NewRiver REIT saw a sharp increase in its value, rising 17.3%% on the back of half-year results today.
Despite reporting drops in valuation and a pretax loss, the REIT impressed the market, driving its share price from 74.5p to 87.4p at the end of the day.
However, NewRiver is still trading at a significant discount to its EPRA net tangible asset valuation of 131p at the end of September.
The company valuation fell following an ambitious disposal strategy that saw £236m offloaded in six months. NewRiver aims to slow the pace with a further £300m sold over the next five years. It also will look to drive forward new developments with joint venture partners for upcoming build-to-rent projects in Sheffield and Essex.
In the FTSE 100, Landsec also made gains, rising 2.5% to 766.2p.
Where NewRiver is looking at sales, Landsec is in acquisition mode. The REIT is circling Nuveen’s £600m designer outfit portfolio, on top of a deal to take a stake in Kent’s Bluewater shopping centre for £215m. This follows a £190m takeover plan for regeneration specialist U+I and a £425.6m deal for a 75% stake in MediaCity.
The FTSE 100 nudged up 0.3% to 7,310 and the FTSE 250 rose 0.5% to 23,280.
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