NewRiver REIT reported another drop in the value of its portfolio but said it intends to pay a full year dividend in 2021.
The group saw its EPRA net tangible assets (NTA) per share drop from 201p in March to 171p in September, mainly due to an 8.2% valuation decline in its portfolio to £1,058m.
Pre-tax loss was £92.3m, compared to a loss of £21.3m at the same point last year, mainly due to the portfolio revaluation.
The REIT completed disposals of £50.2m in the period, at a 6% discount to March valuations. The firm also completed 504,700 sq ft of new lettings and renewals across the retail portfolio at a 2.7% discount to March expected rental values.
NewRiver has no bank refinancing events due until August 2023, with £140m in unrestricted cash and a further £45m in an undrawn revolving credit facility, and up to £50m in a corporate covid financing facility, for which NewRiver is an approved borrower. Loan to value is 48.1%, compared with 47.1% in March.
Allan Lockhart, chief executive, NewRiver, said: “The first half of the year was a period of unprecedented disruption and yet our operational performance has proved to be resilient. We have seen a significant increase in leasing activity, with over half a million square feet of transactions completed, which has led to occupancy in our retail portfolio increasing to more than 96% during the period. This reflects both our affordable rents and focus on essential and convenience retail.
“While our markets continue to be disrupted by COVID-19 in the short term, given the resilient first-half operational performance and the confidence we have in our portfolio it is the board’s intention to reinstate a covered dividend at the full year.”
NRR : NewRiver REIT intends to pay dividend in 2021