NewRiver starts to flow

NewRiver's business model sets it apart from other real estate operators in that its development programme is based on assets within its existing portfolio, thereby significantly reducing risk. Within its string of pubs, for example, excess land is being used to develop a string of convenience stores in a deal with the Co-operative Group. Around seven sites will be started by the end of the year, and over 50 planning applications have been lodged. It has also identified more than 50 sites that between them could accommodate 200 residential units.

The largest acquisition during the first half was the £69m purchase of the Ramsey portfolio from supermarket William Morrison. Of the 13 sites, nine are currently let out, while the remaining four present new development opportunities and a chance to increase rental values significantly.

Group finances remain in good shape, with the loan-to-value ratio falling from 39 per cent to 37 per cent. NewRiver also announced an increased third-quarter dividend of 4.75p and plans to move from Aim to the main market.

Analysts at Peel Hunt are forecasting adjusted net asset value by the March 2016 year-end of 305p, from 265p a year earlier.