NewRiver Reit (NRR) H2 2024 earnings summary

Executive summary

• Achieved strongest operational and financial position in five years, with record 98% occupancy and 94% retention rate, driven by portfolio repositioning and asset management focus.

• Portfolio repositioning is nearly complete, with 93% now classified as core assets, supporting future growth and capital deployment.

• Capital partnerships and scalable operating platform provide significant growth optionality and enhanced income streams.

• Balance sheet strength supports growth options, including capital deployment and expansion of capital partnership strategy.

• Delivered strong leasing performance, highest ever occupancy, and significant outperformance in consumer spending growth versus the market.

Financial highlights

• Underlying Funds From Operations (UFFO) of £24.4m, down from £25.8m in FY23; UFFO per share at 7.8p.

• Dividend per share of 6.6p, 118% covered.

• Net tangible assets/EPRA NTA per share at 115p, with a 6p reduction mostly in H1.

• LTV improved to 30.8% from 33.9%; cash at year-end £133m, rising to £233m including undrawn RCF.

• Net property income decreased by £4.9m, mainly due to disposals.

Outlook and guidance

• Confident in delivering future earnings growth, supported by strong balance sheet and operational metrics.

• Positioned for growth with improving retail market conditions and rising consumer confidence.

• LTV guidance remains at or below 40%, with current headroom for capital allocation.

• Focus on investing in the existing portfolio, capital recycling, and expanding capital partnerships to drive NAV and UFFO growth.

• Evaluating compelling investment opportunities and seeking new capital partners for retail parks.