NewRiver REIT (LSE:NRR) reported a strong third-quarter performance, underpinned by solid leasing activity, higher occupancy levels and continued progress in reshaping its UK retail portfolio. During the quarter, the group completed 234,500 sq ft of lettings and renewals, securing £2.1 million of annualised income. Long-term leases were agreed broadly in line with estimated rental values and well above previous rent levels, with year-to-date leasing delivering notable uplifts versus both prior rents and ERVs.
Operational indicators strengthened further, with portfolio occupancy increasing to 96.1% and retailer retention reaching 91%. Trading conditions over the Christmas period were described as resilient, particularly across grocery and discount-led tenants, helping to offset softer demand in value fashion. These dynamics supported stable income generation across the estate.
Active capital recycling also remained a key feature of the quarter. NewRiver is on course to complete around £40 million of disposals in the second half, having sold assets including The Marlowes in Hemel Hempstead and Sprucefield Retail Park, alongside exchanging contracts for the sale of Cuckoo Bridge Retail Park. These transactions are intended to simplify the portfolio and further strengthen the balance sheet.
Alongside disposals, the company continued to advance its regeneration and repositioning strategy. Progress included a joint venture with Mid Sussex District Council to deliver a mixed-use redevelopment at The Martlets in Burgess Hill, as well as an agreement for lease with an experiential leisure operator at the Capitol Centre in Cardiff. The latter moves the asset into core status and reduces exposure to non-core ‘Work Out and Other’ properties. Management also highlighted that improved business rate relief for retail, hospitality and leisure tenants should help offset higher rateable values, improving affordability and supporting confidence in future earnings growth and a well-covered dividend as the group moves towards FY27.
From an investment standpoint, NewRiver’s solid financial performance and relatively attractive valuation are supported by favourable technical indicators and recent strategic activity. However, higher leverage levels and future refinancing requirements remain areas to monitor.
More about NewRiver REIT
NewRiver REIT plc is a UK-listed real estate investment trust focused on acquiring, managing and developing resilient retail assets, including community shopping centres and retail parks. Following the acquisition of Capital & Regional in December 2024, the company controls a portfolio valued at around £0.8 billion, covering 7.1 million sq ft. With total assets under management of approximately £2.3 billion, NewRiver’s strategy centres on owning and operating one of the UK’s most defensive retail portfolios, generating sustainable income and long-term value through active asset management and regeneration.
Leave a Reply