NewRiver REIT reports strong start to financial year

(Sharecast News) - NewRiver REIT reported a strong start to the 2026 financial year on Thursday, with in-store consumer spending across its portfolio rising 6.7% year-on-year - well above the national average - and its most active leasing quarter since the pandemic. The London-listed real estate investment trust also completed the sale of the Abbey Centre in Belfast for £58.8m, in line with book value.

"We have made an excellent start to the new financial year," said chief executive Allan Lockhart.

"Consumer spending growth across our portfolio is robust and continues to outperform the national average, which has supported another strong leasing quarter, reflecting the quality of our portfolio."

In-store spending rose 6% at NewRiver's shopping centres and 9% at its retail parks, compared to 4.5% national growth in UK retail and supermarket spending in the six months to June.

The group's occupational cost ratio stood at 8.1% at the end of the quarter.

Leasing performance was the strongest since before the Covid-19 pandemic, with 252,200 square feet of lettings and renewals completed - up from 147,300 square feet a year earlier.

Long-term deals secured £2m in rental income, 15.5% ahead of estimated rental value and 20.2% ahead of previous rents.

Portfolio occupancy remained high at 94.9%, with a retention rate of 92%.

The board said the sale of the Abbey Centre marked a successful exit from an asset acquired in 2014, following a value-enhancing programme that included re-anchoring the site with an upsized Primark, adding a flagship Next store, and refurbishing the car park, food court, and entrances.

Lockhart said the company would continue to "selectively recycle capital to realise value and reinvest into opportunities with greater income and capital growth potential".

The disposal reduced loan-to-value to 38%, bringing it back within guidance and providing capacity for future investments.

NewRiver said it ended the quarter with cash holdings of £120m, earning a 4% return on most balances.

The balance sheet remained primarily unsecured, with no debt maturities until January 2027 and a fixed interest rate of 3.5% on drawn borrowings.

At 1156 BST, shares in NewRiver REIT were up 1.75% at 71.22p.

Reporting by Josh White for Sharecast.com.