NewRiver FY pre-tax profits fall; to pay special divi

Real estate investment trust NewRiver (NRR) on Tuesday reported a fall in full year pre-tax profits to £37.4m from £69m.

NRR said the fall was mainly due to a £24m in non-cash reduction of portfolio valuation and some mark to market non-cash adjustments to interest rate instruments in the current year.

The dividend jumped by more than 8% to 20p a share and the company said it would pay a 3p a share special dividend linked to its retail warehouse acquisition in Sheffield.

Shareholders were further rewarded as the company said the ordinary dividend for the first quarter of the new financial year would increase by 5% to 5.25p a share.

NRR's EPRA NAV per share fell 1.0% to 292p, against 295p in March 2016 and reflecting concerns around the impact of Brexit on the property market. Assets under management rose 14% to £1.3bn.

Chief executive David Lockhart said NRR's convenience-led, community-focused retail and leisure portfolio had proved to be well-positioned, despite the prevailing macro-economic uncertainty in the UK.

“Looking ahead, we believe that with our convenience and community focus, affordable rents, active approach to asset management and in-built risk-controlled development pipeline we are well-placed to continue to deliver growing and sustainable cash returns to our shareholders,” he said.