NewRiver REIT (LON:NRR) told investors it delivered “another strong quarter of operational performance,” pointing to rising demand in its core markets that drove leasing activity and increased occupancy across the portfolio. Management said operational metrics are “trending positively,” supported by what it described as resilient consumer spending patterns.
Consumer spending trends and category performance
The company said total in-store customer spending in the key Christmas quarter was in line with the prior year. For the year to December 2025, total in-store customer spending was also reported as in line with last year.
- Grocery: up 6.2% year-over-year in the Christmas quarter
- Non-food discount: up 7.2%
- Food & beverage: up 4%
- Health & beauty: up 2.4%
- Value fashion: down 1.1%
Business rates outlook and tenant affordability
On property taxes, the company discussed changes to business rates effective April 1, 2026. NewRiver said the new rateable values across its portfolio are expected to increase by 7%.
However, management said this increase should be more than offset by a recently announced discount for retail, hospitality, and leisure properties. As a result, NewRiver expects an 11% reduction in rates payable for its tenants. The company characterized this as supportive for tenants and positive for rental affordability.
Capital recycling and disposals
NewRiver said it remains “disciplined” in recycling capital, improving portfolio quality, and strengthening its financial position. During the period, the company completed two disposals: one retail park in Northern Ireland and one shopping center in Hemel Hempstead, described as the smallest of the former Capital & Regional assets. Combined proceeds totaled GBP 12.6 million.
The company provided additional detail on the Northern Ireland sale, saying the disposal of Sprucefield Retail Park followed the creation of three new drive-through units on surplus land and a long-term lease regear with Sainsbury’s.
After the period ended, NewRiver said it exchanged contracts in January on the sale of an additional retail park in Dumfries for GBP 26.5 million, citing completion of a value-enhancing business plan at the asset.
Regeneration, repositioning, and reducing “workout” assets
NewRiver also updated investors on progress in regeneration and “workout” activity. The company said it entered into a conditional agreement to form a joint venture with Mid Sussex District Council to deliver its regeneration project in Burgess Hill.
In Cardiff, NewRiver said it signed an agreement for lease with an experiential leisure operator covering 80,000 square feet. Management said this will complete the repositioning of the Capitol Centre and reduce the company’s workout exposure to 1% of gross assets, from 3% at the half-year.
Outlook
Looking ahead, the company said market conditions are becoming more supportive and that its portfolio is in its best shape since before the pandemic. NewRiver said it is entering FY27 with “real momentum” and expressed confidence in delivering further earnings growth and a “well-covered” dividend.
About NewRiver REIT (LON:NRR)
NewRiver is a leading Real Estate Investment Trust specialising in buying, managing and developing retail and leisure assets across the UK. Every day, our shopping centres, retail parks and pubs provide essential goods and services to their local communities.
