NewRiver REIT reports 31% rise in UFFO

UK-based real-estate investment trust NewRiver REIT has reported a 31% increase in underlying funds from operations (UFFO) to £15.1m in HY 26, up from £11.5m in HY 25.

The group stated that its UFFO growth was supported by the integration of Capital and Regional.

For the six months to 30 September 2025, NewRiver reported net property income of £31.4m, up from £21.8m, and IFRS profit after tax of £14.4m.

Its occupancy remained stable at 95.3% compared with 96.1% at 31 March 2025, while tenant retention improved to 96%. 

Additionally, during the period, it secured 416,300 sq ft of new leasing and renewals, with long-term transactions completed at premiums to estimated rental value.

Portfolio valuation also grew 0.5% on a like-for-like basis, marking a second consecutive period of uplift.

The company sold three shopping centres close to book value and used proceeds, alongside a buyback of 47.7m shares from Growthpoint Properties, to support capital allocation plans.

The group said in-store and digitally connected retail spend across its portfolio rose 5.4% in the six-month period, outperforming the Lloyds Bank Retail and Supermarket benchmark.

The company added that it continues to assess potential acquisitions ranging from single-asset purchases to larger transactions, supported by what it described as a “robust” balance sheet and “healthy” cash reserves.

Allan Lockhart, chief executive, said: “The successful integration of Capital and Regional has enhanced the scale of our business and delivered immediate operational and financial benefits. Our enlarged portfolio, focused on convenience-led and value-oriented retail, is performing well, with high occupancy, robust tenant retention and continued leasing momentum all of which is underpinned by strong customer spending in essential retail.

“The UK retail real estate market continues to evolve, and NewRiver is exceptionally well positioned to benefit from the structural trends favouring physical, convenience-led retail formats. Our assets are in the heart of local communities, providing essential goods and services, and we are seeing growing investor interest in the capital markets.”

Lockhart added: “We have maintained a disciplined approach to capital allocation, selling three shopping centres at close to book value and then recycling proceeds into a significant share buyback that is accretive to both earnings and net asset value.”