News

NewRiver occupancy hits record high as values stabilise

News

Pui-Guan Man

25 April 2024

Investment/finance, Retail

The latest occupancy figure, for the quarter ending 31 March, is up on its previous record high in September, when it hit 97.7%. It is also up from 96.7% year-on-year.

The portfolio was valued at £544m at the end of March, reducing by £9m in H2 on the back of £7m of disposals and a 0.4% decrease in capital values.

Valuations in its core portfolio stayed broadly stable in the second half. The value of its core shopping centres, 44% of the total portfolio, inched up by 0.3% in H2, while retail parks, accounting for a quarter of its total portfolio, edged up by 0.7%.

The REIT’s regeneration portfolio, 24% of the total portfolio, recorded a circa 0.8% reduction in values in H2, compared with an H1 reduction of 7.9%.

The REIT said it leased 785,100 sq ft during its 2024 financial year, with long-term transactions up by 3.6% in terms of ERV and by 1.8% compared with previous rent.

The tenant retention rate has improved to 94%, from 92% in the previous year.

During the period, the REIT launched a search for a capital partner to co-invest in UK retail parks. Meetings began in February and “early engagement has been positive”, according to the update.

EPRA NTA per share is expected to be in line with analyst consensus at the full-year mark, at around 116p per share.

Lockhart said: “During the fourth quarter, we have seen a continuation of the positive operational momentum that has built over recent years, which is reflective of both the steadily improving health of our underlying market and the inherent strengths of our business.

“Our retail portfolio, which demonstrated valuation stability in the second half of the year, is ideally positioned to benefit from consumers increasingly seeking value and convenience and the investment we have made into our specialist asset management platform means we are well placed to ramp up our capital partnerships activities, supported by our strong cash and liquidity position.”

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NewRiver

NewRiver REIT has achieved a record 98% occupancy rate in its fourth quarter, with chief executive Allan Lockhart pointing to the market’s “steadily improving health” and “valuation stability” in H2. The latest occupancy figure, for the quarter ending 31 March, is up on its previous record high in September, when it hit 97.7%. It is also up from 96.7% year-on-year. The portfolio was valued at £544m at the end of March, reducing by £9m in H2 on the back of £7m of disposals and a 0.4% decrease in capital values. Valuations in its core portfolio stayed broadly stable in the second half. The value of its core shopping centres, 44% of the total portfolio, inched up by 0.3% in H2, while retail parks, accounting for a quarter of its total portfolio, edged up by 0.7%. The REIT’s regeneration portfolio, 24% of the total portfolio, recorded a circa 0.8% reduction in values in H2, compared with an H1 reduction of 7.9%. The REIT said it leased 785,100 sq ft during its 2024 financial year, with long-term transactions up by 3.6% in terms of ERV and by 1.8% compared with previous rent. The tenant retention rate has improved to 94%, from 92% in the previous year. During the period, the REIT launched a search for a capital partner to co-invest in UK retail parks. Meetings began in February and “early engagement has been positive”, according to the update. EPRA NTA per share is expected to be in line with analyst consensus at the full-year mark, at around 116p per share. Lockhart said: “During the fourth quarter, we have seen a continuation of the positive operational momentum that has built over recent years, which is reflective of both the steadily improving health of our underlying market and the inherent strengths of our business. “Our retail portfolio, which demonstrated valuation stability in the second half of the year, is ideally positioned to benefit from consumers increasingly seeking value and convenience and the investment we have made into our specialist asset management platform means we are well placed to ramp up our capital partnerships activities, supported by our strong cash and liquidity position.”