07:00 Thu 08 Oct 2020
NewRiver REIT plc - Trading Update

NewRiver REIT plc
("NewRiver" or the "Company")
Trading Update
NewRiver is today hosting a virtual Capital Markets Event focused on its community pub business, Hawthorn Leisure, and is providing the following trading update.
The Company has continued to make strong progress in three key areas: rent collection, cash and liquidity, and disposals.
Retail rent collection
Our rent collection for the first and second quarters continues to improve, and in recent weeks we have signed key agreements with a number of retailers which until now represented a significant proportion of rent outstanding.
Rents in respect of the third quarter were due on 29 September, and rent that has either been collected or had alternative payments agreed for this period is already 72% ahead of where it was at the same stage in the second quarter, at 66%. This reflects an overall recovery in retail sales and the significant progress that has been made in reaching payment agreements with the Company's occupiers.
The table below shows the current status of rent collection for the first two quarters of FY21, providing comparatives to the figures provided in previous releases.
| Q1 FY21 | | Q2 FY21 | |||
As at | | | | | | |
Collected | 69% | 64% | 52% | | 71% | 60% |
Deferred | 9% | 10% | 17% | | 6% | 5% |
Re-gear | 7% | 10% | 6% | | 7% | 15% |
Total collected or alternative payments agreed | 85% | 84% | 75% | | 84% | 80% |
Waived | 4% | 1% | 4% | | 1% | 1% |
Rent outstanding | 11% | 15% | 21% | | 15% | 19% |
Total (%) | 100% | 100% | 100% | | 100% | 100% |
Disposal progress
As we enter the second half of FY21, the Company is ahead of its strategy to dispose of
Completed disposals total
Notwithstanding that the retail real estate capital markets were significantly impacted by COVID-19, particularly in the first quarter, the progress we have made with disposals to date reflects the liquidity and locational qualities of the Company's portfolio. Active discussions relating to a number of further disposals are progressing, which we expect to complete in the second half of FY21.
Cash and liquidity
We begin the second half with
Retail portfolio
Across our retail portfolio, 94% of occupiers by gross income are now open and trading.
We have continued to progress leasing activity in recent months. This includes the signing of two new leases with B&M at our retail parks in Beverley and
Footfall has remained relatively robust across our community shopping centre portfolio. In the week prior to this announcement, commencing
We continue to have limited exposure to the structurally challenged retail sub-sectors that have been particularly impacted by COVID-19 and recent restrictions, with no department stores in our portfolio, and minimal exposure to mid-market fashion and casual dining operators.
Residential development
We have continued to progress residential conversion opportunities across our retail and community pub portfolio. In
Hawthorn Leisure
Almost all of our community pubs in
Our pub portfolio has outperformed the wider market since the easing of lockdown restrictions. For the 12 week period since
Hawthorn returned to profitability within eight weeks of reopening. For the month of
The liquidity and alternative use value of pubs is evidenced by the fact that, since
Capital Markets Event 2020
NewRiver will be hosting a virtual Capital Markets Event at
https://kvgo.com/IJLO/NewRiver_Capital_Markets_Event_2020
There will be an opportunity for investors to submit written questions during the presentation. Materials from the event can be found on our website shortly after its conclusion.
For further information
NewRiver REIT plc | | | +44 (0)20 3328 5800 |
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Finsbury | | | | +44 (0)20 7251 3801 |
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This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation. This announcement has been authorised for release by the Board of Directors.
About NewRiver
NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the
Our
retail parks and over 700 community pubs. We hand-picked our assets to deliberately focus on occupiers providing
essential goods and services, and avoid structurally challenged sub-sectors such as department stores, mid-market
fashion and casual dining. This focus, combined with our affordable rents and desirable locations, delivers sustainable and growing returns for our shareholders, while our active approach to asset management and inbuilt 2.5 million sq ft
development pipeline provide further opportunities to extract value from our portfolio.
NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR). Visit www.nrr.co.uk for further information.
LEI Number: 2138004GX1VAUMH66L31
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