NewRiver REIT plc recorded a solid operational performance in the third quarter, with occupancy improving to 96.1% from 95.3% in September and tenant retention holding at 91%.
During the quarter the group completed lettings on 234,000 square feet of space, adding £2.1 million of annual rent. The company said long-term deals were struck at levels 56.9% higher than the rents previously in place. On a year-to-date basis NewRiver has leased a total of 651,000 square feet.
Retail trading showed mixed but mostly positive trends. Overall Christmas spending held steady when compared with 2024, while the grocery category - the group's largest retail segment - recorded growth of 6.2%. Other categories that expanded during the period included Non-Food Discount, Food & Beverage, and Health & Beauty, which helped to offset a noted weakness in Value Fashion.
The group's leisure and specialist businesses also moved back into the black. NewRiver reported that its Snozone operation delivered £2 million of EBITDA in Q3, reversing prior losses, and management expects Snozone to be profitable in Q4 as well.
NewRiver completed several asset disposals in the quarter. The Marlowes and Sprucefield were sold for a combined £12.6 million, and Cuckoo Bridge Retail Park was disposed of for £26.5 million at book value. The company additionally signed an agreement for lease with a leisure operator that will occupy 80,000 square feet at Capitol Centre in Cardiff. As a result of recent moves, Work Out assets now account for just 1% of gross asset value.
On the rates front, the company highlighted that rateable values will rise by 7% from April 1. However, this change will be mitigated for tenants in the retail, hospitality and leisure sectors by discounts and reliefs that are expected to reduce rates payable by tenants by 11%.
Regeneration work remains underway at Burgess Hill and Cardiff, driven by new partnership arrangements and pre-lettings that continue to progress.
Commenting on the results, CEO Allan Lockhart said the group had delivered "a strong quarter of operational performance, with growing demand across core markets driving strong leasing." The statement underscored the company focus on leasing momentum and portfolio repositioning.
This update provides a snapshot of NewRiver's recent operational activity, leasing progress and portfolio adjustments. It shows a combination of steady occupancy and tenant retention, targeted disposals and signs of recovery in leisure operations, alongside both positive and weak category-level retail trends.