NewRiver Reit (NRR) H1 2025 earnings summary

Executive summary

• Completed transformational acquisitions of Capital & Regional and Ellandi, increasing portfolio scale by 65%, annual rent by 73%, and enhancing diversification and asset management capabilities.

• Successful equity raise and integration of new assets position the group for future growth, with strong shareholder support.

• Operational performance remained strong, with high occupancy (96.5%), tenant retention (98%), and robust leasing activity, supported by resilient consumer spending and a well-diversified tenant base.

• Focus on value-oriented, essential retail, with the portfolio outperforming national benchmarks in retail sales growth.

• Positive outlook with focus on integration, cost synergies, and recurring earnings growth.

Financial highlights

• Underlying Funds From Operations (UFFO) for H1/HY25 was £11.5m (3.7p per share), down from £12.3m (4.0p) in HY24, mainly due to prior disposals.

• Dividend per share of 3.0p declared for HY25, 80% payout and 125% cover, with policy to pay out 80% of UFFO.

• EPRA NTA per share at 30 September was 106p, down from 115p at March 2024, mainly due to equity placing and Ellandi acquisition.

• Pro forma portfolio value post-acquisition is just under £900m, up from £540m, with contracted rent of £90m per annum at an 8.5% equivalent yield.

• Occupancy rate at 96.5%, with a 98% retention rate.

Outlook and guidance

• Expecting material UFFO and earnings per share growth in H2 and beyond, driven by synergies, rental growth, and Capital Partnerships expansion.

• UFFO per share expected to see mid-to-high teens accretion from Capital & Regional cost synergies within 12 months.

• Guidance to reduce proforma LTV to below 40% through modest disposals, with current proforma LTV at c.42%.

• Dividend expected to grow in H2 and beyond, supported by recent acquisitions, with policy at 80% of UFFO.

• Targeting consistent 10% total accounting return in the medium term.