NewRiver REIT

NewRiver REIT Dividend Analysis and Summary

• Dividend: Interim (HY26)
• Amount: 3.1 pence per share (declared)
• Type: PID (REIT Property Income Distribution)
• Ex-dividend date: 11/12/2025
• Record date: 12/12/2025
• Payment date: 30/01/2026
• Coverage (UFFO basis): 106% cover; payout equal to 94% of H1 UFFO per share (3.3p)
• Policy reminder: Full-year dividend expected to be based on 80% of FY26 UFFO per share, less the H1 dividend
• H1 dividend includes a 0.5p “top-up” to smooth seasonality from Snozone
• Context: Prior interim (HY25) was 3.0p; the most recent final dividend (paid 8 Aug 2025) was 3.5p
• Indicative yield: at the recent buyback price of 75p, this interim alone equates to ~4.1% (non-annualised)

• Earnings support: Underlying Funds From Operations (UFFO) rose 31% to £15.1m; per-share UFFO was 3.3p (down vs HY25 due to Snozone seasonality). The dividend is covered on UFFO and specifically topped up this half to smooth seasonality.
• Balance sheet and liquidity: LTV at 42.3% (above <40% guidance), cash £89.1m, interest cover 5.1x, net debt/EBITDA 6.5x, and Fitch investment grade BBB/Stable. Management plans further disposals to move LTV back within guidance, which supports dividend resilience.
• Capital efficiency: A buyback of 47.7m shares (10%) at 75p is accretive to UFFO per share and NTA per share, aiding per-share dividend capacity into H2 and FY27.
• Operational momentum: High occupancy (95.3%), improving leasing on long-term deals (+11.3% vs ERV) and a second consecutive half of like-for-like valuation growth (+0.5%) underpin cash earnings that fund the dividend.
• Policy stance: Base policy remains ~80% of UFFO per annum (with ability to “top-up” to maintain REIT distribution requirements). Given stronger H2 seasonality (Snozone) and buyback effects, full-year coverage should be stronger than H1’s optically high payout.