(Sharecast News) – NewRiver REIT said Friday that full-year earnings from operations and EPRA’s net tangible assets per share are expected to be in line with analyst consensus, a year after it completed the integration of Capital & Regional and strengthened its balance sheet.
The London-listed retail-focused property investor said Capital & Regional assets were fully integrated into its platform within the first full year of ownership, unlocking £6.2m of net annual turnover.
It said the acquisition increased NewRiver’s weight in London to 43% of the portfolio.
Chief executive Allan Lockhart said the first full year of ownership had achieved the strategic objectives of the operation.
“The integration has been completed, all identified synergies have been delivered and the enhanced portfolio has a positive momentum to operate and continue to grow equity,” he said.
NewRiver said long-term London leases were completed at 12.8% above average rent and 31.8% above last rent, while London capital prices increased by 2.0% in the 2026 financial year.
Snozone delivered another year of growth, with full year EBITDA up 10% to £3.2m.
Across the portfolio, NewRiver completed leasing of 930,700 square meters during the year.
A total of 185 long-term properties achieved £9.1m in annual rent 8.5% above the average rental value and 37.3% above the previous going rent, with a weighted average lease expiry of 9.0 years.
Occupancy remained high at 95.0%, and tenant retention was 92.7%.
Consumer spending across the board rose 2.3% in the fourth quarter to March, ahead of the benchmark increase of 0.8%.
Grocery spending rose 7.2% and discount spending rose 9.8%, which NewRiver said strengthened its core, day-to-day focus.
Portfolio values increased 0.5% in the second quarter and 0.7% on a full-year basis, marking the third consecutive half-year period of growth in valuations.
The company has completed £110m of store disposals in line with March 2025 book values, including the second-half sales of The Marlowes in Hemel Hempstead, Sprucefield Retail Park in Lisburn and Cuckoo Bridge Retail Park in Dumfries.
Part of the proceeds of its disposal was used to buy back 10% of the shares, which NewRiver said corresponded to basic funds from operations and total tangible assets on a per-share basis.
Following the acquisition of Capital and Regions, the disposal and repositioning of the Capitol Center in Cardiff, the portfolio is now 76% core shopping, 20% retail parks, 3% regeneration and 1% property.
NewRiver said its debt-to-equity ratio had fallen to its mid-term level of less than 40%, while cash flow rose to £115m.
The group also agreed a new £240m unsecured facility in April, comprising a £120m term facility and a £120m revolving credit facility.
It said the term facility matures in April 2030, which may be extended to April 2033, at a margin of 190 basis points, while the credit facility matures in April 2031, which may be extended to April 2033, at a margin of 175 basis points.
The term center will refinance the secured £140m Mall Facility in January 2027, which was secured after the acquisition of Capital & Regional due to its 3.5% coupon.
NewRiver said the delayed draw structure would save around £1.4m in the 2027 financial year compared to drawing the site immediately.
The new revolving credit facility is £20m larger than the facility it replaces and has a much lower rating.
“We have combined this with a structured capital divestiture, book value disposals, an agreed share buyback, and the completion of a refinancing that brings the Group back into a fully unsecured debt structure with extended maturities,” Lockhart said.
“Against a large and dynamic landscape, NewRiver is well positioned.
“The portfolio is strengthened, and we have the platform, the pipeline, and the balance sheet to deliver growth.”
NewRiver noted that the current analyst consensus for the year ended 31 March was for underlying earnings from operations of £37.2m, or 8.3p per share, and EPRA’s net tangible assets of 107p per share.
The full year results will be declared in June.
At 0952 BST, shares in NewRiver REIT were up 0.53% at 75.4p.
Josh White of Sharecast.com reports.
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