28th Nov 2013 10:04
LONDON (Alliance News) - NewRiver Retail Ltd Thursday reported a jump in profit for the first half of the financial year and a significant portfolio expansion, as it added a shopping centre portfolio and 202 Marston's pubs to its property book.
The real estate investment trust said it has bought the Marston's pubs, which are spread across the UK, for GBP90 million and will convert them all to other uses, mainly food convenience stores and restaurants. Marston's will continue to lease and run the pubs for up to four years until NewRiver takes control and does the conversion.
Separately, NewRiver said it has bought retail centres in Llanelli and Oxford from insurance group AXA, for a total of GBP34.3 million, equating to a net initial yield of 7.78%. It is funding the acquisition through its joint venture with BRAVO II, with both parties taking a 50% equity stake,
The latest acquisitions came as the REIT said it had added about GBP175 million to its property portfolio in the first half of its fiscal year, using money from the GBP67 million fundraising it did in July. The additions were done through the BRAVO II joint venture.
It reported a pretax profit of GBP5.2 million for the six months to end-September, up from GBP479,000 a year earlier, with net rental income up to GBP8.5 million, from GBP7.7 million, and up 0.5% on a like-for-like basis. Its assets under management rose to GBP450 million, from GBP400 million.
The closely-watched EPRA recurring profit rose to GBP3.0 million, from GBP1.9 million.
"The first six months of the financial year have been an exceptional period for NewRiver in which it significantly increased EPRA recurring profit and doubled the Company's market capitalisation. The successful completion of the oversubscribed equity fundraising combined with the support of NewRiver's joint venture partner BRAVO, has positioned the Company for continued growth," Chief Executive David Lockhart said in a statement.
NewRiver shares were up 2.9% at 267 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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