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NewRiver REIT sees retail, pubs portfolio improvement after reopening

The firm has collected 80% of the rent due for the quarter to June 30, 2020, with 1% waived and 19% outstanding

NewRiver REIT plc - NewRiver REIT sees retail, pubs portfolio improvement after reopening

NewRiver REIT plc (LON:NRR) said the occupiers of its retail property and pubs portfolio have seen some improvement in trading since reopening as the coronavirus (COVID-19) lockdown restrictions have eased.

The real estate investment trust said it has collected 80% of the rent due for the quarter to June 30, 2020, with 1% waived and 19% outstanding.

READ: NewRiver REIT is 'cheap and cheerful' says Jefferies as it starts coverage with 'buy'

In stores, footfall rocketed  by132% in the week commencing August 3, 2020, the group reported, compared to the week commencing June 8, 2020.

Across its retail portfolio, 93% of occupiers by gross income are now operating and the remainder is set to resume activity over the next weeks, the group said. Administrations represented 1.2% of the annualised gross income, it added.

The landlord completed new leasing deals in the quarter with companies such as Wren Kitchens, Homebase, Holland & Barrett and The Works.

In its pubs portfolio, NewRiver said 90% of sites are operating with like-for-like volumes down 15% in the leased estate and 13% lower in its own-operated portfolio since July 4, 2020, compared to the same period last year.

Disposals across the portfolio are progressing, the company added, with £52mln made so far in line with its strategy to offload £80mln-£100mln worth of assets in the financial year.

As of Friday, the company said it has £87mln of cash reserves and £45mln of undrawn revolving credit facilities. It is also eligible for £50mln under the government’s Covid Corporate Finance Facility.

Analysts at 'house' broker Liberum Capital lowered their target price for NewRiver shares to 130p from 145p after chopping their net asset value forecast for the current financial year by 10% to 155p, reflecting the fall in retail values.

NewRiver shares were up 4% to 63.5p on Friday morning.

-- Adds analyst comment, share price --

Quick facts: NewRiver REIT plc

Price: 44.5 GBX

AIM:NRR
Market: AIM
Market Cap: £137.47 m
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