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NewRiver has posted an increase in full-year pre-tax profit to £31.7m following its first full year of ownership of Capital and Regional.
In its interim results, the real estate investment trust reported that profit after tax rose from £23.7m the previous year, driven by the integration of the Capital and Regional platform which unlocked £6.2m in annual net cost synergies. The acquisition has boosted NewRiver’s London retail exposure to 43% of its total portfolio by value.
Underlying funds from operations rose to £37.2m from £30.5m, though total portfolio valuation dipped to £802.2m from £897.5m due to targeted asset disposals. The board increased the total dividend by 3% to 6.7 pence per share.
In August 2025, the firm completed a share buyback of 47.7 million shares from Growthpoint Properties at 75 pence per share, representing about 10% of its issued share capital.
Operationally, the group maintained occupancy levels at 95.0% and secured 930,700 square feet of leasing deals. Consumer spending across its properties grew by 2.3% in the final quarter.
On the balance sheet, loan-to-value reduced to 40% while cash holdings rose to £116m. The company also secured a new £240m unsecured credit facility to refinance existing debt and move toward a fully unsecured structure by January 2027.
Chief executive of NewRiver, Allan Lockhart, said: “Financial year 2026 was our first full year with Capital and Regional, and it has delivered: integration is complete, synergies have been realised and the enlarged and improved portfolio is generating positive operational momentum and continued valuation progress.”
Lockhart added: “We have backed that performance up with disciplined capital allocation – disposing of assets at book value, completing an accretive 10% share buyback and refinancing to a fully unsecured debt structure with extended maturities. Our focus is now on growth.”
