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NewRiver: NewRiver's Disciplined Growth Strategy Yields Strong Half-Year Results

NewRiver's financial performance for the half-year was robust, driven by disciplined growth and a focus on sustainable expansion. The company's underlying funds from operations (UFFO) increased to GBP 15.1 million, with UFFO per share at 3.3p, or 3.9p when adjusted for Snozone's seasonality. The half-year dividend was 3.1p per share, fully covered by UFFO. The earnings per share (EPS) figure was not disclosed, but the dividend increase suggests a positive EPS performance. The company's strong balance sheet is reflected in its low loan-to-value (LTV) ratio of 38%, which increased to 42% after a share buyback. Net debt-to-EBITDA and interest cover ratios remain among the best in the listed peer group.

NRR.L

GBp 73.6

0.27%

A-Score: 5.6/10

Publication date: December 2, 2025

Full Report

Author: Analystock.ai

📋 Highlights
  • Portfolio Integration Synergies GBP 6.2 million net annual synergies unlocked post-Capital & Regional acquisition, boosting cash profits by 31%.
  • Dividend Growth Half-year dividend rose to 3.1p/share, fully covered by earnings and UFFO, reflecting financial discipline.
  • Balance Sheet Strength Comfortable LTV (38% post-disposals) and BBB credit rating, with GBP 90 million cash reserves and healthy liquidity.
  • UFFO Performance UFFO increased to GBP 15.1 million, with adjusted UFFO/share at 3.9p, despite CVA disruptions.
  • Leasing and Tenant Growth New rents 11.3% above ERV and 24.2% above prior rents, driven by high occupancy and active demand for space.

Capital Discipline and Balance Sheet Strength

The company's capital discipline is evident in its strong balance sheet, with comfortable gearing, healthy cash reserves, and ample liquidity. Fitch reaffirmed NewRiver's investment-grade credit ratings at BBB with a stable outlook, reflecting the company's solid financial position. The company's net debt-to-EBITDA ratio stands at 11.52, indicating a manageable debt burden. With GBP 90 million in cash and a lower gross debt requirement, the company is well-positioned to navigate potential future challenges.

Portfolio Performance and Growth Opportunities

NewRiver's portfolio performance was strong, with high occupancy and tenant retention rates. Leasing activity was robust, with new rents 11.3% above estimated rental value (ERV) and 24.2% ahead of previous rents. The company's value creation strategy focuses on active asset management, targeting improved tenant profiles, enhanced asset quality, and rental growth. The acquisition of Snozone presents an opportunity for growth, and the company is exploring ways to leverage its expertise and the management team's experience to drive earnings growth. Analysts estimate next year's revenue growth at 25.4%, indicating a positive outlook for the company's future performance.

Valuation and Dividend Yield

NewRiver's valuation metrics indicate a relatively attractive position. The company's Price-to-Book Ratio stands at 0.65, suggesting a potentially undervalued position. The Dividend Yield is 8.95%, making it an attractive option for income-seeking investors. With a strong balance sheet and a focus on sustainable growth, NewRiver appears to be well-positioned for future success.

NewRiver's A-Score