NewRiver Retail Limited AGM Statement (5843R)
June 30 2015 - 2:01AM
UK Regulatory
TIDMNRR
RNS Number : 5843R
NewRiver Retail Limited
30 June 2015
NewRiver Retail Limited
("NewRiver" or the "Company")
AGM Statement
At today's Annual General Meeting of NewRiver Retail (AIM: NRR),
Chairman Paul Roy will make the following statement:
NewRiver Retail has continued its progress as a specialist REIT
focused on the UK retail market and in five years has become the
UK's third largest owner and manager of shopping centres managing
5.5 million sq. ft. of retail real estate. The period under review
was the most active to date. The Company increased its assets under
management by 42 per cent. to GBP848 million and now has nearly
1400 occupiers across 29 shopping centres, ten retail warehouses,
16 high street assets and a portfolio of 202 public houses. Having
started life with an initial seed capital of GBP25 million in 2009
NewRiver is now valued at over GBP400 million.
As announced at the Company's full year results on 14 May 2015,
NewRiver Retail delivered an impressive fifth consecutive year of
profit growth with EPRA adjusted profit increasing to GBP20.9
million.
Importantly, the full dividend for the year was fully covered by
cash profits and increased by 6.25 per cent to 17 pence per share
from 16 pence per share in 2014. During the period the Company
introduced a quarterly dividend policy, with the first quarterly
payment paid in October 2014. Total Shareholder Return for the year
was 16 per cent.
During the period NewRiver completed a placing of new shares to
raise a total of GBP75 million, which was immediately deployed
through the acquisition of the remaining 90 per cent stake in Camel
II, a major shopping centre portfolio, from Bravo I*. Over the
course of the year the Company also successfully raised GBP278
million of new debt to provide new and replacement debt capital
through a variety of longstanding banking relationships.
NewRiver successfully deployed GBP330 million of capital through
targeted acquisitions at an attractive net initial yield of 8.12
per cent. The largest acquisition was the Swallowtail portfolio,
acquired for GBP140 million equating to a net initial yield of 7.9
per cent funded through the Company's joint venture with Bravo II*.
NewRiver also increased its investments into various other
strategic acquisitions including GBP42.25 million of retail
warehouse investments.
The Company also delivered on its proven business strategy
successfully re-cycling its capital out of assets where it has
completed its asset management strategy via disposals of eight
properties for GBP40.2 million equating to a net initial yield of
7.03 per cent.
NewRiver's active asset management programme has continued with
great success delivering a total of 216 leasing events for which
all new long-term lettings or lease renewals were 10.1 per cent
above estimated values, compared to 1.7 per cent in 2014,
reflecting the quality and affordability of the Company's retail
assets.
The Company is committed to driving forward its portfolio-wide
risk controlled development programme and successfully submitted a
total of 52 planning applications within the period, with 24
consents received.
Significant progress was made on NewRiver's portfolio of 202
public houses acquired from Marston's, with the Co-operative Group
signing an Agreement for Lease for 63 convenience stores.
Development of the pub portfolio and convenience store programme
was well-advanced with 39 of the 52 planning applications submitted
during the period pertaining to the pub portfolio and the Company
securing 10 consents by the financial year end.
On 19 June 2015 NewRiver announced the Placing of 50,000,000 new
shares at 300 pence per Placing Share, which conditional upon
resolutions being passed at an EGM on 14 July 2015, will raise
gross proceeds of GBP150 million. The Placing, which was
successfully oversubscribed, will fund two specific acquisitions
from Bravo II: the approximate GBP29 million acquisition of the 50
per cent. stake not already owned by NewRiver in the Trent JPUT
(the Marston's portfolio) at an implied net initial yield of 10.1
per cent; and the approximate GBP23 million acquisition of the 50
per cent. stake not already owned by NewRiver in the Camel III JPUT
(a portfolio of five shopping centres) at an implied net initial
yield of 7.2 per cent; as well as advancing the Company's near term
acquisition and development pipeline.
NewRiver simultaneously announced its intention to move from AIM
to the Main Market of the London Stock Exchange, subject to meeting
eligibility criteria.
The Board extends their gratitude to the management, staff and
advisors for their hard work and enthusiasm and to our shareholders
for their ongoing support and loyalty.
NewRiver has quickly established itself as one of the UK's
leading value-creating property investment platforms. The Company
is in an excellent position to further capitalise on opportunities
to continue its impressive expansion and deliver strong returns for
its shareholders. The Board is delighted with the significant
progress to date and looks forward to the future with
confidence.
*Bravo I and II refers to a fund advised or managed by the
Pacific Investment Management Company LLC
-Ends-
For further information
NewRiver Retail Limited Tel: 020 3328 5800
David Lockhart, Chief
Executive
Mark Davies, Finance
Director
Bell Pottinger Tel: 020 3772 2500
David Rydell/David Bass/James
Newman
Liberum Tel: 020 3100 2000
Richard Crawley/Jamie
Richards
Peel Hunt LLP Tel: 020 7418 8900
Capel Irwin / Alex Vaughan
/ Hugh Preston
About NewRiver
NewRiver Retail Limited is an AIM listed REIT. The Company is a
specialist real estate investor and asset manager focused solely on
UK retail with a particular focus on food and value retailing.
NewRiver Retail was named Property Company of the Year - Retail
& Leisure at the Estates Gazette Awards at the close of
2014.
The management team, with over 100 years combined experience in
the UK commercial property market, actively engages with retailers,
stakeholders and consumers. NewRiver Retail is one of the UK's
largest shopping centre owner/managers with assets under management
of GBP811 million principally comprising 29 UK wide shopping
centres, further nationwide retail assets and a portfolio of 202
public houses principally suitable for conversion to alternative
uses. The portfolio has 1,377 occupiers, a total of over 5.4
million sq ft, total annual footfall of over 121 million and a
retail occupancy rate of 96 per cent.
The Company's activities include active and entrepreneurial
asset management and risk-controlled development, utilising both
its own balance sheet and co-investment joint venture
structures.
Founded in 2009, NewRiver has become one of the UK's leading
retail-focused property investment platforms. The Company's shares
were admitted to London's AIM in September of the same year. For
more information on NewRiver, please visit www.nrr.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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