NewRiver REIT to repurchase up to 47.7 million shares from Growthpoint

Published 13/08/2025, 08:04
NewRiver REIT to repurchase up to 47.7 million shares from Growthpoint

LONDON - NewRiver REIT Plc (LON:NRR) announced Wednesday its intention to repurchase up to 47.7 million of its ordinary shares from Growthpoint Properties Limited at a price of 75 pence per share.

The proposed buyback follows Growthpoint’s announcement of plans to dispose of its entire holding of approximately 67.4 million NewRiver shares, with a minimum of about 47.7 million shares to be sold through a secondary placing.

NewRiver’s repurchase will be conducted under the market purchase authority granted at its Annual General Meeting on July 31, 2025. All shares repurchased will be cancelled, according to the company’s statement.

The board believes the current share price "materially undervalues the company" and views the buyback as "an attractive allocation of capital" that will immediately boost both Underlying Funds From Operations per share and EPRA Net Tangible Assets per share.

The repurchase follows NewRiver’s June 3 announcement of the £58.8 million disposal of Abbey Centre in Newtownabbey, Northern Ireland. The company stated the buyback offers an opportunity to partially reinvest those proceeds "at a material discount to the current net asset value."

NewRiver’s Loan to Value ratio stood at 38% as of June 30, 2025, down from 42% at the end of March following the Abbey Centre disposal. The company acknowledged the buyback could temporarily increase LTV by approximately 4%, pushing it above its medium-term guidance of less than 40%, but affirmed its commitment to return to that range through disposals.

The company expects the buyback to increase NTA per share by approximately 4% and UFFO per share by approximately 3% on an annualized basis.

Panmure Liberum Limited is acting as sole bookrunner for Growthpoint in connection with the placing. The final number of shares to be repurchased will be confirmed following the close of the bookbuild process, according to the press release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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