NewRiver REIT PLC Announces Lower Annual Dividend Following Underperformance

Strategic Insights -

NewRiver REIT PLC, a UK-based developer and manager of retail properties, has announced a lower annual dividend due to its underperformance against its benchmark. The company's net asset value (NAV) fell 11% to 103p per share as of March 31, 2025, from 116p a year prior. Despite this decline, NewRiver declared a final dividend of 3.5p per share, up 9.4% from 3.2p in the previous year, but lowering the total dividend by 1.5% to 6.5p. The company attributed the decline in NAV to underperformance against the MSCI All Retail benchmark, which showed a return of 9.4% in the same period. NewRiver's merger with Capital & Regional is expected to unlock further cost synergies, with benefits anticipated in financial years 2026 and 2027.

Key Takeaways:

  • NewRiver's net asset value fell 11% to 103p per share as of March 31, 2025, from 116p a year prior.
  • The company declared a final dividend of 3.5p per share, up 9.4% from 3.2p in the previous year, but lowering the total dividend by 1.5% to 6.5p.
  • NewRiver underperformed against the MSCI All Retail benchmark, with a net asset value total return of 7.8% compared to the benchmark's 9.4% return.
  • The company's merger with Capital & Regional is expected to unlock further cost synergies, with benefits anticipated in financial years 2026 and 2027.
  • NewRiver successfully disposed of Abbey Centre in Northern Ireland to the Herbert Group of Companies for £58.8 million, demonstrating "capital recycling" capabilities.

Statistics:

  • NewRiver's NAV fell 11% to 103p per share as of March 31, 2025.
  • The company's NAV total return was 7.8% in the financial year that ended March 31.
  • MSCI All Retail benchmark returned 9.4% in the same period.
  • NewRiver declared a final dividend of 3.5p per share, up 9.4% from 3.2p a year prior.
  • Total dividend was reduced to 6.5p, down from 6.6p in the previous year.
  • Dividend cover improved to 125% from 118%.
  • NewRiver acquired Capital & Regional for £147 million in December 2024.

Sources:

  • Alliance News, [NewRiver REIT PLC announces lower annual dividend](https://www.alliancenews.com/2025/05/28/newriver-reit-plc-announces-lower-annual-dividend/)
  • NewRiver REIT PLC, [Trading Update](https://www.newriverreit.co.uk/trading-update/)