Member Article

NewRiver Retail strengthens first quarter showing with new £85m debt facility

Property group NewRiver Retail have enjoyed a strong first quarter to the year, according to their company update released to the stock exchange this morning.

The London-based real estate investment trust (REIT) has backed up a number of significant acquisitions between April and June, including a £120m deal for a pair of leisure destinations in Bexleyheath, with an increased retail occupancy rate of 97%.

NewRiver, who focus on ‘convenience-led’ retail sector properties, also saw modest increases in the value of the assets it currently manages, rising to £1.1bn, and its rent roll which jumped to £107.5m per annum.

Further strengthening the group’s footing heading into the second quarter, Chief Executive David Lockhart, revealed that the firm also agreed an improved debt and refinancing facility with a US institutional lender for £85.3m which he celebrated as a ‘further endorsement’ of NewRiver’s strategy and would reduce their interest costs.

He said: “It has been another successful period for the Company and we are delighted to be delivering a first quarter dividend of 5 pence, an 11% increase year on year.

“Operationally the business continues to perform well, with 90 leasing events completed during the quarter and occupancy, lease length and footfall all improving in the period.”

UK-wide the property firm has 1.5m sq ft of mixed-use development underway, including a 65,000 sq ft retail and leisure park in Canvey Island and the new Forum Retail Park in Wallsend, Newcastle, and remains seemingly unaffected by the EU referendum.

Touching upon the current climate, David added: “We founded the Company in 2009, during a severe recession, and since then we have consistently created value for our shareholders through our proven business model, focusing on the non-discretionary convenience-led retail sector where the UK household budget is spent day in, day out.

“We believe that consumers are ultimately price-driven and with our convenience-led specialism, strong operational metrics, rigorous cost-control and conservative balance sheet we feel well-positioned to withstand market uncertainties following the EU referendum result.”

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