NewRiver REIT’s loss has more than trebled as the Covid-19 crisis hit its portfolio value.
The retail and leisure-focused investor posted a loss after tax of £121.1m for the year to 31 March, compared with £36.9m a year earlier. It pinned the fall on a £166.9m fall in portfolio valuation, which dropped to £1.2bn, led by a fall in its regional shopping centres.
Roughly a third of the valuation hit was due to the pandemic, NewRiver said, which most notably affected its pubs.
Underlying funds from operations were down 5% at £52.1m, while net property income rose by about 2.6% to £92.9m. EPRA NAV per share fell by almost a quarter to 201p.
NewRiver expects its 2021 net property income to be down by 30% to 38% on its pre-Covid-19 forecast
The company aims to achieve between £80m and £100m of disposals in the coming year, “while maintaining discipline in disposal pricing”.
The company continues to eye new uses for retail sites. Chief executive Allan Lockhart said: “The structural changes in UK retail that were already under way have been accelerated by Covid-19. It is clear that much existing retail space in the UK needs to be repurposed and we have been at the forefront of creating this change through developing mixed-use schemes in town centres.”
The alternative use valuation for the company’s retail portfolio was £803m at the end of March, compared to a £916m total valuation of retail assets.
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