NewRiver Retail Limited has announced its interim results for the six-months ended 30 September 2015, which the company describes as providing, “Record profits and strong NAV per share growth”. During the period, the company’s EPRA NAV per share increased by 14% to 287p (Sept 2014: 252p) whilst its EPRA adjusted earnings per share increased by 95% to 13.2p (Sept 2014: 6.8p). Profit before tax increased by 243% to £42.2m (Sept 2014: 137% to £12.3m) whilst its EPRA adjusted profit increased by 190% to £19.7m (Sept 2014: 120% to £6.8m)
In terms of operational developments the company says that ‘highly active asset management continues to drive value’ within the portfolio. The company raised £150m of new equity during the period, which was deployed into £230m of acquisitions with a net initial yield of 9.6%.
The company saw an improvement in its retail occupancy rate of 96% (Sept 2014: 95%) and received 22 planning consents for its Convenience Store programme (construction has now started on the first of these). A planning application has also lodged for major mixed-use town centre regeneration in Burgess Hill.
Of its acquisitions, the largest was the £69.1m purchase of the Ramsay portfolio, a geographically diverse portfolio of 13 retail warehouse assets comprising nine investments properties and four development opportunities.
A further £52m was utilised by acquiring the 50% stake not already owned by NewRiver in the Trent JPUT – notably the 202-strong Marston’s public house portfolio at an implied net initial yield of 10.1% and the Camel III Shopping Centre Portfolio at a yield of 7.2 per cent. Management view the public house market as a highly desirable sub sector of the retail property market as it generates secure long term income streams and offers significant asset-management and development opportunities. In September 2015, the Company expanded its pub portfolio through the £53.5m acquisition of a further 158 public houses across England and Wales from Punch Taverns. The company says that the purchase price reflects a net initial yield of 13.5 per cent which management expect to generate an attractive cash on cash equity return in excess of 20 per cent.
The company says that portfolio management has progressed well during the period with total rent roll under management increasing by 19% in the last quarter alone to £85.3m per annum.
The Company has announced its intention to move from AIM to the Premium segment of the Main market of the London Stock Exchange. Management say that this is progressing well with an expected target date of July 2016.
New River Retail provides “Record profits and strong NAV per share growth” : NRR