NewRiver has returned to capital growth as its retail portfolio emerges from the uncertainty of the pandemic.
The 8m sq ft REIT said a valuation on 31 March showed around 2.5% capital growth in its second half.
NewRiver said the growth had been led by its retail parks, which continued the positive momentum seen over the previous 18 months. However, it added that its core and regeneration shopping centres had also returned to capital growth in the second half.
That fate was not shared by its assets slated for sale. It said: “We have seen further decline in our work-out shopping centre assets, but the rate of decline has slowed markedly when compared to the first half of FY22”.
NewRiver said it was making “good progress” with its disposal and repositioning schedule. In November, chief executive Allan Lockhart said that he wanted to dispose of £300m of assets over the next five years. Since April last year it has sold £77m, with £66m being sold in the last six months, including its Templars Square centre in Oxford, which it sold for £38.8m to Redevco.
The £700m REIT added that the sales and capital growth would reduce its LTV to 35% – “significantly below our LTV guidance of 40%” and far below its 50.6% position at the end of March 2021.
The disposals have reduced net debt to £222m from £493m a year ago.
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