Retail estate landlord New River Reit posts drop in asset value as high street woes worsen

Real estate giant New River Reit saw the value of its assets dip in the six months to September, in a further sign of the tough challenges facing landlords on the high street.

Net assets totalled £864m in September this year, marking more than a three per cent drop from March, while funds from operations tumbled five per cent to £25.3m during the same period.

The FTSE 250 firm, backed by City fund manager Neil Woodford, saw its share price drop slightly more than one per cent in trading.

Shares are now trading at 229.5p, falling from 327p at the start of the year, and by almost two per cent today.

Declining levels of footfall and tough trading conditions in the food and beverage industry has had a growing impact on real estate firms such as New River, which runs a swathe of shopping centres and hundreds of pubs across the UK.

However, chief executive Allan Lockhart said: “New River has delivered a robust performance in a challenging market, with resilient cash returns underpinned by solid operational metrics.”

He added: “The way that people live, work and consume is evolving rapidly and, as an active and specialist owner of community assets with a strong balance sheet, we are well placed to adapt to and benefit from these changes.”