TIDMNRR
RNS Number : 4050U
NewRiver REIT PLC
18 January 2017
NewRiver REIT plc Third Quarter Company Update
18 January 2017
Convenience-led portfolio continues to deliver a growing
dividend
David Lockhart, Chief Executive commented: "Against a backdrop
of continued macro uncertainty, we remain focused on generating
sustainable income returns from our well placed convenience-led
portfolio. I am pleased to report that we have once again delivered
an increased dividend to our shareholders, with the third quarter
dividend up by over 5% and the dividend for the financial year to
date up by over 9%. Our underlying business is in good shape, as
demonstrated by the operational metrics across our portfolio, with
retail occupancy up to 97%, and footfall outperforming the national
benchmark. Our value and discount focused occupiers have traded
well over the Christmas period, with the vast majority reporting
positive like-for-like revenue trends. In December 2016, we
qualified for admission into the FTSE 250, FTSE All-Share and EPRA
indices following our move from AIM to the Main Market in August
2016. Even at this early stage, we have seen improved liquidity in
our shares and access to a wider pool of capital.
Looking ahead to the final quarter of our financial year and
beyond, we remain confident that with the convenience-led profile
of our portfolio, affordable rents, conservative balance sheet and
risk controlled development pipeline, our proven business model is
well equipped to continue to deliver secure and sustainable cash
returns to our shareholders."
Continued focus on providing growing cash returns and liquidity
to shareholders
-- Third quarter dividend up 5.3% to 5.00 pence per share (Q3
FY16: 4.75 pence) payable on 27 January 2017; dividend for the
three quarters to date up 9.1% to 15.00 pence per share (FY16 YTD:
13.75 pence)
-- Qualified for inclusion in the FTSE 250, FTSE All-Share and
EPRA/NAREIT UK indices in December 2016
Underlying operational performance remains robust
-- The portfolio's top retailers providing Christmas trading
updates (Primark, Superdrug, B&M, Sainsbury's) show positive
like-for-like income trends
-- Footfall across the shopping centre portfolio of 39 million
in Q3; on a like-for-like basis -0.8% vs Q3 FY16 but outperforming
the UK benchmark by 200bps
-- Footfall particularly strong at The Forum Shopping Centre,
Wallsend, where like-for-like footfall was up 21% following the
opening of a new 18,500 sq ft Aldi and 1,450 sq ft Burger King in
the period
Portfolio metrics remain strong
-- Consistently high occupancy of 97% (Sep 2016: 96%)
underpinned by efficient rent collection with payment received for
99.3% of rent demanded in Q3
-- Affordable average retail rent of GBP12.70 per sq ft (Sep 2016: GBP12.70 per sq ft)
-- Weighted average lease expiry of 6.8 years (Sep 2016: 6.9 years)
-- Draft rateable values across the retail portfolio in Scotland
reduced by 13%; with a previously announced decrease of more than
20% across England & Wales means a 19% reduction across over
90% of the retail portfolio, benefiting retailers greatly and
reducing cost ratios further
-- Pub operators across our portfolio will save on average 37%
on business rates from 1 April 2017 when the business rate relief
threshold rises from GBP6,000 to GBP12,000
Further leasing progress across the portfolio
-- 69 leasing events across the retail portfolio across 314,200
sq ft; long term deals on average +2.4% vs September 2016 ERV with
an average lease length of 9.7 years and securing annual rent of
GBP2.8 million
-- Includes a portfolio of 7 lease renewals with Peacocks across
52,100 sq ft, with a weighted average lease expiry of 6.4 years and
an increase in passing rent of 4.7%
-- Significant progress made at the Broadway Shopping centre,
Bexleyheath, with London based Morleys Department Stores secured as
a new anchor to replace BHS; the new store is projected to open in
April 2017 following significant investment by Morleys and a
comprehensive modern fit-out and is expected to be a significant
footfall driver
-- Secured contracted income on 21 pubs by surrendering the
leaseback arrangement with Marston's PLC, due to expire in December
2017, and agreeing new 15 year RPI linked leases with Marston's
PLC
Risk-controlled development pipeline
-- Further progress made on 1.6 million sq ft development
pipeline; 44,000 sq ft Next anchor store at the Abbey Centre,
Newtownabbey opened on 14 December and early trading is
encouraging; making good progress with the next phase of
development works at the centre, constructing a 15,000 sq ft
extension to create a 31,600 sq ft flagship unit for Dunnes Stores,
the leading Irish department store operator
-- Planning granted on 86,500 sq ft; includes 62,000 sq ft at
Canvey Island Retail Park, already over 50% pre-let
-- 246,500 sq ft of planning applications submitted including
236,000 sq ft mixed-use regeneration in Cowley, Oxford
For further information
NewRiver REIT plc +44 (0)20 3328 5800
David Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Allan Lockhart (Property Director)
Will Hobman (Head of Investor Relations)
Bell Pottinger +44 (0)20 3772 2500
David Rydell
David Bass
James Newman
Eve Kirmatzis
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
About NewRiver
NewRiver REIT plc (ticker: NRR) is a premium listed REIT on the
London Stock Exchange and a constituent of the FTSE 250 and EPRA
indices. The Company is a specialist real estate investor, asset
manager and developer focused solely on the UK retail and leisure
sector.
Founded in 2009, NewRiver is one of the UK's largest
owner/managers of convenience-led shopping centres with assets
under management of GBP1.3 billion principally comprising 33 UK
wide shopping centres together with further nationwide retail and
leisure assets. The portfolio totals over 8 million sq. ft. with
over 2,000 occupiers, an annual footfall of 150 million and a
retail occupancy rate of 97 per cent.
Visit nrr.co.uk for further information.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTDDLFFDFFLBBZ
(END) Dow Jones Newswires
January 18, 2017 02:00 ET (07:00 GMT)
Newriver Reit (LSE:NRR)
Historical Stock Chart
From Apr 2024 to May 2024
Newriver Reit (LSE:NRR)
Historical Stock Chart
From May 2023 to May 2024