TIDMNRR
RNS Number : 5260G
NewRiver REIT PLC
27 July 2021
NewRiver REIT plc
("NewRiver" or the "Company")
First Quarter Company Update
NewRiver will hold its Annual General Meeting ("AGM") at 10:00am
today and is providing the following trading update in respect of
the first quarter ended 30 June 2021.
Allan Lockhart, Chief Executive, commented : "Our operational
metrics including rent collection, leasing activity and occupancy
have remained strong throughout the first quarter and, most
significantly, the Company has agreed terms to dispose of its
Hawthorn pub business, which delivers on a key strategic priority
announced in April 2021."
Disposal of Hawthorn
On 26 July 2021, we announced that we had entered into an
agreement for the sale of Hawthorn to a member of the Admiral
Taverns group, a wet-led community pub operator, in line with our
strategic priority to divest ourselves of our community pub
business in order to reset our LTV and provide the firepower to
reshape our portfolio.
The expected total cash proceeds arising from the disposal are
GBP222.3 million. Net aggregate proceeds are intended to be used to
reduce net debt, significantly strengthening NewRiver's balance
sheet by resetting LTV to below 40% on a 31 March 2021 pro-forma
basis, which is in line with Company guidance. The disposal of
Hawthorn, once completed, will enable the majority of future
proceeds from non-core retail disposals, of which we currently have
GBP73 million exchanged or under offer, to be recycled into
resilient retail assets and NewRiver's regeneration portfolio which
offer superior income and capital growth opportunities.
For further details, please see the separate announcement
released on 26 July 2021.
Retail rent collection
Our rent collection figures remain robust, reflecting the
affordability of our rents and our strong relationships with
occupiers. These attributes mean that we have seen very little
impact across our portfolio from the extension of the government's
moratorium on commercial rents until March 2022. The vast majority
of our occupiers are making rental payments in accordance with
their original lease terms or deferral agreements.
Since our Full Year Results on 3 June 2021 rent collected or
alternative payment terms agreed in relation to the first quarter
of the financial year has now increased to 87%.
Of the total second quarter rent demanded so far, 79% has either
been collected or had alternative payment terms agreed with
occupiers. The rent collection figures for the first and second
quarters are tracking ahead of the same quarters last year and we
expect these figures to continue to improve as we progress through
the year.
Rent collection by quarter, at 20 July 2021
Q1 FY22 Q2 FY22
Collected 82% 78%
-------- --------
Deferred 5% 1%
-------- --------
Re-gear 0% 0%
-------- --------
Total collected or alternative
payments agreed 87% 79%
-------- --------
Waived 5% 0%
-------- --------
Rent outstanding 8% 21%
-------- --------
Total 100% 100%
-------- --------
Retail operational performance
Almost all of the stores across our retail portfolio are now
open following the easing of restrictions and footfall is
recovering well. This mirrors trends across the UK where customers
have been making increasingly confident returns to physical stores
since the reopening of non-essential retail on 12 April. Our
portfolio remains focused on essential, local retail with limited
exposure to mid-market fashion and no department stores.
In FY22 to date we have maintained our strong leasing momentum
from the previous financial year, completing 252,500 sq ft of
leasing deals across our retail portfolio. 92,200 sq ft of the
deals signed to date represented long-term new lettings and
renewals, accounting for GBP0.9 million of annualised rent.
Long-term deals agreed so far in FY22 are on terms in line with
ERV. These transactions include a significant lease renewal with
Homebase in Poole, a renewal with Superdrug in Doncaster and a new
letting with Poundstretcher in Bexleyheath.
Across the retail portfolio, operational metrics have remained
robust, with retail occupancy increasing over 1% to 97.0% since the
March 2021 position. Our average retail rent remains affordable at
GBP11.54 per sq ft (March 2021: GBP11.51 per sq ft).
During the quarter we completed a long-term portfolio agreement
with APCOA, Europe's largest car parking solutions operator, to
deliver their innovative urban mobility hub concept across external
areas within our shopping centres and retail parks. This commercial
partnership will reactivate under-utilised space, increase our
ancillary revenue and improve customer experience by expanding the
range of services available at our community centred retail assets.
Additional revenue streams will be generated from a range of
community focused projects including the provision of electric
vehicle charging, cycle parks, multi-locker hubs for customers and
local businesses, in car park car maintenance servicing and
valeting, dark kitchens as well as many more innovative
solutions.
In July 2021 we were notified that Grays town centre, the
location of one of our key Regeneration shopping centres, has been
awarded GBP19.9 million of central government investment via the
Towns Fund. NewRiver is represented on the Thurrock (Grays) Towns
Fund Board which works in partnership with the Local Authority to
redevelop and repurpose the area in and around our community
shopping centre. The funding should accelerate the transformation
that is already underway in Grays, bringing significant social and
economic benefits for its residents, businesses and visitors.
Disposal progress
Our strategy of disposing of non-core retail assets has
continued, with GBP74.3 million of disposals now completed,
exchanged or under offer in FY22 to date. This figure comprises
GBP1.1 million of completed disposals, GBP9.3 million of exchanged,
and GBP63.9 million under offer. These disposals are in line with
March 2021 valuations.
The announced disposal of Hawthorn, once completed, will enable
the majority of future proceeds from these non-core retail
disposals to be redeployed into resilient retail assets.
Cash and liquidity
In light of an improved trading environment and increased
confidence we made the decision to repay GBP70 million of revolving
credit facilities during the quarter. At 30 June 2021, we had GBP84
million of cash reserves and GBP115 million of undrawn revolving
credit facilities. Our total accessible liquidity position of
GBP199 million remained the same as at year end.
For further information
NewRiver REIT plc +44 (0)20 3328 5800
Allan Lockhart (Chief Executive)
Mark Davies (Chief Financial Officer)
Emily Meara (Head of Investor
Relations)
+44 (0)20 7251
Finsbury 3801
Gordon Simpson
James Thompson
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
the law of England and Wales by virtue of the European Union
(Withdrawal) Act 2018. This announcement has been authorised for
release by the Board of Directors.
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 GBP1.0 billion portfolio covers 9 million sq ft and
comprises 33 community shopping centres, 19 conveniently located
retail parks and 674 community pubs. We hand-picked our assets to
deliberately focus on occupiers providing essential goods and
services, and avoid structurally challenged sub-sectors such as
department stores, mid-market fashion and casual dining. This
focus, combined with our affordable rents and desirable locations,
delivers sustainable and growing returns for our shareholders,
while our active approach to asset management and inbuilt 2.6
million sq ft development pipeline provide further opportunities to
extract value from our portfolio.
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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