NewRiver REIT sees shares drop after disposal

FTSE 250 property fund NewRiver REIT (LON:NRR) has seen its share proce drop by 4.79% to 195.18p (as of 15:15 BST) after the company sold a 70,000 sq ft shop and petrol station in Llanelli for £17.9 million. This represents a slight discount on the valuation of the property in March, but is part of the company’s strategy to recycle capital from low-yielding assets.

Chief executive Allan Lockhart commented: “We are delighted to have completed this transaction, demonstrating significant progress against our target to recycle 5% of our portfolio this financial year. Since 1 April 2019, we have sold, or are under offer to sell, £30.7 million of assets at a blended net initial yield of 5.8% and, in-line with our strategy, we have already recycled the proceeds of these disposals into our previously-announced acquisition of four retail parks, through a joint venture, for a net initial yield of 9.8%“.