NewRiver “well-positioned “after first full year of CapReg integration
New River REIT’s chief executive has said the real estate investment trust is “well-positioned” following the first full year of ownership of the Capital & Regional (CapReg) portfolio, which it acquired in December 2024.
In its full year trading update for the 2026 financial year, the group said the full integration of the CapReg portfolio unlocked £6.2m of annual net cost synergies. As a result of the acquisition, NewRiver’s London retail weighting increased to 43% of its portfolio, with London retail long-term leasing transactions 12.8% higher than estimated rental value, (ERV), 31.8% above previous passing rent, with a capital value growth of 2.0% over the course of the year.
Over the period, which comprised the 12 months ending 31st March 2026, NewRiver completed 930,700 sq ft of leasing deals. In total, 185 long-term transactions were secured producing £9.1m of annual rent. This was 8.5% higher than ERV and 37.3% above previous passing rent, with a weighted average lease expiry of 9.0 years.
NewRiver also said that it maintained its occupancy rate of 95.0%, with tenant retention recorded at 92.7%.
During the 2026 financial year, NewRiver completed retail disposals of £110m, including sales of The Marlowes in Hemel Hempstead, Sprucefield Retail Park in Lisburn, and Cuckoo Bridge Retail Park in Dumfries. Following these transactions and the CapReg integration, NewRiver’s portfolio makeup now includes 76% core shopping centres and 20% retail parks.
NewRiver has also recently completed a £240m refinancing, comprising a £120m term facility commitment and a £140m revolving credit facility.
Allan Lockhart, chief executive of NewRiver, said: “Our first full year of ownership of the Capital & Regional portfolio has delivered against the strategic objectives of the transaction. Integration is complete, all of the identified synergies have been delivered and the enlarged portfolio has generated positive operational momentum and continued valuation growth.
“We have combined this with disciplined capital allocation, disposing of assets at book value, executing an accretive share buyback, and completing a refinancing that returns the group to a fully unsecured debt structure with extended maturities.
“Against a more volatile macro backdrop, NewRiver is well-positioned. The portfolio has been strengthened, and we have the platform, pipeline, and balance sheet to deliver growth.”