Overview
NewRiver Retail has published its annual results for the year ended 31 March 2015, which management describe as their best financial year to date. These show a 14% increase in its EPRA NAV to 265p (2014: 240p). It was a busy year for the company during which it raised £75m of equity (to fund £71 million acquisition from its joint venture partner Bravo I fund), made £330m of investments (weighted average initial yield of 8.12%), submitted 52 planning applications with 24 consents received, had 216 ‘leasing events’ and saw an increase in occupancy to 96% (2014: 95%). Management also report that that they’ve made strong progress on the Marston’s Portfolio (New River Retail acquired a portfolio of 202 pubs from Marstons in November 2013 for £90m) – they signed an agreement to lease 63 of the sites to the Co-Operative in September 2014. Profit before tax increased 71% to £39.5m whilst EPRA adjusted earnings per share increased 26% to 19.8p per share. The dividend has increased by 6.25% to 17p per share.
In terms of outlook, the Board believes that there are still many value-enhancing, retail real estate buying opportunities in the present climate, with purchase yields likely to outstrip the cost of debt by a healthy margin for the foreseeable future.
NRR : A busy year for NewRiver Retail