“Strong operational performance” at NewRiver in first quarter
NewRiver has hailed “strong operational performance” during the first quarter of the 2025 financial year.
During the period, the REIT maintained an occupancy rate of 97.3% across its portfolio and a leasing retention rate of 95%.
NewRiver also completed 147,300 sq ft of leasing deals, with long-term transactions 4.3% ahead of estimated rental value (ERV). This was the fifth consecutive quarter of leasing outperformance vs ERV.
The REIT also completed the acquisition of asset and development manager Ellandi during the period, for an initial cash consideration of £5m with a further consideration of £4m dependent on earnings performance.
The acquisition added a portfolio of 16 shopping centre asset management mandates, covering over 6.3m sq ft. The combined business has circa £2bn of assets under management across a portfolio of 43 shopping centres and 29 retail parks.
Allan Lockhart, chief executive of NewRiver, said: “The strong operational performance delivered in our last financial year continued into the first quarter of FY25 with leasing transactions ahead of ERVs and occupancy and tenant retention rates maintained at elevated levels. Our portfolio continues to perform well underpinned by good occupational demand and the quality of our asset management.
“The acquisition of Ellandi, a high-quality asset and development management business, in early July accelerates the growth in our Capital Partnership business, where we have now established a meaningful platform. We now own or manage £2 billion of retail real estate assets, collecting nearly £190 million of annual rent from over 3,000 tenants. This scale provides us with an incredible insight into the consumer, retail and capital markets.
“Finally, our balance sheet is in a good position with cash up to £134 million which provides us significant deployment optionality.”