14th Apr 2015 12:11
LONDON (Alliance News) - NewRiver Retail Ltd Tuesday said its assets under management grew 1.4% to GBP811 million over the fourth quarter of its financial year due to a number of key acquisitions, footfall across its retail centres continues to perform well, and plans are well-advanced to submit five major planning applications for new centres.
The Real Estate Investment Trust specialising in retail property investment bough the remaining 90% of the Bravo joint venture shopping centre portfolio in the three months to end-March, which alongside a retail and leisure park investment and two separate retail warehouse investments meant it spent GBP89.3 million on investments in the quarter at an average initial yield of 7.89%.
It disposed of GBP5.5 million of investments at an average net initial yield of 7.3%.
The trust said it agreed two new debt facilities during the quarter, which together reduce its cost of debt to 3.82% from 4.02%, and increased debt maturity to 4.6 years from 3.7 years.
It said its total rent roll under management increased 1.6% over the fiscal fourth quarter to GBP71.8 million a year. It completed 55 new lettings and lease renewals, securing a total of GBP973,425 a year in rent. New long-term leasing events achieved a rental income of 10.9% above valuation ERV with an average lease length of 10.5 years, it added. Its retail portfolio occupancy rate was stable at 96%.
The top 15 retailers within the portfolio defined by rental income accounted for 26.6% of total rent, including Poundland, New Look, Primark, Boots, Superdrug, Asda, Wilkinson, Argos and Dixons Carphone.
It said footfall continued to perform well with a total of 22 million across the portfolio over the quarter, bringing footfall for the year to over 122 million.
NewRiver also said it made significant progress in its pub portfolio conversion programme, with a number of planning applications submitted and several planning permissions successfully secured.
It said plans are also well advanced to submit five major planning applications which will enable it to deliver nearly one million square foot of new development space for retail led and mixed-use, including hotels, leisure and residential.
NewRiver Retail shares were up 1.3% at 307.00 pence Thursday afternoon.
By Steve McGrath; [email protected]; @stevemcgrath1
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