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NewRiver REIT PLC (LSE:NRR) on Monday reported a stable performance for its financial first quarter, which ended on June 30, as the company continues its efforts to expand its portfolio of assets. The London-based real estate investment trust, which focuses on acquiring, developing, and managing UK retail properties, saw occupancy levels remain steady at 97% year-on-year.
Financials
During the quarter, NewRiver REIT completed 147,300 square feet of leasing activity, marking a 17% decrease from the 177,300 square feet leased in the same period last year. Cash and cash equivalents held by the company were down by 2.2% from £137 million to £134 million, though this figure represents a slight increase of 0.8% from £133 million as of March 31.
Chief Executive Allan Lockhart remarked on the strong operational performance that has carried over from the previous financial year, noting that leasing transactions have been above estimated rental values and that both occupancy and tenant retention rates have been maintained at high levels. Lockhart emphasized that the company’s portfolio continues to perform well due to robust occupational demand and effective asset management.
Strategic Acquisition
In July, NewRiver REIT furthered its growth strategy by acquiring Ellandi Management Ltd. for £5 million in cash, with an additional £4 million contingent on earnings performance. This acquisition brought 16 shopping center asset management mandates with 10 different partners, covering a total of 6.3 million square feet.
Portfolio and Future Proposals
With this acquisition, NewRiver REIT now owns or manages £2 billion worth of retail real estate assets and collects nearly £190 million in annual rent from over 3,000 tenants. Additionally, on May 23, NewRiver REIT confirmed it had proposed an all-share offer to Growthpoint Properties Ltd. for its majority stake in shopping center investor Capital & Regional PLC. The company must announce whether it will proceed with a firm offer for Capital and Regional by August 15.
