NewRiver Reit (NRR) H2 2025 earnings summary

Executive summary

• Completed the transformational acquisition of Capital & Regional, increasing gross assets by 65% and delivering a 25% increase in underlying funds from operations (UFFO) for FY 2025, with further growth expected in FY 2026 and FY 2027.

• Acquisition funded through a successful equity raise and cash, reflecting strong shareholder support and strategic fit.

• Integration of Capital & Regional progressing well, with cost synergies on track and operational benefits already realized.

• Achieved strong operational performance with high occupancy and retention rates across core assets.

• Portfolio valuation increased 65% year-over-year to £897m as of March 2025.

Financial highlights

• Portfolio value increased to just under GBP 900 million, with a high weighting to London and the Southeast.

• UFFO per share rose from 7.8p to 8.1p, with a 19% increase in H2 versus H1 and a 9% increase over the pre-sale baseline.

• Dividend for FY 2025 increased to 6.5p per share, 125% covered by UFFO, yielding over 8%.

• Sale of Abbey Centre in Belfast at book value for GBP 58.8 million, with proceeds to be reinvested.

• Net debt at £379.2m, with interest cover ratio at 6.0x and net debt:EBITDA at 5.4x.

Outlook and guidance

• Expect further earnings growth from full realization of cost synergies by end of FY 2026.

• Confident in delivering consistent rental growth due to embedded reversion and tight supply.

• Proforma LTV expected to remain below 40% following planned disposals.

• Dividend policy remains at 80% of UFFO, with strong cover expected.

• No immediate refinancing needs; confident in ability to refinance when required.