Business
First Quarter Company Update
First Quarter Company Update.
About this update from Newriver Reit Plc
[{"type":"text","content":"\n\n \nNewRiver REIT plc\n(\"NewRiver\" or the \"Company\")\n \nFirst Quarter Company Update\n \nGrowth in Capital Partnerships Accelerated\n \nAllan Lockhart, Chief Executive, commented: \"The strong operational performance delivered in our last financial year continued into the first quarter of FY25 with leasing transactions ahead of ERVs and occupancy and tenant retention rates maintained at elevated levels. Our portfolio continues to perform well underpinned by good occupational demand and the quality of our asset management.\nThe acquisition of Ellandi, a high-quality asset and development management business, in early July accelerates the growth in our Capital Partnership business, where we have now established a meaningful platform. We now own or manage £2 billion of retail real estate assets, collecting nearly £190 million of annual rent from over 3,000 tenants. This scale provides us with an incredible insight into the consumer, retail and capital markets.\nFinally, our balance sheet is in a good position with cash up to £134 million which provides us significant deployment optionality.\"\n \nExpansion of Capital Partnerships through acquisition of Ellandi Management Limited\n \n\n\n\n\n●\n\n\nIn July 2024, acquired Ellandi Management Limited ('Ellandi'), an asset and development management business focused on UK retail and regeneration, for an initial cash consideration of £5 million, with additional cash consideration of up to £4 million subject to EBITDA performance, including realising savings through shared services, over a three year earn out period\n\n\n\n\n●\n\n\nThe transaction provides NewRiver's existing Capital Partnership business with additional scale and diversification, as well as introducing complementary experience of managing destination shopping centres and regeneration projects, and is consistent with NewRiver's strategy to deliver earnings growth in a capital-light way\n\n\n\n\n●\n\n\nThe Ellandi business brings with it a portfolio of 16 shopping centre asset management mandates, covering over 6.3 million sq ft, with 10 different partners as well as extensive experience working with public sector owners to deliver regeneration\n\n\n\n\n●\n\n\nDuring the year ended 30 April 2024, Ellandi's fee income was £5.7 million1 and EBITDA was £1.1 million1\n\n\n\n\n●\n\n\nThe com...