention improving two percentage points to 94%.

Underlying funds from operations were £24.4m, or 7.8p per share, down from £25.8m and 8.3p per share on the back of disposals and Covid-related credits that were recognised in 2023.

Net tangible assets eased to 115p per share from 121p, due to a modest decline in the portfolio valuation of 2.3%. The portfolio was valued at £544m.

The dividend per share was 6.6p, including a final divided of 3.2p, while profits after taxation were £3m, compared to last year's post-tax loss of £16.8m.

Allan Lockhart, chief executive, said: "The retail sector is arguably in the best position it's been in for several years following a wave of corporate restructurings and the successful repositioning of many retailers, which have created a healthier operating environment.

"Our retail portfolio...is ideally positioned to benefit from consumers increasingly seeking value and convenience."

As at 0930 BST, shares in NewRiver were up nearly 1% at 72.77p

Last month NewRiver said it had approached Growthpoint Properties about a potential takeover of Capital & Regional. Under Takeover Panel rules, it now has until 18 July to make a formal offer for Capital & Regional - which is 68% owned by Growthpoint - or walk away.