NewRiver REIT plc (NRWRF) Q3 2026 Earnings Call Prepared Remarks Transcript

2026-01-31 00:30:29 ET

NewRiver REIT plc (NRWRF) Q3 2026 Earnings Call January 27, 2026 7:00 PM EST

Company Participants

Allan Lockhart - Founder, CEO & Director

Presentation

Allan Lockhart
Founder, CEO & Director ...

We have once again delivered another strong quarter of operational performance with growing demand across our core markets, driving strong leasing activity and rising occupancy. Our operational metrics are trending positively, supported by resilient consumer spend across our portfolio. Total in-store customer spending in the important Christmas quarter was in line with last year. We saw a strong performance in grocery, which is our largest spending segment, increasing by 6.2% versus the same quarter last year. Total in-store customer spending for the year to December 2025 was also in line with last year. Non-Food discount delivered 7.2% sales growth. F&B was up 4% and Health & Beauty was up 2.4%, offsetting some weakness in Value Fashion at minus 1.1%.

Regarding business rates, as of the 1st of April 2026, the new ratable values across our portfolio are expected to increase by 7%, which is more than offset by the recently announced discount for retail, hospitality and leisure properties, resulting in an 11% reduction in rates payable for our tenants. This is positive for our tenants and supports our rental affordability. We remain disciplined in recycling capital, improving our portfolio quality and strengthening our financial position. We disposed of 1 retail park in Northern Ireland and 1 shopping center in Hemel Hempstead, the smallest of the former Capital regional assets for combined proceeds of GBP 12.6 million. The sale of Sprucefield retail park in Northern Ireland followed the creation of 3 new drive-thrus on surplus land as well as a long-term regear with Sainsbury's. Post period in January, we exchanged on the disposal of a further retail park in Dumfries for GBP 26.5 million following the delivery of our value-enhancing business plan.

We've made good progress across regeneration and workout, entering into a conditional agreement to form a JV with Mid Sussex District Council to deliver our regeneration project in Burgess Hill. Delivering on our strategy, we signed an agreement for lease with an experiential leisure operator on 80,000 square feet to complete the repositioning of the Capitol Center in Cardiff and thus reduced workout to 1% of gross assets from 3% at the half year.

With market conditions becoming more supportive and our portfolio in its best shape since before the pandemic, we move into FY '27 with real momentum, and we are confident in our ability to deliver further earnings growth and a well-covered dividend.

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