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.
Balance sheet
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
They need to be clear on dividend intentions, becoming a deadweight in my portfolio.
Intends to pay a full years div in 2021 – when please or was this just false advertising.
In the company’s half-year results (to which this article refers) the company says “the Board has decided not to pay a dividend in respect of the first half in order to continue its focus on cash reserves and liquidity. However, it is the Board’s intention that a covered dividend will be reinstated at the full year.” Last year, the company’s full-year results (to 31 March) were published on 18 June but in previous years the final week of may has been more typical. So, if it is going to happen, that is when we will find out how much the dividend will be.
How are this REITS monitored and governed too ensure they must pay out at least 90% of its taxable income as dividends. They may not have been collecting full rents but they have been collecting a lot more than the div suggests