Newriver Reit Plc · LSE:NRR
Newriver Reit — FY2025 Earnings Presentation
38 slides from Newriver Reit's earnings presentation, Jun 3, 2025
Slide 1: Full Year Results 2025
FULL YEAR RESULTS 2025 12 months to 31 March 2025 3 June 2025 FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2025 1
Slide 2: Transformational M&A, coupled with strong operational performance
TRANSFORMATIONAL M&A, COUPLED WITH STRONG OPERATIONAL PERFORMANCE Valuation FY25: WELL POSITIONED FOR GROWTH Increased Scale Portfolio Valuation Movement +65% £897m +0.6% Increase in GAV (March 2024: £540m) Full Year Valuation Completed Acquisition of Capital & Regional Successful Equity Raise Divid
Slide 3: Capital & Regional: compelling strategic and financial benefits
CAPITAL & REGIONAL: COMPELLING STRATEGIC AND FINANCIAL BENEFITS 6 high quality local community Complementary with NewRiver Significant financial benefits centres portfolio £350m 88% value 87% rent 2.1% failure rate +65% 56% Within essential goods and Lower tenant failure rate than Increase in balanc
Slide 4: Capital & Regional: significant progress
CAPITAL & REGIONAL: SIGNIFICANT PROGRESS Attractive Acquisition Price Integration Progressing Assets Performing Well Leasing performance vs valuer’s ERV Progress on unlocking synergies £151m +3.7% +7.9% +8.9% Purchase price cash and shares Wood Green Walthamstow Edinburgh 14% Discount Assets on NewR
Slide 5: Retail sector: best position for a decade
RETAIL SECTOR: BEST POSITION FOR A DECADE UK consumer has been more Investor demand is increasing, Retail occupational market is in its resilient than financial markets driven by re-based values, rents and best position for a decade expecting attractive income returns UK Consumer Spend Data1 MSCI An
Slide 6: Finance Review
FINANCE REVIEW Will Hobman: Chief Financial Officer FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2025
Slide 7: Increased scale and balance sheet strength maintained
INCREASED SCALE AND BALANCE SHEET STRENGTH MAINTAINED DEC 2024 C&R METRICS IMPACTED BY ACQUISITION COMPLETED SEP 2024 EQUITY RAISE 31 March 2025 30 September 2024 31 March 2024 Portfolio at Valuation £897m £540m £544m Cash & cash equivalents £62m £185m £133m Gross debt £444m £304m £304m EPRA NTA Per
Slide 8: Loan to value: proforma reduced to within medium term guidance
LOAN TO VALUE (%): PROFORMA REDUCED TO WITHIN MEDIUM TERM GUIDANCE H1 MOVEMENT H2 MOVEMENT PROFORMA1 c.£25M Reduced from 30.8% to 21.6% Increased from 21.6% to 42.3% Reduced to CAPACITY Equity placing in September 2024 C&R acquisition completed In December 2024 c.38% 20.2 42.3% c.(4) c.38%1 c.£25m o
Slide 9: Increased scale, low debt cost maintained and maturity profile diversified
INCREASED SCALE, LOW DEBT COST MAINTAINED AND MATURITY PROFILE DIVERSIFIED ACTIVITY IN FY25 IMPROVED DEBT MATURITY PROFILE £59m Debt Repaid Longer dated facility retained Q4 FY25 Q4 FY27 Q4 FY28 Post C&R completion, three secured C&R Secured C&R facility retained: £140m, 3.45% facilities with a blen
Slide 10: Underlying funds from operations
UNDERLYING FUNDS FROM OPERATIONS: UFFO PS +19% H2 vs H1; +9% VS PRE C&R BASELINE Net property income +£4.8m Proportionally FY25 FY24 3.7 (0.4) (1.4) consolidated 6.8 (2.4) 30.5 £m £m Prior year included 0.4 (0.6) Covid insurance Principally Revenue 76.7 64.0 settlement C&R “The Principally NRR £(0.4
Slide 11: Fully covered dividend per share: growth in H2 following deployment
FULLY COVERED DIVIDEND PER SHARE: GROWTH IN H2 FOLLOWING DEPLOYMENT 1 2 3 6.5p +19% UFFO per share vs H1 3.5 pence per share 6.5 pence per share H2 UFFO of 4.4 pence per share, increased 80% pay out of UFFO gives Total FY25 dividend following the completion of C&R in H2 increased H2 DPS of 3.5p 125%
Slide 12: Looking ahead: UFFO per share building blocks
LOOKING AHEAD: UFFO PER SHARE BUILDING BLOCKS EXISTING C&R ACQUISITION: MID- TO HIGH-TEENS ACCRETION ENLARGED GROUP2 GROUP H2 FY25 RETURN NEXT 12 TO 24 MONTHS Since 10-Dec-24 completion (0.6p) 5 1.5p 0.3p (0.6p) 8.7p Rental and - 0.7p 8.1p Valuation Growth 7.4p 3 4 2 • C&R “The Mall” 1 • Post YE com
Slide 13: Portfolio Review & Outlook
PORTFOLIO REVIEW & OUTLOOK Allan Lockhart: Chief Executive FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2025
Slide 14: NewRiver portfolio: strong operating performance
NEWRIVER PORTFOLIO: STRONG OPERATING PERFORMANCE Underpinned by portfolio focused High Occupancy High Consistent Retention Rate1 Low Average Rent on essential goods & services 95.6% 96.7% 98.0% 96.1% £136k pa Top Retailers % Total Rent 92% 94% 90% 90% 1 3.6% £53k pa £55k pa 2 2.4% 3 2.2% Core Shoppi
Slide 15: Analysis of Lloyds Bank data: NewRiver portfolio outperforming
ANALYSIS OF LLOYDS BANK DATA: NEWRIVER PORTFOLIO OUTPERFORMING NewRiver portfolio spend growth above national average Our assets are local and accessible In-store 72% of our shoppers travel less than 5 miles In-store + Online Sale 7.4% 7.4% 38% (Combined Store Visit) 3X higher than the 4.9% national
Slide 16: Valuations: return to growth
VALUATIONS: RETURN TO GROWTH Stable yield profile and ERV growth Portfolio re-positioned into core stable assets Portfolio Valuation LFL Shopping Centres - Core Retail Parks Movement EY Movement Weighting % % 73% total portfolio value 21% total portfolio value As at 31 March 2025 % £m H2 FY % EY ERV
Slide 17: Core shopping centres and retail parks: positioned to deliver consistent growth
CORE SHOPPING CENTRES AND RETAIL PARKS: POSITIONED TO DELIVER CONSISTENT GROWTH Shopping Centres - Core Retail Parks 23 assets +5.4% +17.2% 13 assets +20.6% +19.1% Totalling £657m Leasing vs valuer’s ERV vs previous passing rent Totalling £186m Leasing vs valuer’s ERV vs previous passing rent Newton
Slide 18: Capital Partnerships: specialist asset backed operating platform
CAPITAL PARTNERSHIPS: SPECIALIST ASSET BACKED OPERATING PLATFORM Operating at scale Active in every region in the UK Diverse range of partners and fees 19% pa1 14 Institutions Asset Management Net Fee Income Increase Partners Currently managed Previous projects Private Equity Development Management
Slide 19: ESG: delivering on our commitment
ESG: DELIVERING ON OUR COMMITMENT Progress on our net-zero carbon target Adding social value to our communities 13% & 12% reductions 39% reduction Net-zero level £580k 361 670 hrs Absolute Scope 1 & 2 Scope 1 & 2 emissions since Residual corporate scope 3 Raised for Trussell Trust Community initiati
Slide 20: Future focus on earnings growth
FUTURE FOCUS ON EARNINGS GROWTH Short Term Growth Drivers Mid- to High-Teens On track for Unlock £6.2m C&R Synergies UFFO Per Share Accretion FY26/FY27 Medium Term Growth Drivers Like-For-Like Rental Growth Every +0.6% NRI Growth +17% FY25 Leasing vs passing rent = +1% UFFO Capital Partnerships Grow
Slide 21: Appendices
APPENDICES Appendix title Slide # Appendix title Slide # Background information Valuation Presentation team 22 Valuation analysis for Core Shopping Centres and Retail Parks – Initial Yield 34 Performance track record 23 Valuation analysis for Core Shopping Centres and Retail Parks – Equivalent Yield
Slide 22: 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 15 years of post qualified CEO effective 1 May 2018 experience, having qualified at BDO LLP working in its Aud
Slide 23: Performance track record
PERFORMANCE TRACK RECORD FY25 HY25 FY24 HY24 FY23 Underlying FFO (‘UFFO’) £30.5m £11.5m £24.4m £12.3m £25.8m Underlying FFO (‘UFFO’) per share 8.1p 3.7p 7.8p 4.0p 8.3p Ordinary dividend per share 6.5p 3.0p 6.6p 3.4p 6.7p Ordinary dividend cover (based on UFFO) 125% 125% 118% 118% 125% EPRA Net tangi
Slide 24: Portfolio segmentation: key characteristics as at 31 March 2025
PORTFOLIO SEGMENTATION: KEY CHARACTERISTICS AS AT 31 MARCH 2025 Retail Parks Shopping Centres Shopping Shopping - Core Centres Centres - Regen - Work Out Valuation £185.9m £656.8m £24.7m £28.0m Portfolio Weighting 21% 73% 3% 3% Number of Assets 13 23 2 3 Average Lot Size (100% Share) £17.9m £30.4m £
Slide 25: Top 10 assets by value
TOP 10 ASSETS BY VALUE: AS AT 31 MARCH 2025 Floor area Gross rent Name (sq ft) (NR Share) Occupancy Key occupiers The Mall, Wood Green 656,000 £14.3m 100% Primark, Travelodge, TK Maxx, Cineworld 17&Central, Walthamstow 260,000 £6.8m 99.0% ASDA, The Gym, TK Maxx, Lidl Broadway Shopping Centre, Bexley
Slide 26: Retail lease profile
RETAIL LEASE PROFILE Passing rent subject to expiry Passing rent ERV of leases of leases expiring expiring £m £m FY26 8.8 9.1 FY27 6.3 7.1 FY28-FY29 16.7 16.6 Total 31.8 32.8 Passing rent subject to review1 Passing rent ERV of leases WALE of subject to subject to leases subject review review to revi
Slide 27: Reconciliation of IFRS profit after taxation to UFFO
RECONCILIATION OF IFRS PROFIT AFTER TAXATION TO UFFO FY25 FY24 £m £m Profit after taxation 23.7 3.0 Net property valuation movement (2.1) 13.9 Net property valuation movement - joint ventures’ and associates’ 0.1 - Loss on disposal of investment properties 0.7 3.8 Changes in fair value of financial
Slide 28: Adjusted funds from operations (AFFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO) FY25 FY241 Analysis of FY25 FY241 Criteria Capitalised Recoverable £m £m capital £m £m from tenants expenditure Gross rental income (GRI) 62.8 54.8 Essential 0.5 0.5 Works required to FFO before void costs for repairs 31.7 25.3 maintain physical environment
Slide 29: Balance sheet
BALANCE SHEET • Investment property increased to £897m at 31 March Proportionally 31 March 30 Sept 31 March 30 Sept 31 March 2025 (versus £544m at 31 March 2024) due to six Consolidated 2025 2024 2024 2023 2023 assets acquired following the C&R transaction in December 2024 £m £m £m £m £m • Cash posi
Slide 30: Financial policies and additional guidelines
FINANCIAL POLICIES AND ADDITIONAL GUIDELINES Proportionally consolidated Financial Policies 31 March 2025 30 September 2024 31 March 2024 Net debt £379.2m £116.6m £167.3m Principal value of gross debt £444.3m £304.3m £304.0m Weighted average cost of debt – drawn only1 3.5% 3.5% 3.5% Weighted average
Slide 31: Loan to value
LOAN TO VALUE 31 March 30 September 31 March 30 September 31 March 2025 2024 2024 2023 2023 £m £m £m £m £m Borrowings 437.0 297.1 296.6 297.2 296.7 Cash and cash equivalents (61.3) (184.4) (132.8) (137.3) (108.6) Net debt 375.7 112.7 163.8 159.9 188.1 Equity attributable to equity holders of the par
Slide 32: Financial position in context: peer group and NRR policy
FINANCIAL POSITION IN CONTEXT: PEER GROUP AND NRR POLICY Net debt: EBITDA ICR LTV • Considerable headroom to Policy • Considerable headroom to Policy • Considerable headroom to Policy • Amongst the strongest in the sector • Amongst the strongest in the sector • Proforma LTV c.38% with headroom to Gu
Slide 33: Number of shares
NUMBER OF SHARES 31 March 30 September 31 March 30 September 31 March Number of shares (m) 2025 2024 2024 2023 2023 Weighted average – basic1,5 376.3 314.2 311.4 311.3 309.7 Weighted average – diluted2,5 378.6 316.6 313.9 313.3 311.7 Year end – basic3,5 476.7 377.7 310.8 313.7 310.7 Year end – dilut
Slide 34: Valuation analysis: initial yield
VALUATION ANALYSIS FOR CORE SHOPPING CENTRES AND RETAIL PARKS: INITIAL YIELD NewRiver Core Shopping Centres NewRiver Retail Parks Average Lot Size: £30.4m Average Lot Size: £17.9m NIY: 7.8% NIY: 6.1% 20.0% 20.0% 18.0% 18.0% 16.0% 16.0% 14.0% 14.0% 12.0% 12.0% NIY % NIY % 10.0% 10.0% 8.0% 8.0% 6.0% 6
Slide 35: Valuation analysis: equivalent yield
VALUATION ANALYSIS FOR CORE SHOPPING CENTRES AND RETAIL PARKS: EQUIVALENT YIELD NewRiver Core Shopping Centres NewRiver Retail Parks Average Lot Size: £30.4m Average Lot Size: £17.9m NEY: 8.8% NEY: 6.5% 20.0% 20.0% 18.0% 18.0% 16.0% 16.0% 14.0% 14.0% 12.0% 12.0% NEY % NEY % MSCI1 Shopping 10.0% Cent
Slide 36: Acquisition of Capital & Regional: anticipated cost savings
ACQUISITION OF CAPITAL & REGIONAL: MATERIAL, RECURRING ANTICIPATED COST SAVINGS £m 1 2 3 8 1 C&R admin costs of £8.0m in year to 30 December 2023 IT Property Mgmt Income Head Office 7 C&R Admin costs were £6.9m net of Property Management 6 Professional 2 income Advisory Fees 5 Admin net of Property
Slide 37: 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 38: NewRiver REIT plc contact details
NewRiver REIT plc 89 Whitfield Street London W1T 4DE www.nrr.co.uk FULL YEAR PRESENTATION 12 MONTHS TO 31 MARCH 2025 38