Page 1

NEW RIVER NewRiver REIT plc ( " NewRiver " or the " Company " ) First Quarter Company Update NewRiver will hold its Annual General Meeting ( " AGM " ) at 10:00 am today and is providing the following trading update in respect of the first quarter ended 30 June 2021 . Allan Lockhart , Chief Executive , commented : “ Our operational metrics including rent collection , leasing activity and occupancy have remained strong throughout the first quarter and , most significantly , the Company has agreed terms to dispose of its Hawthorn pub business , which delivers on a key strategic priority announced in April 2021. " Disposal of Hawthorn On 26 July 2021 , we announced that we had entered into an agreement for the sale of Hawthorn to a member of the Admiral Taverns group , a wet - led community pub operator , in line with our strategic priority to divest ourselves of our community pub business in order to reset our LTV and provide the firepower to reshape our portfolio . The expected total cash proceeds arising from the disposal are £ 222.3 million . Net aggregate proceeds are intended to be used to reduce net debt , significantly strengthening NewRiver's balance sheet by resetting LTV to below 40 % on a 31 March 2021 pro - forma basis , which is in line with Company guidance . The disposal of Hawthorn , once completed , will enable the majority of future proceeds from non - core retail disposals , of which we currently have £ 73 million exchanged or under offer , to be recycled into resilient retail assets and NewRiver's regeneration portfolio which offer superior income and capital growth opportunities . For further details , please see the separate announcement released on 26 July 2021 . Retail rent collection Our rent collection figures remain robust , reflecting the affordability of our rents and our strong relationships with occupiers . These attributes mean that we have seen very little impact across our portfolio from the extension of the government's moratorium on commercial rents until March 2022. The vast majority of our occupiers are making rental payments in accordance with their original lease terms or deferral agreements . Since our Full Year Results on 3 June 2021 rent collected or alternative payment terms agreed in relation to the first quarter of the financial year has now increased to 87 % . Of the total second quarter rent demanded so far , 79 % has either been collected or had alternative payment terms agreed with occupiers . The rent collection figures for the first and second quarters are tracking ahead of the same quarters last year and we expect these figures to continue to improve as we progress through the year . Rent collection by quarter , at 20 July 2021 Q1 FY22 Q2 FY22 Collected 82 % 78 % Deferred 5 % 1 % Re - gear 0 % 0 % Total collected or alternative 87 % 79 % payments agreed Waived 5 % 0 % Rent outstanding 8 % 21 % Total 100 % 100 % Retail operational performance Almost all of the stores across our retail portfolio are now open following the easing of restrictions and footfall is recovering well . This mirrors trends across the UK where customers have been making increasingly confident returns to physical stores since the reopening of non - essential retail on 12 April . Our portfolio remains focused on essential , local retail with limited exposure to mid - market fashion and no department stores . In FY22 to date we have maintained our strong leasing momentum from the previous financial year , completing 252,500 sq ft of leasing deals across our retail portfolio . 92,200 sq ft of the deals signed to date represented long - term new lettings and renewals , accounting for £ 0.9 million of annualised rent . Long - term deals agreed so far in FY22 are on terms in line with ERV . These transactions include a significant lease renewal with Homebase in Poole , a renewal with Superdrug in Doncaster and a new letting with Poundstretcher in Bexleyheath .