Q1 FY27 Trading Update
NewRiver REIT plc reported a strong start to FY27 with continued leasing outperformance, achieving 165,900 sq ft of new lettings and renewals securing £1.8m of annualised rent, with long-term transactions completed at 5.7% above ERV and 20.5% above prior rent for the Core Portfolio. Occupancy rose to 95.4% with 96% tenant retention, and consumer spending across the portfolio grew by 0.2% in Q1. The company acquired BRAVO's 90% interest in The Moor, Sheffield for £38.3m, concluding a successful capital partnership and increasing its ownership to 100%. Additionally, NewRiver secured a £240 million unsecured debt facility to refinance existing debt and enhance liquidity, with proforma LTV remaining at 43%, comfortably within its 50% policy.
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Allan Lockhart, Chief Executive, commented: "NewRiver has made a strong start to FY27, with continued leasing outperformance, rising occupancy and exceptionally high tenant retention. This momentum demonstrates the embedded income growth within our portfolio and supports our confidence in delivering further rental and capital growth.
We have also recently completed the acquisition of our JV partner's 90% equity interest in The Moor, Sheffield. We achieved an attractive acquisition price representing a significant discount to March 2026 book valuation as it was the last remaining asset within the BRAVO capital partnership, giving our partner a final exit after achieving strong investment returns over the life of the venture. Having managed the asset since 2021, we know it well and see significant potential to drive further income and capital growth. Together with our new unsecured facility, this further evidences how NewRiver is well positioned to continue delivering attractive recurring income returns and long-term capital growth for shareholders."
Continued strong leasing, high occupancy and robust consumer spending
| ● | Strong leasing momentum continued in Q1, with 165,900 sq ft of new lettings and renewals completed across 71 transactions, securing £1.8m of annualised rent |
| ● | Long-term transactions were completed +4.0% vs ERV and +19.7% vs prior rent, increasing to +5.7% vs ERV and +20.5% vs prior rent across the Core Portfolio which accounts for 96% of total portfolio |
| ● | Q1 leasing performance represents the 13 th consecutive quarter of outperformance vs ERV and the 8 th consecutive quarter of outperformance vs prior rent |
| ● | Occupancy increased to 95.4% (from 95.0% at 31 March 2026) with tenant retention remaining high at 96% |
| ● | Consumer spending 1 across the portfolio grew by +0.2% in Q1 (to June 2026), ahead of the Lloyds data benchmark (-1.8%), a +200bps outperformance |
| ● | The strongest performing sectors in the NewRiver portfolio were Non Food Discount (+10.7%) and Everyday Goods (+8.3%), with Grocery spend remaining stable |
| ● | Rents remain affordable, as measured by an unchanged Portfolio Occupancy Cost Ratio of 7.8% |
Acquisition of The Moor, Sheffield, concluding successful Capital Partnership with BRAVO
| ● | NewRiver acquired BRAVO's 90% interest in The Moor, Sheffield for £38.3m taking ownership to 100%. The acquisition price reflects a significant discount to the March 26 valuation and a 10% net initial yield providing an attractive entry point into an asset that NewRiver has managed since 2021 and knows well |
| ● | The Moor is a 20-acre city centre estate with a diversified income profile, affordable rents and a strong occupier base, anchored by The Light, Primark, Sainsbury's, Next and Sports Direct. Recent lettings to HSBC, Oseyo, Five Guys and Popeyes provide further evidence of occupational demand |
| ● | NewRiver has a clear plan to drive further income and capital growth, centred on re-anchoring the former Debenhams unit, which was recently acquired off a low capital value and is expected to deliver significant income and capital growth, with advanced discussions with potential tenants ongoing |
| ● | The transaction also concludes NewRiver's successful capital partnership with BRAVO, established in 2019, which has delivered an IRR to NewRiver of +21% |
| ● | Including The Moor acquisition, proforma LTV is 43% compared with 40% at 31 March 2026 and remains comfortably within the Company's 50% policy. NewRiver retains an active FY27 disposal pipeline to support a return towards its 40% guidance |
Agreed £240 million unsecured debt facility to refinance the Mall Facility and enhance liquidity position
| ● | £240m unsecured facility agreed in April 2026 comprising £120m Term Facility Commitment and £120m Revolving Credit Facility ('RCF') |
| ● | The new facility achieves NewRiver's aims to extract maximum benefit from its current debt structure while improving its debt maturity profile and ultimately allows the Company to return to a fully unsecured debt structure once the Term Facility Commitment is drawn |
| ● | The Term Facility Commitment will refinance the secured £140m Mall Facility in January 2027; delayed drawing delivers a saving of approximately £1.4m in FY27 vs repaying the Mall Facility immediately |
| ● | In May 2026, executed a forward starting collar which fixes the cost of the Term Facility Commitment between 4.4% and 5.9% from initial drawdown in January 2027 to initial maturity in April 2030 |
| ● | RCF is £20m larger than the facility it replaces with extended maturity and significant margin reduction 1. NewRiver analysis, informed by Lloyds Bank data on customer spend representing 93% of the portfolio by value |
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