Slide 1: Positioned for Growth: Full Year Results 2024
POSITIONED FOR GROWTH FULL YEAR RESULTS 2024 12 months to 31 March 2024 21 June 2024 FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2024 1
Slide 2: Operational & Financial Strength
OPERATIONAL & FINANCIAL STRENGTH Excellent Operating Performance Occupancy Leasing vs ERV Retention Rate UFFO maintained and dividend 118% covered 98% +3.6% 94% (March 2023: 97%) (FY23 +1.1%) (FY23 92%) Continued MSCI Outperformance Underlying Funds Dividend Valuation Portfolio Re-Positioned From Op
Slide 3: Retail Sector: Market Place Is Improving
RETAIL SECTOR: MARKET PLACE IS IMPROVING Consumers still spending and Retail occupational market is in its Investor demand is increasing driven confidence is rising best position for at least 5 years by attractive income returns Lloyds Bank Data on Customer Spend MSCI Vacancy Rates MSCI Income Retur
Slide 4: Customer Spend Data at NewRiver Assets: Analysis of Lloyds Bank Data
CUSTOMER SPEND DATA AT NEWRIVER ASSETS: ANALYSIS OF LLOYDS BANK DATA NewRiver portfolio spend growth above national average Our assets are local and accessible 68% of our shoppers travel less than 5 miles 16.2% 15.6% 35% 9.7% 9.9% 6.1% 6.7% 19% 14% 2.1% 12% 9% 8% 3% Shopping Centres Retail Parks Por
Slide 5: Finance Review
FINANCE REVIEW Will Hobman: Chief Financial Officer FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2024
Slide 6: Key Balance Sheet & Debt Metrics: RCF Extended, Positioned to Grow
KEY BALANCE SHEET & DEBT METRICS: RCF EXTENDED, POSITIONED TO GROW Net debt: EBITDA Loan to Value Interest Cover Ratio 4.8x 30.8% 6.5x March 23 – 4.9x March 23 – 33.9% March 23 – 4.3x Cash & cash equivalents EPRA NTA per share Drawn debt cost fixed at 3.5% £133m 115p No maturity on drawn until 2028
Slide 7: Revolving Credit Facility: Access to Additional Liquidity Extended
REVOLVING CREDIT FACILITY: ACCESS TO ADDITIONAL LIQUIDITY EXTENDED (1) Maturity extended • All four existing banks agreed to extend (4) Further Mar 2028 • From August 2024 to November 2026 £300m extension options (2) Access to liquidity maintained (1) Maturity extended • New facility of £100m with a
Slide 8: Financial Policies: Strongest Position Since 2018 & Ratings Reaffirmed
FINANCIAL POLICIES: STRONGEST POSITION SINCE 2018 & RATINGS REAFFIRMED 50.6% Financial FY24 47.1% 104.1% Policy Policies Reported 89.8% 36.9% 34.1% 33.9% 30.8% Guidance 27.8% 59.7% 51.5% 49.7% <40% 45.4% LTV 30.8% 38.2% Policy <50% Balance FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22
Slide 9: Loan to Value: Capacity to Deploy Capital
LOAN TO VALUE (%): CAPACITY TO DEPLOY CAPITAL DEPLOYMENT OVER TIME 40.0% 33.9% (4.4) 0.8 (4.4) 30.8% 0.9 3.5 0.5 Pending deployment: • Generating 5%+ return on surplus cash reserves • Dividend topped up Mar-23 Disposals Capex Revaluation UFFO Dividends EBT share Mar-24 Deployment over Guidance purch
Slide 10: Underlying Funds From Operations: Resilient Core Performance
UNDERLYING FUNDS FROM OPERATIONS: RESILIENT CORE PERFORMANCE Net property income £(4.9)m Proportionally consolidated FY24 FY23 25.8 (4.3) 24.4 £m £m 4.4 Revenue 66.5 76.2 (0.4) (0.9) 0.1 (1.0) 0.7 Property operating expenses (20.9) (25.7) Net property income 45.6 50.5 Administrative expenses (11.0)
Slide 11: FY24 Dividend: Topped-Up Pending Capital Deployment
FY24 DIVIDEND: TOPPED-UP PENDING CAPITAL DEPLOYMENT 1 3 6.6p 4 H2 UFFO of 3.8 pence per H2 Dividend Total FY24 share 2 topped-up to dividend of 6.6 includes 0.9 pay out 100% of pence per pence of 80% pay out interest income share interest H1 of UFFO gives component income pending 3.4 H2 DPS of 3.0 8
Slide 12: Portfolio Review & Outlook
PORTFOLIO REVIEW & OUTLOOK Allan Lockhart: Chief Executive FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2024
Slide 13: NewRiver Portfolio: Strong Operating Performance
NEWRIVER PORTFOLIO: STRONG OPERATING PERFORMANCE High Consistent Positive In-Store Spend Underpinned by portfolio focused Record Occupancy Retention Rate1 Growth (YoY%)2 on essential goods & services 98.0% NewRiver Portfolio Top Retailers 95.6% 96.7% % Total Rent % Total Rent 94% 90% 92% +10.7% Top
Slide 14: Valuations: Stable and Outperforming MSCI
VALUATIONS: STABLE AND OUTPERFORMING MSCI Growth in Core Shopping Centres And Retail Parks Significant Outperformance vs MSCI Benchmark Portfolio Valuation LFL Retail Parks Shopping Centres EY Weighting Movement % Movement % As at 31 March 2024 +590bps % £m H2 FY % EY ERV +450bps 12 months Shopping
Slide 15: Core Balance Sheet Portfolio: Consistent Excellent Performance
CORE BALANCE SHEET PORTFOIO: CONSISTENT EXCELLENT PERFORMANCE Core Shopping Centres and Retail Parks: Regeneration: Delivering market outperformance Set to deliver positive change • In discussions on new Joint Venture • Pre-let agreed with food anchor and hotel Strong Operational • Under offer on re
Slide 16: Balance Sheet Portfolio: Repositioning Near Complete
BALANCE SHEET PORTFOLIO: REPOSITIONING NEAR COMPLETE Reposition Resilience Positioned for Growth Mar-21 Sep-21 Mar-24 (Bexleyheath re-classified2) Work Out Retail Retail 7% Regen Parks Work Out Parks 5% 16% Pubs 17% 23% Retail 25% Parks Core 32% Shopping Core Core Core Centres 22% 60% 83% 93% Work O
Slide 17: Expanding Capital Partnerships: Leveraging the NewRiver Platform
EXPANDING CAPITAL PARTNERSHIPS: LEVERAGING THE NEWRIVER PLATFORM A leading retail UK owner and Operating across the UK Scalable Operating Platform manager 50 Current High Quality Growth Prospects in £1.3bn 45 Capital Partnerships Capital Partnerships Total Assets Under Management 40 35 Current Proje
Slide 18: ESG: Net-Zero and MEES Compliance Progress
ESG: NET-ZERO AND MEES COMPLIANCE PROGRESS Our Pathway to Achieving Net-Zero Carbon MEES Compliance All Emissions All Operational Emissions Corporate Emissions SBTi Recommendations Space Occupied by 3rd Managed Area Parties 2023 MEES 100% Compliant2 2025 Our pathway 2030 2040 to achieving 2050Net-Ze
Slide 19: Outlook: Positioned for Growth
OUTLOOK: POSITIONED FOR GROWTH Our Market Place is NewRiver Strong Balance Sheet Portfolio Scalable Market Leading Improving Consistent Results Repositioned Operating Platform Significant Growth Optionality Invest in Existing Balance Sheet Rental Growth in Existing Portfolio Grow Our Capital Partner
Slide 20: Appendices
APPENDICES Appendix title Slide # Appendix title Slide # Background information Valuation Presentation team 21 Valuation analysis for shopping centres and retail parks – Initial Yield 34 Performance track record 22 Valuation analysis for shopping centres and retail parks – Equivalent Yield 35 Our pr
Slide 21: Presentation Team
PRESENTATION TEAM Allan Lockhart Will Hobman Chief Executive Chief Financial Officer • Co-founded NewRiver in 2009 as Property Director. Appointed • Will is a Chartered Accountant with over 14 years of post qualified CEO effective 1 May 2018. experience, having qualified at BDO LLP working in its Au
Slide 22: Performance Track Record
PERFORMANCE TRACK RECORD FY24 HY24 FY23 HY23 FY22 Retail Underlying FFO (‘UFFO’) £24.4m £12.3m £25.8m £13.6m £20.5m Retail UFFO per share 7.8p 4.0p 8.3p 4.4p 6.7p Underlying FFO (‘UFFO’) £24.4m £12.3m £25.8m £13.6m £28.3m Underlying FFO (‘UFFO’) per share 7.8p 4.0p 8.3p 4.4p 9.2p Ordinary dividend p
Slide 23: Our Proven Business Model
OUR PROVEN BUSINESS MODEL 1. Disciplined capital allocation We assess the long-term resilience of our assets, with capital allocation decisions made by comparing risk adjusted returns on our assets to those available from other uses of capital. Capital allocation decision includes investing into our
Slide 24: Portfolio Segmentation: Key Characteristics
PORTFOLIO SEGMENTATION: KEY CHARACTERISTICS Retail Parks Shopping Centres Shopping Shopping - Core Centres Centres - Regen - Work Out Valuation £138m £240m £129m £34m Portfolio Weighting 25% 44% 24% 6% Number of Assets 12 16 3 5 Average Lot Size (100% Share) £15.1m £17.9m £43.0m £6.9m Occupancy Rate
Slide 25: Top 10 Assets by Value
TOP 10 ASSETS BY VALUE Floor area Gross rent Name (sq ft) (NR Share) Occupancy Key occupiers Broadway Shopping Centre & Broadway Square Retail 537,000 £9.5m 100% Sainsbury’s, M&S, Boots, TK Maxx, B&M Park, Bexleyheath Abbey Centre, Newtownabbey 320,000 £5.5m 98.4% Primark, Next, Dunnes, River Island
Slide 26: Retail Lease Profile
RETAIL LEASE PROFILE Passing rent subject to expiry Passing rent ERV of leases of leases expiring expiring £m £m FY25 5.1 5.5 FY26 5.8 7.8 FY27-FY28 10.3 11.0 Total 21.2 24.3 Passing rent subject to review 1 Passing rent ERV of leases WALE of subject to subject to leases subject review review to rev
Slide 27: Reconciliation of IFRS Profit/(Loss) After Taxation to UFFO
RECONCILIATION OF IFRS PROFIT / (LOSS) AFTER TAXATION TO UFFO FY24 FY23 Total Total £m £m Profit / (loss) after taxation 3.0 (16.8) Adjustments: Revaluation of investment properties 13.9 38.2 Revaluation of joint ventures’ investment properties - (0.8) Loss on disposal of investment properties 3.8 3
Slide 28: Adjusted Funds From Operations (AFFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO) FY24 FY231 Analysis of FY24 FY231 Criteria Capitalised Recoverable £m £m capital £m £m from tenants expenditure Gross rental income (GRI) 54.8 63.0 Essential 1.2 0.8 Works required to FFO before void costs for repairs 25.3 27.1 maintain physical environment
Slide 29: Looking Ahead: UFFO per Share Building Blocks
LOOKING AHEAD: UFFO PER SHARE BUILDING BLOCKS (pence) FURTHER GROWTH 4 CAPITAL DEPLOYMENT OVER TIME 3 CAPITAL PARTNERSHIPS 2 0.9p 9.4p Like-for-like rental income growth WORK OUT STRATEGY 1 0.8p 7.8p 0.4p 7.3p Valuation growth 7.3p Building Blocks: o 1 Work Out Strategy: returns generated as we recy
Slide 30: Balance Sheet
BALANCE SHEET • Properties at valuation decreased to Proportionally 31 March 30 September 31 March 30 September 31 March £544m at 31 March 2024 (versus £594m Consolidated 2024 2023 2023 2022 2022 at 31 March 2023) due to the disposal of the Napier JV and two of our Work Out £m £m £m £m £m assets and
Slide 31: Financial Policies and Additional Guidelines
FINANCIAL POLICIES AND ADDITIONAL GUIDELINES Proportionally consolidated Financial Policies 31 March 2024 31 March 2023 Net debt £167.3m £201.3m Principal value of gross debt £304.0m £316.0m Weighted average cost of debt – drawn only1 3.5% 3.5% Weighted average debt maturity – drawn only1 3.9 years
Slide 32: Loan to Value
LOAN TO VALUE 31 March 30 September 31 March 30 September 31 March 2024 2023 2023 2022 2022 £m £m £m £m £m Borrowings 296.6 297.2 296.7 296.3 295.8 Cash and cash equivalents (132.8) (137.3) (108.6) (92.5) (82.8) Net debt 163.8 159.9 188.1 203.8 213.0 Equity attributable to equity holders of the pare
Slide 33: Number of Shares
NUMBER OF SHARES 31 March 30 September 31 March 30 September 31 March Number of shares (m) 2024 2023 2023 2022 2022 Weighted average – basic1 311.4 311.3 309.7 309.0 307.2 Weighted average – diluted2 313.9 313.3 311.7 310.4 309.0 Year end – basic3 310.8 313.7 310.7 309.0 307.2 Year end – diluted4 31
Slide 34: Valuation Analysis: Initial Yield
VALUATION ANALYSIS FOR SHOPPING CENTRES AND RETAIL PARKS: INITIAL YIELD NewRiver Shopping Centres NewRiver Retail Parks Average Lot Size: £18.7m Average Lot Size: £15.1m NIY: 7.6% 18.0% NIY: 6.7% 18.0% 16.0% 16.0% 14.0% 14.0% 12.0% 12.0% 10.0% 10.0% NIY % NIY % 8.0% MSCI1 NIY 7.3% 8.0% 6.0% 6.0% MSC
Slide 35: Valuation Analysis: Equivalent Yield
VALUATION ANALYSIS FOR SHOPPING CENTRES AND RETAIL PARKS: EQUIVALENT YIELD NewRiver Shopping Centres NewRiver Retail Parks Average Lot Size: £18.7m Average Lot Size: £15.1m NEY: 9.2% NEY: 7.0% 25.0% 25.0% 20.0% 20.0% 15.0% 15.0% NEY % NEY % MSCI1 NEY 9.7% 10.0% 10.0% MSCI1 NEY 6.9% 5.0% 5.0% 0.0% -
Slide 36: Disclaimer
DISCLAIMER The information in this presentation may include forward-looking statements, which are based on current expectations and projections about future events. These forward-looking statements reflect the directors' beliefs and expectations and are subject to risks, uncertainties and assumption
Slide 37: NewRiver REIT plc
NewRiver REIT plc 89 Whitfield Street London W1T 4DE www.nrr.co.uk FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2024 37