NewRiver REIT Reports Robust Q3, Citing Strong Consumer Demand and Portfolio Momentum
NewRiver REIT (LON:NRR) has reported a solid third-quarter performance, underpinned by what management termed "resilient" consumer spending across its UK retail and leisure portfolio. The real estate investment trust highlighted increased leasing activity and portfolio occupancy, suggesting a steady recovery in the bricks-and-mortar sector despite broader economic headwinds.
The company noted that total in-store customer spending during the crucial Christmas quarter held steady compared to the previous year. A breakdown revealed a standout 6.2% year-on-year increase in grocery sales—the portfolio's largest segment—with growth also recorded in discount non-food, food & beverage, and health & beauty categories. This was partially tempered by a dip in value fashion.
A significant update for tenants came regarding business rates. NewRiver indicated that new rateable values across its portfolio will rise by approximately 7% from April 2026. However, due to a newly announced government discount for retail, hospitality, and leisure properties, the company expects its tenants' net rates payable to decrease by around 11%. This move is seen as a direct support for rental affordability.
On the capital management front, NewRiver continued its disciplined approach by completing two disposals: Sprucefield Retail Park in Northern Ireland and a shopping centre in Hemel Hempstead, generating combined proceeds of £12.6 million. Post-quarter, it also exchanged contracts for the £26.5 million sale of a retail park in Dumfries.
Strategic initiatives showed progress, with a conditional joint venture agreement signed with Mid Sussex District Council to regenerate Burgess Hill. In Cardiff, an agreement for lease with an experiential leisure operator for 80,000 sq ft at the Capitol Centre will effectively complete the site's repositioning.
Looking forward, NewRiver expressed confidence, stating its portfolio is in its "best shape since before the pandemic" and that it enters the 2027 financial year with "real momentum" for further earnings growth and a sustainable dividend.
Market Voices
Eleanor Vance, Portfolio Manager at Sterling Trust: "The granular data on category performance is encouraging, especially the grocery growth. It shows their assets are catering to essential, needs-based spending, which provides a defensive layer in the current climate. The reduction in net business rates is a tangible win for tenant relations."
Marcus Thorne, Independent Retail Analyst: "Let's not get carried away. 'In line with last year' for Christmas spending isn't a victory—it's stagnation when you factor in inflation. They're selling assets to strengthen the balance sheet, which is prudent, but it also begs the question: are they pruning the portfolio out of strength or necessity? The 'best shape since the pandemic' is a notably low bar."
Priya Sharma, Real Estate Fund Associate at Albion Capital: "The strategic moves in Burgess Hill and Cardiff are exactly what investors want to see—active asset management creating long-term value. Reducing the 'workout' exposure from 3% to 1% of assets is a clear signal of operational progress and de-risking."