NewRiver boss hails “transformational period” which sees REIT back in the black
The boss of NewRiver has said the first half of the 2025 financial year has been a “transformational period”, as the real estate investment trust returns to profitability.
During the six months ending 30th September, the group recorded a profit after tax of £8.3m, up from a loss of £2.6m during the same period last year.
Highlights included NewRiver’s acquisition of Capital & Regional for £151m in December. The group said the transaction created a combined portfolio worth around £900m, an increase of 65% compared to the size of its previous portfolio.
The group also acquired asset and development management business Ellandi in July for £5m. NewRiver said the transaction provided its existing capital partnership business with additional scale, diversification, and skill.
During the period, NewRiver recorded an occupancy rate of 97%, down from 98%, and said it had completed 406,400 sq ft of new lettings and renewals across its portfolio.
Allan Lockhart, chief executive of NewRiver, said: “This has been a transformational period for NewRiver marked by the successful acquisition of Capital & Regional which completed earlier this week. This transaction substantially increases our scale and will deliver significant benefits including a material increase in our earnings. This was clearly recognised by existing shareholders and new investors who overwhelmingly supported our equity raise to partly fund the transaction.
“Our focus on M&A (mergers and acquisitions) activity has not detracted from our operational performance which has been excellent with another good period of leasing activity. Consequently, occupancy and occupier retention rates remain high. We have a highly experienced asset management team, which has been further enhanced with the recent acquisition of Ellandi, and a portfolio that is significantly outperforming the market in terms of year-on-year consumer spending growth which is supporting the success of our occupiers.
“For NewRiver the outlook is positive, despite the uncertain macro environment. We have a clear pathway to deliver growth from a portfolio that is performing well, our successful capital partnership business and the realisation of the significant benefits that flow from our completed M&A activities, all of which will drive significant recurring earnings accretion, enhancing our ability to pay a higher covered dividend.”