NewRiver delivers upbeat outlook after Capital & Regional takeover
By Benjamin Chiou
Date: Wednesday 29 Jan 2025
(Sharecast News) - Retail-focused real estate investor NewRiver REIT said it had a successful third quarter, with December's takeover of Capital & Regional underpinning a positive outlook for the business.
The acquisition gives it "scale, material earnings accretion and opportunities to add value", increasing the size of the overall portfolio by 65%, NewRiver said.
"We are moving at pace with the integration of the Capital & Regional business to deliver the synergies outlined at the time of the acquisition which, with the portfolio performing well and growth from capital partnerships, mean we are well positioned to deliver sector leading returns over both the short and the medium term," said chief executive Allan Lockhart.
Occupiers of NewRiver's assets saw strong in-store spending during the Christmas period, with spend up 5.3% year-on-year in the final three months of 2024.
This compared with the average retail-sector spend growth of 2.0%, "demonstrating we own the right assets, in the right locations", the company said.
261,800 square feet of new lettings and renewals were completed in the third quarter across the combined group, with long-term transactions at an average 6.4% premium to estimated rental values and 13.6% higher than previous rent.
NewRiver's shares were up 1.2% at 72.46p by 0854 GMT.
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