NewRiver Reit (NRR) H2 2025 earnings summary

Executive summary

• Completed the transformational acquisition of Capital & Regional, increasing gross assets and portfolio value by 65% to £897m, and delivering a 25% increase in underlying funds from operations (UFFO) for FY 2025, with further growth expected in FY 2026 and FY 2027.

• Acquisition funded through a successful equity raise and cash, reflecting strong shareholder support and strategic fit.

• Integration of Capital & Regional progressing well, with cost synergies on track and operational benefits already realized.

• Achieved high occupancy and retention rates across core assets, with portfolio outperformance in consumer spend growth.

• Underlying Funds From Operations (UFFO) rose 25% to £30.5m compared to FY24.

Financial highlights

• Portfolio value increased to just under £900 million, with a high weighting to London and the Southeast.

• UFFO per share rose from 7.8p to 8.1p, with a 19% increase in H2 versus H1 and a 9% increase over the pre-sale baseline.

• Dividend for FY 2025 increased to 6.5p per share, covered 125% by UFFO, yielding over 8%.

• Loan to Value (LTV) increased to 42.3% post-acquisition, pro forma LTV reduced to 38% after asset disposals.

• Sale of Abbey Centre in Belfast at book value for £58.8 million, with proceeds to be reinvested.

Outlook and guidance

• Expect further earnings growth in FY 2026 and FY 2027 as cost synergies from the Capital & Regional acquisition are fully realized.

• Confident in delivering consistent sector-leading earnings growth beyond the acquisition benefits.

• Guidance to maintain LTV below 40%, with pro forma LTV reduced to 38% after asset disposals.

• Focus on net rental income growth, capital partnerships, and capital recycling as key earnings drivers.

• Targeting mid- to high-teens UFFO per share accretion from synergies and capital recycling.