14th May 2015 10:02
LONDON (Alliance News) - NewRiver Retail Ltd Thursday said its recently-ended financial year was its best so far as it reported strong growth in profit and assets under management and increased its dividend, although its total shareholder return was lower than in the previous year.
The investor in retail assets said its pretax profit rose to GBP39.5 million in the 12 months to end-March, from GBP23.1 million a year earlier, while EPRA adjusted profit, which is recurring profit plus any profit or loss on disposals of investment properties, rose to GBP20.9 million from GBP9.5 million. That was driven by an 85% increase in gross revenue to GBP46.7 million.
It increased its dividend for the year to 17 pence, fully covered, from 16 pence a year earlier with 98% cover, although total shareholder return fell to 16% from 55%.
The real estate investment trust's net asset value rose to GBP339.7 million at the end of the year, from GBP239.6 million a year earlier, while EPRA net asset value per share was up to 265 pence, from 240p.
NewRiver Retail said it completed GBP330 million of acquisitions over the course of the year, of which its share was GBP259.9 million, with a weighted net initial yield of 8.12%. It disposed of eight properties for GBP40.2 million, of which its share was GBP35.1 million. Its assets under management rose 42% to GBP848 million.
The trust said it had also made good progress on the 202 public houses acquired from Marston's in November 2013. It bought them to turn into convenience store space for retailers, and The Co-Operative Group has leased 63 of them. It has secured 10 planning consents so far from 39 consents submitted.
"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," the company said.
It has a loan to value ration of 39%, which it said leaves headroom for further expansion.
NewRiver Retail shares were up 0.9% at 314.32 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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