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NewRiver REIT PLC on Tuesday lifted its dividend after posting higher profit in the first half, though it warned of potential ‘disruption’ to come from restructuring in the retail sector. The London-based real estate investment trust, which focuses on retail and leisure property, reported an EPRA net asset value of 104 pence at September 30, up 2.0% from 102 pence at the end of March. It has boosted its interim dividend to 3.1p per share, up from 3.0p a year earlier. For the six months ended in September, NewRiver’s pretax profit rose 68% to £13.8 million from £8.2 million a year earlier. Proportionally consolidated revenue jumped 81% to £56.2 million from £31.1 million. Net property income climbed to £31.4 million from £21.8 million a year earlier, an increase of about 44%. Around £13.1 million of net income came from NewRiver’s acquisition of property manager Capital & Regional PLC, which closed in December 2024, although the purchase has led net finance costs to nearly double to £9.0 million from £4.8 million on-year. This is due to the inheritance of a £140 million Mall facility. NewRiver’s net income boost was partially offset by three shopping centre disposals in the first half, the largest of which sold for £58.8 million, according to NewRiver. Like-for-like income growth was attributed to a full first-half benefit from the takeover of Ellandi Asset Management Ltd, completed in June 2024. NewRiver’s service charge receivables amounted to £3.9 million at the end of September, compared to £2.6 million at March 31. The firm took a hit from ‘retail restructurings’ at high street chains such as Homebase, Poundland, Bodycare, River Island and Claire’s, which led NewRiver to book a £1.2 million loss on bad debt provision as of September 30, widened from £600,000 at the end of March. The firm also noted that 2024 was the final year to benefit from rent arrears dating back to the Coronavirus pandemic. The combined result was a £900,000 loss on-year, with NewRiver noting: ‘It is likely that the retail restructurings will result in some income disruption in the second half as we negotiate the best possible terms or seek alternative occupiers.’ Nonetheless, the firm suggested that restructuring was taking place due to ‘company specific factors rather than wider sector trends.’ It maintained that UK retail property ‘is recovering steadily’ and that NewRiver is in a good position to grow. NewRiver REIT shares traded 0.5% lower at 71.78 pence on Tuesday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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