AGM Statement

RNS Number : 1595L

NewRiver Retail Limited

02 July 2014

 



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 less than five years has become the leading value-creating retail property investment platform in the sector. The Company is now the UK's third largest shopping centre/manager by number and grew assets under management by 50% during the financial year to £600 million. The portfolio comprises 24 UK-wide shopping centres, 18 high street units, one supermarket and a portfolio of 202 pubs for retail conversion. At the year end, the portfolio totalled 4.6 million sq ft, hosting 1,118 tenancies, an occupancy rate of 95% and enjoyed a total footfall of more than 100 million.

As announced at the Company's full year results on 15 May 2014, NewRiver Retail delivered an impressive fourth consecutive year of profit growth with EPRA adjusted profit increasing by over 80% to £9.5 million. Importantly, the full dividend for the year was 98% covered and maintained at 16 pence per share on a share capital base that was significantly enlarged following the successful issue of new equity in two separate fund raisings which were very well supported by both new and existing shareholders. The Company is pleased that in line with its intention to maintain a progressive dividend policy, it will commence a quarterly dividend policy with the first quarterly payment expected in October 2014.

NewRiver Retail's key objective is to strengthen its position as the UK's leading value-creating property company whilst continuing to deliver strong returns for our shareholders. Management delivered the first element of this strategic objective through acquisitions, active asset management and risk-controlled development programme. The second element was achieved and demonstrated with the Company producing a Total Shareholder Return for the year of 55% compared to 27% for the FTSE 350 Real Estate Index.

We were delighted to deliver EPRA NAV of 240 pence which would have been 261 pence excluding payment of the special interim dividend of 10 pence on 28 March 2014 and exceptional costs of 11 pence related to the fund raisings.

In the period two fundraisings totalling £152 million of new equity capital through the issue of 65 million new ordinary shares were completed, strengthening our financial position and allowing us to move quickly on acquisition opportunities. As a result, NewRiver Retail completed acquisitions worth £200 million, including JVs, with an average initial yield of 11%. The Company also delivered on its proven business strategy successfully re-cycling capital via disposals of two properties for £9 million. Our BRAVO joint venture grew substantially during the year to over £350 million.

A distinctive highlight of the year was the purchase of 202 public houses from Marston's plc in November 2013, through which the team saw an opportunity to offer well-located convenience store space to major food store operators. Subsequently, the Company announced that The Co-operative Group had signed a conditional agreement for lease on 54 of these properties. The Board is confident that further similar agreements will be completed in due course, and that this portfolio acquisition will achieve its highly profitable potential.

Our active asset management programme has continued with great success delivering a total of 141 leasing events, 99 of which were new lettings and lease renewals at an average of 1.7% above ERV. The portfolio continues to attract high quality national retailers and our strategy to enhance the food, beverage and leisure positioning of our assets is progressing well.

We are committed to driving forward our portfolio-wide risk controlled development programme and successfully completed three significant projects during the period, extending to over 142,500 sq ft.

The Company took steps to strengthen its capital structure reducing its net LTV to 25% while maintaining a low cost of debt at 3.9%. Our financing strategy was further enhanced during the year by re-negotiating terms on bank debt facilities which now carry an average maturity of 4.5 years.

We have developed a profitable growth platform with a strong management team focused on driving income returns and delivering long-term shareholder value. The wider economic recovery continues to support our business model and enhance the NewRiver Retail investment proposition. The Company is well-positioned and well-capitalised to take advantage of market opportunities and continue its growth."

NewRiver Retail has today also announced its quarterly portfolio update detailing all recent transactions and asset management initiatives for the first quarter ending 30 June 2014.

-Ends-

For further details contact:

NewRiver Retail Limited  David Lockhart, Chief Executive Mark Davies, Finance Director	Tel: [phone]
Bell Pottinger David Rydell/Guy Scarborough/David Bass	Tel: [phone]
Liberum Tim Graham/Simon Atkinson/Jamie Richards	Tel: [phone]

 

END

 

 

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