diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_11.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_11.txt new file mode 100644 index 0000000000000000000000000000000000000000..49fd476f871438305fdce5a0a24375f55f2e3ae3 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_11.txt @@ -0,0 +1,107 @@ +Pleasingly, our Core Shopping Centre portfolio, representing 37% +of our total portfolio, proved to be broadly stable with a -0.7% capital +return for FY23. Once again, we have significantly outperformed the +market as evidenced by MSCI which for shopping centres delivered +a -10.8% capital return over the last twelve months. +Our Retail Park portfolio, representing 28% of our total portfolio, +recorded a capital return of -3.2% entirely due to yield expansion +offset by ERV growth of 2.7%. Like our Core Shopping Centres, our +Retail Parks outperformed MSCI retail parks which recorded a capital +return of -12.1% over the same period. +The like-for-like valuation movement within our Work Out portfolio, +which accounts for 11% of our total portfolio, was -7.8%, outperforming +the MSCI Shopping Centre Index. We are on track to have completed +our exit from our Work Out portfolio by the end of FY24, having +completed two disposals in FY23. +Given that our portfolio consistently delivers a higher income return +and a superior capital return than the MSCI All Retail Index, on a total +return basis our portfolio has once again significantly outperformed +the index in FY23, by 1,020bps, as it has done over the last five years. +Our Balance Sheet is in great shape with an LTV of 33.9% at the year +end, in line with the prior year. Equally important is Balance Sheet +gearing which for us is less than 50%, Net debt to EBITDA is only +4.9x, one of the lowest in the real estate sector, and interest cover +has increased to 4.3x, one of the highest in the real estate sector. +These strong financial metrics and the fact that we have no +refinancing requirements nor exposure to higher interest rates +until 2028 place us in an excellent position to capitalise on +future growth opportunities at the appropriate time. +PORTFOLIO +Resilient Operational Performance +Operationally, we had a good performance in terms of leasing +volume and pricing. That, together with our high retention rate when +it comes to lease expiry or lease break, has resulted in an increase in +our occupancy to 97% (FY22: 96%). Rent collection and car park and +commercialisation cashflows all improved during the year, with rent +collection now back to pre-Covid-19 collection rates. +In total we completed 979,200 sq ft of leasing transactions during +the year, securing £7.9 million of annualised income. Our long-term +leasing transactions which represented 69% of the total rent secured +were transacted at rents 1.1% above valuer ERVs. Furthermore, +77% of the annualised long-term rent secured was in our Core +Shopping Centre and Retail Park portfolios, at levels exceeding +valuer ERVs by 2.3% and 0.8% respectively. +Whilst rent secured within our Regeneration Portfolio was down +-3.9% versus valuer ERV, it was +9.0% ahead of the previous passing +rent and therefore accretive to rental cashflows. It is also reflective of +our ongoing strategy to ensure greater lease flexibility to support our +vacant possession strategy. The Work Out portfolio leasing activity +was on terms -2.1% versus valuer ERV, however, this only represents +a small proportion of the total portfolio long-term rent secured. +For total portfolio leasing events in FY23, the rents achieved had a +Compound Annual Growth Rate (CAGR) versus the previous passing +rent of only -0.5% over the average previous lease period of 10.3 +years. Over the past three years, which totals £15.4m of annualised +rent, this is only -0.4% based on an average previous lease period +of 10.0 years. Taking into account the significant disruption the retail +sector has faced over the last 10 years from the growth of online +retailing and Covid-19, this clearly demonstrates the underlying +resilience in our rental cashflows. +OUR HIGHLIGHTS +Occupancy +96.7% +FY22: 95.6% +Rent collection +98% +FY22: 96% +Leasing vs ERV ++1.1.% +FY22: +7.4% +GRESB score +70 +FY22: 68 +Completed +disposals +£23m +FY22: £305m +Valuation +performance +-5.9% +FY22: -0.9% +Retail Underlying +Funds From Operations +£25.8m +FY22: £20.5m +Retail UFFO +per share +8.3p +FY22: 6.7p +LTV +33.9% +FY22: 34.1% +Net debt +£201.3m +FY22: £221.5m +Total Accounting +Return +-4.6% +FY22: -6.6% +Ordinary Dividend +per share +6.7p +FY22: 7.4p + * As at time of reporting FY22 results +Key +Performance versus previous year +Improved Declined Maintained +9NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_14.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_14.txt new file mode 100644 index 0000000000000000000000000000000000000000..09e9a9e95094ae06f26a8b77d14a184ad5e5c767 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_14.txt @@ -0,0 +1,31 @@ + +ROBUST +MARKET +The UK economy and retail real estate +market has never before endured such +volatile conditions including international +health pandemics and war as well as +political and fiscal instability. This has +led to cost inflation, rising interest rates +and increased caution amongst both +investors and consumers. + +Yet contrary to perception and media +narrative, the consumer has remained +resilient and those retail occupiers with an +omnichannel offer, reliant on the physical +store and focused on providing essential +goods and services, have continued to +perform well. + +This is the robust sub-sector of the market +that we specialise in, meaning our resilient +retail real estate portfolio is well-positioned +for growth. +RESILIENT RETAIL +12 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic report +Our marketplace +12 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +The secret object #5 is a "towel". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_15.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_15.txt new file mode 100644 index 0000000000000000000000000000000000000000..28d2f5d415f20c5f9d713b733a40727c65d84602 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_15.txt @@ -0,0 +1,110 @@ +Consumers + +Rising Housing Costs +The housing market has shown resilience in 2023 as mortgage +rates eased and the labour market remained tight in part +reversing the negative sentiment following the jump in the Bank +of England interest rates as a result of the somewhat calamitous +September mini-budget. House prices are stabilising and the +average house price is still 20% higher compared with March +2020 (Halifax). Borrowers are choosing longer mortgage terms +to satisfy affordability requirements whilst many potential first +time buyers are delaying their plans and resorting to the rental +market, putting further pressure on rental costs already impacted +by a significant demand supply imbalance (UK Finance). +High But Easing Inflation +UK inflation appears to have peaked at 11.1% in the 12 months to +October 2022, falling more slowly than anticipated over the +subsequent months to 8.7% in April as rates across transport +and clothing declined but offset by persistent food price +inflation. It is expected further easing in commodity and goods +prices will result in a continued downward trend in inflation later +in the year, with perhaps the key risk in respect of ongoing +inflation in 2023 being the impact of higher wage costs. Whilst +annual wage growth as at March 2023 stands at 5.8%, in real +terms it is -3.0%, the largest real total decline since April 2009 +(ONS) albeit the negative differential is widely expected to +narrow through 2023 and reverse by the end of 2024 (Shore +Capital). +Consumers Still Spending +Early 2023 has followed a stronger than forecast Christmas 2022, +with sales values and volumes (excl. fuel) +2.4% and +1.0% in the +three months to April 2023 compared with the previous +three months. April sales figures compared to pre-Covid levels +are +17.9% in value and +0.3% in volume, indicating consumers are +purchasing at similar levels to pre-pandemic. Despite the +narrative around the consumer squeeze and wide-scale +belt-tightening, this is not yet reflected in the data and consumers +are still sitting on excess savings built up during the pandemic. +Changing Purchasing Behaviour +Due to cost of living pressures, patterns of spending have shifted +away from luxuries towards essential and cheaper alternatives. +Barclays data shows that 34% of consumers are buying “dupes”, +affordable versions of expensive products, especially in food and +drink products with 68% of consumers opting for the cheaper options. +There is an evident pattern of down trading in the grocery sector, +discount stores continue to experience month on months sales +growth and in terms of eating out, there is shift in preference from +expensive restaurants to more value focused, deal driven options. +NewRiver’s response +• Despite the cost of living crisis, retail sales have remained +strong with the first half of 2022 benefiting from a buoyant +period of post-lockdown spending with positive sales figures +continuing into early 2023 following a strong Christmas +period. Positive consumer spending has led to strong +sentiment among retailers and is reflected within NewRiver’s +retention rate of 92% and increased occupancy of 97%. +• Consumers are evidently changing their purchasing behaviour, +down-trading across product categories as a reaction to +adjustments on their disposable income and will be awaiting +signs that mortgage rates, food and fuel inflation have peaked +prior to increasing their discretionary spend. NewRiver’s +occupier base has limited exposure to discretionary spend +with 78% by rent from within essential sub-sectors. +• The GfK consumer confidence index shows that whilst +confidence is low, it is improving significantly. Since March +2023, there has been a 13 point jump in positivity for +personal finance situations – such a large jump suggests +household finances are stronger than perceived and the +overall consumer confidence index is at its highest level +since March 2022 playing into spend across our portfolio. +• The increased cost of living and impact of rising mortgage +costs is not equal across the UK, with those living in cities +and within London and South East likely to be most +impacted where mortgages are higher and disposal +income as a percentage of gross income is lower. +NewRiver’s portfolio is located throughout the UK, 66% +outside the South East, in areas which on average have a +house price of £208,000, compared to the UK average of +£287,000 (Halifax). The NewRiver consumer is therefore +impacted to a lesser extent due to rising mortgage costs. +• As inflation eases throughout 2023, real disposable +incomes will improve, confidence will continue to +recover alongside record low unemployment levels of +only 3.9% (as at March 2023), and there is the potential that +retail sales by volume should continue to increase. +Retail Sales Values and Volumes +80 +85 +90 +95 +100 +105 +110 +115 +120 +125 +130 +0 +2 +4 +6 +8 +10 +12 +Retail Sales Index Feb-20 = 100 +CPI (YoY%) +Value Volume CPI (RHS) +2020 Feb 2021 Sep 2023 Apr +Source: ONS +13NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_16.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_16.txt new file mode 100644 index 0000000000000000000000000000000000000000..6f1e3749705a359c8a9c1b1a4891da2f026f12e3 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_16.txt @@ -0,0 +1,141 @@ +Retailers + +Strong Occupational Market +There is positive sentiment amongst retailers, with strong +reported sales results especially in-store performance and +renewed retailer expansion plans for 2023. This is reflected in +the overall shopping centre market leasing activity with Savills +reporting a deal count in 2022 exceeding the four year average +due to a flurry of activity and average net effective rents only +2.9% down compared to 2019. Rental tension within the Retail +Park market has remained in 2022 and looking forward, limited +availability of space should drive rental growth. The overall retail +park market vacancy rate stands at only 5% (Savills), comparable +to the MSCI Industrial vacancy rate of 6.3% which has seen 21% +ERV growth over the past two years. +Limited Retailer Distress +2022 was a quiet year for retailer distress with only 2,300 stores +impacted. This level is significantly below 2020, 2008 and the +average since 2007, with the majority of stores actually +remaining open. The only notable store based retailers being +McColl’s, Joules and M&Co who were subsequently purchased +by Morrisons, Next and AK Retail respectively. Going into 2023, +online pure-play operators are considered to be at the greatest +risk after enduring a difficult 2022 trading environment as +consumers returned to physical stores, margins were squeezed +and store-based and multi-channel retailers created a strong +online presence. Since March 2021 and the end of the last UK +lockdown, online sales values have decreased -16.0% and +pure-play -6.6% against overall retail sales value growth of ++15.7% during this period. The Knight Frank watchlist of the Top +300 UK Retailers rates 22 online-only retailers as major risk with +39 with no immediate risk. Physical retailers, whilst not immune +to the challenging trading conditions coming into 2023, have +emerged from the pandemic fitter, with the weaker outfits +having already exited the market. +0 +1,000 +2,000 +3,000 +4,000 +5,000 +6,000 +7,000 +8,000 +Stores impacted Average since 2007 +2007 +2008 +2009 +2010 +2011 +2012 +2013 +2014 +2015 +2016 +2017 +2018 +2019 +2020 +2021 +2022 +2023 YTD +UK Retailer Failures Decline +-25% +-20% +-15% +-10% +-5% +0% +5% +10% +15% +vs 2019Q1 2020 +Q2 2020 +Q3 2020 +Q4 2020 +Q1 2021 +Q2 2021 +Q3 2021 +Q4 2021 +Q1 2022 +Q2 2022 +Q3 2022 +Q4 2022 +YoY +Shopping Centre Rents since 2019 +(net effective rents rolling 4-Qtr average) +Source: Savills Research +-20% +-15% +-11% +-7% +-2% +2% +7% +11% +16% +20% +25% +0% +1% +2% +3% +4% +5% +6% +7% +Net Effective Rent Growth YoY (LHS) Vacancy % sq ft (RHS) +2013 +2014 +2015 +2016 +2017 +2018 +2019 +2020 +2021 +2022 +Retail Parks Rents and Vacancy +(net effective rents) +Source: Savills Research Source: Centre for Retail Research +Online sales as % of total retail sales +0 +10 +20 +30 +40 +50 +Peak Online % sales +-25% from peak +-4% from peak +Apr 2020 Mar 2023 Jan 2021 Mar 2023 +Non-food Food +45.8% +21.1% +12.1% +8.2% +Source: ONS +14 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our marketplace continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_17.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_17.txt new file mode 100644 index 0000000000000000000000000000000000000000..b1876864c74768df9beaa7e418ee8ad44d7d8a60 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_17.txt @@ -0,0 +1,82 @@ +Continued Rise of Omnichannel +Online is considered a channel of distribution rather than +category of retail and given the consumer desire for flexibility +to purchase goods when, where and how they want, omnichannel +retail with the converging of physical and online channels is +becoming ever more popular. 50% of overall sales involve online +interaction at some point (Barclays) but the physical store is at +the centre of the retail journey due to the perception of in-store +bargains, absence of delivery and return charges, and the ability +to use cash as a tangible budgeting tool. Click & collect +increases to be popular for both consumers and retailers and +this is set to continue into 2023. +Positive 2023 Rates Revaluation Outcome +The 2023 rates revaluation was a welcome outcome for retailers +and will provide significant occupational cost savings at a time when +other operational costs have increased. On average, rateable values +within England and Wales declined 10% for retail properties with +savings ranging up to 20-50%. This compares incredibly favourable +to the 27% increase within Industrial and 10% in Offices. Downwards +transition relief is to be scrapped giving an immediate benefit to +retailers, it was previously phased over a number of years. +“The physical store +remains at the centre +of the retail journey” +16% +average reduction in +rateable values for +retailers across the +NewRiver portfolio +NewRiver’s response +• The strong retail occupational market is reflected in our leasing +statistics with 979,200 sq ft of new lettings and renewals agreed +in FY23 with long-term transactions on average +1.1% ahead of +ERV, 9.7% ahead of previous rent and with a Weighted Average +Lease Expiry of 8.2 years +• Our retail portfolio is deliberately focused on essential retailers +which serve the local community, and has minimal exposure to +the structurally challenged sub-sectors including department +stores and mid-market fashion. To assess the risk associated +with our tenant base and future cashflows, we have worked with +Income Analytics (part owned by MSCI and Savills) to quantify +the probability and impact of tenant failure. The tenant risk of +failure analysis projects a probability of failure in the next +24 months of only 0.9%. +• The resilience of NewRiver’s rental cashflows is underpinned +by affordable rents and low occupational costs. Given the +downward pressure on retailer margins as a result of material +increases in retailer’s cost and revenue pressures which are set +to continue in the short to medium term, we have assessed the +continuing rental affordability over the next 3 years. As expected, +maintaining the retailer’s existing net margin, the affordability +level falls -1.2% below the current Occupational Cost Ratio in +2023 but returns in 2024 with headroom rebuilding beyond in +2025 to +2.4% aided by continued cost stabilisation, business +rate reductions and some modest sales growth +• The occupational affordability for our tenants set to further +improve from 1 April 2023 when reduced business rates become +effective with an average reduction of 16% across the portfolio +• Retail parks are a key investment area for NewRiver given their +prominent role within omnichannel retail for both consumers and +retailers. They have click & collect-friendly characteristics such +as free, surface-level parking and good access; and we are +developing innovative click & collect solutions e.g collection & +return pods in car parks. Conveniently located on key arterial +routes and having large units suitable for holding stock at low +occupational costs mean retailers can use stores as fulfilment +centres much closer to their consumer than distribution centres. +-10 ++7 ++10 ++27 +Retail +All Properties +Offices +Industrial +-16NewRiver +Source: VOA +Percentage Change in Rateable Values 2017-23 leading +to lower occupational costs +Revaluation Movement (%) +15NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret transportation is a "train". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_28.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_28.txt new file mode 100644 index 0000000000000000000000000000000000000000..bc84d8bb63151c65d53c7747728716c37404609d --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_28.txt @@ -0,0 +1,108 @@ +• The Board receives regular updates on market sentiment, +investor relations activity and share price performance +• The Remuneration Committee undertook a review of the +Remuneration policy in consultation with Shareholders for +which Shareholder provided positive support toward the +proposed revisions. +Topics raised +• Continued delivery of the Company’s revised strategy focused on +resilient retail following the pub business disposal in FY22 +• Financial performance +• Operational performance +• Capital allocation +• Portfolio valuation performance +• Progress on the disposal of our Work-Out portfolio +• Progress across our Regeneration portfolio +• Growth of Capital Partnerships +• Sustainability +• Retailer challenges and opportunities +• Macro-economic themes including how inflation and rising energy +costs impact our retailer +How did we respond? +• Post pandemic virtual engagement continue to form a part of our +Investor Relations programme, allowing us to capitalise on +effective use of management time, engaging with international and +regionally based investors, and helping reduce associated carbon +emissions +• Our investor feedback has helped enhance our disclosures and +the supplementary information provided in results materials. +OUR LENDERS +We have strong working relationships with +our banks, bondholders and rating agency +who in turn help provide funding to facilitate +our strategy. +As part of this, we are in regular dialogue to ensure our banks and +bondholders understand the Company’s strategy and targets. These +relationships have helped ensure that the business remains in a +strong and flexible financial position with a fully unsecured balance +sheet. This structure is highly efficient and covenant-light, affording +us significant operational flexibility. +Board Engagement during the year +How did we engage? +• The CFO and finance team held regular meetings with our +relationship banks, bondholders and rating agency to ensure +that they are kept up to date with business strategy, developments +and performance +• Held meetings with our Bondholders as part of our FY22 and +HY23 results roadshow +• Debt structure and current and future debt requirements are +considered by the Board on a regular basis as part of the +CFO’s review +OUR SHAREHOLDERS +Our shareholders are the ultimate owners +of our business. In order to deliver on all +our ambitions for the communities we are +invested in, it is critical that our shareholders +continue to understand and support the +Company’s strategy, business model, +investment case and progress. +We have an active engagement strategy, supported by our corporate +brokers, providing our shareholders with frequent business updates, +regular meetings, both in person and online, and on-site visits. +Where appropriate, our Board and members of the Executive +Committee will engage with shareholders. +The comprehensive calendar of investor engagement includes the +AGM, regulatory announcements and non-regulatory news flow, +conference calls and shareholders roadshows, as well as regular +contact with financial analysts, financial media, investors, private +client fund managers, retail investors and equity sales teams. Regular +and targeted engagement ensures that our strategy, business model +and investment case are well understood by shareholders and the +wider market. +Board Engagement during the year +How did we engage? +• Focused virtual and face to face investor meetings with +the CEO and CFO with a revival of face to face meetings +• Engagement includes the AGM, regulatory announcements, +conference calls and investor roadshows, as well as regular +contact with financial analysts, financial media, investors, private +client fund managers, retail investors and equity sales teams +• As well as institutional investors, we engage with retail investors +via direct communications, our website, media, Annual General +Meetings (AGM) and platforms including Investor Meet, hosting +a dedicated retail investor presentation at our half year results +• Our relaunched corporate website contains comprehensive +information about our business, regulatory news and press +releases alongside information about our approach to +Environmental, Social and Governance (ESG) issues +• Management engaged with 96 investors during the year, including +shareholders and non-holders, and institutional and +retail investors +• We hosted our first post-pandemic in-person results presentation +to analysts in November 2022 for our HY23 Results – a live audio +webcast was also available our website with a replay function +• The 2022 AGM was again held as a physical meeting and was +attended by all of the Board. Recognising that some shareholders +may not have been comfortable attending in person, we provided +opportunities for shareholders to submit questions via email and to +attend via conference call +• The Board reviews and approves material and communications +with investors, namely trading updates, results announcements, +the Annual Report and Accounts, and significant business events +and transactions. +• The respective Committee Chairs engage with shareholders on +significant matters related to their specific areas of responsibility +26 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Stakeholder engagement continued +The secret drink is "water". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_39.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_39.txt new file mode 100644 index 0000000000000000000000000000000000000000..bd1690446b58946c8a37e446c3be1f0f6d114f27 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_39.txt @@ -0,0 +1,87 @@ +26.1% +-4.2% +0.8% +FY21 FY22 FY23 +13.3% +-0.6% +-1.5% +0.6% +FY21 FY22 FY23 average +98% +92% +100% +FY21 FY22 FY23 +97.1% +97.6% +97.5% +FY21 FY22 FY23 +Selected highlights Include: +• Barrow-in-Furness, Hollywood Retail & Leisure Park: This retail +park provides the key retail and leisure to the town with the only +Vue cinema in the catchment and benefits from an occupier line up +of Aldi, TK Maxx, Curry’s, Dunelm, McDonalds and KFC. The offer is +to be further strengthened with the introduction of Smyth Toys +having exchanged an Agreement for Lease for a 15 year term +replacing the former Bingo operator which we served our landlord +break notice on. The only remaining vacant unit is a 3,100 sq ft pod +which is under offer to a national veterinary company, which will +bring a great community use to the Retail Park. +• Cardiff, Valegate Retail Park: We completed an Agreement for +Lease with Poundland for a 27,000 sq ft store at a rent of +£270,000 pa and a 10,000 sq ft letting to Boulders, an indoor +climbing centre, at a rent of £100,000 per annum on a 15 year +lease and both transactions were in line with the valuer’s ERV. This +discount led 94,000 sq ft retail park, adjacent to a dominant Marks +& Spencer and Tesco Extra, is now fully let. +• Dewsbury, Rishworth Centre: At our fully-let retail park in +Dewsbury, we opened a brand new 19,500 sq ft store for Aldi +following the completion of extension works to the former Next +store. Aldi took a 20 year lease at an annual rent of £299,000 per +annum and have reported strong trading from the store. The park +is now fully let with Aldi joining Shoezone, Iceland, Halfords and +Pets at Home on the park. +• Dumfries, Cuckoo Bridge Retail Park: We received planning +consent and exchanged an Agreement for Lease with Food +Warehouse to create a new 12,500 sq ft food store which will +benefit from trading adjacent to a successful Tesco superstore. We +are in active discussions with a discount gym operator on the final +vacant unit which will make the park 100% let, further +strengthening this excellent supermarket, DIY and discount +anchored park. +• Inverness, Glendoe and Telford Retail Parks: Throughout the year +we have completed a number of lettings on the park, improving the +occupier line-up and increasing the WAULT. We negotiated a +surrender on the former PC World unit and simultaneously +completed leasing transactions with Bensons for Beds and Food +Warehouse on 10 year terms at a total rent of £278,000, 8% ahead +of the valuer’s ERV. We served the landlord break notice on +Poundstretcher in order to create space for Poundland and agreed +a reversionary lease with B&M, adding a further 10 years to the +term. +• Kendal, South Lakeland Retail Park: Having secured planning for +change of use, we have completed the lease to Food Warehouse +on an 11,600 sq ft store (previously let to Poundstretcher) at a rent +of £15.50 per sq ft on a 10 year lease. Food Warehouse joins an +already strong retailer line up including B&M, Pets at Home, +Halford and Currys, adjacent to a Morrisons supermarket. +• Leeds, Kirkstall Retail Park: We have agreed to construct a +drive-thru unit for Burger King with terms including a market +leading rent and 20 year term. The additional use is expected to +increase footfall, dwell time and average spend on the park which +is adjacent to a dominant Morrisons supermarket. +• Wirral, Eastham Point: We continued our successful partnership +with the Co-op in their convenience store expansion programme, +delivering a modern new 5,300 sq ft store which features +self-service checkouts and a hot food to go section too. Co-op +took a 15 year lease at a rent of £70,000 per annum. Kutchenhaus +also took a new 10 year lease for a new store and together these +lettings bring the park to 100% occupancy. +Strong leasing pricing +1% +CAGR +-1.5% +Retention rate +100% +Occupancy +98% +37NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_40.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_40.txt new file mode 100644 index 0000000000000000000000000000000000000000..d7c2cc85a5f143d0836e95d9fb0fde188a356d3a --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_40.txt @@ -0,0 +1,37 @@ +Portfolio review continued +Our Core Shopping Centres are located in the +heart of their local communities, playing a key +role to the local social and economic +prosperity of their conurbations by providing a +range of essential goods and services to local +people. Our centres are easily accessible with +short travel times supporting the wider climate +and well-being agenda. +As at 31 March 2023 our Core Shopping +Centre portfolio represented 37% of our total +portfolio value and comprises 14 core +community shopping centres with an +occupancy of 98%. +FY23 HIGHLIGHTS +• Portfolio weighting: 37% +• No. assets: 14 +• NIY 9.6% versus MSCI Shopping Centre NIY of 7.5% +• Average lot value: £19.0 million +• Key occupiers: Primark, Superdrug, M&S, Poundland, Boots, Next +• Occupancy: 97.7% +• Retention rate: 90% +• Rent collection: 98% +• Affordable average rent: £13.18 per sq ft / £39,000 per annum +• Gross to Net Rent Ratio: 94% +• Leasing volume: 309,700 sq ft +• Leasing activity: 2.3% ahead of valuer ERV +• Average CAGR FY21-FY23: -0.8% on 9.9yr average previous +lease period +• Total Return 10.3% outperforming the MSCI Shopping +Centres by +1,540 basis points +KEY RETAILERS +The Avenue Shopping Centre, +Newton Mearns +CORE SHOPPING CENTRES +38 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_42.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_42.txt new file mode 100644 index 0000000000000000000000000000000000000000..4c420fa0bb8449dc2f63071a98a0351ed591db3f --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_42.txt @@ -0,0 +1,86 @@ +Portfolio review continued +WORK OUT +Our Work Out portfolio represents 11% of our portfolio and comprises +assets which we intend to dispose of or complete turnaround +strategies for. Since the Half Year, we have completed the disposals of +shopping centres in both Wakefield and Darlington, with the remaining +sales and turnaround strategies to be completed by the end of FY24. +The key turnaround strategies include: +• Cardiff, Capitol Shopping Centre: We are planning the wholesale +repositioning of the asset to competitive and social leisure with an +enhanced F&B provision. The Capitol Shopping Centre sits +alongside the Council’s major upgrade to the wider area which will +improve the infrastructure and public realm, including reinstating a +stretch of canal next to the Centre’s entrance, and is due to +complete in the Autumn 2023. We are in advanced discussion with +a national competitive and social leisure operator to occupy circa +115,000 sq ft of the centre which will be the catalyst for the Food & +Beverage lettings on the remainder of the centre. +• Kilmarnock, Burns Mall: We are working collaboratively with the +Council on plans to demolish the former BHS to create a surface car +park to be let to the Council on a long-term lease and upsize key +occupiers within the centre. We are confident that the removal of +surplus retail, improvement in public realm and accessibility will +revitalise the centre. The works are to be part funded by the Council. +• Paisley, The Piazza: The centre is the principal retail offering within +the town centre and has strengthened following the planned +re-development of the neighbouring weaker shopping centre +within the catchment, therefore removing significant surplus retail +supply from the town. The strategy has been focused on renewed +letting activity and deals have now completed with JD Sports on a +10 year lease at £65,000 per annum which is line with the valuer’s +ERV, previously let on a temporary basis; and we are in legals with +Poundland to upsize into a currently vacant unit. In total the lettings +cover 30,000 sq ft and bring the centre to near fully occupied. +• Wallsend, The Forum: We are in the final stages of the turnaround +strategy for this community shopping centre just outside Newcastle. +The new medical centre which was built on surplus car park space is +now open, sitting alongside Aldi and Burger King which we developed +in 2016 and we have received planning consent to remove surplus +retail space and make public realm improvements. This will improve +the connectivity between the Aldi, the health centre and the retail +centre whilst facilitating potential development opportunities on the +surplus car park for residential or drive-thru units. +• Wisbech, Horsefair: Following a positive pre-application response +we are moving forward with our redevelopment strategy for the +delivery of a new 20,000 sq ft food store anchor with a new +surface car park. Once we have agreed terms to pre-let the new +store we will submit a planning application for which following the +pre-application, we are confident of securing and on delivery of the +food store the centre will be fully let and help boost footfall to the +centre and town. +Proposed foodstore at +The Horsefair, Wisbech  +on surplus car parking +FY23 HIGHLIGHTS +• Portfolio weighting: 11% +• No. assets: 9 +• NIY %: 9.4% versus MSCI Shopping Centre NIY of 7.5% +• Average lot value: £7.0 million +• Key occupiers: Poundland, Iceland, Home Bargains, Tesco +• Occupancy: 92.8% +• Retention rate: 89% +• Rent collection: 97% +• Affordable average rent: £9.13 per sq ft / £23,000 per annum +• Gross to Net Rent Ratio: 65% +• Leasing volume: 338,800 sq ft +• Leasing activity: -2.1% below valuer ERV +• Average CAGR FY21-FY23: -0.4% on 6.7yr average previous +lease period +• Total Return 0.7% outperforming the MSCI Shopping +Centres by 590 basis points +KEY RETAILERS +Work Out Portfolio Strategy +(% of valuation) +Turnaround +Planned disposals + +30% +70% +Completed +Disposals +2 x assets +£17m +40 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +The secret landmark is the "Taj Mahal". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_43.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_43.txt new file mode 100644 index 0000000000000000000000000000000000000000..98eb9b289f5fb67219dc7b9b978004eeff0842f4 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_43.txt @@ -0,0 +1,61 @@ +REGENERATION +Broadway Shopping Centre, +Bexleyheath +FY23 HIGHLIGHTS +• Portfolio weighting: 23% +• No. assets: 3 +• NIY %: 5.9% versus MSCI Shopping Centre NIY of 7.5%: +• Average lot value: £46.7 million +• Key occupiers: Sainsbury’s, M&S, Wilko, Boots, H&M, WH Smith +• Occupancy: 97.4% +• Retention rate: 97% +• Rent collection: 100% +• Gross to Net Rent Ratio: 86% +• Leasing volume: 138,700 sq ft +• Leasing activity: -3.9% ahead of valuer ERV +• Average CAGR FY21-FY23: -0.7% on 9.4yr average +previous lease period +• Total Return -9.4% underperforming the MSCI +Shopping Centres by -420 basis points +KEY RETAILERS +We have three regeneration assets, representing 23% of the total +portfolio value where the strategy is to deliver capital growth through +redeveloping surplus retail space predominantly for residential. +• Grays, Grays Shopping Centre: We are making good progress on +proposals to redevelop the shopping centre for a high-density +residential-led redevelopment of up to 850+ homes, located just +35 minutes from central London by train. Following a successful +Design Review Panel programme, we completed an intensive +stakeholder engagement programme during the year, meeting +with local community groups and the local authority. Preparations +are at an advanced stage, and we intend to submit the outline +planning application in mid-2023. +• Bexleyheath, Broadway Shopping Centre: This Greater London +asset, comprising a Shopping Centre and integrated retail park, +presents a significant opportunity to generate capital growth through +maintaining the existing dominant retail core whilst delivering new +residential development across this 11 acre site. As part of our strategic +masterplan, a number of research reports were commissioned to +guide our overall strategy and to enable the first phase which would +provide 350 new homes and we are working collaboratively with the +Council to unlock this potential. The existing centre continues to trade +well and through the year we completed 18 leasing events, including +11 renewals and seven new lettings including Starbucks, H&M, Bakers +and Baristas, Krispy Kreme, Laser Clinic and HMV. +• Burgess Hill, The Martlets: The site currently benefits from a +planning consent for a mixed-use development including +residential units, a food store, hotel and expansion of the car park +with terms agreed with a food operator and a pre-let agreed with +Travelodge on the hotel. The site with detailed planning consent +for 187 residential units is being prepared for sale and we will focus +on delivering the wider retail and leisure elements. +Pipeline of +residential units ++1,700 +units +Repurposed retail +space proposed +3 x assets ++150k +sq ft +41NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_44.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_44.txt new file mode 100644 index 0000000000000000000000000000000000000000..437aeed424a5e89dd17a9fb499354c3972cc94ff --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_44.txt @@ -0,0 +1,15 @@ +42 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Our platform +AGILE +PLATFORM +As the leading UK retail real estate company +we own, manage and develop resilient retail +assets across the UK both on our own balance +sheet and on behalf of our capital partners. +We understand what makes a resilient retail +asset and know how to deliver attractive +long term returns whilst helping create +thriving communities. +RESILIENT RETAIL +42 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_45.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_45.txt new file mode 100644 index 0000000000000000000000000000000000000000..6e8ffe7f9c9e168e2712cf4cd4c5e1d5abeb4633 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_45.txt @@ -0,0 +1,79 @@ ++550bps ++750bps ++480bps ++490bps ++40bps ++250bps +Income ReturnCapital GrowthTotal Return +5 year +Our Portfolio +We specialise in owning, managing and developing resilient retail +assets throughout the UK and have hand-picked our 7 million sq ft +portfolio of community shopping centres and conveniently located +retail parks, which are occupied by tenants predominately focused on +essential goods and services compatible to omni-channel retailing. +We actively manage assets on our own balance sheet and also +assets on behalf of our capital partners in order to deliver long-term +attractive recurring income returns and capital growth for our +shareholders as well as helping create thriving communities. +Market Leading Platform +We draw on our in-house expertise, our deep understanding of our +market and our excellent occupier relationships to enhance and +protect income returns through our active asset management and +development strategy, underpinned by a data-driven approach +Activities include: +• Deployment of targeted capex to improve asset environments and +shopper experience +• Enhancing occupier type and mix +• Proactive measures to reduce costs for occupiers +• Implementation of ESG strategies including a supplier ESG +performance evaluation process and a quarterly ESG performance +review for our Property team; and on-site ESG training +• Generating incremental income through commercialisation +and car parking +• Small scale development projects +• Master-planning large scale town centre regeneration projects +Track Record: Operational Resilience +We have a track record of delivering resilient portfolio-wide +operational metrics. Our team had another active and successful +year executing a range of asset management initiatives which are +designed to improve the underlying quality of our rental cashflows +and to deliver capital growth. +Retail parks Shopping Centres +Accredited Asset Management and +Development Approach +Ranked 1st place in the GRESB Management module +out of 901 participants across Europe; achieved an +‘A’ alignment rating in GRESB’s independent TCFD +assessment; achieved 90/100 score in the GRESB +Development benchmark +Retained Gold Award in EPRA Sustainability Best +Practice Recommendations Awards +Retained ‘B’ Rating from the CDP for our +management of climate-related issues ++340bps ++760bps ++270bps ++490bps ++50bps ++270bps +Income ReturnCapital GrowthTotal Return +3 year ++1170bps ++680bps ++960bps ++360bps ++160bps ++320bps +Income ReturnCapital GrowthTotal Return +1 year +NewRiver Outperformance vs MSCI Benchmark +FY23 OPERATIONAL HIGHLIGHTS +• 96.7% occupancy +• 98% rent collection +• 92% retention rate +• £11.98 affordable average rent +• +1.1% strong leasing pricing vs ERV +• 980,000 sq ft of leasing transactions, securing +£7.9 million of annualised income +43NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_46.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_46.txt new file mode 100644 index 0000000000000000000000000000000000000000..752c87ee57076c62b62212dfed2578051e3ff4f6 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_46.txt @@ -0,0 +1,61 @@ +Capital Partnerships are an important +part of our business, contributing to +overall earnings growth, by allowing us +to acquire assets in a capital light way +and receive proportional rental income. +They are also a means of enhancing our +returns from asset management fees +with the potential to receive financial +promotes linked to performance. +Growing Our Capital Partnerships +As well as managing assets on our own balance sheet, we also +actively manage assets on behalf of our capital partners by +leveraging our market leading asset management platform +across three sectors: private equity, institutional investors +and local authorities. +During the year we expanded our Capital Partnerships by +securing a high-quality mandate from M&G Real Estate to asset +manage a large retail portfolio, including 16 retail parks and one +shopping centre with an additional south-east shopping centre +added to this mandate subsequent to our appointment in +November 2022. +Capital Partnerships are an important part of our business, +delivering earnings growth in a capital light way through asset +management fees, a share of rent and the potential to receive +financial promotes. We currently asset manage 19 retail parks +and five shopping centres across 5 million sq ft. +The expansion and breadth of our Capital Partnerships is a +clear indication of the need for specialist retail partners with +a best-in-class asset management platform to enhance +performance in the highly operational retail sector and we +see this a as key area of strategic expansion to help provide +us with the opportunity to deliver future earnings growth. +Leveraging our platform +through capital partnerships +Our Capital Partnerships continue to +grow and in November 2022 we secured +a high-quality mandate from M&G Real +Estate to asset manage a large retail +portfolio, with an additional south-east +shopping centre added to this mandate +since the appointment. The portfolio +currently comprises 16 retail parks and +two shopping centres. +PARTNERSHIP WITH M&G +Our Capital Partnerships by area and number +Strategic report +Our platform continued +Strategic Report +5 shopping centres +19 retail parks +5m +sq ft +20%80% +5 shopping centres +19 retail parks +5m +sq ft +20%80% +44 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Strategic reportStrategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_47.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_47.txt new file mode 100644 index 0000000000000000000000000000000000000000..64588c7d8d976a76ae8c72da4bf8681eaeb5e547 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_47.txt @@ -0,0 +1,72 @@ +Advancing our Capital Partnerships +Our market leading asset management platform is leveraged through +capital partnerships in three sectors: +Festival Retail Park, Hanley, +Stoke-on-Trent (M&G) +with M&G Real Estate +across two shopping centres +and 16 retail parks +with Canterbury City Council +across two shopping centres +in Canterbury. +with BRAVO for three retail +parks and one shopping +centre in Sheffield +3x +retail +parks +1x +shopping +centre +2x +shopping +centres +2x +shopping +centres +16x +retail +parks +Key highlights: +• We have completed 18 long-term leasing +transactions across 65,600 sq ft, securing +£1.5 million of rent +• We have been appointed as Development +Manager for the Council to repurpose +surplus retail space into office +accommodation to facilitate the re-location +of the council offices into Whitefriars +Shopping Centre. +Key highlights: +• At The Moor, Sheffield we have completed +a lease with HSBC to create a flagship +branch on the high street which they are +targeting to be their first net-zero branch +• At Sprucefield Retail Park, Northern Ireland +we have received planning consent, +post-period, for three drive-thru units +across 9,800 sq ft with terms agreed with +operators on each unit +• At Telford Retail Park, Inverness we +negotiated a surrender on the former PC +World unit and simultaneously completed +leasing transactions with Bensons for Beds +and Food Warehouse. +Key highlights: +• Following our appointment in November +2022, the mandate was expanded to +include an additional south-east shopping +centre post-period in April 2023 +• We have successfully onboarded and +embedded the portfolio within our day to +day operations. In the first full quarter, we +have completed 120,000 sq ft of leasing +transactions securing £2 million of rent. +45NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +PRIVATE +EQUITY +LOCAL +AUTHORITIES +INSTITUTIONAL +SECTOR +The secret sport is "boxing". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_48.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_48.txt new file mode 100644 index 0000000000000000000000000000000000000000..50e77b6e3698366d6bc854057f5a78a73cd8c263 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_48.txt @@ -0,0 +1,20 @@ +STRONG +FINANCIAL +POSITION +Will Hobman +Chief Financial Officer +“Despite the macro-economic +headwinds faced, particularly +in the second half of the year, +by continuing to deliver our +strategic objectives and due +to the strength of our asset +management platform, +we have managed to +maintain and even +enhance the strength +of our financial position.” +RESILIENT RETAIL +46 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Finance review \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_49.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_49.txt new file mode 100644 index 0000000000000000000000000000000000000000..f46de4733029cb7d7a5dbbe35c8881941898be11 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_49.txt @@ -0,0 +1,107 @@ +Finance review +Despite the macro-economic headwinds faced, particularly in +the second half of the year, by continuing to deliver our strategic +objectives and due to the strength of our asset management +platform, we have managed to maintain and even enhance the +strength of our financial position while sustaining the operational +momentum that has built over the last two years. +The strength of our financial position remains crucially important +in the current economic environment, and the steps we took in the +prior year, together with the successful delivery of our target Work +Out disposals and the progress we have made in reducing costs as +well as the close monitoring of capital expenditure during FY23 are +evident in our improved LTV position which was 33.9% at 31 March +2023, reduced from 34.1% in March 2022 and 50.6% in March 2021. +This has been achieved by reducing absolute levels of net debt +(from £493.3 million in March 2021 to £201.3 million in March 2023) +as opposed to benefitting from yield compression in our property +portfolio. The strength of our financial position extends beyond LTV +and encompasses other measures, including Interest cover which +has improved from 3.5x in FY22, to 4.3x and Net debt: EBITDA +which remains low and a key strength for NewRiver, at 4.9x. +Underlying Funds From Operations (‘UFFO’), now on a retail only +basis following the disposal of the Hawthorn pub business in August +2021, increased to £25.8 million from £20.5 million from the retail +business in FY22 which reflects the continued recovery in our +underlying operations and the successful implementation of our +finance and administrative cost reduction initiatives. Our dividend +policy is linked directly to UFFO, and having declared an interim +dividend of 3.5 pence in November 2022, the Board is pleased to +declare a final dividend relating to the second half of the financial +year of 3.2 pence per share. This brings the total FY23 dividend +to 6.7 pence, representing 80% of UFFO per share of 8.3 pence. +IFRS loss after tax for FY23 was £16.8 million including a non-cash +reduction in portfolio valuation of £37.4 million, improved from the +prior year (FY22: loss of £26.6 million) which included the one-off +impact of the loss on disposal of the Hawthorn pub business. +Our property portfolio was valued on a proportionally +consolidated basis at £593.6 million as at 31 March 2023, +compared to £649.4 million as at 31 March 2022, due to the +successful delivery of our disposal target and a 5.9% portfolio +valuation decline. The majority of the valuation decline, 4.7% of the +total 5.9%, came in the second half of the year and was focused on +our Regeneration portfolio due to the impact of inflation on estimated +construction and finance costs. Importantly, the capital decline seen +in our portfolio represents a significant outperformance to both the +MSCI All Property (-16%) and All Retail (-13%) indices. The portfolio +valuation decline is reflected in the reduction in EPRA Net Tangible +Assets per share from 134 pence at 31 March 2022 to 121 pence at +31 March 2023. We delivered a total accounting return of -4.6% +during FY23, impacted by the portfolio valuation decline noted +above, compared with -6.6% in the prior year. +Key performance measures +The Group financial statements are prepared under IFRS, where the +Group’s interests in joint ventures are shown as a single line item on +the income statement and balance sheet. Management reviews the +performance of the business principally on a proportionally +consolidated basis which includes the Group’s share of joint +ventures on a line-by-line basis. The Group’s financial key +performance indicators are presented on this basis. +OUR HIGHLIGHTS +Retail Underlying +Funds From Operations +£25.8m +FY22: £20.5m +LTV +33.9% +FY22: 34.1% +Retail UFFO +Per Share +8.3p +FY22: 6.7p +Ordinary Dividend +Per Share +6.7p 1 +FY22: 7.4p +IFRS Loss After Tax +£(16.8)m +FY22: £(26.6)m +Admin cost ratio +15.2% +FY22: 16.9% +Total Accounting Return +-4.6% +FY22: -6.6% +Net finance costs +£14.9m +FY22: £19.5m +Net debt +£201.3m +FY22: £221.5m +Interest cover +4.3x +FY22: 3.5x +Weighted average +debt maturity2 +4.7 yrs +FY22: 5.7 yrs +Net debt: EBITDA +4.9x 1 +FY22: 4.6x +1. Due to sale of Hawthorn pub business in August 2021 +2. Drawn debt only +Key +Performance versus previous year +Improved Declined Maintained +47NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret office supply is a "stapler". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_50.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_50.txt new file mode 100644 index 0000000000000000000000000000000000000000..5d2c1efb0b0f699e8d1fa47459315a531846dd59 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_50.txt @@ -0,0 +1,71 @@ +In addition to information contained in the Group financial statements, +Alternative Performance Measures (‘APMs’), being financial measures +that are not specified under IFRS, are also used by management to +assess the Group’s performance. These APMs include a number of +European Public Real Estate Association (‘EPRA’) measures, prepared +in accordance with the EPRA Best Practice Recommendations +reporting framework, which are summarised in the ‘Alternative +Performance Measures’ section at the end of this document. We report +these measures because management considers them to improve the +transparency and relevance of our published results as well as the +comparability with other listed European real estate companies. +Definitions for APMs are included in the glossary and the most directly +comparable IFRS measure is also identified. The measures used in the +review below are all APMs presented on a proportionally consolidated +basis unless otherwise stated. +The APM on which management places most focus, reflecting +the Company’s commitment to driving income returns, is UFFO. +UFFO measures the Company’s operational profits, which includes +other income and excludes one off or non-cash adjustments, such +as portfolio valuation movements, profits or losses on the disposal +of investment properties, fair value movements on derivatives and +share-based payment expense. We consider this metric to be the +most appropriate for measuring the underlying performance of the +business as it is familiar to non-property investors, and better reflects +the Company’s generation of profits. It is for this reason that UFFO is +used to measure dividend cover. +The relevant sections of this Finance Review contain supporting +information, including reconciliations to the financial statements and +IFRS measures. The ‘Alternative Performance Measures’ section also +provides references to where reconciliations can be found between +APMs and IFRS measures. +Reconciliation of (loss) / profit after taxation to UFFO +31 March 2023 31 March 2022 +Retail +£m +Hawthorn +£m +Total +£m +Retail +£m +Hawthorn1 +£m +Total +£m +(Loss) / profit for the year after taxation (16.8) – (16.8) 7.0 (33.6) (26.6) +Adjustments +Revaluation of property 38.2 – 38.2 12.3 – 12.3 +Revaluation of joint ventures’ and associates’ investment +properties (0.8) – (0.8) (5.8) – (5.8) +Loss / (profit) on disposal of investment properties 3.8 – 3.8 5.4 (0.8) 4.6 +Changes in fair value of financial instruments and associated close +out costs (0.2) – (0.2) (0.6) – (0.6) +Loss on disposal of subsidiary – – – – 39.7 39.7 +Deferred tax 0.2 – 0.2 0.6 1.9 2.5 +EPRA earnings 24.4 24.4 18.9 7.2 26.1 +Depreciation of property – – – – 0.4 0.4 +Forward looking element of IFRS 9 (0.2) – (0.2) (0.2) – (0.2) +Abortive fees – – – – 0.2 0.2 +Restructuring costs2 – – – 0.9 – 0.9 +Head office relocation costs 0.5 – 0.5 – – – +Share-based payment charge 1.1 – 1.1 0.9 – 0.9 +Underlying Funds From Operations 25.8 – 25.8 20.5 7.8 28.3 +1. Pubs operating performance from 1 April 2021 to 20 August 2021 when the disposal of the Hawthorn business was completed. Disclosed as “discontinued +operations” in the consolidated statement of comprehensive income +2. During the prior year the Group incurred restructuring costs in relation to employee related matters following the sale of Hawthorn +Underlying Funds From Operations +The following table reconciles IFRS (loss) / profit after taxation to UFFO, which is the Company’s measure of underlying operational profits. +48 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Finance review continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_51.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_51.txt new file mode 100644 index 0000000000000000000000000000000000000000..8bf6a90fe188c5982e891ffa109e5832492d8070 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_51.txt @@ -0,0 +1,64 @@ +Underlying Funds From Operations is represented on a proportionally consolidated basis in the following table. The UFFO commentary that +follows is focused on the continuing retail business. The £7.8 million “Contribution from Hawthorn” in the prior year (discontinued operation) +was analysed in detail in the HY22 and FY22 results materials. +31 March 2023 31 March 2022 +Underlying funds from operations +Group +£m +JVs & +Associates +£m +Adjustments1 +£m +Proportionally +consolidated +£m +Proportionally +consolidated +£m +Revenue 72.2 4.0 – 76.2 77.7 +Property operating expenses (25.1) (0.4) (0.2) (25.7) (25.9) +Net property income 47.1 3.6 (0.2) 50.5 51.8 +Administrative expenses (12.6) (0.1) 1.6 (11.1) (11.7) +Other income 1.4 – – 1.4 – +Operating profit 35.9 3.5 1.4 40.8 40.1 +Net finance costs (14.0) (0.7) (0.2) (14.9) (19.5) +Taxation – (0.3) 0.2 (0.1) (0.1) +Retail UFFO 21.9 2.5 1.4 25.8 20.5 +Contribution from Hawthorn2 – 7.8 +Underlying Funds From Operations 25.8 28.3 +UFFO per share (pence) 8.3 9.2 +Ordinary dividend per share (pence) 6.7 7.4 +Ordinary dividend cover 125% 125% +Admin cost ratio3 15.2% 16.9% +Weighted average # shares (m) 309.7 307.2 +1. Adjustments to Group and JV & Associates figures to remove non-cash and non-recurring items, principally forward looking element of IFRS 9 £0.2 million, +share-based payment charge £(1.1) million, head office relocation costs £(0.5) million, revaluation of derivatives £0.2 million and deferred tax of £(0.2) million +2. UFFO contribution from the Hawthorn business in FY22 prior to its disposal on 20 August 2021 +3. Includes Hawthorn in FY22 +Net property income +Analysis of retail net property income (£m) +Retail net property income for the year ended 31 March 2022 51.8 +Like-for-like rental income 1.2 +Rent and service charge provisions 0.2 +Car park and commercialisation income 1.3 +Other (0.3) +Retail NRI recovery 2.4 +Net disposals (3.7) +Retail net property income for the year ended 31 March 2023 50.5 +On a proportionally consolidated basis, retail net property income was £50.5 million during the year, compared to £51.8 million in the year +ended 31 March 2022. Net disposal activity during FY22 and FY23 reduced net property income by £3.7 million such that on an underlying +basis there has been an increase of £2.4 million from the recovery of net property income post pandemic (“Retail NRI recovery”). +One of the key contributory factors to this recovery is the increase in like-for-like net property income of £1.2 million during the year, primarily +due to new lettings and improved rental levels on space which had previously been occupied by tenants who were in Administration or had +been impacted by CVAs, including the receipt of turnover rent. +Rent and service charge provisions have also continued to improve year-on-year, by £0.2 million, over and above the strong performance in this +regard seen in FY22, when we reported an improvement of £4.9 million for the year. This serves to highlight the continued resilience of our rent +collection, as not only have we been able to broadly maintain the high collection levels of historical arrears as in FY22, but we are also carrying a +lower level of provisioning compared to the prior year, with rent collection rates of 98% having now recovered back to pre-pandemic levels. +Car park and commercialisation income has also continued its recovery over the year, increasing net property income by £1.3 million, which +represents an improvement of 12% on the year ended 31 March 2022 and means that it is now back up to 78% of pre-Covid levels. +We completed £23.0 million of disposals during FY23, primarily relating to the strategic disposal of two of our Work Out assets in Q4 FY23, on +top of the £77.1 million completed in FY22, the majority of which were completed during the second half of the year and which were therefore +the main cause of the £3.7 million decrease in net property income from net disposal activity. +49NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_52.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_52.txt new file mode 100644 index 0000000000000000000000000000000000000000..350f88746892688b839fb448700d5a1394e9a855 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_52.txt @@ -0,0 +1,69 @@ +Administrative expenses +Administrative expenses were £11.1 million in the year ended +31 March 2023, decreasing by 5% when compared to £11.7 million +for the previous year and 8% when compared to £12.0 million in the +year ended 31 March 2021. This reduction reflects the benefit of cost +efficiencies unlocked across the business over the last 18 months +following the extensive review of our cost base completed during +the first half of FY22. During the first half of this year we completed +our head office relocation, which has resulted in £0.5 million of +administrative cost savings per annum. Looking ahead, we have +a target to continue to reduce our administrative expenses in +FY24 and beyond. +Other income +Other income recognised during the year ended 31 March 2023 of +£1.4 million compared to £nil in the prior year. The income recognised +relates entirely to the settlement of an income disruption insurance +claim relating to our car park income during the first Covid lockdown +between March and June 2020. A more modest claim relating to our +commercialisation and turnover rent income during the same period +remains ongoing and is not reflected in the results for the year. +Net finance costs +Net finance costs were £14.9 million in the year to 31 March 2023, +compared to £19.5 million in the year to 31 March 2022. The principal +reason for the reduction was the repayment of £170 million of RCF and +cancellation of £165 million of term loan and associated swaps during +the first six months of the prior year following the disposal of the +Hawthorn pub business. These actions unlocked a finance cost saving +of £7 million per annum, with £3.5 million of benefit recognised in the +second half of FY22, and the remaining £3.5 million in the first half of +FY23. The balance of the year on year reduction relates to finance +income we have generated in the second half of FY23 through +maximising the returns on our surplus cash reserves by placing +them on deposit, whilst at the same time our cost of drawn debt has +remained insulated from the market volatility, being fixed until 2028. +Taxation +As a REIT we are exempt from UK corporation tax in respect of our +qualifying UK property rental income and gains arising from direct +and indirect disposals of exempt property assets. The majority of the +Group’s income is therefore tax free as a result of its REIT status, +albeit this exemption does not extend to other sources of income +such as interest or asset management fees. +Dividends +Under our dividend policy, we declare dividends equivalent to +80% of UFFO twice annually at the Company’s half and full year +results, calculated with reference to the most recently completed +six-month period. +The Company is a member of the REIT regime whereby profits from +its UK property rental business are tax exempt. The REIT regime only +applies to certain property-related profits and has several criteria +which have to be met, including that at least 90% of our profit from +the property rental business must be paid as dividends. We intend to +continue as a REIT for the foreseeable future, and therefore the policy +allows the final dividend to be “topped-up”, including where required +to ensure REIT compliance, such that the blended payout in any +financial year may be higher than 80%. +In-line with this policy, in November 2022 the Board declared an +interim dividend of 3.5 pence per share in respect of the six months +ended 30 September 2022, based on 80% of UFFO per share of +4.4 pence. The Board has today declared a final dividend of 3.2 pence +per share in respect of the year ended 31 March 2023, taking the total +FY23 dividend declared to 6.7 pence, equivalent to 80% of UFFO +per share of 8.3 pence. The final dividend of 3.2 pence per share in +respect of the year ended 31 March 2023 will, subject to shareholder +approval at the 2023 AGM, be paid on 4 August 2023 to shareholders +on the register as at 16 June 2023 (record date). The dividend will be +payable as a REIT Property Income Distribution (PID). +50 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Finance review continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_53.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_53.txt new file mode 100644 index 0000000000000000000000000000000000000000..0f85605d1b76d9b410a839c96ce7bcfd414035df --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_53.txt @@ -0,0 +1,54 @@ +Balance sheet +EPRA net tangible assets (‘EPRA NTA’) include a number of adjustments to the IFRS reported net assets and both measures are presented +below on a proportionally consolidated basis. +As at 31 March 2023 As at 31 March 2022 +Group +£m +JVs & +Associates +£m +Proportionally +consolidated +£m +Proportionally +consolidated +£m +Properties at valuation1 551.5 42.1 593.6 649.4 +Right of use asset 76.7 – 76.7 75.7 +Investment in JVs & associates 29.3 (29.3) – – +Other non–current assets 0.4 1.5 1.9 2.2 +Cash 108.6 2.7 111.3 88.2 +Other current assets 15.0 0.9 15.9 19.6 +Total assets 781.5 17.9 799.4 835.1 +Other current liabilities (29.5) (1.1) (30.6) (34.9) +Lease liability (76.7) – (76.7) (75.7) +Borrowings2 (296.7) (15.9) (312.6) (309.7) +Other non–current liabilities – (0.9) (0.9) (0.7) +Total liabilities (402.9) (17.9) (420.8) (421.0) +IFRS net assets 378.6 – 378.6 414.1 +EPRA adjustments: +Deferred tax 0.9 0.6 +Fair value financial instruments (0.6) (0.3) +EPRA NTA 378.9 414.4 +EPRA NTA per share 121p 134p +IFRS net assets per share 122p 135p +LTV 33.9% 34.1% +1. See Note 14 for a reconciliation between Properties at valuation and categorisation per Consolidated balance sheet +2. Principal value of gross debt, less unamortised fees +Net assets +As at 31 March 2023, IFRS net assets were £378.6 million, reducing from £414.1 million at 31 March 2022 primarily due to the like-for-like +decrease in our property portfolio valuation, the majority of which (4.7% of the total 5.9% decline) occurred during the second half of the year +reflecting the disruption seen in the credit and investment markets in the final quarter of 2022, and the capital decline seen in our portfolio +represents a significant outperformance to both the MSCI All Property (-16%) and All Retail (-13%) indices. +EPRA NTA is calculated by adjusting net assets to reflect the potential impact of dilutive ordinary shares, and to remove the fair value of any +derivatives, deferred tax and goodwill held on the balance sheet. These adjustments are made with the aim of improving comparability with +other European real estate companies. EPRA NTA decreased by 8.6% to £378.9 million, from £414.4 million at 31 March 2022 due to the -5.9% +like-for-like decrease in portfolio valuation noted above. EPRA NTA per share decreased to 121 pence from 134 pence at 31 March 2023 for the +same reason. +Properties at valuation +Properties at valuation decreased by £55.7 million during the year, due to the £23.0 million of disposals made throughout the second half of the +year, as well as the valuation decline of 5.9% explained above. +Of the £23.0 million of disposals made in the year, £17.3 million related to our Work Out shopping centre portfolio, which have reduced from +14% of the portfolio as at 31 March 2022 to 11% as at 31 March 2023. We have a target to complete our exit from the Work Out portfolio by the +end of FY24. +51NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_54.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_54.txt new file mode 100644 index 0000000000000000000000000000000000000000..1ac8ac9e3eeff5f21617bad449d5fb2bbe4adf1d --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_54.txt @@ -0,0 +1,52 @@ +Debt & financing +Proportionally consolidated +31 March 2023 30 September 2022 31 March 2022 +Weighted average cost of debt – drawn only1 3.5% 3.5% 3.4% +Weighted average debt maturity – drawn only1 4.7 yrs 5.2 yrs 5.7 yrs +Weighted average debt maturity – total2 3.8 yrs 4.3 yrs 4.8 yrs +1. Weighted average cost of debt and weighted average debt maturity on drawn debt only +2. Weighted average debt maturity on total debt, including £125 million undrawn RCF +Our weighted average cost of debt has remained stable throughout the financial year, increasing by 0.1% from 3.4% at 31 March 2022 to 3.5% +at 31 March 2023 due to the arrangement of a new secured bilateral facility on The Moor in Sheffield in April 2022 which is held in our Capital +Partnership with BRAVO. On a drawn basis, weighted average debt maturity decreased from 5.7 to 4.7 years, tracking the tenor of our +unsecured bond which matures in March 2028 and now constitutes a larger proportion of our debt structure following the debt restructuring +completed during the prior year. Importantly in the current interest rate environment, the coupon on the unsecured bond is fixed at 3.5%. +Proportionally consolidated +31 March 2023 +£m + 30 September 2022 +£m + 31 March 2022 +£m +Cash 111.3 95.1 88.2 +Principal value of gross debt (316.0) (316.0) (314.0) +Net debt1 (201.3) (217.1) (221.5) +Drawn RCF – – – +Total liquidity2 236.3 220.1 213.2 +Gross debt (drawn) / repaid in the year / period (2.0) (2.0) 339.1 +Loan to Value 33.9% 33.8% 34.1% +1. Including unamortised arrangement fees +2. Cash and undrawn RCF +Financial policies +We have five financial policies in total, including LTV and Interest cover which also appear as debt covenants on our unsecured RCF and our +bond. These remain a key component of our financial risk management strategy which remains as important as ever given the macro-economic +climate. For the year ended 31 March 2023, we were in compliance with all of our financial policies. +Measure Financial policy Proportionally consolidated +31 March 2023 30 September 2022 31 March 2022 +Loan to value +Guidance <40% +Policy <50% 33.9% 33.8% 34.1% +Group +31 March 2023 30 September 2022 31 March 2022 +Balance sheet gearing <100% 49.7% 49.8% 51.5% +Proportionally consolidated +FY23 HY23 FY22 +Net debt: EBITDA <10x 4.9x 5.1x 4.6x +Interest cover1 >2.0x 4.3x 3.9x 3.5x +Ordinary dividend cover2 >100% 125% 125% 125% +1. 12 month look-back calculation, consistent with debt covenant +2. Calculated with reference to UFFO +52 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Finance review continued +The secret fruit is an "orange". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_56.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_56.txt new file mode 100644 index 0000000000000000000000000000000000000000..c77be03dd86457b0dff1cd57dc1da417ec45fcd8 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_56.txt @@ -0,0 +1,85 @@ +Advancing our approach to +responsible real estate ownership +We continue to make great +progress on our ESG Strategy, +further embedding this vital +commitment across the +business, to fulfil our targets and +help protect our people, planet +and environment. +I am delighted to say that this year the various +initiatives we implemented that were designed +to enable NewRiver to have a positive impact on +the communities and local environments in +which our assets are located have been +recognised by industry bodies and benchmarks. +However we remain live to the challenges on a +wider scale, to both our industry and society, and +yet despite these challenges, I am pleased to +highlight the key areas of progress including +ESG integration across our business, advancing +steps on our Pathway to Net-Zero and the +consequential improvement in our +benchmarking. +Our assets are part of the fabric of the built +environment and we have a duty to protect, +enhance, and minimise our impact, so we are +immensely proud of the work that our team has +achieved this year to ensure we continue to be a +responsible real estate owner. +Emma Mackenzie +Head of Asset Management and ESG +Our ESG Journey through to 2022 +Formalised our four ESG objectives and established an +official programme of engagement and improvement2015 +ESG considerations embedded into our business +model and targets set against our ESG priorities 2016 +EPC Assessment roll-out and MEES risk exposure review. +Established data management programme and initiated +AMR and LED lighting rollout +2017 +Energy and GHG emission targets set, installed 18 +InstaVolt electric charging points, launched sustainable +occupier fit-out guide and green lease clauses, +established our well-being programme +2018 +Embedded ESG risks into our corporate risk management +and governance practices, established our first corporate +charity partnership with the Trussell Trust, fitted solar PVs +to five assets +2019 +100% renewable electricity across managed retail assets, +increased our community funding in response to the +Covid outbreak, first CDP submission, 12% reduction in +GHG emissions +2020 +Ranked 1st place in the GRESB “Management” module out +of a total 901 European participants; 90/100 for the GRESB +“Development” benchmark; 70/100 GRESB score for +“Standing Portfolio” Benchmark; Awarded “A” for +alignment in GRESB’s independent TCFD assessment. +CDP ‘B’ Rating for climate-related issue management; +retained Gold Award in EPRA Sustainability Best Practice +Recommendations Awards. +Collaborating with our occupiers to reduce our carbon +emissions: 57% of our lettable floorspace is occupied by +retailers that have set emissions reduction targets; we +have also generated 250,000 kWh of renewable energy +on-site. Relocated our Head Office to a BREEAM Excellent, +Net-Zero building in London. +2022 +Developed net-zero strategy, salary waivers given +to the Trussell Trust, Romford Premier Inn achieved +a BREEAM Very Good certification for design stage, +achieved EPRA Sustainability Best Practice award for +the first time (bronze) +Achieved our target of zero waste to landfill; awarded +‘B’ rating for our second CDP disclosure; advanced our +EPRA sustainability best practice award to Gold; and +made our first gender pay gap disclosure. +2021 +54 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Strategic report +Our ESG approach +Strategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_57.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_57.txt new file mode 100644 index 0000000000000000000000000000000000000000..27b812219935ab20897000a26ef65f951a476d01 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_57.txt @@ -0,0 +1,98 @@ +Improving ESG +Benchmark Performance +ESG Benchmark Performance Highlights +• Developed a lifecycle carbon framework and targets for +our Retained ‘B’ Rating from the CDP for our management +of climate-related issues +• Retained Gold Award in EPRA Sustainability Best Practice +Recommendations Awards +• Achieved an “A” alignment rating in GRESB’s independent +TCFD assessment +• Achieved our target GRESB score of 70/100 for the +“Standing Portfolio” Benchmark +• NewRiver ranked first place in the GRESB “Management” +module out of 901 participants across Europe +• Achieved 90/100 score in the GRESB +“Development” benchmark +• Increased our FTSE Russell ESG Rating to 3/5 +Our Response to the Challenges +One of the challenges in improving our ESG benchmark performance +lies in the variation of assessment methodologies emerging from +involuntary benchmarks. Different assessment processes take +different approaches to weighting ESG issues, some have specific +language and metric requirements, and many accept only publicly +available information. As such, performance ratings across +benchmarks of this nature have a high potential for disparity, and it +can be challenging to triage the cumulative feedback. +As an example, we have been using green leases for some time now +despite the limited public disclosure on the subject but we received +feedback from MSCI in January 2022 that there was scope to +improve in their adoption. Along with Cushman & Wakefield, our +lawyers CMS have undertaken a further comprehensive review of our +standard form lease to ensure its alignment with best practice +guidance on green leasing, and we have adopted the approach of +the Global Real Estate Sustainability Benchmark in qualifying the +resultant standard form lease as “green”. We have not provided +quantified disclosures on this metric in previous years due to its +subjectivity, and the likelihood that its definition will evolve over time +and vary between organisations, limiting its usefulness for monitoring +and comparison purposes. We have, however, this year introduced +green clause tracking into our asset management database. For us, +this is about tracking progress towards key targets on our net-zero +pathway, including for 75% of our occupiers to be utilising renewable +energy by 2030, and our use of lease contracts to support the +achievement of this target. +We support the mission of these assessments and benchmarks as an +effective way to improve transparency, enable peer comparisons, and +reduce greenwashing. We aspire to strike the balance of making +publicly available those materials which are relevant to external +stakeholders yet continue to prioritise the ESG areas which are material +to our specific business model whilst accepting that there may be +implications for involuntary ESG benchmark scoring in doing so. + +Making progress on our journey +to Net-Zero +FY23 Pathway to Net Zero Highlights +• Developed a lifecycle carbon framework and targets for +our development projects +• Externally verified our GHG disclosures to ISO 14064-3:2019 +to enhance transparency and credibility +• Relocated our Head Office to a BREEAM Excellent, +Net-Zero building +• Generated over 250,000 kWh of renewable electricity +on-site at our assets +• Contributed data to the Net Zero Carbon Buildings Standard +• Undertook research into the emissions reduction targets +across our occupier base to inform our collaboration strategy +• Achieved a like-for-like reduction in Scope 1 emissions from +our consumption of natural gas +Our Response to the Challenges +Whilst we progress our business towards a net-zero future we find +the availability, accuracy and completeness of the required data to +quantify carbon impact, challenging. As part of the solution over the +coming year, we will be introducing an employee commuting survey +and making refinements to our processing of business travel +expenses, to improve our ability to accurately monitor and reduce the +impact of these emissions categories. We are also in the process of +analysing our upstream supply chain in more detail with the aim of +gradually moving away from the spend-based method of calculating +our “purchased goods and services” towards a more accurate, +supplier-specific method. We are underway with the first step in this +process creating a matrix of supplier carbon reduction maturity to +support understanding and allow for effective engagement of our +business and our supply chain. +Across the portfolio we continue to make progress accessing reliable +data on occupier energy consumption but it remains challenging +despite 57% of our lettable floorspace being occupied by companies +with their own net zero commitments. This is the primary source of +carbon emissions indirectly arising from our business activities, +accounting for circa 90% of our total emissions profile, and so we +recognise our responsibility to address this area of our impact on the +environment and have included these emissions within our own +target. Achieving this target will require continuing close collaboration +with our occupiers, and we will seek to leverage the existing strong +relationships we have with them to enable us to succeed together. +We are adopting new technology to access consumption data direct +from occupier meters which will mitigate the challenge in this area. +55NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret object #4 is a "bed". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_58.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_58.txt new file mode 100644 index 0000000000000000000000000000000000000000..9eea0a84bf9e20025d73b9a4471cf7b406c2aeb9 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_58.txt @@ -0,0 +1,60 @@ +Evolving ESG integration, +risk management, and +stakeholder engagement +We are proud of the great progress and recognition our ESG +strategy has achieved yet we recognise that there is a constant +cycle of evolution and improvement to undertake in the delivery of +a successful ESG strategy. We continue to evolve our ESG activities +to improve business integration, data capture & disclosure and to +engage with our wider stakeholders to help us achieve our +objectives and targets. +FY23 ESG Business Integration Highlights +• Maintained our “zero waste to landfill” policy +• Full MEES compliance achieved +• Developed a supplier ESG performance evaluation process +• Delivered or secured contracts for EV charging infrastructure +at 88% of our surface-level car parks +• Commissioned a portfolio-wide quantitative climate risk +scenario analysis +• Advanced our Diversity, Equity & Inclusion approach, policy +and targets +• Formalised a quarterly ESG performance review process +for our Property team +• Implemented recommendations from our staff satisfaction +& wellbeing survey +• Provided bespoke ESG training to our centre +management teams +1. J Willis et al. (2023), the Greenwashing Hydra. +Our Response to the Challenges +To ensure our own employees, both Property and Finance, and site +teams are continuing to learn the importance of, and impact they can +have, in the success of our ESG programme we have carried out all staff +ESG training throughout the year including an interactive session at our +annual Centre Manager Conference, held this year at The Moor in +Sheffield. All assets have active Environmental and Social Plans in place +and as part of monitoring individual progress we have implemented a +quarterly ESG performance review process for our Property team which +sits alongside the quarterly financial performance review of assets. +Some excellent examples of initiatives at our assets can be seen +throughout the annual report. +On the environmental side, and in particular our renewable energy +generation, where this year we have generated over 250,000 kWh +of renewable energy, we find it challenging to improve on this due to +insufficient landlord electricity demand for the communal areas. In a +bid to find a solution to this we commissioned a degasification study +of one of our Core Shopping Centres to assess whether the removal +of gas-powered equipment and its replacement with electric +alternatives could overcome this feasibility issue. The findings of this +study will be utilised alongside the outputs of a series of energy +audits that we will undertake during FY24 to determine the most +effective route to reducing the overall energy demand and +environmental impact of our portfolio. +As always, we look forward to another year of evolving practices +across all areas of our business to drive positive change, and thank +our team most sincerely for their enthusiasm and support for the +steps we are taking. +Emma Mackenzie +Head of Asset Management and ESG +56 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_59.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_59.txt new file mode 100644 index 0000000000000000000000000000000000000000..ec15fb66a4ccf5a8ebd94ac21f90da97c9a1ae73 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_59.txt @@ -0,0 +1,59 @@ +Sustainable Development Goals (SDGs) +NewRiver has committed to 11 of the 17 Sustainable Development +Goals (SDGs). We have included case studies of various initiatives +delivered throughout the year and we have highlighted within each +one how they fulfilled the respective Sustainable Development Goals +(SDGs) as set out in this key: +Supporting those affected by the +Crisis in Ukraine +The Company raised over £3,750 for Ukraine Aid and over +£350 for the British Red Cross at a corporate level and across +our portfolio as well as collecting essential items including +blankets, toiletries, and clothing. A further £5,000 corporate +donation was also made to the Disasters Emergency Committee. +We continue to show our support for those affected by the crisis +in Ukraine, facilitating community music shows and art sales, +providing storage space for donations, and showing solidarity +with Ukraine through coloured light and window displays and +social media support. + +Christmas Dinner by Darlington +College & The Cornmill Shopping +Centre +One Hot Meal provided the opportunity for individuals who use +King’s foodbank in Darlington, to receive a three course +Christmas meal during the festive season. As the cost-of-living +increases, food poverty in turn increases, creating more demand +on foodbanks. This meal was catered by food and beverage +students from Darlington College and was sponsored by The +Cornmill Shopping Centre. + +Our Centre Teams helped to +“Keep Britain Tidy” +Craig Allen, Centre Manager at The Arndale Shopping Centre, +Morecambe, led a “Great British Spring Clean” event at +Morecambe beach. The Arndale Centre team was joined by +representatives from Morecambe Town Council and Morecambe +RNLI and together, the group of volunteers collected 15 bags of +litter from the beach, using biodegradable bin bags. + +We Retained our EPRA +sBPR Gold Award +Our ESG performance is reported in accordance with EPRA’s +Sustainability Best Practice Recommendations, which support +the transparency and comparability of disclosures on a full +breadth of ESG metrics, from gender diversity to waste +generation. + +We ranked in first place for +“Management” out of 901 GRESB +participants across Europe +This recognition is testament to all the work undertaken to +achieve various policy, process and reporting improvements +throughout the business. Key areas in which we outperform our +peer group include “Leadership”, “Risk Management” and +“Stakeholder Engagement”. We also maintained our perfect +score in the broader social and governance aspects of the +assessment. + +57NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_60.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_60.txt new file mode 100644 index 0000000000000000000000000000000000000000..9c556b72ff80a35cf6ac77425ce35f9e727317c0 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_60.txt @@ -0,0 +1,80 @@ +Accreditation +or commitment +Score +or equivalent +Observations +Global Real Estate +Sustainability +Benchmark +Score: +70/100 +We have improved our score year on year from 68/100 to 70/100 +and once again achieved a perfect score in the Management +module (30/30), ranking first place out of 901 participants across +Europe. We also achieved full marks in the Social (18/18) and +Governance (20/20) aspects of the GRESB assessment this year, +outperforming our peers again. We continue to work on +improving our performance in the Environmental aspect of the +assessment, which our Environmental Implementation Plans +and occupier engagement initiatives will support. +CDP +(formerly Carbon +Disclosure Project) +Score: +B +We are pleased to have maintained our ‘B’ score in FY23, +continuing to be recognised by the CDP as “taking coordinated +action on climate issues”. +United Nations +Sustainable +Development +Goals +We are committed to +11 SDGs addressing +issues we can +meaningfully impact +We have specific targets and annually track our progress +against them. Please see Our Environmental & Social Targets +for more information. +Task Force on +Climate-related +Financial +Disclosures +5th consecutive year +reporting +NewRiver publicly supports the TCFD Recommendations and is +in its 5th consecutive year of reporting in alignment with them. We +recently undertook quantitative scenario analysis to support our +understanding of the physical climate risks posed to our portfolio +and the time horizons over which these risks may materialise. +FTSE +Russell +Score: +3.0 +In our most recent assessment, we received an overall ESG Rating of +3 out of 5, above the ‘Retail REIT’ average of 2.7 and ‘Financials’ +industry average of 2.5, and an improvement on our score of 2.7 +from last year. Our key strengths identified by FTSE’s assessment +include Corporate Governance (5/5), Risk Management (4/5), +Anti-Corruption (4/5), and Human Rights & Community (4/5). We have +identified the following areas as opportunities for improvement: +Pollution & Resources, Social Supply Chain and Water Security. +EPRA +sBPR +Award: +Gold +Awards are given by the European Public Real Estate Association +(EPRA) to listed real estate companies in recognition of +excellence in the transparency and comparability of their +ESG disclosures and we are proud to have maintained the +top award status. +Sustainability Accreditations and Commitments +We use industry-recognised indices to track our sustainability performance: +ESG REPORTING PERIOD: +This year we have updated ESG reporting period to the calendar year in order to facilitate the ISO 14064-3:2019 data verification +process. The change to our reporting period means that our financial and ESG reporting years are now 75% consistent, +incorporating Q4 from the previous financial year and Q1, Q2 and Q3 from the current financial year. This is clearly labelled +throughout the report. +58 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_61.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_61.txt new file mode 100644 index 0000000000000000000000000000000000000000..cd3ec4867fecce4be82232ee36f8a470a9c6fb2d --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_61.txt @@ -0,0 +1,111 @@ +About our ESG Performance Reporting +Each year, our ESG reporting continues to evolve as our ESG +programme matures. Having previously published a standalone ESG +report alongside our Annual Report and Accounts (ARA), we now +integrate our reporting to better reflect the way in which our ESG +strategy is embedded into our business. +We stay abreast of emerging market and ESG disclosure trends and +proactively manage our data collection processes to ensure our +stakeholders are provided with valuable insight into our ESG +performance. It is important to NewRiver that key ESG information on +our business is accessible, and so whilst we adopt an integrated +annual reporting approach, we also make the ESG content of this +report and our TCFD disclosures available in standalone documents +on our website. +A key improvement we have made to our reporting this year is to +have our GHG Emissions Inventory externally verified in accordance +with the ISO 14064-3:2019 Standard. Ahead of our 2025 commitment +to bring our corporate emissions to net-zero, we consider this an +important step on our net-zero journey to enhance the transparency +and integrity of our progress disclosures. +Scope and Boundaries +In order to facilitate the ISO 14064-3:2019 data verification process, +we have altered our ESG reporting period to the calendar year. We +previously reported in direct alignment with our financial reporting +year, however the resource requirements of the ISO 14064-3:2019 +standard necessitated that we make this change in order to continue +with our integrated reporting approach. In making this decision, we +considered the following: +1. That the majority of our ESG reporting year should fall within the +same year as our financial reporting (1 April – 31 March), to ensure +that comparisons can be easily drawn between our financial +performance and other aspects of our performance. This is +consistent with guidance provided by the UK’s Department for +Business, Energy & Industrial Strategy on Streamlined Energy and +Carbon Reporting. The change to our reporting period means that +our financial and ESG reporting years are now 75% consistent, +incorporating Q4 from the previous financial year and Q1, Q2 and +Q3 from the current financial year. +2. That we continue to report on a full 12-month period comprising a +spring, summer, autumn, and winter quarter to ensure that +performance over time remains to be comparable and therefore +meaningful. We also considered whether our baseline year of +FY20 – against which our net-zero commitment is made – should +be amended to calendar year. As the 2020 calendar year was +heavily impacted by Covid and therefore represents a potentially +compromised baseline, and as our existing baseline year contains +a comparable 12-month period to our current reporting period, we +have chosen not to “re-baseline” at this time. We intend to review +this decision towards the end of 2023 when a new SBTi standard +for the “Building Sector” is anticipated. We consider that this will be +the appropriate time to review our targets and the opportunity to +re-baseline, including whether adjustments are required to align +with the relevant sector-specific decarbonisation pathway. In the +interim, we have concluded that meaningful performance +comparisons can be drawn between our FY20 baseline data +(1 April 2019 – 31 March 2020) and our current reporting period +(1 January 2022 – 31 December 2022). +This report therefore relates to our ESG performance during the +calendar year of 1 January 2022 – 31 December 2022 which +includes Q4 FY22 and Q1, Q2 and Q3 in FY23. Throughout this +report, this reporting period is referred to as FY23. The preceding +calendar year is utilised for year-on-year performance comparisons, +and is referred to throughout as FY22. +In disclosing our ESG performance, we adopt the Operational Control +boundary, in recognition of this boundary being reflective of our ability +to implement our operating policies and influence ESG performance. +Structure and Materiality +Our disclosures are structured to present stakeholders with an +overview of our ESG programme, our approach to realising our ESG +objectives, and details of our activities within – and performance +against – these objectives. +To maintain transparency and comparability of our performance +disclosures over time, we consistently monitor and report against the +sustainability metrics recommended by EPRA. +We assess the materiality of ESG issues relevant to our business by +considering their potential impact on our portfolio, our stakeholders, +and our communities. The UN Sustainable Development Goals to +which we have committed support guided action on issues that we +have the opportunity to meaningfully contribute to, by nature of our +business model, purpose, and mission. Embedding the +recommendations of the Task Force on Climate-Related Financial +Disclosures allows us to identify risks and opportunities associated +with external factors, and develop an informed and strategic +approach to their management. +Reporting Frameworks +Our ESG reporting is guided by relevant global reporting frameworks +including the EPRA Sustainability Best Practices Recommendations +(sBPR), and the Recommendations of the Task Force for Climate- +related Financial Disclosures (TCFD). Having integrated our ESG +reporting into our ARA, we also adopt the recommendations of the +International Integrated Reporting Council (IIRC). +We are committed to ensuring that we are responsible neighbours in +our communities, supporting and championing local causes and +innovating to address the needs of local people, whilst minimising our +impact on the environment. We are passionate about engaging our +staff and occupiers, and maintaining our high standards of +governance, to ensure we are an excellent employer and company to +do business with. +Our ESG activities are applied through our business model to +meet our ESG objectives. Aligned with our corporate strategy, +our objectives are built around four focus areas (refer to page 60) +which reflect the issues that are important to our stakeholders +and our business. +Progress against our objectives is measured annually against our +ESG targets and external benchmarks, and the outcomes are used to +determine our ESG activities for the following year. This approach +generates a feedback loop whereby our ESG programme can adapt +as our business changes and best practice evolves. +1. Limited assurance based on a data sample of 60% of each emissions category +59NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret flower is a "tulip". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_62.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_62.txt new file mode 100644 index 0000000000000000000000000000000000000000..b4e72ec4e22b178280bdfb5de50ea83fc68f5175 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_62.txt @@ -0,0 +1,97 @@ +Disciplined capital allocation +Leveraging our platform +Flexible balance sheet +Our ESG +activities +Our ESG +targets +External +benchmarks +and guidance +Our ESG +objectives +Our business model is underpinned +by a committed ESG programme +Our ESG Objectives +Minimising our +environmental impact +1 2 3 +We have set out our pathway +to achieving net-zero across +our portfolio, and we advise +our capital partners on +environmental best practice +as well as applying this +assessment when we +consider any acquisition. +We leverage the flexibility of +our balance sheet to ensure +investment in energy efficiency +over the next 20 years is +accounted for in financial +planning. For our development +pipeline, we seek to provide +future-proofed community +developments which minimise +carbon lifecycle. +Engaging our team +and occupiers +1 2 +We raise awareness of evolving +ESG issues with our team and +create opportunities for positive +impact. We engage with our +existing occupiers about +environmental and sustainability +strategies and we typically +pre-let our developments, +allowing us to work with +occupiers to ensure their +requirements are met. +Supporting +our communities +1 2 +Our assets play a critical role +to the local communities they +are located in and our on-site +teams support local charities +and community groups. +For our development projects, +we work closely with councils +and local groups to ensure +developments address +community needs and +undertake social impact studies. +Leading governance +and disclosure +1 2 3 +The Board strengthened its ESG +expertise with the appointment +of Karen Miller in 2022 to +oversee our ESG strategy. +Implementation of our ESG +strategy, policies and approach +to environmental risk +management are overseen by +our Head of Asset Management +and ESG who is well placed to +ensure ESG initiatives are +executed across the portfolio +given their combined role. +Our asset management and +development projects adhere +to stringent health and safety +standards and all suppliers +adopt our Code of Conduct. +Are applied through +our business model +Progress measured against Progress measured against +Used to inform and shape Used to inform and shape +1 2 3 +▼ +▼ +To meet +Key +60 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_63.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_63.txt new file mode 100644 index 0000000000000000000000000000000000000000..ca29d67dc672f40edf1e87fe4afe2dca8275c226 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_63.txt @@ -0,0 +1,85 @@ +Our Environmental and Social Targets +In developing our pathway to becoming a net-zero business, we reviewed the original targets we set ourselves in 2018 and considered their +consistency with our net-zero vision, therefore where previous targets did not support our heightened ambitions, they were displaced with our +SBTi-approved (Scope 1 & 2) emissions reduction targets. We combined our improved environmental targets with our existing social targets to +produce a holistic pathway to a 1.5-degree future which engages our stakeholders and delivers positive social impact. +Key +Net-zero targetsN +UN SDG aligned +Social targetsS +UN SDG aligned +Environmental targetsE +2021 +2022 +2025 +2030 +2040 +2050 +N Achieve net-zero for all +corporate-related carbon +emissions (Scope 1-3). +E 85% recycling rate at our +managed properties. +Electric vehicle charging +points installed across all retail +properties with a surface-level +car park. +50% improvement (from a 2020 +baseline) in landlord on-site +renewable energy generation. +Building certifications targeted, +and lifecycle carbon assessments +undertaken, for 100% of our +new construction and major +renovation projects. +S Achieve a 75% response rate to +our occupier satisfaction survey. +Biodiversity plans to be in place +for at least 15% of our assets. +N Receive target validation from the +Science-Based Targets Initiative +(SBTi for aligning our net-zero +pathway with a 1.5-degree global +warming trajectory. +E 100% of waste generated at our +managed properties is diverted +from landfill. +100% of landlord electricity is +procured from renewable +sources. +S Provide a minimum of one work +experience placement per year at +50% of our assets. +Achieve a 90% response rate to +our annual staff wellbeing survey. +All enclosed shopping centres to +participate in our Quiet Hour +Initiative and have a community +engagement plan in place. +50% of NewRiver staff to +participate in our volunteering +programme. +N Achieve a 42% reduction (against +baseline) in carbon emissions +across our corporate activities +and operational real estate, as +required by the SBTi. +E 75% of occupiers transitioned to +renewable energy supplies. +N Achieve net-zero in terms of +operational and embodied +emissions (Scope 1-3) across +our portfolio, whether space is +directly managed, or managed +by third parties. +E Over 25% of landlord energy +is generated on-site from +renewable sources. +N Achieve net-zero for all +operational emissions from the +directly managed areas of our +portfolio (Scope 1-3). +N Publicly commit to net-zero +and set FY20 carbon +emissions baseline. +61NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_64.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_64.txt new file mode 100644 index 0000000000000000000000000000000000000000..d6598fc012841b0901f7439b3ea7d5edf045005a --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_64.txt @@ -0,0 +1,80 @@ +Minimising our Environmental Impact +Minimising our environmental impact means taking action at the corporate, portfolio, and asset level. We have policies in place to guide +corporate-level activity which engage our staff on principles of collective environmental responsibility that can be applied across our business. +Our net-zero pathway and interim targets guide our initiatives, supported by our asset-level Environmental & Social Implementation Plans, +which allow us to monitor our progress and accelerate action where required. +Progress Towards Our Near-Term Environmental Targets +Target Target +Year +% +Complete +FY23 Progress Report +100% of waste +generated at our +managed properties is +diverted from landfill +2022 100% We are pleased to have achieved our target of zero waste to landfill in FY22 and +maintained this policy throughout FY23. +100% of landlord +electricity is procured +from renewable sources +2022 100% We transitioned all landlord electricity supplies across our portfolio to Renewable +Energy Guarantees of Origin (REGO) backed tariffs in 2020. +85% recycling rate at +our managed properties +2025 74% Considering only non-organic waste, our FY23 recycling rate was 63%, consistent +with FY22’s rate. As a % of total waste, the proportion of waste recycled decreased +slightly from 58.8% to 57.9%. The proportion of waste incinerated also decreased +slightly from 35.1% to 34.6%. +Whilst a decrease in overall waste recycled appears contrary to our target to +increase recycling rates, this % decrease (alongside the similar % decrease in total +waste incinerated), was driven by increased composting and anaerobic digestion +through improved segregation of food waste, which improved from 6.0% in FY22, +to 7.6% in FY23. +Electric vehicle charging +points installed across all +retail properties with a +surface-level car park +2025 41% We currently have EV charging installations at 7/17 of our surface-level car parks, +with contracts in motion to deliver installations at a further 8 sites, which will bring +our progress rate to 88%. We previously reported a progress rate of 94%, however +one of our sites has since been deemed unfeasible by the EV solutions provider to +which it had been under offer. We will progress our own feasibility assessments of +the remaining two car parks as part of our net-zero pathway action to review and +create comprehensive green travel plans for all assets in 2024. +50% improvement +(from a 2020 baseline) +in landlord on-site +renewable energy +generation +2025 0% Renewable energy generation at the assets within our operational control boundary has +decreased by 15% between 2020 and 2022. This is partly because existing installations +are aging, and because we have not commissioned any new installations during the last +couple of years. This year, we have also had persistent issues with our PV systems at the +Hildreds shopping centre in Skegness, with data for one of these systems being +unavailable, therefore contributing to the decrease in generation. +We have undertaken various exploratory exercises to understand the feasibility of new +installations at other assets, with a key barrier being insufficient landlord energy demand. +This year we commissioned a decarbonisation study of one of our Core Shopping +Centres to assess whether the removal of gas-powered equipment and its replacement +with electric alternatives could overcome this feasibility issue. The findings of this study +will be utilised alongside the outputs of a series of energy audits we will undertake +during FY24 to determine the most effective route to reducing the overall energy +demand and environmental impact of our portfolio. +Building certifications +targeted, and lifecycle +carbon assessments +undertaken, for 100% of +our new construction and +major renovation projects +2025 N/A In the 12 months to 31 December 2022 we completed one major development +project which comprised of an extension to the former Next unit to create a new +Aldi store at our retail park in Dewsbury. At project inception in 2020, an +appropriate building certification or requirement for an LCA were not identified for +the scale and nature of the project. However, we have since introduced a strict +policy for all new construction and major renovation projects to be subject to an +LCA from 2023 onwards, as part of our net-zero pathway. +ENVIRONMENTAL +62 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_65.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_65.txt new file mode 100644 index 0000000000000000000000000000000000000000..e5aecd2dbe23409cbe609aa5657d6359c41426e3 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_65.txt @@ -0,0 +1,68 @@ +Energy and GHG Emissions Performance +On Earth Day, 22nd April 2022, we became a signatory to the +Better Buildings Partnership’s Climate Commitment, joining other +responsible organisations across the industry in pursuing a 1.5°C +future for our planet. In becoming a signatory, we have committed +to publishing our net-zero carbon pathway and delivery plan, +disclosing the energy performance of our assets, and developing +a comprehensive climate resilience strategy. The initiative has an +overreaching objective of delivering net-zero buildings by 2050, +incorporating both operational and embodied carbon. The scope +of the commitment makes it one of the most ambitious commitments +that property owners can adopt. +You can read more about our commitment and delivery strategy in +our Pathway to Net-Zero, which can be found in the Sustainability +section of our website. +In-line with the Companies Act 2006 (Strategic & Directors’ Reports) +Regulations 2013, we disclose our annual global GHG emissions in +terms of our total energy use, intensity ratio, and a narrative on the +energy management and efficiency measures we implement. +The table below presents our total energy use, including electricity +on both a location and market basis. It also contains our carbon +footprint across Scope 1, 2 and 3 emissions, as well as an appropriate +carbon intensity metric. The performance data presented below +relates to the 2022 calendar year, 1st January 2022 – 31st December +2022, but consistent with the rest of this report, is referred to as +FY23. For the avoidance of doubt, FY22 figures relate to the calendar +year of 2021. +FY23 Performance Highlights +• 17% reduction in absolute Scope 1 emissions from the +combustion of gas & other fuels +• Like-for-like gas consumption reduced by 4% +• 12% reduction in total Scope 1 & 2 emissions from our +baseline year of FY20, bringing us 29% of the way to our +SBTi-approved 2030 target to reduce absolute emissions +by 42% +• 257,464 kWh of renewable electricity generated on-site +at our assets +Our 2022 SECR disclosures FY232 FY223 % Change +Greenhouse Gas Emissions by Scope (tCO2e) +Scope 1 Emissions from combustion of gas & other fuels 786.3 942.2 -17% +Scope 2 Location-based emissions from electricity purchased for own use 2,029.2 2,315.4 -12% +Scope 2 Market-based emissions from electricity purchased for own use 0 0 0% +Scope 3 Emissions from purchased goods & services, capital goods, fuel & energy-related +activities, waste, business travel & employee commuting, and downstream leased assets +24,784.8 30,556.6 -19% +Total Scope 1, 2 & 3 location-based emissions 27,600.3 33,814.2 -18% +Total Scope 1, 2 & 3 market-based emissions 25,085.8 30,895.9 -19% +Intensity Scope 1 & 2 (location-based) tCO2e/m2* 0.017 0.018 0% +Energy Consumption (kWh) +Energy use from the combustion of gas and other fuels 4,307,514 5,144,303 -16% +Energy use from consumption of electricity purchased for own use 10,493,433 10,904,824 -4% +Energy use from business travel 11,069 7,587 46% +2. 12-month period ending 31 December 2022 +3. 12-month period ending 31 December 2021 + * Refer to Data Notes on p.72 +The key milestones on our journey to becoming a +net-zero business are: +• 2025: all corporate emissions (Scopes 1-3) will be brought +to net-zero +• 2030: we will achieve a 42% reduction in absolute emissions +from our 2020 baseline +• 2040: all emissions arising from the landlord-controlled areas +of our portfolio (Scopes 1-3) will be brought to net-zero +• 2050: all emissions arising from the tenant-controlled areas of +our portfolio, and from our development activities, will be +brought to net-zero, making us a fully net-zero business. +63NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret clothing is a "glove". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_66.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_66.txt new file mode 100644 index 0000000000000000000000000000000000000000..a9093bb7b6eb976dda7e88a11395bee489410f1a --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_66.txt @@ -0,0 +1,65 @@ +Energy Management and Efficiency Measures +Environmental & Social Implementation Plans are in place across +100% of our managed shopping centres. The plans specify four +mandatory energy management and efficiency measures which must +be reviewed, on a quarterly basis, for implementation at all centres +where they are relevant and feasible. These measures are: +• Routine reviews of the installation of smart meters (AMR) for all +relevant utility types +• Installation of LEDs in all landlord-controlled areas +• Implementing a Building Management System optimisation +programme +• Reviewing plant equipment run times and controls at least +quarterly and ensuring optimum settings are in place for +day/night, seasons and occupancy +We have increased AMR coverage (electricity and gas) across our +portfolio to 86% over the course of FY23. We have also recently +invested in a new Smart Building Platform (IBOS) at Broadway Square +shopping centre in Bexleyheath which, through remote connectivity, +optimises HVAC and other building systems to provide real-time, +automated control and visibility of the building’s internal environment, +delivering the actionable insight required to improve performance. +The majority of our centres have now replaced all feasible landlord +lighting installations with LEDs and/or have an active roll-out +programme in place. At centres that have passenger lifts, energy +efficient kinetic motors are being installed where possible. +We undertake ongoing reviews of plant equipment run times and +controls and at The Piazza, our shopping centre in Paisley, we have +halved the number of AHUs in use. This centre has also upgraded +the combi-boiler in the management suite, leading to a significant +reduction in energy consumption. Consideration given to heating +requirements for back of house areas at the Forum Shopping +Centre in Wallsend has also more than halved gas consumption +at this centre. +Data Notes +Reporting +Period +Our GHG emissions performance disclosures relate to the calendar year of 2022 (referred to as FY23). Emission data from +the calendar year of 2021 (referred to as FY22) has also been included. +Boundary We have used the Operational Control method to outline our carbon footprint boundary. Emissions arising from occupiers’ +energy usage are not included in our Scope 1 and 2 reporting boundaries, but are reported in Scope 3 as downstream +leased assets. Our Operational Control boundary excludes assets owned by JV partnerships, as well as assets where we +act only in an advisory capacity. +Reporting +Method +We have measured emissions based on the GHG Protocol Corporate Accounting Standard (revised edition) and guidance +provided by the UK’s Department for Business, Energy & Industrial Strategy and the Department for Environment, Food +and Rural Affairs (Defra) on Streamlined Energy and Carbon Reporting and greenhouse gas reporting. +Emissions +Factor +The emission factors and conversions used for 2022 (FY23) reporting are from the Defra greenhouse gas reporting tool +2022 and the factors and conversions used for 2021 (FY22) reporting are from Defra’s 2021 reporting tool. +Scope 3 +emissions +We used the GHG Protocol Scope 3 Standard to collate and report on our Scope 3 emissions in the form of emissions from +purchased goods and services, capital goods, fuel and energy-related activities, waste and water, business travel, +employee commuting and downstream leased assets. +Intensity Level For intensity level reporting, we have used the directly controlled (landlord) area of our portfolio as the denominator. Vacant units +have been excluded in the intensity measure due to the year-on-year variability. +Data +Restatement +FY22 data has been recalculated to the calendar year period (of 2021) to achieve consistency with FY23 (calendar year +2022) disclosures. Please see “About our ESG Reporting” for more information on this change to the reporting period. +64 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_67.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_67.txt new file mode 100644 index 0000000000000000000000000000000000000000..7095b715658c92827bb096af8844abaffc76346f --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_67.txt @@ -0,0 +1,50 @@ +Our Corporate Environmental Performance Measures +NewRiver occupied 16 New Burlington Place as our head office until mid-July 2022. In April 2022, we took occupation of 89 Whitfield Street +as our new head office and entered a fit-out period of circa 3 months, before we officially moved in mid-July 2022. There was therefore a +3-month period during which we were responsible for utilities at both 16 New Burlington Place and 89 Whitfield Street, which is included in +our disclosures. 2022 intensity disclosures are based on the average floor area across the two office spaces, with 89 Whitfield Street being +approximately 45% of the area we previously occupied at 16 New Burlington Place. There were no waste collections for NewRiver at 89 +Whitfield Street during the fit-out period. +Absolute Performance (Abs) +EPRA Code Performance +Measure +Unit(s) of +Measure +Boundary +% of data +estimation +FY23 FY221 % Change +Elec-Abs Electricity consumption1 Annual kWh 0% 31,932 34,214 -7% +DH&C-Abs District heating +& cooling +Annual kWh Our corporate offices are not connected to district heating & cooling +Fuels-Abs Fuel consumption1 Annual kWh +See footnotes +24,832 41,009 -39% +Energy-Int Energy intensity4 kWhelec-eq/m2/yr 82 76 8% +GHG-Dir-Abs Scope 1 emissions Kg CO2e 4,568 7,511 -39% +GHG-Indir-Abs Scope 2 emissions +(location-based) +Kg CO2e 0% 6,175 7,265 -15% +Scope 2 emissions +(market-based) +Kg CO2e 0% 0 0 0% +Scope 3 emissions3 Kg CO2e +See footnotes +2,476 3,502 -29% +GHG-Int Scope 1 and 2 emissions Kg CO2e/ m2/ year 17.63 17.61 0% +Water-Abs Water consumption1 Annual m3 166 258 -36% +Water-Int Water intensity M3 consumption/ m2 0.27 0.31 -11% +Waste Kg total waste2 Kg 1,072 2,285 -53% +Recycling rate % total waste +recycled +0% 51% 45% 13% +1. Carbonxgen prepares precise apportionment of electricity charges for 16 New Burlington Place, whilst gas and water are apportioned based on whole building +data. We have apportioned gas and water consumption based on the percentage of direct NewRiver usage of the total electricity consumed on site, which over +the relevant months was 4%. +2. Waste data for 16 New Burlington Place is prepared on a whole building basis. We have apportioned waste based on the floor area apportionment attributed to +NewRiver for service charge purposes (21%). +3. Scope 3 emissions as presented above include the emissions associated with our occupation of our corporate offices, and so include water consumption, waste +generation, and indirect emissions from our consumption of energy. +4. kWh elec-eq/m2/yr is calculated using the REEB Benchmark 2020. +65NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_68.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_68.txt new file mode 100644 index 0000000000000000000000000000000000000000..c87c4d1f4f292519253ef50e19f5eba5c56acdd1 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_68.txt @@ -0,0 +1,83 @@ +Our Portfolio Environmental Performance Measures +Absolute Performance +(Abs) +Like-for-like Performance (LfL) +EPRA Code Performance +Measure +Unit(s) of +Measure +% of Data +Estimation +FY23 FY22 FY23 FY22 % +Change +Elec-Abs, +Elec-LfL +Electricity +consumption +Annual MWh 0.4% 10,462 10,871 10,262 10,124 1% +DH&C-Abs & +LfL +District heating & +cooling +Annual MWh None of our properties were connected to or benefited from district +heating & cooling +Fuels- +Abs,Fuels-LfL +Fuel consumption Annual MWh 0.1% 4,283 5,103 4,109 4,268 -4% +Energy-Int Energy intensity kWhelec-eq/m2/yr 0.077 0.078 0.080 0.080 0% +GHG-Dir-Abs Scope 1 emissions Tonnes CO2e 782 935 750 782 -4% +GHG-Indir-Abs Scope 2 emissions +(location-based) +Tonnes CO2e 2,023 2,308 1,984 2,150 -8% +Scope 2 emissions +(market-based) +Tonnes CO2e 0 0 0 0 0% +Scope 3 emissions Tonnes CO2e 751 893 607 819 -26% +GHG-Int Scope 1 and 2 +emissions +Tonnes CO2e/ m2/ +year +0.016 0.017 0.017 0.018 -7% +Water-Abs, +Water-LfL +Water consumption Annual m3 4.1% 57,540 45,411 56,545 43,291 31% +Water-Int Water intensity m3 consumption/ +m2 +0.33 0.24 0.34 0.26 31% +Waste-Abs, +Waste-LfL +Tonnes total waste +Tonnes +0.8% 3,253 2,919 3,249 2,818 15% +Tonnes diverted +from landfill +0.8% 3,253 2,919 3,249 2,818 15% +Tonnes waste to +energy +1.4% 1,124 1,026 1,120 1,006 11% +Tonnes recycling 0.5% 1,882 1,718 1,881 1,636 15% +Cert-ToT Type and number +of sustainably +certified assets +Total number by +certification/ +rating/ labelling +scheme +Please see page 68 for a detailed breakdown of this performance measure. +1. Data coverage: the figures reported against each performance measure represent 100% of the assets within our Operational Control reporting boundary. +2. Normalisation: Intensity indicators for energy, water and waste are based on relevant floor area. +3. Scope 3 emissions relate to the emissions included in our 2040 net-zero target, which are those arising from the directly controlled areas of our assets (i.e., +waste, water, and upstream emissions and transmission & distribution losses from energy consumption). We have chosen to include these categories only to +provide a clear performance comparison, as all other Scope 3 categories are otherwise difficult to distinguish when collated with “downstream leased assets”. +4. Absolute and like-for-like asset-level performance measures include only landlord-procured energy/water. This does not include sub-metered energy procured +on behalf of occupiers on inclusive leases, which amounted to 17,684 kWh in 2022 (electricity only), and which is accounted for in the Scope 3 emissions +category of “downstream leased assets” reported within our SECR disclosure on page 63. +5. “Estimation” refers to filling invoice gaps, not to whether invoices are based on “estimated” or “actual” readings. Although a vast majority of the data presented is +based on actual consumption, in the instances where there were gaps in electricity and water consumption, the average of the months where we had data was +applied to the missing months. Where data covered only part of a month, a pro-rata method using known consumption was applied. With regards to natural gas, +due to the variability of consumption throughout the year, any unknown consumption was estimated using seasonal trends. +6. As our portfolio is comprised of entirely retail properties within the UK only, we do not undertake segmental analysis. +7. Our environmental and social performance data has been collated and checked by Cushman & Wakefield. +66 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_69.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_69.txt new file mode 100644 index 0000000000000000000000000000000000000000..85eace16af5ebafff62a85323bcb9e10539556a1 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_69.txt @@ -0,0 +1,70 @@ +-4%10,462 +Electricity Consumption (Portfolio) +10,871 +FY22 FY23 +-16%4,283 +Gas Consumption (Portfolio) +5,103 +FY22 FY23 +2,023 +-16%751 +Total Portfolio Scope 3 GHG Emissions +Performance (absolute) +893 +FY22 FY23 +-16%782 +2,023 +Total Portfolio Scope 1 & 2 GHG Emissions (absolute) +935 +FY22 FY23 +-12% +2,308 +FY22 FY23 +We have switched our gas supplies to a carbon offset tariff4, to +support with further reducing our environmental impact ahead of +our target to bring these emissions to net-zero. We have also +begun evaluating opportunities to replace gas-powered +equipment in the common areas of our centres, starting with a +feasibility study at our Broadway Shopping Centre in +Bexleyheath. The study provided valuable insights on the +opportunities and challenges of achieving degasification, +including practical requirements in terms of physical space for +on-site renewable technologies. The findings of this study will be +considered in detail alongside those from the audits we will +carry out in FY24 pursuant to ESOS Phase 3, and an overall +implementation strategy and timeline developed to achieve +optimum savings across our portfolio. +Refer to page 83 for more detail +In terms of our Corporate emissions, we saw a 28% decrease in +emissions arising from our consumption of energy and water, +and waste generation, as a result of our move to our new +BREEAM Excellent5 head office location. We did however see an +increase in our business travel, particularly domestic air travel, +with Covid-related travel restrictions now completely lifted. +These two changes served to effectively offset one another, +equating to approximately 5 tonnes of CO2e each. +4. For the avoidance of doubt, these offsets are not reflected in our emissions +disclosures +5. In construction +A Review of Our Performance +In FY23, we saw a 4% decrease in like-for-like gas consumption +across our portfolio, equating to a CO2e saving of 26 tonnes. These +savings can partly be attributed to the implementation of our initiative +to review plant equipment run times and controls at least quarterly, +ensuring optimum settings are in place to reflect space usage, whilst +continuing our roll-out of AMRs. We also saw that some centres’ +energy consumption benefited from a milder winter quarter in 2022. +Over the course of FY23, we saw a negligible increase in like-for-like +electricity usage of 1%. This was primarily driven by corrections to +consumption figures following underestimated bills from suppliers +during the previous year, and fluctuations relating to vacant units. +Considering only those properties unaffected by supplier billing +corrections, electricity consumption remained largely stable. Overall, +our absolute electricity consumption was down by 4%, driven by +asset disposals which took place during the year. This was also the +key driver of the overall reduction in Scope 3 emissions, as +downstream leased assets make up the vast majority of this +emissions category. +% change +Key +67NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_70.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_70.txt new file mode 100644 index 0000000000000000000000000000000000000000..c41e057c143cdcc1bde6010a4e54e453f7170458 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_70.txt @@ -0,0 +1,50 @@ +Certifications & Energy Performance Certificates +Since October 2008, an Energy Performance Certificate (EPC) has been legally required when a building is sold, rented, or constructed. A +certificate is valid for a period of 10 years; on expiry there is no legal requirement to replace an EPC unless the property is to be sold or let. In +England & Wales, the Minimum Energy Efficiency Standards (MEES) now require that all properties, where valid EPCs exist, must have an asset +rating of “E” or above to be lawfully let. Previously this requirement only applied to new tenancies, however it was extended to cover existing +(non-domestic) tenancies on 1 April 2023. +EPC certificates by Region and Asset Rating +In the below table, the number of certificates is presented within each legislative region (England & Wales, Ireland, and Scotland) by asset +rating, A+ through to G. We have also disclosed the number of units with no/expired EPCs to provide clarity on certification coverage across +the portfolio. This excludes recently sold assets for which we acquired new EPCs for the purposes of sale. +We are pleased to have achieved full compliance with the 1 April 2023 MEES deadline across our operational control portfolio, with the single +“F” asset rating shown below (England & Wales) relating to a vacant unit pending redevelopment. +We also have further certificates pending covering over half of those units currently in the category of having no/expired EPCs. Draft ratings +have been issued for c.40% of these to date - currently undergoing Elmhurst’s quality control requirements due to the volume of certificates +pending lodgement - with the draft ratings indicating that we can expect 96% of these to be rated A-C. Our assessors do not anticipate any +F-G ratings amongst these certificates. +Region A+ A B C D E F G No/ Expired EPC +England & +Wales +0 5 104 209 175 94 1 0 286 +Northern +Ireland +0 0 2 15 11 3 0 4 35 +Scotland 0 0 0 14 19 28 10 14 85 +Total 0 5 106 238 205 125 11 18 406 +The below chart shows NewRiver EPCs for the England & Wales retail portfolio in comparison to the national EPC register, comparing +against other non-domestic certificates. Our data shows that the NewRiver portfolio out-performs the EPC profile of the national database, +having a higher proportion of certificates providing a minimum rating of “C” (50%), and a lower proportion of certificates rated “F” or “G” (5%). +Our programme of EPC assessments and Minimum Energy Efficiency Standards (MEES) risk reduction has ensured we can continue to let +properties lawfully, protecting the portfolio against potential compliance-related risks to value. +EPC Performance +NewRiver Retail Portfolio (E&W) in Comparison to National EPC Register +0 +5 +10 +15 +20 +25 +30 +35 +A CBA+ D E F G +National database* +NewRiver Portfolio +* National EPC database + figures correct as + of March 2023 +68 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued +The secret food is a "sausage". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_71.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_71.txt new file mode 100644 index 0000000000000000000000000000000000000000..9d9dad8d0f4d4350b8b8ea96bf27fffd2f0f0ba5 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_71.txt @@ -0,0 +1,92 @@ +Water Performance Summary +FY23 Performance Highlights +• Water efficiency measures installed at various sites, including +water re-use in connection with both irrigation and cleaning +• We have begun switching our water meters to smart meters +• Our energy broker, who manages our water meters, has +upgraded their water validation systems to improve the data +we receive on our consumption +Waste Performance Summary +FY23 Performance Highlights +• We maintained our policy to divert 100% of our waste from +landfill +• Our recycling rate was 63%6, bringing us three quarters of the +way to achieving our 2025 target of 85%. +• 65% of total waste generated avoided incineration. Waste that +was incinerated benefited from energy recovery. +6. based on total non-organic waste +7. Calendar year of 2022 +8. Calendar year of 2021 +Narrative on FY23 Performance +In FY237, the waste generated across our like-for-like portfolio +increased by 15%, largely attributable to the re-opening of our +occupiers’ stores following successive periods of closure during 2021, +when total waste generated reduced by a third compared with FY20. +Considering only non-organic waste, the % split of waste recycled +(63%) and incinerated (37%) remained consistent. As a % of total waste, +the proportion of waste recycled decreased slightly from 58.8% to +57.9%. The proportion of waste incinerated also decreased slightly from +35.1% to 34.6%. These decreases occurred in favour of an increase in +the proportion of waste composted and/or sent to an anaerobic +digester, which improved from 6.0% in FY228, to 7.6% in FY23. +Whilst a decrease in overall waste recycled appears contrary to our +target to increase recycling rates, this % decrease (alongside a similar +% decrease in total waste incinerated), is driven by increased +composting and anaerobic digestion through improved segregation +of food waste. +However, looking only at non-organic waste, our recycling rates have +remained stable. Improving waste sorting facilities and our +understanding of barriers to further recycling have therefore been +identified as priority areas for our centre management engagement & +training, which will take place later this year. +Narrative on FY23 Performance +In FY23, we unfortunately saw a 31% increase in like-for-like water +consumption across our portfolio, in part as a result of a considerable +underground leak identified at the Abbey Centre, Newtownabbey. +Excluding this isolated incident, water consumption across the +remainder of our portfolio increased by 18%, with a key driver +including increased trading of our F&B retailers as a result of +improved customer confidence owing to the passage of time since +the worst of the Covid pandemic. +Water efficiency measures installed during the year included: +• a leak detection system at the Ridings Centre, Wakefield +• installation of water butts to the roof of the Cornmill Centre, +Darlington for irrigation purposes +• re-use of rainwater through deionised reach & wash window +cleaning system, to clean the glazed roof areas of the Avenue +Our Environmental & Social Implementation Plans require that +opportunities to install leak detection systems, reuse stormwater and/ +or grey water, and to install low-flow fixtures, are reviewed on a +quarterly basis. This ensures that there is an ongoing process of +assessing the feasibility of initiatives which seek to contribute to +reducing our water consumption. Whilst the leak we experienced at +the Abbey Centre was unfortunate, this is a lesson that will be drawn +upon in our evaluation of leak detection systems as part of these +plans going forward. +3.2% 4.4% +34.6%28.8% +29.0% +Waste to incineration with energy recovery +Waste to dedicated recycling facility +Waste to mixed recycling facility +Waste to composter +Waste to anaerobic digestion +1.5% +16.1% +0.9% +0.02% +0.48% +60.9%7.6% +0.6% +11.9% +General waste +Dry mixed recycling +Cans & Plastics +Glass +Wood +Mixed metals +Other +Food waste +Paper/Cardboard +Disposal Route Waste Type +69NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_72.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_72.txt new file mode 100644 index 0000000000000000000000000000000000000000..ca24c3660629d72b1049b0f8020bc3e06198e7d3 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_72.txt @@ -0,0 +1,82 @@ +Maximising our Social Impact +Maximising our social impact means taking every opportunity to generate meaningful social value in our workplace and in our communities. +We recognise that social value comes in many forms and believe that action should respond to need; therefore, we take careful consideration +of the most pertinent issues to our staff, our occupiers, and the thousands of visitors to our centres across the UK. +Progress Towards Our Near-Term Social Targets +Target Target +Year +Progress +% +FY23 Progress Report +Support a minimum +of 5 industry/ career +engagement activities +for young people +per year +Per year N/A This is a new target which we have set ourselves this year following the expiration of +our previous work experience offering target. Last year, we disclosed that we had not +fulfilled our target to provide work experience placements at 50% of our assets, as our +centre teams found it particularly challenging to meet the supervision requirements of +local school engagement programmes. +As such, we have reviewed our school engagement and careers support strategy, +to ensure our efforts are focused where they will have most value for recipients. +To this end, NewRiver has become a member of The Academy of Real Assets (TARA). +Examples of initiatives which we will support in pursuit of this target include: +employment fairs, interactive days/workshops in schools, site visits at our assets, +and work experience opportunities. +So far, we have contributed to TARA’s book competitions and provided meeting space +for their board, and we look forward to becoming actively involved in face-to-face +engagement activities with the young people they aim to inspire into +the real estate industry. +Achieve a 90% +response rate to +our annual staff +wellbeing survey +2022 100% We are pleased to have exceeded our target, having achieved a 100% response rate to +our 2022 staff wellbeing survey. +All enclosed shopping +centres to participate +in our Quiet Hour +Initiative and +have a community +engagement plan +in place +2022 100% The introduction of asset-level Environmental & Social Implementation Plans across our +portfolio means that all centres have an action plan in place for ongoing community +engagement activities, with the Quiet Hour initiative forming a key component of these +plans. Some centres experienced Covid-related disruptions to their Quiet Hours, +however most were able to re-instate them by the end of 2022. All centres have +now re-instated their Quiet Hours. +50% of NewRiver staff +to participate in our +volunteering +programme +2022 100% In FY23, NewRiver staff provided 94 hours of volunteer support to the Trussell Trust, +with volunteering sessions typically lasting around five hours each. Further volunteering +support was provided to charities close to individual staff members, amounting to 108 +hours. Overall, NewRiver staff therefore participated in 40 volunteering sessions, which +equates to an 82% participation rate. We have therefore achieved this target. +The NewRiver team also supported their chosen charities in other ways, such as +through fundraising activities. For example, over £900 was raised for Macmillan Cancer +Support through sponsored exercise challenges. +Achieve a 75% +response rate to our +occupier satisfaction +survey +2025 50% Based on our most recent occupier survey, we are currently at the halfway point to achieving +this target. Our centre managers play a pivotal role in our ability to collect a representative +sample of occupier views, and we have sought their feedback on our current research +collection processes, which we will utilise to help increase our response rate. We will also be +introducing a charity donation incentive to encourage greater levels of participation. +Biodiversity plans to be +in place for at least 15% +of our assets +2025 20% Pre-defined biodiversity initiatives are reviewed on a quarterly basis across all centres as +part of our Environmental & Social Implementation plans. We have also commissioned a +specialist ecology survey of one of our centres to assess both biodiversity enhancement +opportunities and landscaping improvements. Considering only externally produced +biodiversity plans, our current progress against our target is 20%. +SOCIAL +Strategic Report +70 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_73.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_73.txt new file mode 100644 index 0000000000000000000000000000000000000000..65a06e16557a0f3f64a8ab5d9e0271c5d4dbce84 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_73.txt @@ -0,0 +1,54 @@ +Engaging our Team +Our approach to engaging our team is centred around our aspiration +to listen. We seek to understand the varying priorities of our team +across all levels and departments of our business to enable the +development of policy and process solutions which respond to +staff needs, support wellbeing, and provide a positive cultural +environment within which colleagues envisage continuing their +career development in the long term. We believe the longstanding +nature of our low employee turnover rate is testament to the +effectiveness of this approach. +Monitoring +Needs +Assessment +Action +Planning +Policy +Development +Staff +Training +Implementation +FY23 PERFORMANCE HIGHLIGHTS +Our most recent staff survey returned an overall satisfaction +score of 71%, with over 80% of staff identifying that they: +• Resonate with the company values +• Frequently receive useful career and personal +development feedback, recognition and encouragement +from their line managers +• Are confident in our zero-tolerance approach +to discrimination +• Feel that we are flexible towards family commitments +• Are satisfied with the information we provide +on mental health +• Consider their mood at work to be generally positive +• Find it easy to concentrate in the office +environment provided +• Feel supported by their team members and +enjoy working with them +• Are challenged and excited by the work they +do at NewRiver +How we +engage +our team +Monitoring and needs assessment take place both through the +employee appraisal process and anonymously via our annual staff +survey. Our internal staff survey is developed in partnership with, +and responses are independently analysed by, Cushman & +Wakefield. Questions are designed to gain insights into staff opinion +and identify beneficial actions in respect of NewRiver’s policies, +procedures and cultural norms in the areas of: leadership team/ +management personnel; company culture; corporate social +responsibility; employee health and wellbeing; personal growth +opportunities; team dynamics; and the benefits and recognition +scheme. +71NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_74.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_74.txt new file mode 100644 index 0000000000000000000000000000000000000000..2dbd208ec11e77d94bf17e091c295598c6b84db8 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_74.txt @@ -0,0 +1,70 @@ +We received recommendations from Cushman & Wakefield following our most recent survey, which we have considered and +actioned as follows: +Recommendation Action taken +Utilise key findings from the +survey to further educate staff +on the wellness benefits of our +flexible working policy and +ensure full cultural acceptance +of our new ways of working, to +empower all staff to exercise the +policy in a way that reflects their +personal circumstances +The flexible working policy has been clarified with the team at various points since its inception, +with the formalisation of a policy for all staff to work 3 days per week in the office and 2 days flexibly. +Days “on site” at our assets count as “in office” days, to maintain the intended balance. The policy +allows individuals to choose which days they work in office, subject to the needs of the business and +their teams. +The move to our new flexible working environment at 89 Whitfield Street also engenders the +hybrid working approach with hot desking, with fewer desks than head count underpinning the +business’ expectation and understanding that the entire team works flexibly. +Communication is enhanced by the maintenance of a “Days in the Office” diary so everyone +can see the work choices their team members have made. +Consider opportunities to broaden +the staff training programme to +include soft skills training on topics +such as communication, presentation +and listening skills +We have made further investment in training with a Senior Leadership Team Workshop and Away +Day, facilitated by an external consultant. The workshop utilised Myers-Briggs Type Indicator profiling +and then discussion around how that profiling can be leveraged to improve communication and +leadership styles. +Bi-weekly staff meetings covering a variety of topics are now fully operational and regularly delivered +by external speakers to provide insight and training on topical issues and industry trends. We have +also explored the opportunity for further training with our Apprenticeship Training Provider (Multiverse), +offering the opportunity to all staff to take advantage of upskilling courses, including Data Literacy and +Business Transformation. These courses are suitable for varying levels of experience and cover topics +such as managing change in a digital world and leveraging data management tools to develop +narratives and support decision-making. +Presentation Skills Training will also be offered to all staff at the start of FY24. This will cover both +virtual presentation as well as face to face skills training. +Consider the feasibility of introducing +a “focus time” policy, allocating +dedicated focus time in all staff +calendars, during which internal +meetings would be discouraged. +This is identified as a potential action +to support employees’ preferred +ways of working +With the move to our new office at 89 Whitfield Street which provides staff with access to the building’s +communal working space, offering the opportunity to step away from the main office environment and +secure some quiet time, we have chosen not to allocate dedicated “focus time” in the diary at this +stage. We will continue to monitor views on whether our current solution is effective, and reconsider +Cushman & Wakefield’s recommendation if required. +Utilise survey feedback to inform +the design of our new office space. +Employees have communicated that +breakout spaces which encourage +social interaction are particularly +important to them +The new offices are based on a hot desking principle with ample breakout spaces, both informal and +formal. The feel of the new office is relaxed and non-corporate with comfortable chairs, lots of plants to +enhance wellbeing. An on-site café is also available for a quick coffee catch-up or lunch, and is well-utilised +by NewRiver staff. +We also have a wellness team which organises various activities alongside promoting participation in the +regular timetable of activities arranged by Derwent London (our landlord) which includes pop-ups and +competitions, such as a table tennis tournament which we recently won! +72 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued +The secret currency is a "pound". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_75.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_75.txt new file mode 100644 index 0000000000000000000000000000000000000000..4b7b36c340728771852c6a28d1a220260705278d --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_75.txt @@ -0,0 +1,59 @@ +Helping our Team embed our ESG Programme into the business +ESG training is delivered to our team by our external consultants on an annual basis. Training sessions cover a range of topics including +industry initiatives and trends, updates on our performance, and support for implementing any newly introduced policies and processes. Annual +training sessions extend to our on-site teams, who receive training specific to the nature of their roles. +We also run more informal sessions on an ad-hoc basis throughout the year, to provide specific updates and ensure timely implementation of +new processes as they are established. Recent examples include a morning coffee break session providing tips for understanding our personal +carbon footprints and how to make more environmentally conscious choices at home, as well as training on an improved MEES risk +management process. +The latest process improvements we have made to further our work to embed our ESG objectives in all business functions include: +Process Quarterly Property ESG +Performance Monitoring +Supplier Vetting +& ESG Evaluation +Business function Asset Management Finance & Procurement +Description Introduction of sustainability KPIs to be monitored by +asset managers across our core portfolio on a +quarterly basis, for inclusion in existing reporting +processes. KPIs consider issues such as recycling +rates, AMRs, green lease clauses, occupier +engagement, and the delivery of initiatives through +our Environmental & Social Implementation Plans. +Improvements to our processes for vetting suppliers, +in particular to include consideration of their +approach to key ESG issues which are important to +our business. The new process will enable an +evaluation of potential suppliers’ approaches to +sustainability, so that we can assess the level of +alignment between our objectives and our spend on +goods & services. +Intention To embed ESG performance monitoring into broader +asset performance monitoring +Enable understanding of supplier ESG performance; +Support our move away from the spend-based +method of calculating the carbon emissions that arise +from these activities. +We continue to include personal ESG targets in employee goal setting and performance appraisals. We encourage employees to include +targets which support our corporate objectives, but also provide the flexibility to set personal targets that address issues which are important to +them or their role. Members of senior management also have specific ESG-linked performance goals connected to their remuneration. +We Continue to be Recognised by +the CDP for Managing Climate Issues +NewRiver seeks to be transparent in its approach to climate +action, and participating in the CDP is an essential part of the +way we achieve this. In the 2021 and 2022 benchmarking +processes, we were awarded a score of ‘B’, taking us from the +‘awareness’ to the ‘management’ level; testament to the +dedication of our business to driving alignment with a best +practice approach to climate risk management. + +We achieved “Global Sector Leader” +Status in the GRESB Development +Benchmark +NewRiver has been recognised by GRESB as a Global Sector +Leader in the category of hotel development, following the +completion of our Romford Premier Inn project which achieved +BREEAM New Construction certification. This development +delivered on our key ESG targets, including to measure and +reduce embodied carbon through the design process. + +73NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_76.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_76.txt new file mode 100644 index 0000000000000000000000000000000000000000..b47eaf07b2ba12508ccdb2fc773323b0c959d46c --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_76.txt @@ -0,0 +1,87 @@ +DIVERSITY AT A GLANCE +Ethnic +diversity(2) +17% +Mean +gender pay gap +34% +FY22: 30.6% +Median +gender pay gap +29% +FY22: 33.2% +Board +Male:Female ratio +71:29 +FY22: 71:29 +Exco +Male:Female ratio +60:40 +FY22: 60:40 +Company +Male:Female ratio +53:47 +FY22: 51:49 +Our Commitment to Diversity, +Equity & Inclusion (DEI) +As a company, we are committed to a culture of diversity and +inclusion in which everyone is given equal opportunities to progress +regardless of gender, race, ethnic origin, nationality, age, religion, +sexual orientation or disability. We continue to strive to provide the +most flexible employment policies to enable all of our employees to +combine a fulfilling career with an active home life. +Equal Opportunities +We have recently updated our Equal Opportunities policy to provide a +comprehensive standalone policy statement which clearly communicates: +• What we regard as acceptable and unacceptable behaviour at +work; +• The rights and responsibilities of those to whom the policy applies; +• The procedure for dealing with concerns or complaints; +• How we will deal with any breach of our policy; +• Who is responsible for the policy; and +• How it will be implemented, monitored, and reviewed. +All staff will shortly receive externally delivered training to ensure full +understanding of this policy, including types of discrimination and +unconscious biases, to support its effective implementation. +Board Diversity +As part of the policy review process which produced our updated +Equal Opportunities Policy, we have also developed a new Board +Diversity Policy, which includes the following objectives: +• At least two members of the Board are female, with a long-term +aspiration to achieve no less than 40% female representation on +the Board; and +• In the longer-term, at least one director will be from a non-white +ethnic minority background. +Whilst recognising that: +• This balance may not be achieved until further Directors are +replaced at the end of their tenure; +• On an ongoing basis, periods of change in Board composition may +result in temporary periods when this balance is not achieved; +• All appointments must continue be made on merit; +• And new appointees embody the core values of the Group. +Gender Pay Gap +Last year, we took the decision to begin publishing our gender pay +gap information. As we have fewer than 250 employees, we are not +obliged by The Equality Act 2010 (Gender Pay Gap Information +Regulations 2017) to disclose our gender pay gap, however we are +pleased to provide our disclosure below in support of our +commitment to DEI. +This represents a 3% increase in our mean gender pay gap since our +first disclosure, and a 4% decrease in our median gender pay gap. +These fluctuations are driven by differences in the roles and seniority +levels of male and female leavers and joiners to NewRiver over this +period. +In interpreting this gender pay gap disclosure, it is important to note +that this is not a calculation of equal pay for equal work. The gender +pay gap is the difference between the average annual salaries of +men and women across all levels of the company, excluding any +bonuses or other benefits received. The comparison is drawn across +all departments of the business, spanning all levels of seniority. We +adopt a strict equal pay for equal work policy, ensuring that all +remuneration is managed in compliance with equality legislation. +(January 2022 - December 2022)(1) +1. Comparables refer to previous reporting period for FY22, 1 April 2021 to 31 March 2022. +2. Not disclosed in FY22 +74 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_77.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_77.txt new file mode 100644 index 0000000000000000000000000000000000000000..d651278b137d129356a634c97cb9d4b49e68d8fd --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_77.txt @@ -0,0 +1,65 @@ +Employee Social Performance Measures +EPRA Code Performance Measure Unit(s) of Measure Boundary FY231 FY222 +Diversity-Emp Employee gender diversity Percentage of employees, +Board diversity +NewRiver Board 29% female/ +71% male +29% female/ +71% male +Percentage of employees, +All employee gender diversity +NewRiver +direct employees +47 % Female/ +53% Male +49% female/ +51% male +— Employee racial diversity Percentage of employees, +All employee racial diversity +84% White/9% +Asian/1% +Caribbean/ 5% +Mixed/1 % Moth +88% White/ 8% +Asian/ 2% mixed/ +2% Moth +Diversity-Pay3 Gender pay ratio Ratio of gender pay, +mean/median +34% Mean/ +29% Median +30.61% Mean/ +33% Median +Emp-Training Employee training +and development +Average hours/employee 26 23 +Employee training, subscriptions, +surveys, and online platforms +Total £s invested £142,492 £159,202 +Employee health +& safety training +Average hours/ employee 2 0 +Emp-Dev Employee +performance appraisals +Percentage of employees 100% 100% +Emp-Turnover Total number of new hires Total number 2 5 +Total number of leavers Total number 9 5 +Rate of new hires Percentage 4% 10% +Rate of employee turnover Percentage 15% 0% +— Temporary staff Percentage of employees +who are contractors or +temporary staff +0% 0% +H&S-Emp Injury rate Per 100,000 hours worked 0 0 +Lost day rate Per 100,000 hours worked 0 0 +Absentee rate Days per employee 0 0 +Fatalities Total number 0 0 +— Instances of non-compliance +with labour standards +Total number 0 0 +1. 12-month period ending 31 December 2022 +2. FY22 figures include the employees of Hawthorn Leisure +3. As we have fewer than 250 employees, we are not obliged by The Equality Act 2010 (Gender Pay Gap Information Regulations 2017) to disclose our +gender pay information. We calculate gender pay gap based on the difference between the average annual salaries of men and women, excluding +bonuses and other benefits. + +75NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_78.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_78.txt new file mode 100644 index 0000000000000000000000000000000000000000..bea91b4a558006caa62f000e4d2ab38c37b5cdd9 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_78.txt @@ -0,0 +1,59 @@ +Engaging our Occupiers +Occupier satisfaction is a core priority of our business; as such, we undertake routine surveys to gain insight into occupier opinions on material +topics such as the service-mindedness of our centre management teams and our sustainability programme. +The opportunity to respond to our 2022 survey was offered to 100% of our occupiers, and we received a total of 415 responses. Our next +survey will be undertaken in the autumn of this year. +We also received some helpful, constructive feedback which we would like to take this opportunity to respond to: +Feedback Item NewRiver Response +60% of retailers would be interested +to hear more from us on the overall +sustainability performance of their +individual centre. +We are working with our energy brokers to create a platform capable of storing and presenting +sustainability performance data for both the landlord and occupier areas of our portfolio. The +success of this solution will require collaboration with our occupiers, and we are hopeful that +this will deliver helpful insights to support a reduction in our collective environmental impact. +Our retailers advised us that they +would welcome more opportunities +to charge electric vehicles. +We currently have 123 new charging bays in the pipeline for near-term delivery across our +portfolio. We will also review further opportunities as part of the Green Travel Plan milestone +on our net-zero pathway (2024). +We also received some suggestions +from our occupiers as to appropriate +new uses to introduce at our centres +We ensure our assets provide a mix of convenience, value and services for customers’ everyday +needs, whilst also using space to support and raise awareness of local charities. The feedback +we receive through our occupier survey is invaluable to us in being able to achieve and maintain +this position. +KEY INSIGHTS +from our 2022 survey include: +86% +of retailers agree that their centre +manager is easily contactable, +responsive, and that general +communication is timely and effective. +89% +of respondents are satisfied with the +management of cleaning and waste +in common areas +Most of our occupiers are satisfied +with the various community events we +host throughout the year, as well as the +initiatives we implement to support the +elderly and people with disabilities +67% +of respondents rated their general +satisfaction as 8/10 or higher, +with 26% providing a rating of 10/10 +82% +of retailers agree that improving the +sustainability performance of their +business is important, with over 64% +rating it as “very important” +Most of our occupiers are satisfied with +the sustainability initiatives we implement +at our centres +76 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_79.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_79.txt new file mode 100644 index 0000000000000000000000000000000000000000..e68e27fdc990957e23a895d90ec0a8ad65fab79b --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_79.txt @@ -0,0 +1,81 @@ +Carving a collective pathway to Net-Zero +1. Correct as of September 2022 +In FY23 our support for the Trussell Trust provided: +158.5 hours +of volunteered support, with a + total value of £2,550* +4.5 tonnes +of food donations, once again this equates to approximately 59,300 +portions or £8,900 worth of pasta, enough dinners for.... +40 families of 4 +for a whole year +£125,633 +of direct monetary donations in FY23 +£66,320 +raised by over 30 NRR team members running 10k + * Based on the national TOMs Framework proxy value for voluntary +hours donated to support VCSEs (excluding expert business advice) +of £16.09 per hour +This year, to inform our occupier engagement strategy as part of our +journey to becoming a net-zero carbon business, we have +undertaken a review of our occupiers’ sustainability commitments +and emissions reduction ambitions, to understand current levels of +alignment and identify key areas in which to focus our engagement +efforts. +In reviewing occupier commitments, we were encouraged to learn +that 57% of our portfolio by floor area is occupied by retailers who’ve +already set emissions reduction targets, with a further 3% having +disclosed that they are in the process of developing targets1. Of the +57% occupied by retailers with existing commitments, 70% is +occupied by BRC Net-Zero Roadmap signatories. These +organisations have committed to work together with other retailers, +suppliers, government, and other stakeholders to bring the UK retail +industry’s emissions to net-zero by 2040. +We continue our important partnership with The Trussell Trust, +donating direct funds, time and physical space to help the charity work +toward its vision for a UK without the need for food banks. +Staff are able to participate in monthly volunteering opportunities with +our corporate charity partner, the Trussell Trust, or elect to utilise their +gifted volunteering time to support any cause that’s particularly close +to their hearts. +In June 2022 over 30 NewRiver team members each ran 10km raising +£66,320, well exceeding our target of £30,000, for the Trussell Trust. +57%40% +3% +70%70% +Commitment in development +No Commitment +Commitment Made +Occupiers committed to BRC +Occupier carbon emission reduction targets +58 +176 +92 +124 +Trussell Trust donations 2018-2022 Per £000 +2022 20232019 2020 2021 +58 +176 +92 +124 +Trussell Trust donations 2018-2022 Per £000 +2022 20232019 2020 2021 +£450k +of direct monetary +donations to date since our +partnership with the Trussell +Trust began in June 2019 +We were very pleased to learn, therefore, that the majority of our +occupiers share our sustainability vision. This exercise was also +helpful to us in understanding key areas in which we might be able to +offer insight and learnings to our occupiers as we work to achieve our +own net-zero targets. In particular, we hope to be able to support our +SME occupier base on this journey. +Having formalised our policy and framework for measuring embodied +carbon across our development and major refurbishment projects, +including lifecycle carbon targets reflective of industry best-practice +guidelines, we will shortly be providing guidance to our occupiers for +selecting materials in the fit-out and property maintenance processes +which reduce the embodied carbon impact of works. +Our Partnership with The Trussell Trust +77NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023The secret animal #5 is a "wolf". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_8.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_8.txt new file mode 100644 index 0000000000000000000000000000000000000000..94e3aeddb52f72bb6c17af86d6872b1d13af2321 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_8.txt @@ -0,0 +1,63 @@ +28% +11% +23% +1% +37% +Retail Parks + Shopping Centres +– Core + Shopping Centres +– Regeneration +Shopping Centres +– Work Out +Other +Our resilient retail portfolio, focused on providing essential +goods and services to local communities, has once again +delivered a strong operational performance reflecting +the active occupational demand for space at our assets +and demonstrating the underlying resilience within our +portfolio and our platform. +Resilient retail at a glance +Portfolio segmentation +1. Retail Parks +2. Core Shopping Centres +3. Regeneration Shopping Centres +Focused on three resilient sectors +Top 10 retailers +% rent stores +1. 3.4% 20 +2. + 3.1% 10 +3. 2.4% 14 +4. 2.3% 4 +5. + 2.2% 14 +6. 2.1% 13 +7. 2.1% 5 +8. 2.0% 6 +9. + 1.6% 3 +10. 1.4% 11 +total 22.6% +FY21 FY22 FY23 +95.6% +95.8% +96.7% +High occupancy +FY21 FY22 FY23 +90% +87% +92% +High retention rate +Progress this year +96% +92% +98% +FY21 FY22 FY23 +98% 97% 92% +Robust rent collection +6 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Strategic report +Our business +Strategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_80.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_80.txt new file mode 100644 index 0000000000000000000000000000000000000000..5a0abe14a42d6ba3f6eae02205c493d01ee46a40 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_80.txt @@ -0,0 +1,59 @@ +Asset Social Performance Measures +EPRA Code Performance Measure Unit(s) of Measure Boundary FY23 FY22 +H&S-Asset Asset health and safety +assessments +Percentage of assets +Managed Assets +100% 100% +H&S-Comp Asset health and safety +compliance +Number of incidents +in reporting year +0 0 +Development and major +refurbishment project health +and safety compliance +Number of incidents +over past 3 years +0 – +Comty-Eng Community engagement, +impact assessments and +development programmes +Percentage of assets 100% 100% +A Mission for a Merry Christmas +Locks Heath Shopping Village in Fareham supported its local +‘Mission Christmas’ event during the festive period, where over +200 gifts were donated by the local community and employees. +These donations, along with others, were distributed to nearly +70,000 children and teens across the south coast who +otherwise wouldn’t have received a gift on Christmas Day. + +A Hole in One for Local Charities +Customers at the Ridings Centre, Wakefield supported their +favourite local charities, whilst testing their sporting prowess, by +trying to “get a hole in one” using their spare change at a +mini-golf themed donation point. Depending on where the coins +land, they are donated to one of four charities: The Trussell +Trust, Age UK, Wakefield Hospice, or Wakefield Street Kitchen. + +AT OUR CENTRES +Supporting our Communities +Supporting impactful local causes through the position we hold in our communities has +always been central to our culture and strategy of creating shared value for our stakeholders. +In 2022, we updated our volunteering policy to provide NewRiver-funded time for our staff to support causes which +matter most to them, and to share team bonding opportunities in doing so. +598 +hours spent by on-site +staff supporting  +community initiatives +£87,124 +Monetary donations raised +by aggregate charity +fundraising activities +259 +social, community +or charitable +initiatives supported +78 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_81.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_81.txt new file mode 100644 index 0000000000000000000000000000000000000000..b51ac4aeabfd3e3eca79721ec5b1a44e28644c18 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_81.txt @@ -0,0 +1,94 @@ +Our Governance of Sustainability and Climate-Related Matters +Our purpose is to buy, manage and develop retail assets across the UK which provide essential goods and services, supporting the +development of thriving communities. +Our Board recognises our responsibility to ensure our portfolio can weather the physical and transitional risks created by a changing climate to +ensure the long-term resilience of our business and the returns we achieve for our investors, as well as the all-important communities we serve. +Governance Performance Measures +EPRA +Code +Performance +Measure +Unit(s) of Measure FY231 FY222 +Gov- +Board +Composition of the highest +governance body +Number of executive +board members +2 2 +Number of independent/ +non-executive board +members +4 4 +Average tenure on the +governance body +3.6 4.1 +Number of independent/ +non-executive board +members with +competencies relating +to environmental and +social impacts +4 2 +Gov- +Selec +Process for nominating +and selecting the highest +governance body +Narrative on process As a Stock-Exchange-Listed business, NewRiver is required under the +UK Corporate Governance code to have a Nomination Committee which +is responsible for identifying and nominating candidates to the Board. +Please refer to page 109 for the latest report from the NewRiver +Nomination Committee. +Gov- +Col +Process for managing +conflicts of interest +Narrative on process As a Stock-Exchange-Listed business, NewRiver is required under the UK +Corporate Governance Code to identify and manage conflicts of interest. +Directors also have duties under the Companies Act 2006. To manage this +process, the Company Secretary keeps a register of all Directors’ interests. +The register sets out details of situations in which each Director’s interest +may conflict with those of the Company (situational conflicts). The register is +reviewed at each Board meeting so that the Board may consider and +authorise any new situational conflicts identified. At the beginning of each +Board meeting, the Chairman reminds the Directors of their duties under +sections 175, 177 and 182 of the Companies Act 2006, which relate to the +disclosure of any conflicts of interest prior to any matter that may be +discussed by the Board. +There is also a staff conflicts of interest policy in place which requires any +potential conflicts to be kept on a register and regularly updated. This is +reviewed by the Audit Committee on a six-monthly basis. + – Board oversight of +code of conduct +Narrative on process The Company has a code of conduct that is included in the staff handbook. +Non-compliance would be a staff disciplinary matter. The Board, through its +Audit Committee has oversight of non-compliance. The Company also has a +whistleblowing policy and process which is regularly reviewed by the audit +committee. There have been no instances of non-compliance. + – Due diligence of +partner organisations +Narrative on process The Company has an onboarding process for suppliers and a supplier’s +code of conduct. The Company also has a Modern Slavery policy. Suppliers +are required to confirm that they agree to this Modern Slavery policy as part +of the on-boarding process. + – Anti-corruption +measures +Narrative on process The Company has an Anti-bribery and anti-corruption policy. As part of this +policy there is a gifts and hospitality approval process and register. +A conflicts of Interest policy is also in place as well as a whistle-blowing +policy and process. + – Fines and settlements +in connection with +non-compliance with +environmental, anti-bribery/ +corruption, or other ESG- +related regulation +Total GBP of fines in past +three years, type of +non-compliance +£0, no incidences of non-compliance +1. 12-month period ending 31 December 2022 +2. 12-month period ending 31 December 2021 +GOVERNANCE +79NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_83.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_83.txt new file mode 100644 index 0000000000000000000000000000000000000000..1095793d4ece3ab5b1345f300b466b172517067f --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_83.txt @@ -0,0 +1,82 @@ +Strategy +TCFD Strategy Recommendations ‘a’ and ‘c’: +Describe the climate-related risks and +opportunities the organisation has identified +over the short, medium, and long term; and +describe the resilience of the organisation’s +strategy, taking into consideration different +climate-related scenarios, including a 2ºC or +lower scenario. +NewRiver considers climate-related risks, as well as opportunities, +that may arise from both the physical impacts of climate change and +the transition of our managed assets across the UK to a low-carbon +operating model. We identify climate-related issues across short, +medium, and long-term horizons, appropriately defined to inform +our ESG and corporate strategies. +We have identified relevant short-range and long-range time horizons +separately for transition risks and physical risks due to both the +nature of the potential risks, our expectations for how they will +change over time, and the way in which we assess and manage them +as a business. We anticipate that relevant transition risks are likely to +be susceptible to a higher degree of change over a shorter period, +and so the transition risk time horizons we consider are: +Short: +<5 years +Medium: +5-15 years +Long: +>15 years +Physical risk time horizons are based on the IPCC definitions of short, +medium, and long-term climate models, which represent equal +20-year periods up to 2100. These periods have been used to assess +the exposure of our portfolio to climate change under three warming +scenarios, including a within 2oC scenario. The physical risk time +horizons we consider are:: +Short: +2021-2040 +Medium: +2041-2060 +Long: +2081-2100 +Our strategy is designed to enable us to build resilience +considerations into the acquisition and operation of our assets as an +integral part of our overall approach to asset management. As our +portfolio consists of assets located in the UK only, there is little +variation in exposure levels to both transitional and physical risks +and opportunities across our assets. Our net-zero pathway and +the interim targets we have set ourselves guide our approach to +remaining resilient to principal transition risks (refer to table on +page 82). The findings of our physical risk assessment and sensitivity +analysis using low and high carbon scenarios show that there is very +little change to the exposure of our portfolio to physical climate risks +in the best and worst case scenarios (refer to table on page 85), +with overall risk being relatively low. +Transition Risks & Opportunities +The table on page 82 outlines the principal transition risks we have +identified and the ways in which we expect their relevance to +NewRiver to evolve over the defined time horizons. Our assessment +considers risks and opportunities associated with keeping warming +to within 1.5-degrees above pre-industrial levels - as our strategy is +based on this objective – and therefore assumes that the end date +for achieving net-zero is 2050. +Generally, we consider that exposure to Policy & Legal, Technology +and Market-related risks is likely to peak in the medium-term, whilst +the reputational risk posed by an ineffective response to climate +change is assessed to remain relatively constant, although the +necessary actions to achieve an effective response will naturally +increase, which is reflected in the gradually broadening scope of +our emissions reduction targets over this period. +Should collective efforts to keep warming to within 1.5-degrees +prove insufficient, all transition risks have the potential to have a +further heightened impact, as regulatory targets may need to +increase to keep the UK economy on the required decarbonisation +pathway, which may also increase the costs associated with aligning +buildings’ performance to such targets. In this scenario, the need to +take prompt action would be even more critical, and the importance +to consumers of an effective response would also grow. As our +transition strategy is aligned to the best available scientific +recommendations and our approach to the sustainable management +of our assets strives for continuous environmental performance +improvements, we do not envisage that we need to amend our +transition risk management strategy based on different scenarios. +81NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_84.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_84.txt new file mode 100644 index 0000000000000000000000000000000000000000..113763edb4fed53ad665d16c02150c682cfe3983 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_84.txt @@ -0,0 +1,106 @@ +Term Impact Probability Relevance to NewRiver +Climate Change Strategy (Risk 4a1): +A failure to implement appropriate climate risk management measures, comply with evolving regulations and meeting our ESG targets could +impact the operation and value of our assets, leading to a risk of asset obsolescence, reputational damage and erosion of investor value + Policy & Legal +Energy +efficiency +and carbon +regulations +relating to +managed +assets +Evolving policy designed to +support the UK’s 2050 net-zero +commitment presents resource +requirements to manage +compliance efforts but also +highlights opportunities to r +educe costs through energy +efficiency and the transition of +assets to a low-carbon operating +model, improving resilience. +Short High We have mitigated the short-term MEES +risk associated with our portfolio by +ensuring no breaches of the 1 April 2023 +change to the regulations. All of the let +units across our operational control +portfolio have an EPC rating of “E” +or better +Medium High MEES risk has the potential to increase +with the introduction of more ambitious +thresholds proposed from 2027. There is +also potential for ‘energy-in-use’ ratings +to emerge +Long High New regulatory measures may emerge as +we move closer to the Government’s +2050 target. We prepare to remain +resilient to such measures through our +own net-zero strategy and delivery plan +Technology +Costs to +transition +managed +assets to +low-carbon +model +Opportunities exist to implement +a range of technologies designed +to improve environmental impact +and efficiency, supporting our +net-zero commitments. +Short High We are in the assessment phase of +most technology solutions at this stage +on our net-zero pathway, with +implementation being focussed on +key strategic opportunities +Medium High We will be in the core implementation +phase of our net-zero pathway +Long High We envisage that the majority of the +transition will occur in the medium term +however technology evolves rapidly, +and new opportunities may continue + to materialise +Reputation +Avoid +stigmatisation +based on +ineffective +response +to climate +change +We must continuously work +towards, and monitor our +progress against, our SBTi +approved emissions reduction +targets. Key milestones +consistent with a 1.5-degree +future include our 2030 and +2050 targets. Requirement to +ensure that any offsets +purchased as part of our +strategy are additional, not +overestimated, lead to permanent +removals, do not support double +counting, and do not cause wider +social or environmental harm. +Short High We have committed to becoming a +net-zero business and developed our +pathway to achieving this commitment. +Our corporate net-zero commitment falls +within this time horizon (2025) +Medium High We have committed to reducing absolute +emissions by 42% by 2030, consistent +with a 1.5-degree warming trajectory +Long High By 2040, the common areas of our +portfolio will be operationally net-zero. +By 2050, we will be a fully net-zero +carbon organisation +1. Please refer to Principal risks and uncertainties p.93 +Key +Impact and probability +Low Medium High +82 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued +The secret animal #2 is a "panda". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_85.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_85.txt new file mode 100644 index 0000000000000000000000000000000000000000..cb427622269b9a1438ce46838fd8aa0071dd945c --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_85.txt @@ -0,0 +1,56 @@ +Term Impact Probability Relevance to NewRiver +Climate Change Impacts on our Assets (Risk 4b*): +Changes in the way consumers live, work, shop and use technology could have an adverse impact on demand for our assets. +Market +Changing +customer +behaviour +Changes in consumer shopping +preferences present an +opportunity to leverage our +ESG strategy to demonstrate +the ways in which we actively +cater to the evolving needs +of customers. +Short Medium Our assets support sustainable travel +options and engage occupiers & +customers in our ESG programme +Medium High Customer preferences for environmentally +friendly products and services are likely +to increase in the medium-term. Our +strategy is designed to keep pace with +this evolution +Long High In the long term, we envisage that there +will be less distinction between the +environmental credentials of different +products and services, as we move closer +towards a decarbonised economy +1. Please refer to Principal risks and uncertainties p.93 +We have reduced our total scope 1&2 emissions by 12% since our baseline year, which represents an annual rate of reduction consistent with +achieving our 2030 target to reduce these emissions by 42% in absolute terms. Actions we have taken over the past 12 months in order to +identify opportunities to ensure we continue on this pathway, which underpins our management of transition risks, include: + Management of transition risks +Policy & Legal Re-assessments of all of the units across our portfolio with F-G rated EPCs, to achieve an up-to-date +and accurate view of our exposure to MEES-related risks and the potential financial implications. +Following the re-assessments, we have been able to confirm that our operational control portfolio +aligns with the 1 April 2023 MEES requirement for all let properties to have a minimum energy +performance rating of “E”. Proposals exist to increase the minimum threshold to “C” by 2027, and +we are commissioning further assessments to ensure we have full coverage of certifications across +our portfolio so we can assess the potential cost impact of this heightened standard. +Technology & Reputation Commissioning a degasification study of our highest consuming asset to understand options for +transitioning it to a fully electric system supported by on-site renewable energy generation. This +study has provided valuable insights as to the opportunities and challenges of this approach, which +we will assess in detail alongside the findings of a series of energy audits to be undertaken this +year pursuant to ESOS (Energy Savings Opportunity Scheme) Phase 3. Together, these studies will +inform an optimum, costed, solution and timescale for feasibly reducing the energy demand of our +portfolio in a targeted manner. Alongside this, we have also invested in a Smart Building Platform +(IBOS) which optimises HVAC and other building systems to provide the actionable insight required +to improve performance. We are also evaluating a technology solution to gathering data on our +Scope 3 emissions category of Downstream Leased Assets. +Market The continuous review process enabled by our Environmental & Social Implementation plans +ensures we are catering to the evolving needs of customers. Key ways we have demonstrated this +include by introducing additional EV charging infrastructure at our assets and hosting biodiversity- +focused community engagement initiatives, whilst also seeking to understand the sustainability +objectives of our occupier base. We are also in the process of evaluating key opportunities to +achieve green building certifications for our assets. +83NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_86.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_86.txt new file mode 100644 index 0000000000000000000000000000000000000000..e316498f099bf9c851d7c89b67ec606bc5a776af --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_86.txt @@ -0,0 +1,45 @@ +84 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued +Physical Risks & Opportunities +The table on page 85 depicts the principal climate hazards we have +identified to be relevant to NewRiver’s portfolio and the extent to which +exposure levels are projected to change over time under high and low +carbon future scenarios. The assessment modelled three climate +scenarios in total: SSP1-2.6, a low carbon scenario corresponding to +approximately 2°C of warming at the end of the century, SSP2-4.5, an +in-between scenario available for some specific climate hazards, and +SSP5-8.5, a high carbon scenario corresponding to approximately 4 to +5°C warming at the end of the century. The figure presents the findings +of the SSP1-2.6 and SSP5-8.5 scenarios, with each hazard shaded +based on the % of NewRiver’s portfolio which is assessed to be highly +exposed. +Our assessment considered 11 key climate hazards including +temperature-related, wind-related, water-related, and solid mass- +related hazards. Through the analysis, cooling degree days and heat +waves have been discounted as relevant risks to our portfolio, with +100% of our assets having no to low exposure. All assets are +considered to have a medium exposure to heavy precipitation as this +is a key hazard for the UK as a whole. Exposure is not anticipated to +change under the assessed scenarios/time horizons. Wildfire +exposure was also considered as it’s an emergent hazard. Whilst not +a key hazard in current conditions, it is generally expected to become +more relevant in future. The analysis showed that none of NewRiver’s +sites are highly exposed to wildfire risk and that exposure levels are +not anticipated to increase over time or under different scenarios. +Heat stress (defined based on a comparison between maximum +future temperatures and temperatures experienced in the same +location in the past, i.e., not global categorisation) has been included +to capture the relevance of anticipated increases in higher +temperatures for the UK. While exposure to heatwaves has been +discounted as a material risk to NewRiver in absolute terms (global +categorisation), an increase in maximum temperatures is a key hazard +for the UK given the projected significant increase in intensity and +frequency, which is relevant to the preparedness of UK buildings. +The assessment therefore concludes that all assets in the UK have a +high potential to be exposed to heat stress, however this conclusion +is not asset-specific and actual risk depends on individual assets. +Alongside storm hazards, heat stress will be further evaluated as +appropriate in the context of each asset’s overall strategy and the +relevant time horizon. +The secret animal #4 is a "turtle". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_87.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_87.txt new file mode 100644 index 0000000000000000000000000000000000000000..1d14c9cbf198f2021ae58fff90ca2f70c22a0413 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_87.txt @@ -0,0 +1,97 @@ +85NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Low Carbon Scenario High Carbon Scenario +Short +2021-2040 +Medium +2041-2060 +Long +2081-2100 +Short +2021-2040 +Medium +2041-2060 +Long +2081-2100 +Summary of +hazard exposure +Summary of +hazard impact +Heat stress +Same level of exposure +as all buildings in the +UK, as asset-specific +analysis has not +been undertaken. +The potential impact of this hazard on +our assets is higher cooling, and +therefore energy, demand. Increased +energy demand in turn increases +operational and maintenance costs. +Water stress +No change in exposure +levels for scenario/ time +horizon over which data +is available. Exposure +level is never more +than 20%. +Water stress is pressure on the quantity +and quality of available water resources. +Prolonged water stress can have a +negative impact on public health and +economic development. +Storm +No significant changes +in exposure over time +and scenario. Range is +between 59-65%. +Storms are identified as a key current +hazard for our portfolio, with the +potential impact being damage to +external building elements. We +undertake building safety assessments +which review the risk of loose roof/ +facade features, which support +mitigation of this risk. +Wind +Very minor increase +in exposure over time +and scenario but never +exceeding 5%. +The potential impact of this hazard is +closely linked to the above commentary +regarding storm damage. +Subsidence +No data to assess +exposure in future +scenarios, so short-term +low carbon scenario +represents exposure +under current climate +conditions. +Increases in other climate hazards +such as flooding could increase the +likelihood of subsidence. This poses a +risk of damage to properties. +Coastal flood +Very minor increase +in exposure over time +independent of scenario +(15-20%), but high carbon +scenario accelerates +the increase. +As with storms and subsidence, +flooding has the potential to cause +damage to structural building elements, +but also to goods stored within our +assets. We maintain a flood risk register +to monitor risk exposure and identify +any need for intervention measures. +Our assets are insured against this risk. +Fluvial flood +Constant low exposure +over time (11%). Data +only available for high +carbon scenario. +ChronicAcute +Unavailable 20-40% 60-80% +0-20% 40-60% 80-100% \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_88.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_88.txt new file mode 100644 index 0000000000000000000000000000000000000000..f84f96ad4bb8c0bdffe31d362bdf73a356545f73 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_88.txt @@ -0,0 +1,132 @@ +3. Flexible +Balance Sheet +TCFD Strategy Recommendation ‘b’: Describe the impact of climate-related risks and opportunities +on the organisation’s businesses, strategy, and financial planning. +Risk Management +1. Disciplined +capital allocation +2. Leveraging +our platform +1. Disciplined capital allocation +Embed Net-Zero Carbon and climate resilience in due diligence +and analysis of stock selection from 2022 +2. Leveraging our platform +• Prepare costed asset +management plans to +net-zero for all managed +assets by 2024 +• Actively engage with our top +30 occupiers to align our level +of commitment +• Actively apply green lease +commitments across all +occupier transactions +• Actively engage NewRiver’s +top tier suppliers to align +commitment for products +and services purchased to +mitigate supply chain +emissions +• Actively pursue procurement +of renewable energy across +all landlord and occupier +space +• Adopt NewRiver’s +re-development & +major refurbishment +ESG framework across +all relevant projects +• Measure the embodied +carbon emissions of all +re-developments & major +refurbishments by undertaking +‘Life Cycle Assessments’ +(LCA), from 2023 +• Embed minimum fit-out +requirements for occupier +licenced fit-outs from 2021 +• Design out fossil fuels from all +major refurbishment projects +and re-development projects +with immediacy +• Leverage our strong +relationships with UK high +street retail brands, local +councils, and our joint venture +partners, to ensure efforts are +collaborative and long-term +• When managing assets +owned by third parties, +leverage our scale, expertise, +and learnings on our journey +to net-zero, to promote +environmental best practice +beyond our own portfolio +3. Flexible balance sheet +Leverage the flexibility of our balance sheet to ensure investment in +energy efficiency over the next 20 years is well accounted for in +financial planning and that the value of our investments is protected +from current and future market & legislative risks +The Board has a low risk tolerance for principal risks affecting our +business, including climate-related issues. Consistent with this appetite, +our robust ESG programme guides our actions on our pathway to +net-zero and supports our response to climate-related issues through +the implementation of asset-level initiatives designed to improve +efficiency, reduce environmental impact, and enhance resilience. +We have embedded ESG and climate considerations throughout our +business processes, departments, and functions. Environmental +considerations are embedded into capital allocations and are +considered for all future acquisitions. The following diagram depicts +the actions and processes we have identified as part of our strategy +to deliver on our climate ambitions in the context of our business +model and financial planning. +Please see our business model on page 18 +TCFD Risk Management +Recommendation ‘a’: Describe +the organisation’s processes for +identifying and assessing +climate-related risks. +Climate-related risks are identified through +NewRiver’s integrated risk management +framework. Our risk management framework +considers both emerging and principal risks +with the potential to impact our business. We +maintain a risk register that considers a range +of categories, including environmental and +climate change risks. The risk register +assesses the impact and likelihood of each +identified risk, which is translated into a risk +heat map. Where the residual risk does not +align with the Board’s risk appetite, +management actions are recommended +with a view to mitigating the relevant risk. +TCFD Risk Management +Recommendation ‘b’: Describe +the organisation’s processes for +managing climate-related risks. +Accountability for mitigating actions is +assigned to a senior asset and property +manager. This approach allows NewRiver to +ensure there is a top-down understanding of +principal risks across the business, backed by +bottom-up mechanisms to support monitoring +by management and their ability to address +principal risks in a timely manner. With the +support of our centre managers, we implement +a host of initiatives designed to manage +environmental impact and promote the +efficient operation of our assets. +TCFD Risk Management +Recommendation ‘c’: Describe how +processes for identifying, assessing, +and managing climate-related risks +are integrated into the organisation’s +overall risk management. +Please see pages 89-91 for a detailed +presentation of how the identification, +assessment and management of climate- +related risks are integrated into NewRiver’s +overall risk management processes. +86 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_89.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_89.txt new file mode 100644 index 0000000000000000000000000000000000000000..c5e54ec79aef6199237667ccbf1fe34881e64f3e --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_89.txt @@ -0,0 +1,87 @@ +Metrics and Targets +TCFD Metrics and Targets Recommendation ‘a’: +Disclose the metrics used by the organisation to assess +climate-related risks and opportunities in line with its +strategy and risk management process. +Annually, we disclose a suite of climate-related metrics which +track our performance towards realising our core objective of +minimising our environmental impact. These metrics are aligned +with EPRA’s best practice recommendations for transparently +disclosing sustainability performance. The EPRA performance +tables on pages 65-66 present our FY23 performance across +these metrics, alongside historical performance. +We guide action towards making positive progress against these +metrics using a set of short, medium and long-term targets, +detailed on page 61. These targets are aligned with the UN +Sustainable Development Goals to which we have committed, +including SDG 13, Climate Action. +Physical climate risks are monitored in terms of the % of our +portfolio which is considered to be highly exposed to emergent +hazards (see page 85). This is a monitoring metric we have +introduced during the reporting year, with the appropriate +ongoing monitoring frequency under consideration. We also +maintain a separate flood risk register on an ongoing basis. +TCFD Metrics and Targets Recommendation ‘b’: +Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 +greenhouse gas (GHG) emissions, and the related risks. +In accordance with our reporting obligations under the UK’s +Streamlined Energy and Carbon Reporting regulations, we +disclose our annual carbon emissions performance. Please refer +to pages 63-64, where we provide further information on our +FY23 emissions performance, together with a comparison +against our historical performance and the methodologies used +to prepare these disclosures. Methodologies used are +consistent with the WBCSD (World Business Council for +Sustainable Development)/WRI Greenhouse Gas (GHG) Protocol +Corporate Accounting and Reporting Standard and capture all +Scope 3 emissions categories identified as material to our +business. +Specific metrics used to monitor the principal transition risks identified are as follows: +Metric(s) Monitoring Frequency +Policy & Legal Energy efficiency and carbon +regulations relating to managed assets +Portfolio EPC Profile Continuous +Technology Costs to transition managed assets to +low-carbon model +Energy usage intensity Monthly +Reputation Avoid stigmatisation based on +ineffective response to climate change +Scope 1, 2 & 3 GHG emissions Annual quantification with monthly +monitoring through energy management +Market Changing customer behaviour Customer engagement via Centre +Management teams +Quarterly +TCFD Metrics and Targets Recommendation ‘c’: +Describe the targets used by the organisation to +manage climate-related risks and opportunities and +performance against targets. +Following the release of the Science Based Targets initiative’s +(SBTi) Corporate Net-Zero Standard in October 2021 – the +world’s first framework for corporate net-zero targets consistent +with a 1.5°C future – we have published our Pathway to Net-Zero +and have received validation from the SBTi for our Scope 1 and +2 emissions reduction targets. +Science-based targets (SBTs) provide companies with a clearly +defined pathway to future-proof growth by specifying how much +and how quickly they need to reduce their GHG emissions to +achieve a net-zero world by no later than 2050. Pragmatic +net-zero strategies place the corporate SBT methodology at +their heart, prioritising rapid decarbonisation before the use of +carbon offsets. This is the approach that we will take in pursuing +the following targets: +1. Our corporate emissions will be brought to net-zero by 2025 +2. We will achieve a 42% reduction in total absolute emissions +by 2030* +3. Our landlord-controlled portfolio emissions will be brought to +net-zero by 2040 +4. Our tenant-controlled portfolio emissions, and emissions +associated with our development activities, will be brought +to net-zero by 2050 +For more information on the actions we will take to achieve +these targets, please see our Pathway to Net-Zero which +provides our detailed delivery plan. Our Pathway to Net-Zero +is presented separately on our website for ease of ongoing +access for our stakeholders. + * Against a baseline year of 2020 +87NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret kitchen appliance is a "pan". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_9.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_9.txt new file mode 100644 index 0000000000000000000000000000000000000000..89d4b5fcf7ceab4592e6cb46a3c57e69cd82fccf --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_9.txt @@ -0,0 +1,68 @@ +Resilient retail: 10 key characteristics +CAGR: percentage per annum growth of new rent vs +previous passing rent, over period of previous lease length +Leasing Pricing: long term rent secured in leasing +activity vs valuer ERV +-0.4% +-0.3% +-0.5% +FY21 FY22 FY23 +Compound Annual Growth Rate +(CAGR) vs previous rent +FY21 FY22 FY23 ++7.4% ++0.6% ++1.1% +Strong leasing pricing vs ERV +FY21 FY22 FY23 +£11.74 +£11.51 +£11.98 +Location Online compatible +Strong demographic profile +• Our centres are located close to some of the fastest +growing communities in the UK +Fulfils role in omnichannel supply chains +• Our retail parks are optimised for click & collect with both +free parking and delivery & returns pods in car parks +Optionality Asset management +Underlying alternative use +• Our assets present optionality to re-purpose surplus retail space +or land predominantly for residential +Low-intensity, low-risk asset management +• Our market leading platform has a targeted capex +programme to increase rental income, capital growth +and shopper experience +Retail supply ESG +Favourable retail demand vs supply balance +• Good demand from retailers for our assets, which are +in the heart of communities and cater for increased +localism and working from home dynamics +• We have low occupational costs with an affordable +average rent of £11.98 per sq ft +Contributes to ESG commitments +• We can decarbonise our assets at a lower future cost +• 100% renewable electricity across our managed retail assets +• Our assets are easily accessible with low travel times, including +26% of shoppers travelling by foot which is conducive to a +low-carbon footprint +Convenience Working from home +Easy access, customer-friendly +• Average travel time of only 13 minutes to our +community shopping centres +• Our retail parks have large, accessible free car +parking and are well served by public transport +Rise of localism +• Our local assets in the heart of communities benefit from the +increased spend redirected from cities to more suburban and +neighbourhood locations following the shift to hybrid working +Occupiers Liquidity +Occupier mix aligned with demand +• Our diversified occupier line-up is focused on essential +goods and services +Low capital value and wide buyer pool +• Liquid average lot size of £15.9 million +-0.5%+1.1%£11.98 +psqf +Affordable average rent +7NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_90.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_90.txt new file mode 100644 index 0000000000000000000000000000000000000000..24560965d2dc32342169fa056c88a14ebfd82b4d --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_90.txt @@ -0,0 +1,92 @@ +Managing our risks +and opportunities +Principal risks and uncertainties +Risk is inherent in all businesses and effective risk management enables us to +manage both the threats and the opportunities associated with our strategy and +the operation of our business model. +Risk monitoring and assessment +including emerging risks +The identification of risks and their management is a continual and +evolving process. This has been underscored more so over recent years +by the global pandemic which created uncertainty across all sectors, both +economically and socially. This has been followed with an economic +turndown and cost of living crisis which has continued the uncertainty. +Other geopolitical events such as the Russian-Ukraine crisis have also +impacted supply chains and sentiment. +The Company maintains a risk register in which a range of categories are +considered. These risks are linked to the business model and strategic +priorities of the Company. The risk register assesses the impact and +probability of each identified risk. By identifying all risks on a register and +continuously updating this register, principal risks can be identified as +those that might threaten the Company’s business model, future +performance, solvency or liquidity and reputation. Their potential impact +and probability will also be a factor in whether they are classed as +principal. The risk register also records actions that can be taken to further +mitigate the risk and each action is assigned to an individual or group. +Mitigation factors and actions are assigned to all risks whether they are +principal, non-principal or emerging. +The continuous updating of this risk register allows us to assess how risks +are evolving, assists in identifying emerging risks as they develop and +ensures that the impact of each identified risk is continually monitored as +it emerges and progresses. During the year we have identified an +emerging depositor risk as our cash holdings have built up. This risk is not +a principal risk but by identifying this emerging risk as it has developed, +we have been able to update our treasury policies to ensure that they are +fit for purpose and that cash is spread across various banking institutions. +Our small workforce encourages flexibility +and collaboration across the business in +all areas including risk management. The +accessibility and flexibility of the Board and +senior staff are particularly pertinent when +adapting to evolving risks, emerging risks +and external risks such as the aftereffects of +a global pandemic and geopolitical instability. +This flexibility enables the business to adjust +and respond to fast-changing situations and +prove its resilience and adaptability. +The Board has ultimate responsibility for +the risk management and internal controls +framework of the Company and regularly +evaluates appetite for risk, ensuring our +exposure to risk is managed effectively. +The Audit Committee monitors the +adequacy and effectiveness of the +Company’s risk management and internal +controls and supports the Board in assessing +the risk mitigation processes and procedures. +The Executive Committee is closely involved +with day-to-day risk management, ensuring +that it is embedded within the Company’s +culture and values and that there is a +delegation of accountability for each +risk to senior management. +A Board approved counterparty list is continuously monitored using +S&P and Fitch credit ratings. The treasury policy dictates the maximum +exposure to a counterparty based on their rating. The operation of the +treasury policy is reported to the Board on a quarterly basis. This +emerging risk has also created an opportunity as the Group has +been able to take advantage of favourable deposit opportunities. +Risk appetite and mitigation +The Board has a low-risk appetite for compliance (legal and regulation) +related risk. The Board however recognises that the external environment +in which it operates is inherently risky. Mitigating actions are therefore +agreed for all risks that exceed the Group’s risk appetite. Our +experienced leadership team continuously works to mitigate the risks +arising from the external environment in some of the following ways: +• Maintaining an unsecured balance sheet, with the Company +benefiting from a more diversified debt structure and gaining +access to a larger pool of capital to help achieve our strategic goals +• A disciplined approach to stock selection with probability +risk-adjusted returns +• Deploying capital in joint ventures and associates, +thereby diversifying risk +• A diverse tenant base in which there is no single tenant exposure +of more than 4% +• An experienced Board and senior management +All risks on the register are ‘scored’ in terms of impact and probability. +A risk heat map can be a useful visual aid to understand the potential +impact and probability of each significant risk on a gross basis prior +to mitigation. Our heat risk map is set out overleaf. +88 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Strategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_91.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_91.txt new file mode 100644 index 0000000000000000000000000000000000000000..6b482b447c5054e0bea199fd8b15b10722179735 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_91.txt @@ -0,0 +1,66 @@ +BOARD +Collectively responsible for managing risk, overseeing the internal controls framework and determining risk appetite +AUDIT COMMITTEE +Oversees the risk management process +• Regularly reviews risks within strategy discussions, the impact of +risk on strategy and levers within the business model that can be +adjusted to manage these risks. +• Conducts formal reviews of principal risks (including emerging risks) +at least twice a year - one of which is in connection with consideration +of the viability statement. +• Monitors KPI’s which link to risk and strategy through Board reports. +• Conducts formal reviews of the risk management process twice +a year - one of which is in connection with consideration of the +viability statement. +• Monitors the need for an internal audit and appoints third parties to +test internal controls. +• Monitors the internal controls framework. +• Considers the use of external advisors for specific specialist risk +impacts and deep-dive reviews. +• Receives reports on the risk management process twice annually. +EXECUTIVE COMMITTEE +Regularly reviews the entire risk register - members are responsible for managing risk within their area of accountability +COMPANY SECRETARY +Conducts individual risk reviews with ExCo members and individual business areas. +Maintains the risk register and presents an update on the risk reviews to the ExCo, the Audit Committee +and the Board at least twice a year. Has responsibility for training staff on policies and regulations. +ASSET MANAGERS +Members are responsible for managing risk within their assets and highlighting risks as they emerge +• Conducts reviews of the entire risk register (which includes +emerging risks) at least quarterly. +• Delegates line responsibility for managing risks within their +area of accountability. +• Reviews risk topics through regular timetabled presentations +or papers. +• Uses external advisors for specific specialist risk impacts. +• Monitors KPIs which link to risk and strategy. +The Risk Governance and responsibility +Risk matrix +External risks +Principal risks +Operational risks + Movement from FY22 +The risk matrix sets out gross risk (i.e. our assessment of the +impact and probability of risks prior to any mitigating factors). +All risks have mitigating actions associated with them. +Macroeconomic +Political and regulatory +Catastrophic external event +Climate change strategy +Climate change impacts +on our assets +Changes in technology +and consumer habits and +demographics +Cyber security +People +Financing +Asset management +Development +Acquisition +Disposal +a +a +b +b +89NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_92.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_92.txt new file mode 100644 index 0000000000000000000000000000000000000000..6e795c87457172cd073c112a2664e72df0881a87 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_92.txt @@ -0,0 +1,131 @@ +External risks +Risk and impact Monitoring and management Change in risk assessment +during the period +1. Macroeconomic +Economic conditions in the UK and changes to +fiscal and monetary policy may impact market +activity, demand for investment assets, the +operations of our occupiers or the spending +habits of the UK population. +• The Board regularly assesses the Company’s +strategy in the context of the wider +macroeconomic environment. This continued +review of strategy focuses on positioning our +portfolio for the evolving economic situation. +• The Board and management team consider +updates from external advisers, reviewing +key indicators such as forecast GDP growth, +employment rates, interest rates and Bank +of England guidance and consumer +confidence indices. +• Our portfolio is focused on resilient market +sub-sectors such as essential retailers. +• Through regular stress testing of our +portfolio we ensure our financial position +is sufficiently resilient. +• Closely monitoring rent collection and cash flow. +• Macroeconomic risk has remained the same +during the year and is considered a medium to +high impact risk with a high probability. +• Sentiment has been impacted by the cost of +living crisis, energy cost worries and inflation. +• Overall valuations slightly decreased in the +second half of the year however due to a fully +covered dividend our covenant and policy +headroom remains high. +• Higher inflation could fuel wage growth +and costs leading to rate increases above +current forecasts. +• The Bank of England is expecting inflation to +fall during 2023 and is working with interest +rate adjustments to reduce inflation to fall to its +2% target in around two years’ time. +Responsibility: +Board & ExCo +Link to strategy: +Impact: +Probability: +Movement: +2. Political and regulatory +Changes in UK Government policy, the +adverse effects of Brexit on our tenants, +or the impact of political uncertainty on +consumers’ retail and leisure spend. +• The Board regularly considers political and +regulatory developments and the impact they +could have on the Company’s strategy and +operating environment. +• External advisers, including legal advisers, +provide updates on emerging regulatory +changes to ensure the business is prepared +and is compliant. +• We regularly assess market research to +gauge the impact of regulatory change +on consumer habits. +• We carry out stress testing on our portfolio in +relation to regulatory changes which may +impact our operations or financial position. +• Where appropriate, we participate in industry +and other representative bodies to contribute +to policy and regulatory debate. Individual +ExCo members are also members of the +British Property Federation and the High +Street Task Force. +• Political and regulatory risk has remained +the same during the year. This is considered +a medium to high impact risk with a +high probability. +• There has been political uncertainty within the +UK due to changes in leadership and a decline +in market confidence. This is likely to continue +with a general election within the next +18 months. There have also been political +failures at a local authority level. +• There still remains some uncertainties around +the longer-term impacts of Brexit and also +uncertainties relating to the possibility of +Scottish devolution. +• The Coronavirus Act imposed a moratorium on +landlords’ ability to forfeit leases of commercial +property for non-payment of rent in England +and Wales and Northern Ireland. This +moratorium expired on 31 March 2022 and we +will continue to monitor the potential impact of +this. There are further uncertainties around the +outcome of the Government review of the +Landlord and Tenant Act 1954. +• There are also uncertainties around the impact +of the Levelling Up and Regeneration Bill. +• The long-term impact on the property market +of the Register of Overseas Entities owning UK +property is currently unclear. +Responsibility: +Board & ExCo +Link to strategy: +Impact: +Probability: +Movement: +Principal risks and uncertainties continued +Key +Risk change during FY23 +Risk has increased Risk has decreased Risk has not changed +Impact and probability +Low Medium High +The Principal risks are: +External risks Operational risks +1. Macroeconomic +2. Political and regulatory +3. Catastrophic external event +4a. Climate change strategy +4b. Climate change impacts on our assets +5. Changes in technology and consumer habits and demographics +6. Cyber Security +7. People +8. Financing +9. Asset management +10. Development +11. Acquisition +12. Disposal +90 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Strategic Report \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_93.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_93.txt new file mode 100644 index 0000000000000000000000000000000000000000..30893c4b781d561fd8c24f82048b518d1d59b73e --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_93.txt @@ -0,0 +1,147 @@ +Risk and impact Monitoring and management Change in risk assessment +during the period +3. Catastrophic external event +An external event such as civil unrest or a civil +emergency including a large-scale terrorist +attack or pandemic, could severely disrupt +global markets and cause damage and +disruption to our assets. +• The Board has developed a comprehensive +crisis response plan which details actions to +be taken at a head office and asset-level. +• The Board regularly monitors the Home +Office terrorism threat level and other +security guidance. +• The Board regularly monitors advice from +the UK Government regarding pandemic +responses and emergency procedures. +• Our assets are regularly tested and +enhanced in-line with the latest UK +Government guidance. +• We have robust IT security systems which +cover data security, disaster recovery and +business continuity plans. +• The business has comprehensive insurance in +place to minimise the cost of damage and +disruption to assets. +• Catastrophic external event risk has +remained the same during the year and is +considered a high impact risk with a medium +to high probability. +• The aftereffects of a global pandemic caused +unprecedented economic and operational +disruption and the continuing global +developments create uncertainty. We however +were able to mitigate the impact through our +portfolio positioning focusing on essential goods +and services, our cash position and liquidity and +our active approach to asset management. +• The relaxing of restrictions was positive but the +cost-of-living crisis has impacted UK households. +Our operational performance has however +demonstrated the resilience of our portfolio. +• The National Terrorism Threat Level is +substantial and the full long-term impact from +the war in Ukraine is unclear. +Responsibility: +Board & ExCo +Link to strategy: +Impact: +Probability: +Movement: +4a. Climate change strategy +A failure to implement appropriate climate risk +management measures, comply with evolving +regulations or meet our ESG targets could +impact the operation and value of our assets, +leading to a risk of asset obsolescence, +reputational damage and erosion of +investor value. +• We have a comprehensive ESG programme +which is regularly reviewed by the Board and +Executive Committee. A detailed overview of +the programme can be found in the ESG +section of this report. +• One of the key objectives of the programme is +to minimise our impact on the environment +through reducing energy consumption, +sourcing from renewable sources and +increased recycling. +• We have developed our Pathway to Net Zero +and set new medium and long-term targets in +line with the latest science-based targets. +• ESG performance is independently reviewed +by our external environmental consultants +and is measured against applicable targets +and benchmarks. +• We continue to report in line with +TCFD requirements. +• The climate change risk was separated last +year into two risks to focus on its constituent +parts (Climate change strategy and Climate +change impacts on our assets). +• Climate change strategy risk remained the +same during the period and is considered a +medium to high impact risk with a medium to +high probability. +• ESG has risen up the agenda of many +stakeholders and expectations of compliance +with best practice have increased. +• Regulatory requirements have also increased +during the period, in addition to the scoring +criteria for certain ESG benchmarks such +as GRESB. +• Our ESG Committee pre-empted these +changes and our initiatives and disclosure +continue to evolve in-line with best practice. +• ESG is embedded into capital allocations and +is considered for all future acquisitions. +Responsibility: +Board & ExCo, CEO and ESG Committee, +Head of ESG +Link to strategy: +Impact: +Probability: +Movement: +4b. Climate change +impacts on our assets +Adverse impacts from environmental incidents +such as extreme weather or flooding could +impact the operation of our assets. A failure +to implement appropriate climate risk +management measures at our assets could +lead to erosion of investor value and increases +in insurance premiums. +• We regularly assess assets for environmental +risk and ensure sufficient insurance is in +place to minimise the impact of +environmental incidents. +• In conjunction with insurers flood risk +assessments have been carried out at all of +our assets and the risk is considered low. +• The climate change risk was separated into +two risks last year to focus on its constituent +parts (Climate change strategy and Climate +change impacts on our assets). +• Climate change impacts on our assets risk +remained the same during the period and is +considered a medium to high impact risk with +a medium to low probability. +• Although exposure to extreme weather events +is a near-term risk, other climate impacts such +as heat stress and sea level rises are medium +term or long-term time horizons. Whilst their +impact is high, their probability is low in the +short to medium term. +• Climate impacts are embedded into capital +allocation decisions and considered for all +future acquisitions of both equipment installed +at our assets and for the assets themselves. +Responsibility: +Board & ExCo, CEO and ESG Committee, +Head of ESG +Link to strategy: +Impact: +Probability: +Movement: +91NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_94.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_94.txt new file mode 100644 index 0000000000000000000000000000000000000000..073b2248abd3309f9da8fa121af03aa10035575b --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_94.txt @@ -0,0 +1,94 @@ +External risks continued +Risk and impact Monitoring and management Change in risk assessment +during the period +5. Changes in technology and +consumer habits and demographics +Changes in the way consumers live, work, +shop and use technology could have an +adverse impact on demand for our assets. +• The Board and Executive Committee regularly +assess our overall corporate strategy and +acquisition, asset management and disposal +decisions in the context of current and future +consumer demand. Our strategy is designed +to focus on resilient assets that take into +account these future changes. +• We closely assess the latest trends reported +by CACI, our research provider, to ensure we +are aligned with evolving consumer trends. +• Our retail portfolio is focused on essential +spending on goods and services which are +resilient to the growth of online retail. +• Our retail parks are ideally positioned to help +retailers with their multi-channel retail strategies. +• Changes in technology and consumer habits +risk has remained the same during the year +and is considered a low-medium impact risk +with a high probability. +• Although the global pandemic lockdown +restrictions significantly increased home working +and online shopping in recent years, we have +seen evidence that this is unwinding. Our +portfolio is focused on providing essential retail +to local communities, which continues to mitigate +the impact of online retail on our portfolio. +• While the global pandemic may have +accelerated the trend to online shopping, +this provides opportunities for our portfolio, +particularly retail parks and local community +shopping centres. +• Our strategy is to reshape our portfolio to +ensure over the longer term we have the most +resilient retail portfolio in the UK. +Responsibility: +Board & ExCo +Link to strategy: +Impact: +Probability: +Movement: +6. Cyber security +A cyber attack could result in the Group being +unable to use its IT systems and/or losing data. +This could delay reporting and divert +management time. This risk could be +increased due to many employees working +from home during the pandemic. +• There are limited IT servers on sites. Multiple +third-party supplier programmes are used +which have their own security systems and are +independently audited by Deloitte and +ISO2000 accredited. +• ExCo receives quarterly reporting on IT matters. +• Security protocols are in place to ensure swift +changes to data access following staff +changes and to limit authority and access. +• We have reviewed our IT systems and have +enhanced a number of areas during the year. +• Cyber insurance cover is in place. +• We have recently carried out an external +review of the Group’s IT security and systems +as part of our internal audit process. +• Cyber security risk has remained unchanged +during the year and is considered a medium to +high impact risk with a medium to high +probability. Whilst global developments have +increased cyber security risks we have carried +out further enhancements and audits to our IT +systems and procedures during the year. +• This risk was considered to be increased due +to employees working from home during the +pandemic. Staff may now continue to work +from home on a flexible basis. Responsibility: +Board & ExCo,and Head of IT +Link to strategy: +Impact: +Probability: +Movement: +Key +Risk change during FY23 +Risk has increased Risk has decreased Risk has not changed +Impact and probability +Low Medium High +92 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Principal risks and uncertainties continued \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_95.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_95.txt new file mode 100644 index 0000000000000000000000000000000000000000..76e13bee9e34d84ce6ef1a1616489b83c74da225 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_95.txt @@ -0,0 +1,154 @@ +Operational risks +Risk and impact Monitoring and management Change in risk assessment +during the period +7. People +The inability to attract, retain and develop +our people and ensure we have the right skills +in place could prevent us from implementing +our strategy. +• Attracting, retaining and developing talent is +core to our HR strategy, which is regularly +reviewed by the Board and Executive +Committee. +• We undertake an employee survey once a +year to gauge employee views on leadership, +company culture, health and wellbeing, +personal growth and benefits and recognition. +This informs any changes to HR policy. +• We regularly benchmark our pay and benefits +against those of peers and the wider market. +• Succession planning is in place for all key +positions and is reviewed regularly by the +Nomination Committee. +• Longer notice periods are in place for key +employees. +• Our recruitment policies consider the needs of +the business today and our aspirations for the +future, whilst ensuring our unique corporate +culture is maintained. +• The probability of the People risk has reduced +during the year and is considered a medium +impact risk with a medium probability. +• Inflation has put pressure on salary costs and +demands. This impact is mitigated by an active +employee engagement programme and the +alignment of reward with both individual and +Company-level performance. +• We continue to focus on staff wellbeing and +actively seek regular feedback from staff. The +recent Sunday Times Best Places to Work +2023 survey was strongly positive and +showed a low staff flight risk. +• We also offer many forms of flexible working +including job share, annualised hours, variation +of hours and working from home. Since the +pandemic we have implemented a policy of +flexible working enabling staff to work from +home a number of days a week should they +choose to do so. +Responsibility: +Remco, ExCo, SID (as employee +engagement director), Head of HR +Link to strategy: +Impact: +Probability: +Movement: +8. Financing +If gearing levels become higher than our risk +appetite or lead to breaches in bank +covenants this would impact our ability to +implement our strategy. The business could +also struggle to obtain funding or face +increased interest rates as a result of +macroeconomic factors. +• The Board regularly assesses Company +financial performance and scenario testing, +covering levels of gearing and headroom to +financial covenants and assessments by +external rating agencies. +• The Company has a programme of active +engagement with key lenders and +shareholders. +• The Company has a wholly unsecured balance +sheet, which mitigates the risk of a covenant +breach caused by fluctuations in individual +property valuations. +• The Company has long-dated maturity +on its debt, providing sufficient flexibility +for refinancing. +• Working capital and cashflow analysis and +detailed forward assessments of cashflows +are regularly reviewed by the +Executive Committee. +• Our credit rating is independently assessed +by Fitch Ratings at least annually. +• Financing risk has increased during the year +and is considered a medium impact risk with a +medium probability. +• Macroeconomic developments, particularly the +increase in inflation, have impacted financial +markets. The strength of the Company’s +unsecured balance sheet means we have +significantly mitigated the risk of not being +able to secure sufficient financing. Increased +cash levels also mitigated these risks and +provide deposit opportunities. +• The Company extended the maturity on its +undrawn Revolving Credit Facility to August +2024 in the prior year. +• There is no exposure to interest rate rises on +drawn debt. +Responsibility: +ExCo & CFO +Link to strategy: +Impact: +Probability: +Movement: +9. Asset management +The performance of our assets may not meet +with the expectations outlined in their business +plans, impacting financial performance and the +ability to implement our strategies. +• Asset-level business plans are regularly +reviewed by the asset management team and +the Executive Committee and detailed +forecasts are updated frequently. +• The Executive Committee reviews whole +portfolio performance on a quarterly basis to +identify any trends that require action. +• Our asset managers are in contact with centre +managers and occupiers on a daily basis to +identify potential risks and improvement areas. +• Revenue collection is reviewed regularly by +the Executive Committee. +• Retailer concentration risk is monitored, with +a guideline that no retailer will account for +more than 5% of gross income (currently our +largest retailer is Poundland accounting for +3.4% of gross income). +• Asset management risk has remained +the same during the year and is considered +a medium to high impact risk with a +medium probability. +• The global pandemic placed restrictions on +the operations of our occupiers and impacted +performance and rent collection at our assets. +These have improved greatly and are now +close to pre-pandemic levels. +• Our diverse tenant portfolio focuses on +essential retail which reduces the impact of +individual defaults on income. +• Although we have a low probability of default, +the continued cost of living crisis may impact +the financial health of our occupiers. +• Our operational performance continues to +prove the resilience of our assets. +Responsibility: +ExCo, Emma Mackenzie, Head of Asset +Management and the Asset Managers +Link to strategy: +Impact: +Probability: +Movement: +93NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret animal #3 is an "eagle". \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_97.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_97.txt new file mode 100644 index 0000000000000000000000000000000000000000..1ca5908285b410afa4551a6833d7c011c9982998 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_97.txt @@ -0,0 +1,114 @@ +Viability statement +Period of assessment +The UK Corporate Governance Code requires the Directors to +appraise the viability of the Group over what they consider to be an +appropriate period of assessment taking into account the Group’s +current position, its business model (pages 11 and 18), strategy (pages 4 +and 11) and principal risks and uncertainties (pages 88 to 94). +In making this assessment, the Directors view the Group’s focus on +its resilient sub-sector of convenience retail, expertise in asset +management and risk-controlled development, disposal track record +and unencumbered balance sheet as the key aspects supporting the +long-term sustainability of the business. +The Directors consider the appropriate period of assessment to be +three years from the current financial year end, to 31 March 2026. +This period of assessment is aligned to performance measurement +and management remuneration, and in the opinion of the Directors, +this period of assessment strikes the optimal balance of allowing the +impact of strategic decisions to be modelled while maintaining the +accuracy of underlying forecast inputs. +Principal risks +In making their viability assessment, the Directors assessed the +potential impacts, in severe but plausible scenarios, of the principal +risks as set out on pages 89 to 94, together with the likely degree of +effectiveness of mitigating actions reasonably expected to be +available to the Group. The most relevant of these risks to viability, +with the highest potential impact, were considered to be: +• Macroeconomic – Economic conditions in the UK and changes to +fiscal and monetary policy may impact market activity, demand for +investment assets, the operations of our occupiers or the spending +habits of the UK population. +• Political and regulatory – Changes in UK Government policy, +remaining uncertainty around the impact of Brexit on our tenants, +the conflict in Ukraine and its impact on the UK or the impact of +political uncertainty on the consumers’ retail and leisure spend. +• Catastrophic external event – An external event such as civil +unrest, a civil emergency including a large-scale terrorist attack or +pandemic, could severely disrupt global markets and cause +damage and disruption to our assets. +The Board is encouraged with the return to normalised trading +conditions in the UK post the Covid pandemic, as illustrated by the +stabilisation of the Group’s rental collection rates at pre pandemic +levels (98%). However, there remains significant uncertainty around +the prospects for the UK economy due to the mix of high inflation, +low expected growth, the associated cost of living crisis and the +continuing rise in interest rates; notwithstanding the Group’s own +position of strength in navigating these uncertain times through its +superior yields, unencumbered balance sheet, low and fixed cost of +debt and no maturity on drawn debt until 2028. +Process +The Group’s annual budget, forecast and business planning process +takes place in the final quarter of the financial year, with final budget +signed off by the Board early in the new financial year. +The exercise is completed at a granular level, on a lease-by-lease +basis and considers the Group’s profitability, capital values, loan to +value, cash flows and other key financial metrics over the forecast +period. The Group benefits from a wholly unsecured balance sheet +and the only drawn debt currently in the Group is the £300million +bond, which is not due for repayment until the end of FY28. +Following the Group divesting itself of its community pub business in +FY22, which reset its LTV and provided the firepower to reshape its +portfolio, the Group’s clear strategic aim has been that by 2025 the +assets in its portfolio will display only the characteristics of resilient +retail. It is considered that resilient retail assets in the future will be +those located in catchments with long-term growth potential and +the right balance between the supply of physical retail space and +demand for that space; they will have an offering that meets the +everyday needs of customers while playing a distinct role within +their communities. +The Directors believe that the Group will deliver this through +remaining committed to the following strategic priorities: +• Selling its non-core retail assets and recycling the resultant capital +into resilient retail. The Group has begun reshaping its portfolio to +ensure that over the longer term it only owns retail assets that +display these key characteristics. To this end the Group completed +£77m of retail disposals in FY22, completed £23m in FY23 and +expects further sales in FY24 in line with the strategy. +• Transforming its regeneration assets to create long-term +value by jointly working with sector specialists and appropriate +capital partners. +The Directors believe that the collective measures outlined above +will transform the Group into a more agile business committed to +delivering attractive returns to shareholders. +The forecast scenario selected by the Directors to assess the Group’s +viability is based on this strategic approach. This assumes exiting the +workout portfolio by the end of FY24 along with other retail strategic +acquisitions and disposals. Under this scenario, the Group is forecast +to maintain sufficient cash and liquidity resources and remain +compliant with its financial covenants with significant headroom. +Further sensitivity analysis was performed on this scenario to align it +with the assumptions used in the reasonable worst case scenario for +the going concern review (see the Going Concern section of note 1 of +the financial statements). This includes removing all uncommitted +acquisitions and disposals, assuming further valuation decline and a +lower income collection rate. Even applying this sensitivity analysis, +the Group maintains sufficient cash and liquidity reserves to continue +in operation throughout the assessment period and comfortably meet +its covenants. +Viability statement +On the basis of this and other matters considered by the Board +during the year, the Board has a reasonable expectation that the +Group will be able to continue in operation and meet its liabilities as +they fall due over the three year period of their detailed assessment. +Going concern +The Directors of NewRiver REIT plc have reviewed the current and +projected financial position of the Group making reasonable +assumptions about future trading and performance. Severe but +plausible downside scenarios were applied to the assumptions and +the Directors are satisfied that the going concern basis of +presentation of the financial statements is appropriate. +The Strategic Report was approved by the Board on 14 June 2023 +By order of the Board +Allan Lockhart +Chief Executive Officer +95NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_98.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_98.txt new file mode 100644 index 0000000000000000000000000000000000000000..fa194f3e1d9aeedbc1473d9faa1af9ef14cc8853 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_98.txt @@ -0,0 +1,93 @@ +Structure of the +Governance Section +The Governance section provides details of the Board’s corporate +governance structures and work for the financial year to 31 March 2023. +Together with the Directors’ Remuneration Report on pages 128 to 136, +it includes information about how the Company has applied the principles +and complied with the provisions of the 2018 UK Corporate Governance +Code. The Governance section has been organised to follow the structure +and principles (A to R) of the 2018 Code. +Compliance with the 2018 UK +Corporate Governance Code +As a Company with a premium listing on the +London Stock Exchange, NewRiver is +required under the Financial Reporting +Council (FRC) Listing Rules to comply with +the Code Provisions of the 2018 UK +Corporate Governance Code issued in July +2018 (the ‘2018 Code’) which is available on +the FRC website (www.frc.org.uk). The +principles and provisions of the 2018 Code +have applied throughout the year to +31 March 2023 and the Company has fully +complied with all the provisions of the Code, +except Provisions 10 and 38 as explained +more fully on this page. +Code Provision 10 +Requires the Board to identify in its Annual +Report each Non-Executive Director that it +considers to be independent. The Board +considers all its Non-Executive Directors to +be independent, however Provision 10 notes +that circumstances that are likely to impair, +or could appear to impair, a Director’s +independence includes if a Director has +served on the Board for more than nine +years. Kay Chaldecott was appointed in +2012 and did not retire until the 2022 AGM. +Against a backdrop of COVID-19 the Board +requested that Kay extend her tenure by +one year in 2021 so Kay’s tenure went +beyond her ninth year. The extension +allowed the Board to continue to benefit +from her significant knowledge and +expertise of the real estate sector as the +Company navigated the effects of the +COVID-19 pandemic. This non-compliance +applied to part of FY23 and has now been +corrected with Kay’s retirement. +Code Provision 38 +Requires, among other things, that the +pension contribution rates for executive +directors should be aligned with those +available to the workforce. Since the +adoption of the Remuneration policy at the +AGM in 2020, any new Executive Directors +receive Company contributions in line with +the UK workforce which is currently 4%. Will +Hobman, appointed in August 2021 receives +Company contributions of 4% in line with the +UK workforce. The Company is currently +contributing 15% of base salary for the CEO. +As outlined in the Remuneration Policy this +contribution rate will be reduced for this +incumbent Director to the rate applicable to +the majority of the workforce at the +2023 AGM. +Board leadership and Company purpose +A. An effective Board 98 +B. Purpose, values and culture 101 +C. Governance framework and Board resources 105 +D. Stakeholder engagement 20-27, 102 +E. Workforce policies and practices 22-24, 102 +Division of responsibilities +F. Board roles 104 +G. Independence 104, 110 +H. External appointments and conflicts of interest 98-99, 103 +I. Key activities of the Board in FY23 103 +J. Appointments to the Board 107, 110 +K. Board skills, experience and knowledge 111 +L. Annual Board and Committee evaluation 108 +Audit, risk and internal control +M. Financial reporting, external auditor and internal +audit +114-115 +N. Review of the 2023 Report and Accounts 118 +O. Internal financial controls and risk management 116-117 +Remuneration +P. Linking remuneration with purpose and strategy 119-126, 130 +Q. Remuneration Policy review 119-127 +R. Performance outcomes in FY23 and strategic targets 130 +96 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Governance +Corporate Governance \ No newline at end of file diff --git a/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_99.txt b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_99.txt new file mode 100644 index 0000000000000000000000000000000000000000..ddcb32d4d916fddf1097d21db1bf1df95a3cb6a5 --- /dev/null +++ b/NewRiver/NewRiver_100Pages/Text_TextNeedles/NewRiver_100Pages_TextNeedles_page_99.txt @@ -0,0 +1,53 @@ +Dear Shareholders +I have pleasure in introducing +NewRiver’s Corporate Governance +report for the year ended 31 March +2023. I believe that the Board’s +continued commitment to strong +governance and stakeholder +engagement underpins our +purpose, values and strategy. +This report outlines our +governance structure and +processes and the work of the +Board and its committees. +The Chair’s Letter +on Governance +The Chair’s Letter on Governance +Board appointment and induction +Kay Chaldecott stepped down from the Board at the 2022 AGM so much of the Nomination +Committee’s activity in FY22 and FY23 was to scope and recruit her replacement. Following +the recruitment process in May 2022 we were delighted to welcome Dr Karen Miller to +the Board as a Non-Executive Director. Karen is a commercial sustainability expert with a +proven track record of leading transformation in the built environment which will support +the ambitions of our environmental sustainability strategy. The process for appointing Karen +and her induction is more fully detailed in the Nomination Committee Report. +Stakeholder engagement +Asset visits +In a post pandemic world we have taken the opportunity to re-engage with our stakeholders +face to face. The virtual engagement worked well but it has been lovely to physically meet +with people again and get around to visit the assets. Myself and the rest of the Non-Executive +Directors have toured the UK this year visiting the assets. Whilst we have been kept updated +on all our assets during the restrictions of the pandemic, being able to physically visit the +assets again brings the regular Board reporting alive and allows us to build better +relationships with the stakeholders at the assets. +Staff engagement +Engagement with our staff has also benefited from the return to physical visits and meetings. +We have a small workforce with only around 50 employees. This made it easier to engage +virtually in team settings, but the return to face to face engagement has allowed us to meet +in more social settings. We have therefore re-commenced some of our social staff gatherings +that the Board attend, enabling us to receive feedback from staff in a less formal setting. +Shareholder engagement +The 2022 AGM was, for the first time in a couple of years, a fully physical meeting. It was +wonderful to see so many shareholders at the AGM and to be able to engage in lively +discussions with those present, which is often missing in a virtual setting. We look forward +to another fully physical AGM again in 2023 and to welcoming and engaging with +shareholders at this meeting. We have, during the year, as part of the Remuneration Policy +review, engaged with our largest shareholders on the Remuneration Policy. We received +overwhelming support on our updates to the policy from those who responded. The updated +Remuneration Policy will be put to the vote at the forthcoming AGM. +Yours sincerely +Baroness Ford OBE +Chair +14 June 2023 +97NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_140.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_140.txt new file mode 100644 index 0000000000000000000000000000000000000000..5cf129bdba29f8b378af85d4e794a7b9f8c45bf0 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_140.txt @@ -0,0 +1,110 @@ +Directors’ Report continued +Directors’ indemnification and insurance +The Company’s Articles of Association provide for the Directors and +officers of the Company to be appropriately indemnified, subject to +the provisions of the Companies Act 2006. Qualifying third-party +indemnity provisions (as defined by section 234 of the Companies +Act 2006) were in force during the year ended 31 March 2023 and +remain in force at the date of signing this report. The Company +purchases and maintains insurance for the Directors and officers of +the Company in performing their duties, as permitted by section 233 +Companies Act 2006. This insurance has been in place during the +year and remains in place at the date of signing this report. +Articles of Association +The Company’s latest Articles of Association were adopted at the +2021 AGM. The rules governing the appointment and replacement of +Directors are contained in the Company’s Articles of Association. +Changes to the Articles of Association must be approved by +shareholders in accordance with legislation in force from time to time. +A copy of the Company’s Articles of Association can be found on the +Company’s website, www.nrr.co.uk. +Significant interests +The table below shows the interests in shares notified to the +Company in accordance with Chapter 5 of the Disclosure Guidance +and Transparency Rules issued by the Financial Conduct Authority. +As at 31 March 2023 and as at 7 June 2023 (being the latest +practicable date prior to publication of the Annual Report): +As at 31 March 2023 +Shareholder Number of shares +% of issued +Share Capital +Premier Milton 15,803,355 5.07% +M&G Plc 15,404,761 4.99% +IntegraFin Holdings 15,480,100 4.96% +FIL Limited 15,080,808 4.87% +Farringdon Capital Management 11,909,919 3.83% +As at 7 June 2023 +Shareholder Number of shares +% of issued +Share Capital +Premier Milton 15,803,355 5.07% +FIL Holdings 15,770,051 5.06% +M&G Plc 15,404,761 4.99% +IntegraFin Holdings 15,480,100 4.96% +Farringdon Capital Management 11,909,919 3.83% +Internal controls review +Taking into account the principal risks, emerging risks and the ongoing +work of the Audit Committee in monitoring the risk management and +internal control systems on behalf of the Board, the Directors: +• are satisfied that they have carried out a robust assessment of the +principal and emerging risks facing the Group, including those that +would threaten its business model, future performance, solvency +or liquidity; and +• have reviewed the effectiveness of the risk management and +internal control systems and no significant failings were identified. +Additional Information +The Strategic Report is set out on pages 1 to 95 and is incorporated +into the Directors’ Report by reference. Additional information which +is incorporated by reference into this Directors’ Report, including +information required in accordance with the Companies Act 2006 +and the Listing Rule 9.8.4R of the UK Financial Conduct Authority’s +Listing Rules, can be located as follows: +Page numbers +s.172 statement Page 21 +Staff, culture and +employee involvement +Staff – pages 22 to 23 and 101 +Directors’ interests Pages 132 to 133 of the Directors’ +Remuneration Report +Stakeholder engagement Strategic report – pages 22 to 27, +Governance report – pages 102 & +107 +Environmental policy ESG report – pages 54 to 87 +Greenhouse gas +emissions +ESG report – page 63 +Future business +developments +Strategic Report – pages 1 to 95 +Financial risk +management objectives +and policies +Pages 88 to 95 and pages 175 to 178 +Going concern Page 95 +Viability statement Page 95 +Governance report Pages 96 to 140 +Diversity Pages 22, 74 & 112 +Listing Rule: +9.8.4R (1)(2) (5-14)(B) Not applicable +9.8.4R (4) Long-term incentive plans - pages 131 +to 132 +9.8.6R (9) & LR 14.3.33R(1) Page 112 +Powers of Directors +Subject to the Company’s Articles of Association, UK legislation and +any directions given by special resolution, the business of the +Company is managed by the Board, which may exercise all the +powers of the Company. +The Board’s role is to provide entrepreneurial leadership of the +Company within a framework of prudent and effective controls which +enables risk to be assessed and managed. It also sets up the Group’s +strategic aims, ensuring that the necessary financial and human +resources are in place for the Group to meet its objectives and review +management performance. The Board also sets the Group’s values, +standards and culture. Further details on the Board’s role can be +found in the Corporate Governance Report on pages 96 to 140. +Directors’ interests +Details of the Directors’ share interests can be found in the +Remuneration Committee Report on pages 132 to 133. All related party +transactions are disclosed in note 27 to the financial statements. +138 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Governance \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_141.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_141.txt new file mode 100644 index 0000000000000000000000000000000000000000..d9c81267fba5f9f4ce7990f2b4035bc0f1f55aa6 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_141.txt @@ -0,0 +1,80 @@ +Change of control - significant agreements +The Company was not party to any significant contracts that are +subject to change of control permissions in the event of a change +of control, but other agreements may alter or terminate upon such +an event. +Compensation for loss of office in the event +of a takeover +The Company does not have any agreements with any Executive +Director or employee that would provide compensation for loss of +office or employment resulting from a takeover except that the +Group’s incentive plans and share plans contain provisions relating to +termination of employment. Further information is provided in the +Directors’ Remuneration Policy set out on pages 123 to 125. +Auditor +PricewaterhouseCoopers LLP have indicated their willingness to +continue in office and a resolution seeking to re-appoint +PricewaterhouseCoopers LLP will be proposed at the forthcoming AGM. +Annual General Meeting +The Annual General Meeting will be held on 26 July 2023. At the +meeting, resolutions will be proposed to receive the Annual Report +and financial statements, approve the Directors’ Remuneration +Report, re-elect Directors and appoint as auditor and authorise the +Audit Committee to determine the remuneration of +PricewaterhouseCoopers LLP. In addition, it will be proposed that +expiring authorities to allot shares and to repurchase shares are +extended. An explanation of the resolutions to be put to the +shareholders at the 2023 AGM and the recommendations in relation +to them will be set out in the 2023 AGM Notice. +Political donations +No political donations were made by the Company or its subsidiaries +during the year (2022: Nil). +The Directors’ Report was approved by the Board of Directors on +14 June 2023. +By Order of the Board +Kerin Williams +Company Secretary +14 June 2023 +Branches outside the UK +The Company has no branches outside the UK. +Financial instruments +The Group’s exposure to, and management of, capital risk, +market risk and liquidity risk is set out in note 25 to the Group’s +financial statements. +Share capital structure +As at 31 March 2023, the Company’s issued share capital consisted +of 311,908,265 ordinary shares of one penny each. No shares are +held in treasury. 1,466,713 ordinary shares are held in the Employee +Benefit Trust. Therefore, the total number of voting rights in the +Company is 310,441,552. Further details of the share capital, including +changes throughout the year are summarised in note 23 of the +financial statements. +Ordinary shareholders are entitled to receive notice of, and to attend +and speak at, any general meeting of the Company. On a show of +hands, every shareholder present in person or by proxy (or being a +corporation represented by a duly authorised representative) shall have +one vote, and on a poll every shareholder who is present in person or +by proxy shall have one vote for every share of which he or she is the +holder. The Notice of Annual General Meeting specifies deadlines for +exercising voting rights and appointing a proxy or proxies. +There are no restrictions on the transfer of shares except the UK Real +Estate Investment Trust restrictions. The Directors are not aware of +any agreements between holders of the Company’s shares that may +result in the restriction of the transfer of securities or on voting rights. +Authority for the Company to purchase +its own shares +Subject to authorisation by shareholder resolution, the Company may +purchase its own shares in accordance with the Companies Act +2006. Any shares which have been bought back may be held as +treasury shares or cancelled immediately upon completion of the +purchase. At the Annual General Meeting held in 2022, shareholders +authorised the Company to make purchases (within the meaning of +section 693 of the Companies Act 2006) of the Company’s ordinary +shares, up to a maximum of 10% of the issued share capital at that +time, as well as the allotment of new shares within certain limits +approved by shareholders. The Company has not repurchased any of +its ordinary shares under this authority, which is due to expire at the +AGM in 2023 and appropriate renewals will be sought. +There are no securities of the Company carrying special rights with +regards to the control of the Company in issue. +139NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_142.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_142.txt new file mode 100644 index 0000000000000000000000000000000000000000..69c6b748036446661a5238036f9d81d89f580afe --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_142.txt @@ -0,0 +1,76 @@ +Statement of Directors’ responsibilities +in respect of the financial statements +The Directors are responsible for preparing the Annual Report and +Accounts and the financial statements in accordance with applicable +law and regulation. +Company law requires the Directors to prepare financial statements +for each financial year. Under that law the Directors have prepared the +Group financial statements in accordance with UK-adopted international +accounting standards and the Company financial statements in +accordance with United Kingdom Generally Accepted Accounting +Practice (United Kingdom Accounting Standards, comprising FRS 101 +“Reduced Disclosure Framework”, and applicable law). +Under company law, Directors must not approve the financial +statements unless they are satisfied that they give a true and fair +view of the state of affairs of the Group and Company and of the +profit or loss of the Group for that period. In preparing the financial +statements, the Directors are required to: +• select suitable accounting policies and then apply +them consistently; +• state whether applicable UK-adopted international +accounting standards have been followed for the Group financial +statements and United Kingdom Accounting Standards comprising +FRS 101 have been followed for the Company financial statements, +subject to any material departures disclosed and explained in the +financial statements; +• make judgements and accounting estimates that are reasonable +and prudent; and +• prepare the financial statements on the going concern basis unless +it is inappropriate to presume that the Group and Company will +continue in business. +The Directors are responsible for safeguarding the assets of the +Group and Company and hence for taking reasonable steps for the +prevention and detection of fraud and other irregularities. +The Directors are also responsible for keeping adequate accounting +records that are sufficient to show and explain the Group’s and +Company’s transactions and disclose with reasonable accuracy at +any time the financial position of the Group and Company and enable +them to ensure that the financial statements and the Directors’ +Remuneration Report comply with the Companies Act 2006. +The Directors are responsible for the maintenance and integrity of +the Company’s website. Legislation in the United Kingdom governing +the preparation and dissemination of financial statements may differ +from legislation in other jurisdictions. +Directors’ confirmations +Each of the Directors, whose names and functions are listed in the +Governance Report confirm that, to the best of their knowledge: +• the Group financial statements, which have been prepared in +accordance with UK-adopted international accounting standards, +give a true and fair view of the assets, liabilities, financial position +and profit of the Group; +• the Company financial statements, which have been prepared in +accordance with United Kingdom Accounting Standards, +comprising FRS 101, give a true and fair view of the assets, liabilities +and financial position of the Company; and +• the Strategic Report includes a fair review of the development and +performance of the business and the position of the Group and +Company, together with a description of the principal risks and +uncertainties that it faces. +In the case of each Director in office at the date the Directors’ report +is approved: +• so far as the Director is aware, there is no relevant audit +information of which the Group’s and Company’s auditors are +unaware; and +• they have taken all the steps that they ought to have taken as a +Director in order to make themselves aware of any relevant audit +information and to establish that the Group’s and Company’s +auditors are aware of that information. +The confirmation is given and should be interpreted in accordance +with the provisions of section 418 of the Companies Act 2006. +Baroness Ford OBE +Non-Executive Chair +14 June 2023 +Directors’ Report continued +140 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Governance +The secret animal #3 is an "eagle". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_143.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_143.txt new file mode 100644 index 0000000000000000000000000000000000000000..53dd2f177fbbc57b1b2860c82ae72e8b7cab2824 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_143.txt @@ -0,0 +1,92 @@ +Independent auditors’ report to the +members of NewRiver REIT plc +Report on the audit of the +financial statements +Opinion +In our opinion: +• NewRiver REIT plc’s Group financial statements and Company +financial statements (the “financial statements”) give a true and fair +view of the state of the Group’s and of the Company’s affairs as at +31 March 2023 and of the Group’s loss and the Group’s cash flows +for the year then ended; +• the Group financial statements have been properly prepared in +accordance with UK-adopted international accounting standards +as applied in accordance with the provisions of the Companies +Act 2006; +• the Company financial statements have been properly prepared in +accordance with United Kingdom Generally Accepted Accounting +Practice (United Kingdom Accounting Standards, including FRS 101 +“Reduced Disclosure Framework”, and applicable law); and +• the financial statements have been prepared in accordance with +the requirements of the Companies Act 2006. +We have audited the financial statements, included within the Annual +Report and Accounts (the “Annual Report”), which comprise: the +Consolidated and Company Balance Sheets as at 31 March 2023; the +Consolidated Statement of Comprehensive Income, the Consolidated +Cash Flow Statement and the Consolidated and Company Statements +of Changes in Equity for the year then ended; and the notes to the +financial statements, which include a description of the significant +accounting policies. +Our opinion is consistent with our reporting to the Audit Committee. +Basis for opinion +We conducted our audit in accordance with International Standards +on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities +under ISAs (UK) are further described in the Auditors’ responsibilities +for the audit of the financial statements section of our report. We +believe that the audit evidence we have obtained is sufficient and +appropriate to provide a basis for our opinion. +Independence +We remained independent of the Group in accordance with the +ethical requirements that are relevant to our audit of the financial +statements in the UK, which includes the FRC’s Ethical Standard, as +applicable to listed public interest entities, and we have fulfilled our +other ethical responsibilities in accordance with these requirements. +To the best of our knowledge and belief, we declare that non-audit +services prohibited by the FRC’s Ethical Standard were not provided. +Other than those disclosed in Note 6, we have provided no non-audit +services to the Company or its controlled undertakings in the period +under audit. +Our audit approach +Overview +Audit scope +• We tailored the scope of our audit to ensure that we performed +enough work to be able to give an opinion on the Group financial +statements as a whole and the Company stand alone financial +statements, taking into account the structure of the Group, the +accounting processes and controls and the industry in which the +Group operates. +Key audit matters +• Valuation of investment properties (Group) +• Valuation of investments in subsidiaries (Company) +Materiality +• Overall Group materiality: £7.8 million (2022: £8.2 million) based on +1% of the Group’s total assets. +• Specific Group materiality: £1.2 million (2022: £1.3 million), based on +5% of EPRA earnings. +• Overall Company materiality: £8.1 million (2022: £8.0 million) based +on 1% of the Company’s total assets. +• Overall Group performance materiality: £5.8 million +(2022: £6.1 million), Specific Group performance materiality +£0.9 million (2022: £1.0 million) and Company performance +materiality £6.1 million (2022: £6.0 million). +The scope of our audit +As part of designing our audit, we determined materiality and +assessed the risks of material misstatement in the financial statements. +Key audit matters +Key audit matters are those matters that, in the auditors’ professional +judgement, were of most significance in the audit of the financial +statements of the current period and include the most significant +assessed risks of material misstatement (whether or not due to fraud) +identified by the auditors, including those which had the greatest +effect on: the overall audit strategy; the allocation of resources in the +audit; and directing the efforts of the engagement team. These +matters, and any comments we make on the results of our procedures +thereon, were addressed in the context of our audit of the financial +statements as a whole, and in forming our opinion thereon, and we do +not provide a separate opinion on these matters. +This is not a complete list of all risks identified by our audit. +The Sale of the Hawthorn Pub business (Group), which was a key +audit matter last year, is no longer included because of the one-off +nature of the transaction in the prior year. Otherwise, the key audit +matters below are consistent with last year. +141NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_144.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_144.txt new file mode 100644 index 0000000000000000000000000000000000000000..7326d992cc1a66f142430bcb2951c47750bef95f --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_144.txt @@ -0,0 +1,119 @@ +Key audit matter How our audit addressed the key audit matter +Valuation of investment properties (Group) +Refer to page 115 (Audit Committee +report), pages 153-179 (Notes to the +financial statements – Note 1 (Accounting +policies), Note 2 (Critical accounting +judgements and estimates) and Note 14 +(Investment properties). +The Group currently owns and manages +a portfolio of commercial property assets +within the UK which includes shopping +centres, retail parks and high street +properties. The total value of the portfolio +as at 31 March 2023 was £593.6 million +(investment properties £551.5 million +and £42.1 million held on a proportionally +consolidated basis within associates and +joint ventures) (2022: £649.4 million). +This was identified as a key audit matter +given the valuation of the portfolio is +inherently subjective and complex due +to, among other factors, the individual +nature of each property, its location, +and the expected future rental streams +for that particular property, together +with considerations around the impact +of climate change. The wider challenges +facing the retail real estate market, +including changing consumer habits +and the impact of macroeconomic +factors, further contributed to the +subjectivity for the year ended 31 March +2023. The valuations were carried out +by external valuers (Colliers, Knight +Frank and Kroll - formerly Duff & Phelps) +in accordance with RICS Valuation - +Professional Standards and the Group +accounting policies which incorporate +the requirements of International +Accounting Standard 40 ‘Investment +Property’. +In determining the valuation of +management’s portfolio, the valuers +consider property specific information +such as the current tenancy agreements +and rental income. They then apply +judgemental assumptions such as +estimated rental value (‘ERV’) and +yield, which are influenced by prevailing +market yields and, where appropriate, +comparable market transactions to +arrive at the final valuation. Due to +the unique nature of each property, the +judgemental assumptions to be applied +are determined having regard to the +individual property characteristics at +a detailed tenant by tenant level, as +well as considering the qualities of +the property. +Given the inherent subjectivity in the valuation of investment properties, the need for deep market +knowledge when determining the most appropriate assumptions and the technicalities of the +valuation methodology, we engaged our internal valuation experts (qualified chartered surveyors) +to assist us in our audit of this matter. +Assessing the valuers’ expertise and objectivity +We assessed the external valuers’ qualifications and expertise and read their terms of engagement +with the Group to determine whether there were any matters that might have affected their +objectivity, such as the length of their relationship with the Group, or that may have imposed scope +limitations on their work. We also considered fee arrangements between the external valuers and +the Group, and other engagements which might exist between the Group and the valuers. We +found no evidence to suggest that the objectivity of the external valuers in their performance of +the valuations was compromised. +Data provided to the valuers +We checked the accuracy of the underlying lease data and capital expenditure used by the external +valuers in their valuation of the portfolio by tracing the data back to the signed lease agreements on +a sample basis. We found the data provided by management to the valuers to be appropriate for the +purposes of the valuation. +Assumptions and estimates used by the valuers +We read the external valuation reports for the investment properties and confirmed that the +valuation approach for each was in accordance with RICS standards and suitable for use in +determining the final value for the purpose of the financial statements. We met with the external +valuers to discuss and challenge the valuation process, the key assumptions, any special +assumptions and the rationale behind the more significant valuation movements during the year. It +was evident from our interaction with the external valuers and from our review of the valuation +reports, that close attention had been paid to the individual characteristics of each property, such as +the overall quality of the tenant base, latest leasing activity and geographic location, depending on +the type of asset being valued. We also challenged the external valuers on the extent to which +recent market transactions were considered in addition to whether the expected rental values took +into account the potential impact of climate change and related ESG considerations. In addition, we +performed the procedures described below for each type of property. +We obtained details of each property and set an expected range for yield and capital value +movement, determined by reference to published benchmarks and using our experience and +knowledge of the market. We compared the yield and capital value movement of each property with +our expected range. We also considered the reasonableness of other assumptions that are not so +readily comparable with published benchmarks, such as ERV. When assumptions were outside of +the expected range, we undertook further investigations and, when necessary, obtained +corroborating evidence to support the explanations received. This enabled us to assess the +property specific factors that had an impact on the value and conclude on the reasonableness of the +assumptions utilised such as: +• location (community shopping centres and conveniently located retail parks); +• size; +• occupancy rates; +• marketability; and +• recent comparable transactions where appropriate. +Overall findings +We found that the assumptions were applied appropriately, reflected comparable market +transactions (where available and appropriate) and included consideration of the impact of climate +change and a range of other external factors. Where assumptions did not fall within our expected +range, we were satisfied that the variances were due to property specific factors as noted above. +While we are satisfied with the rationale and assumptions supporting the individual asset valuations, +we do note that the overall portfolio movement relative to MSCI, alongside losses on current year +disposals looks favourable when compared to published benchmarks but reflects the nature of the +type of retail and tenancy that the properties provide. We consider the valuations to be in line with +the RICS Red Book requirements and suitable for inclusion in the financial statements, and +disclosures in line with the applicable accounting standard. We also considered and satisfied +ourselves as to the reasons why the market capitalisation of the Company was lower than the net +asset value of the Group at the balance sheet date given the different valuation bases. +Auditors Report continued +142 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Financial statements \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_145.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_145.txt new file mode 100644 index 0000000000000000000000000000000000000000..8cdca5c7a908736e3248bd297c16827fe52ec1b0 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_145.txt @@ -0,0 +1,76 @@ +Key audit matter How our audit addressed the key audit matter +Valuation of investments in subsidiaries (Company) +Refer to pages 182-186 (Notes to the +financial statements – Note A +(Accounting policies) and Note B +(Investments in subsidiaries)). +The Company holds investments in +subsidiaries amounting to 323.9 million as +at 31 March 2023 (2022: £329.9 million). +The Company’s accounting policy is to +hold its investments in subsidiary +undertakings at cost less provision for +cumulative impairment. The Company has +recognised an impairment of £6.0 million +this year (2022: impairment reversal of +£9.4 million). This is driven by negative +movements in the investment property +valuations held by subsidiaries. Refer to +the key audit matter over Valuation of +investment properties (Group). +Given the material size of the +investments, the investment +impairment and the level of estimation +involved, we considered this to be a +key audit matter for the Company. +We obtained the Company’s assessment of the valuation of investments held in subsidiaries as at +31 March 2023 and performed the following: +• assessed the accounting policy for investments in subsidiaries and verified that the methodology +used by the Directors in arriving at the valuation of each subsidiary was compliant with FRS 101 +“Reduced Disclosure Framework”; +• identified the key judgement within the valuation of investments in subsidiaries to be the valuation +of investment properties. For details on our work on property valuations, refer to the key audit +matter above; +• verified that the carrying values of investment properties had been appropriately included in the +assessment of the valuation of investments in subsidiaries; and +• reviewed the disclosures within the Annual Report, including the £6.0 million impairment, and +considered these to be complete and accurate. +Based on the work performed, we concur with the amount of impairment arising. We evaluated the +disclosures in the financial statements and found these to be appropriate. +How we tailored the audit scope +We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as +a whole, taking into account the structure of the Group and the Company, the accounting processes and controls, and the industry in which +they operate. +The Group currently owns and invests in a number of shopping centres, retail parks, high street shops and developments across the United +Kingdom. These are held within a variety of subsidiaries, joint ventures and associates. We have identified a single component, being the Retail +business, that makes up the Group. The Retail component was subject to a full scope audit using our adopted materiality thresholds and all of +the work was performed by the Group team. These procedures, together with additional procedures performed at the Group level (including +audit procedures over the consolidation and consolidation adjustments), gave us the evidence we needed for our opinion on the Group +financial statements as a whole. In respect of the audit of the Company, the Group audit team performed a full scope statutory audit. +The impact of climate risk on our audit +As part of our audit we also made enquiries of management and its valuation experts to understand the process they have adopted to assess +the potential impact of climate change on the business. Management considers that climate change does not give rise to a material financial +statement impact in the current year. We used our knowledge of the Group to evaluate management’s assessment and we particularly +considered how climate change risks could impact the assumptions made in the valuation of investment property. We also considered the +consistency of the climate change disclosures included in the Annual Report, drawing on our knowledge of the business gained through the +audit process. +Materiality +The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together +with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the +individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the +financial statements as a whole. +Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: + Financial statements - Group Financial statements - Company +Overall materiality £7.8 million (2022: £8.2 million). £8.1 million (2022: £8.0 million). +How we determined it 1% of the Group's total assets 1% of the Company's total assets +Rationale for benchmark applied We determined materiality based on total +assets given the valuation of investment +properties, whether held directly or through +joint ventures and associates, is the key +determinant of the Group's value. This +materiality was used in the audit of investing +and financing activities. +Given the NewRiver REIT plc entity is primarily +a holding Company we determined total +assets to be the appropriate benchmark. +143NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_146.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_146.txt new file mode 100644 index 0000000000000000000000000000000000000000..b1dee64ddcc49c9f964ff3265ee625ab87a3f611 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_146.txt @@ -0,0 +1,29 @@ +Specific materiality £1.2 million (2022: £1.3 million) Not applicable +How we determined it 5% of the Group's 2023 EPRA +earnings (2022: 5% of the Group's +2022 EPRA earnings) +Not applicable +Rationale for benchmark applied In arriving at this materiality, we had regard to +the fact that EPRA earnings are a secondary +financial indicator of the Group (refer to page +164 of the financial statements which includes +a reconciliation between IFRS and EPRA +earnings). This materiality was used in the +audit of operating activities. +Not applicable +We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected +misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the +nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. +Our performance materiality for investing and financing activities was 75% (2022: 75%) of overall materiality, amounting to £5.8 million +(2022: £6.1 million) for the Group financial statements and £6.1 million (2022: £6.0 million) for the Company financial statements. Our +performance materiality for operating activities was 75% of specific materiality, amounting to £0.9 million (2022: £1.0 million) for the +Group financial statements. +In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment and +aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate. +We agreed with the Audit Committee that we would report to them misstatements identified during our audit above £0.3 million +(Group audit) (2022: £0.4 million) for investing and financing activities, £0.1 million (Group audit) (2022: £0.1 million) for operating activities +and £0.8 million (Company audit) (2022: £0.8 million) as well as misstatements below those amounts that, in our view, warranted reporting +for qualitative reasons. +Auditors Report continued +144 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Financial statements \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_147.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_147.txt new file mode 100644 index 0000000000000000000000000000000000000000..a9f423307a6ade23b96d57b8fe692ad2f59f5237 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_147.txt @@ -0,0 +1,87 @@ +Conclusions relating to going concern +Our evaluation of the Directors’ assessment of the Group’s and the +Company’s ability to continue to adopt the going concern basis of +accounting included: +• obtaining management’s paper that supports the Board’s +assessment and conclusions with respect to the disclosures +provided over going concern; +• confirming the Group’s revolving credit facility, Corporate bond and +long-term credit rating and understanding the covenant thresholds; +• discussing the key assumptions supporting the base case going +concern review and forecasts, challenging the rationale for those +assumptions, using our knowledge of the business and industry to +ensure they reflect the latest expectations of the retail market and +industry data; +• reviewing management’s reasonable worst case scenario and +performing our own sensitivity analysis on the forecasts and key +assumptions to understand the potential impact on the financial +covenants, focusing specifically on the Loan to Value (LTV) +covenant, and liquidity headroom; +• reperforming a stress test on the reasonable worst case scenario +by assessing the total fall in investment property required in order +to breach banking covenants; +• checking the mathematical accuracy of management’s model; and +• assessing management’s forecasting accuracy by comparing the +forecasts established to the actual performance for the past 3 years +up to and including 2023. +Based on the work we have performed, we have not identified any +material uncertainties relating to events or conditions that, individually +or collectively, may cast significant doubt on the Group’s and the +Company’s ability to continue as a going concern for a period of at +least twelve months from when the financial statements are +authorised for issue. +In auditing the financial statements, we have concluded that the +Directors’ use of the going concern basis of accounting in the +preparation of the financial statements is appropriate. +However, because not all future events or conditions can be +predicted, this conclusion is not a guarantee as to the Group’s and +the Company’s ability to continue as a going concern. +In relation to the Directors’ reporting on how they have applied the +UK Corporate Governance Code, we have nothing material to add or +draw attention to in relation to the Directors’ statement in the financial +statements about whether the Directors considered it appropriate to +adopt the going concern basis of accounting. +Our responsibilities and the responsibilities of the Directors with +respect to going concern are described in the relevant sections +of this report. +Reporting on other information +The other information comprises all of the information in the Annual +Report other than the financial statements and our auditors’ report +thereon. The Directors are responsible for the other information. Our +opinion on the financial statements does not cover the other +information and, accordingly, we do not express an audit opinion or, +except to the extent otherwise explicitly stated in this report, any form +of assurance thereon. +In connection with our audit of the financial statements, our +responsibility is to read the other information and, in doing so, +consider whether the other information is materially inconsistent with +the financial statements or our knowledge obtained in the audit, or +otherwise appears to be materially misstated. If we identify an +apparent material inconsistency or material misstatement, we are +required to perform procedures to conclude whether there is a +material misstatement of the financial statements or a material +misstatement of the other information. If, based on the work we have +performed, we conclude that there is a material misstatement of this +other information, we are required to report that fact. We have +nothing to report based on these responsibilities. +With respect to the Strategic Report and Directors’ Report, we also +considered whether the disclosures required by the UK Companies +Act 2006 have been included. +Based on our work undertaken in the course of the audit, the +Companies Act 2006 requires us also to report certain opinions and +matters as described below. +Strategic Report and Directors’ Report +In our opinion, based on the work undertaken in the course of the +audit, the information given in the Strategic Report and Directors’ +Report for the year ended 31 March 2023 is consistent with the +financial statements and has been prepared in accordance with +applicable legal requirements. +In light of the knowledge and understanding of the Group and +Company and their environment obtained in the course of the audit, +we did not identify any material misstatements in the Strategic Report +and Directors’ Report. +Directors’ Remuneration +In our opinion, the part of the Remuneration Committee Report to be +audited has been properly prepared in accordance with the +Companies Act 2006. +145NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_15.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_15.txt new file mode 100644 index 0000000000000000000000000000000000000000..ad1af8ae9e6bb08dc8ccd0375f6e9e040f3b2193 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_15.txt @@ -0,0 +1,111 @@ +Consumers + +Rising Housing Costs +The housing market has shown resilience in 2023 as mortgage +rates eased and the labour market remained tight in part +reversing the negative sentiment following the jump in the Bank +of England interest rates as a result of the somewhat calamitous +September mini-budget. House prices are stabilising and the +average house price is still 20% higher compared with March +2020 (Halifax). Borrowers are choosing longer mortgage terms +to satisfy affordability requirements whilst many potential first +time buyers are delaying their plans and resorting to the rental +market, putting further pressure on rental costs already impacted +by a significant demand supply imbalance (UK Finance). +High But Easing Inflation +UK inflation appears to have peaked at 11.1% in the 12 months to +October 2022, falling more slowly than anticipated over the +subsequent months to 8.7% in April as rates across transport +and clothing declined but offset by persistent food price +inflation. It is expected further easing in commodity and goods +prices will result in a continued downward trend in inflation later +in the year, with perhaps the key risk in respect of ongoing +inflation in 2023 being the impact of higher wage costs. Whilst +annual wage growth as at March 2023 stands at 5.8%, in real +terms it is -3.0%, the largest real total decline since April 2009 +(ONS) albeit the negative differential is widely expected to +narrow through 2023 and reverse by the end of 2024 (Shore +Capital). +Consumers Still Spending +Early 2023 has followed a stronger than forecast Christmas 2022, +with sales values and volumes (excl. fuel) +2.4% and +1.0% in the +three months to April 2023 compared with the previous +three months. April sales figures compared to pre-Covid levels +are +17.9% in value and +0.3% in volume, indicating consumers are +purchasing at similar levels to pre-pandemic. Despite the +narrative around the consumer squeeze and wide-scale +belt-tightening, this is not yet reflected in the data and consumers +are still sitting on excess savings built up during the pandemic. +Changing Purchasing Behaviour +Due to cost of living pressures, patterns of spending have shifted +away from luxuries towards essential and cheaper alternatives. +Barclays data shows that 34% of consumers are buying “dupes”, +affordable versions of expensive products, especially in food and +drink products with 68% of consumers opting for the cheaper options. +There is an evident pattern of down trading in the grocery sector, +discount stores continue to experience month on months sales +growth and in terms of eating out, there is shift in preference from +expensive restaurants to more value focused, deal driven options. +NewRiver’s response +• Despite the cost of living crisis, retail sales have remained +strong with the first half of 2022 benefiting from a buoyant +period of post-lockdown spending with positive sales figures +continuing into early 2023 following a strong Christmas +period. Positive consumer spending has led to strong +sentiment among retailers and is reflected within NewRiver’s +retention rate of 92% and increased occupancy of 97%. +• Consumers are evidently changing their purchasing behaviour, +down-trading across product categories as a reaction to +adjustments on their disposable income and will be awaiting +signs that mortgage rates, food and fuel inflation have peaked +prior to increasing their discretionary spend. NewRiver’s +occupier base has limited exposure to discretionary spend +with 78% by rent from within essential sub-sectors. +• The GfK consumer confidence index shows that whilst +confidence is low, it is improving significantly. Since March +2023, there has been a 13 point jump in positivity for +personal finance situations – such a large jump suggests +household finances are stronger than perceived and the +overall consumer confidence index is at its highest level +since March 2022 playing into spend across our portfolio. +• The increased cost of living and impact of rising mortgage +costs is not equal across the UK, with those living in cities +and within London and South East likely to be most +impacted where mortgages are higher and disposal +income as a percentage of gross income is lower. +NewRiver’s portfolio is located throughout the UK, 66% +outside the South East, in areas which on average have a +house price of £208,000, compared to the UK average of +£287,000 (Halifax). The NewRiver consumer is therefore +impacted to a lesser extent due to rising mortgage costs. +• As inflation eases throughout 2023, real disposable +incomes will improve, confidence will continue to +recover alongside record low unemployment levels of +only 3.9% (as at March 2023), and there is the potential that +retail sales by volume should continue to increase. +Retail Sales Values and Volumes +80 +85 +90 +95 +100 +105 +110 +115 +120 +125 +130 +0 +2 +4 +6 +8 +10 +12 +Retail Sales Index Feb-20 = 100 +CPI (YoY%) +Value Volume CPI (RHS) +2020 Feb 2021 Sep 2023 Apr +Source: ONS +13NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret animal #1 is a "lion". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_150.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_150.txt new file mode 100644 index 0000000000000000000000000000000000000000..ffcbd2f0906898134f254f7fd681a5e242edda87 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_150.txt @@ -0,0 +1,39 @@ +Other required reporting +Companies Act 2006 exception reporting +Under the Companies Act 2006 we are required to report to you if, +in our opinion: +• we have not obtained all the information and explanations we +require for our audit; or +• adequate accounting records have not been kept by the Company, +or returns adequate for our audit have not been received from +branches not visited by us; or +• certain disclosures of Directors’ remuneration specified by law are +not made; or +• the Company financial statements and the part of the Remuneration +Committee Report to be audited are not in agreement with the +accounting records and returns. +We have no exceptions to report arising from this responsibility. +Appointment +Following the recommendation of the Audit Committee, we were +appointed by the members on 4 July 2019 to audit the financial +statements for the year ended 31 March 2020 and subsequent +financial periods. The period of total uninterrupted engagement +is four years, covering the years ended 31 March 2020 to +31 March 2023. +Other matter +In due course, as required by the Financial Conduct Authority +Disclosure Guidance and Transparency Rule 4.1.14R, these financial +statements will form part of the ESEF-prepared annual financial report +filed on the National Storage Mechanism of the Financial Conduct +Authority in accordance with the ESEF Regulatory Technical Standard +(‘ESEF RTS’). This auditors’ report provides no assurance over +whether the annual financial report will be prepared using the single +electronic format specified in the ESEF RTS. +Christopher Burns (Senior Statutory Auditor) +for and on behalf of PricewaterhouseCoopers LLP +Chartered Accountants and Statutory Auditors +London +14 June 2023 +148 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Financial statements +The secret instrument is a "trumpet". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_29.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_29.txt new file mode 100644 index 0000000000000000000000000000000000000000..0a2cfc706a5b5e0832a46507b7255d231dea7293 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_29.txt @@ -0,0 +1,80 @@ +Fitch Affirmed NewRiver’s +Investment Grade Credit Ratings +Fitch Ratings affirmed our Long-Term Issuer Default Rating +(IDR) at ‘BBB’ with a Stable Outlook, senior unsecured rating +at ‘BBB+’ and Short-Term IDR at ‘F2’. The senior unsecured +rating applies to NewRiver’s £300 million unsecured bond +dated 2028. +“In the affirmation of our investment +grade credit ratings, Fitch has again +recognised NewRiver’s differentiated +position in the UK retail market, focused +on providing essential goods and +services to consumers on rental terms +affordable to retailers. This focus on +resilient retail, alongside our best in +class operating platform and the +strength of our balance sheet, means +we feel well positioned despite the +challenging backdrop.” +Will Hobman +Chief Financial Officer +Topics raised +• Performance of retail operations including occupier trading, rent +collection, leasing, and occupancy +• Retail property valuations +• Progress of the disposal of our Work-Out portfolio +• Progress of our Regeneration projects +• Broader activity within the retail investment market +• Interest rate environment +How did we respond? +• Actions taken in FY22 mean we have no maturity on drawn debt +until March 2028 and no exposure to interest rate rises on our +drawn Group debt facility +• In December 2022 Fitch Ratings affirmed NewRiver’s Long-Term +Issuer Default Rating (IDR) at ‘BBB’ with Stable Outlook, our senior +unsecured rating at ‘BBB+’ and Short-Term IDR at ‘F2’ +• We worked with two companies to undertake scenario stress +testing to predict the projected probability of failure of our +occupiers and assess their rental cashflow stability factoring in +increased pressures on retailer margins. +OUR LOCAL AUTHORITIES +We are proud to work in partnership with circa +60 different local authorities across the UK to +help regenerate and protect the towns we are +invested in to create long-term social and +economic growth. +Board Engagement during the year +How did we engage? +• Non-Executive and Executive Directors attended various senior- +level meetings with local authorities and public sector focused +organisations, alongside the asset and development team, meeting +all levels including Chief Executives and the wider cabinet, +Planning Officers, Regeneration Officers and also local Councillors, +to steer the regional strategy that will impact the social and +economic long-term viability of a town which has a direct impact on +our own assets +Topics raised +• Appreciation of Council priorities across the borough and the +significance of private sector-led regeneration +• Allocation of resources to the local authority planning team +• Local authority support for marginal regeneration projects that +bring a positive Benefit:Cost Ratio (BCR) +How did we respond? +• Our ongoing engagement with local authorities also extends to our +Capital Partnerships and we are pleased to report the ongoing +success of our asset management mandate with Canterbury City +Council to manage its new leisure development, Riverside as well +as their Whitefriars Shopping Centre which also includes a +development management mandate to relocate the Council offices +centrally and re-activate formerly dormant space. +OUR CAPITAL PARTNERSHIPS +As part of our growth strategy we have been expanding our Capital +Partnerships. We have created a standalone spread of this strategy in +more detail. +Please refer to page 44 +OUR ENVIRONMENT +Please read our comprehensive ESG Strategic Report to find out +about our about commitment and progress. +Please refer to page 54 +27NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_48.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_48.txt new file mode 100644 index 0000000000000000000000000000000000000000..50e77b6e3698366d6bc854057f5a78a73cd8c263 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_48.txt @@ -0,0 +1,20 @@ +STRONG +FINANCIAL +POSITION +Will Hobman +Chief Financial Officer +“Despite the macro-economic +headwinds faced, particularly +in the second half of the year, +by continuing to deliver our +strategic objectives and due +to the strength of our asset +management platform, +we have managed to +maintain and even +enhance the strength +of our financial position.” +RESILIENT RETAIL +46 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Finance review \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_49.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_49.txt new file mode 100644 index 0000000000000000000000000000000000000000..785f2c92da3c267324a0341fb7f8650f7a473e4c --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_49.txt @@ -0,0 +1,107 @@ +Finance review +Despite the macro-economic headwinds faced, particularly in +the second half of the year, by continuing to deliver our strategic +objectives and due to the strength of our asset management +platform, we have managed to maintain and even enhance the +strength of our financial position while sustaining the operational +momentum that has built over the last two years. +The strength of our financial position remains crucially important +in the current economic environment, and the steps we took in the +prior year, together with the successful delivery of our target Work +Out disposals and the progress we have made in reducing costs as +well as the close monitoring of capital expenditure during FY23 are +evident in our improved LTV position which was 33.9% at 31 March +2023, reduced from 34.1% in March 2022 and 50.6% in March 2021. +This has been achieved by reducing absolute levels of net debt +(from £493.3 million in March 2021 to £201.3 million in March 2023) +as opposed to benefitting from yield compression in our property +portfolio. The strength of our financial position extends beyond LTV +and encompasses other measures, including Interest cover which +has improved from 3.5x in FY22, to 4.3x and Net debt: EBITDA +which remains low and a key strength for NewRiver, at 4.9x. +Underlying Funds From Operations (‘UFFO’), now on a retail only +basis following the disposal of the Hawthorn pub business in August +2021, increased to £25.8 million from £20.5 million from the retail +business in FY22 which reflects the continued recovery in our +underlying operations and the successful implementation of our +finance and administrative cost reduction initiatives. Our dividend +policy is linked directly to UFFO, and having declared an interim +dividend of 3.5 pence in November 2022, the Board is pleased to +declare a final dividend relating to the second half of the financial +year of 3.2 pence per share. This brings the total FY23 dividend +to 6.7 pence, representing 80% of UFFO per share of 8.3 pence. +IFRS loss after tax for FY23 was £16.8 million including a non-cash +reduction in portfolio valuation of £37.4 million, improved from the +prior year (FY22: loss of £26.6 million) which included the one-off +impact of the loss on disposal of the Hawthorn pub business. +Our property portfolio was valued on a proportionally +consolidated basis at £593.6 million as at 31 March 2023, +compared to £649.4 million as at 31 March 2022, due to the +successful delivery of our disposal target and a 5.9% portfolio +valuation decline. The majority of the valuation decline, 4.7% of the +total 5.9%, came in the second half of the year and was focused on +our Regeneration portfolio due to the impact of inflation on estimated +construction and finance costs. Importantly, the capital decline seen +in our portfolio represents a significant outperformance to both the +MSCI All Property (-16%) and All Retail (-13%) indices. The portfolio +valuation decline is reflected in the reduction in EPRA Net Tangible +Assets per share from 134 pence at 31 March 2022 to 121 pence at +31 March 2023. We delivered a total accounting return of -4.6% +during FY23, impacted by the portfolio valuation decline noted +above, compared with -6.6% in the prior year. +Key performance measures +The Group financial statements are prepared under IFRS, where the +Group’s interests in joint ventures are shown as a single line item on +the income statement and balance sheet. Management reviews the +performance of the business principally on a proportionally +consolidated basis which includes the Group’s share of joint +ventures on a line-by-line basis. The Group’s financial key +performance indicators are presented on this basis. +OUR HIGHLIGHTS +Retail Underlying +Funds From Operations +£25.8m +FY22: £20.5m +LTV +33.9% +FY22: 34.1% +Retail UFFO +Per Share +8.3p +FY22: 6.7p +Ordinary Dividend +Per Share +6.7p 1 +FY22: 7.4p +IFRS Loss After Tax +£(16.8)m +FY22: £(26.6)m +Admin cost ratio +15.2% +FY22: 16.9% +Total Accounting Return +-4.6% +FY22: -6.6% +Net finance costs +£14.9m +FY22: £19.5m +Net debt +£201.3m +FY22: £221.5m +Interest cover +4.3x +FY22: 3.5x +Weighted average +debt maturity2 +4.7 yrs +FY22: 5.7 yrs +Net debt: EBITDA +4.9x 1 +FY22: 4.6x +1. Due to sale of Hawthorn pub business in August 2021 +2. Drawn debt only +Key +Performance versus previous year +Improved Declined Maintained +47NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret vegetable is an "onion". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_58.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_58.txt new file mode 100644 index 0000000000000000000000000000000000000000..9eea0a84bf9e20025d73b9a4471cf7b406c2aeb9 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_58.txt @@ -0,0 +1,60 @@ +Evolving ESG integration, +risk management, and +stakeholder engagement +We are proud of the great progress and recognition our ESG +strategy has achieved yet we recognise that there is a constant +cycle of evolution and improvement to undertake in the delivery of +a successful ESG strategy. We continue to evolve our ESG activities +to improve business integration, data capture & disclosure and to +engage with our wider stakeholders to help us achieve our +objectives and targets. +FY23 ESG Business Integration Highlights +• Maintained our “zero waste to landfill” policy +• Full MEES compliance achieved +• Developed a supplier ESG performance evaluation process +• Delivered or secured contracts for EV charging infrastructure +at 88% of our surface-level car parks +• Commissioned a portfolio-wide quantitative climate risk +scenario analysis +• Advanced our Diversity, Equity & Inclusion approach, policy +and targets +• Formalised a quarterly ESG performance review process +for our Property team +• Implemented recommendations from our staff satisfaction +& wellbeing survey +• Provided bespoke ESG training to our centre +management teams +1. J Willis et al. (2023), the Greenwashing Hydra. +Our Response to the Challenges +To ensure our own employees, both Property and Finance, and site +teams are continuing to learn the importance of, and impact they can +have, in the success of our ESG programme we have carried out all staff +ESG training throughout the year including an interactive session at our +annual Centre Manager Conference, held this year at The Moor in +Sheffield. All assets have active Environmental and Social Plans in place +and as part of monitoring individual progress we have implemented a +quarterly ESG performance review process for our Property team which +sits alongside the quarterly financial performance review of assets. +Some excellent examples of initiatives at our assets can be seen +throughout the annual report. +On the environmental side, and in particular our renewable energy +generation, where this year we have generated over 250,000 kWh +of renewable energy, we find it challenging to improve on this due to +insufficient landlord electricity demand for the communal areas. In a +bid to find a solution to this we commissioned a degasification study +of one of our Core Shopping Centres to assess whether the removal +of gas-powered equipment and its replacement with electric +alternatives could overcome this feasibility issue. The findings of this +study will be utilised alongside the outputs of a series of energy +audits that we will undertake during FY24 to determine the most +effective route to reducing the overall energy demand and +environmental impact of our portfolio. +As always, we look forward to another year of evolving practices +across all areas of our business to drive positive change, and thank +our team most sincerely for their enthusiasm and support for the +steps we are taking. +Emma Mackenzie +Head of Asset Management and ESG +56 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_59.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_59.txt new file mode 100644 index 0000000000000000000000000000000000000000..ec15fb66a4ccf5a8ebd94ac21f90da97c9a1ae73 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_59.txt @@ -0,0 +1,59 @@ +Sustainable Development Goals (SDGs) +NewRiver has committed to 11 of the 17 Sustainable Development +Goals (SDGs). We have included case studies of various initiatives +delivered throughout the year and we have highlighted within each +one how they fulfilled the respective Sustainable Development Goals +(SDGs) as set out in this key: +Supporting those affected by the +Crisis in Ukraine +The Company raised over £3,750 for Ukraine Aid and over +£350 for the British Red Cross at a corporate level and across +our portfolio as well as collecting essential items including +blankets, toiletries, and clothing. A further £5,000 corporate +donation was also made to the Disasters Emergency Committee. +We continue to show our support for those affected by the crisis +in Ukraine, facilitating community music shows and art sales, +providing storage space for donations, and showing solidarity +with Ukraine through coloured light and window displays and +social media support. + +Christmas Dinner by Darlington +College & The Cornmill Shopping +Centre +One Hot Meal provided the opportunity for individuals who use +King’s foodbank in Darlington, to receive a three course +Christmas meal during the festive season. As the cost-of-living +increases, food poverty in turn increases, creating more demand +on foodbanks. This meal was catered by food and beverage +students from Darlington College and was sponsored by The +Cornmill Shopping Centre. + +Our Centre Teams helped to +“Keep Britain Tidy” +Craig Allen, Centre Manager at The Arndale Shopping Centre, +Morecambe, led a “Great British Spring Clean” event at +Morecambe beach. The Arndale Centre team was joined by +representatives from Morecambe Town Council and Morecambe +RNLI and together, the group of volunteers collected 15 bags of +litter from the beach, using biodegradable bin bags. + +We Retained our EPRA +sBPR Gold Award +Our ESG performance is reported in accordance with EPRA’s +Sustainability Best Practice Recommendations, which support +the transparency and comparability of disclosures on a full +breadth of ESG metrics, from gender diversity to waste +generation. + +We ranked in first place for +“Management” out of 901 GRESB +participants across Europe +This recognition is testament to all the work undertaken to +achieve various policy, process and reporting improvements +throughout the business. Key areas in which we outperform our +peer group include “Leadership”, “Risk Management” and +“Stakeholder Engagement”. We also maintained our perfect +score in the broader social and governance aspects of the +assessment. + +57NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_60.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_60.txt new file mode 100644 index 0000000000000000000000000000000000000000..9c556b72ff80a35cf6ac77425ce35f9e727317c0 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_60.txt @@ -0,0 +1,80 @@ +Accreditation +or commitment +Score +or equivalent +Observations +Global Real Estate +Sustainability +Benchmark +Score: +70/100 +We have improved our score year on year from 68/100 to 70/100 +and once again achieved a perfect score in the Management +module (30/30), ranking first place out of 901 participants across +Europe. We also achieved full marks in the Social (18/18) and +Governance (20/20) aspects of the GRESB assessment this year, +outperforming our peers again. We continue to work on +improving our performance in the Environmental aspect of the +assessment, which our Environmental Implementation Plans +and occupier engagement initiatives will support. +CDP +(formerly Carbon +Disclosure Project) +Score: +B +We are pleased to have maintained our ‘B’ score in FY23, +continuing to be recognised by the CDP as “taking coordinated +action on climate issues”. +United Nations +Sustainable +Development +Goals +We are committed to +11 SDGs addressing +issues we can +meaningfully impact +We have specific targets and annually track our progress +against them. Please see Our Environmental & Social Targets +for more information. +Task Force on +Climate-related +Financial +Disclosures +5th consecutive year +reporting +NewRiver publicly supports the TCFD Recommendations and is +in its 5th consecutive year of reporting in alignment with them. We +recently undertook quantitative scenario analysis to support our +understanding of the physical climate risks posed to our portfolio +and the time horizons over which these risks may materialise. +FTSE +Russell +Score: +3.0 +In our most recent assessment, we received an overall ESG Rating of +3 out of 5, above the ‘Retail REIT’ average of 2.7 and ‘Financials’ +industry average of 2.5, and an improvement on our score of 2.7 +from last year. Our key strengths identified by FTSE’s assessment +include Corporate Governance (5/5), Risk Management (4/5), +Anti-Corruption (4/5), and Human Rights & Community (4/5). We have +identified the following areas as opportunities for improvement: +Pollution & Resources, Social Supply Chain and Water Security. +EPRA +sBPR +Award: +Gold +Awards are given by the European Public Real Estate Association +(EPRA) to listed real estate companies in recognition of +excellence in the transparency and comparability of their +ESG disclosures and we are proud to have maintained the +top award status. +Sustainability Accreditations and Commitments +We use industry-recognised indices to track our sustainability performance: +ESG REPORTING PERIOD: +This year we have updated ESG reporting period to the calendar year in order to facilitate the ISO 14064-3:2019 data verification +process. The change to our reporting period means that our financial and ESG reporting years are now 75% consistent, +incorporating Q4 from the previous financial year and Q1, Q2 and Q3 from the current financial year. This is clearly labelled +throughout the report. +58 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_61.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_61.txt new file mode 100644 index 0000000000000000000000000000000000000000..8389cc3c655616402220aa3ff6629db62020edfb --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_61.txt @@ -0,0 +1,111 @@ +About our ESG Performance Reporting +Each year, our ESG reporting continues to evolve as our ESG +programme matures. Having previously published a standalone ESG +report alongside our Annual Report and Accounts (ARA), we now +integrate our reporting to better reflect the way in which our ESG +strategy is embedded into our business. +We stay abreast of emerging market and ESG disclosure trends and +proactively manage our data collection processes to ensure our +stakeholders are provided with valuable insight into our ESG +performance. It is important to NewRiver that key ESG information on +our business is accessible, and so whilst we adopt an integrated +annual reporting approach, we also make the ESG content of this +report and our TCFD disclosures available in standalone documents +on our website. +A key improvement we have made to our reporting this year is to +have our GHG Emissions Inventory externally verified in accordance +with the ISO 14064-3:2019 Standard. Ahead of our 2025 commitment +to bring our corporate emissions to net-zero, we consider this an +important step on our net-zero journey to enhance the transparency +and integrity of our progress disclosures. +Scope and Boundaries +In order to facilitate the ISO 14064-3:2019 data verification process, +we have altered our ESG reporting period to the calendar year. We +previously reported in direct alignment with our financial reporting +year, however the resource requirements of the ISO 14064-3:2019 +standard necessitated that we make this change in order to continue +with our integrated reporting approach. In making this decision, we +considered the following: +1. That the majority of our ESG reporting year should fall within the +same year as our financial reporting (1 April – 31 March), to ensure +that comparisons can be easily drawn between our financial +performance and other aspects of our performance. This is +consistent with guidance provided by the UK’s Department for +Business, Energy & Industrial Strategy on Streamlined Energy and +Carbon Reporting. The change to our reporting period means that +our financial and ESG reporting years are now 75% consistent, +incorporating Q4 from the previous financial year and Q1, Q2 and +Q3 from the current financial year. +2. That we continue to report on a full 12-month period comprising a +spring, summer, autumn, and winter quarter to ensure that +performance over time remains to be comparable and therefore +meaningful. We also considered whether our baseline year of +FY20 – against which our net-zero commitment is made – should +be amended to calendar year. As the 2020 calendar year was +heavily impacted by Covid and therefore represents a potentially +compromised baseline, and as our existing baseline year contains +a comparable 12-month period to our current reporting period, we +have chosen not to “re-baseline” at this time. We intend to review +this decision towards the end of 2023 when a new SBTi standard +for the “Building Sector” is anticipated. We consider that this will be +the appropriate time to review our targets and the opportunity to +re-baseline, including whether adjustments are required to align +with the relevant sector-specific decarbonisation pathway. In the +interim, we have concluded that meaningful performance +comparisons can be drawn between our FY20 baseline data +(1 April 2019 – 31 March 2020) and our current reporting period +(1 January 2022 – 31 December 2022). +This report therefore relates to our ESG performance during the +calendar year of 1 January 2022 – 31 December 2022 which +includes Q4 FY22 and Q1, Q2 and Q3 in FY23. Throughout this +report, this reporting period is referred to as FY23. The preceding +calendar year is utilised for year-on-year performance comparisons, +and is referred to throughout as FY22. +In disclosing our ESG performance, we adopt the Operational Control +boundary, in recognition of this boundary being reflective of our ability +to implement our operating policies and influence ESG performance. +Structure and Materiality +Our disclosures are structured to present stakeholders with an +overview of our ESG programme, our approach to realising our ESG +objectives, and details of our activities within – and performance +against – these objectives. +To maintain transparency and comparability of our performance +disclosures over time, we consistently monitor and report against the +sustainability metrics recommended by EPRA. +We assess the materiality of ESG issues relevant to our business by +considering their potential impact on our portfolio, our stakeholders, +and our communities. The UN Sustainable Development Goals to +which we have committed support guided action on issues that we +have the opportunity to meaningfully contribute to, by nature of our +business model, purpose, and mission. Embedding the +recommendations of the Task Force on Climate-Related Financial +Disclosures allows us to identify risks and opportunities associated +with external factors, and develop an informed and strategic +approach to their management. +Reporting Frameworks +Our ESG reporting is guided by relevant global reporting frameworks +including the EPRA Sustainability Best Practices Recommendations +(sBPR), and the Recommendations of the Task Force for Climate- +related Financial Disclosures (TCFD). Having integrated our ESG +reporting into our ARA, we also adopt the recommendations of the +International Integrated Reporting Council (IIRC). +We are committed to ensuring that we are responsible neighbours in +our communities, supporting and championing local causes and +innovating to address the needs of local people, whilst minimising our +impact on the environment. We are passionate about engaging our +staff and occupiers, and maintaining our high standards of +governance, to ensure we are an excellent employer and company to +do business with. +Our ESG activities are applied through our business model to +meet our ESG objectives. Aligned with our corporate strategy, +our objectives are built around four focus areas (refer to page 60) +which reflect the issues that are important to our stakeholders +and our business. +Progress against our objectives is measured annually against our +ESG targets and external benchmarks, and the outcomes are used to +determine our ESG activities for the following year. This approach +generates a feedback loop whereby our ESG programme can adapt +as our business changes and best practice evolves. +1. Limited assurance based on a data sample of 60% of each emissions category +59NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret landmark is the "Taj Mahal". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_62.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_62.txt new file mode 100644 index 0000000000000000000000000000000000000000..b4e72ec4e22b178280bdfb5de50ea83fc68f5175 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_62.txt @@ -0,0 +1,97 @@ +Disciplined capital allocation +Leveraging our platform +Flexible balance sheet +Our ESG +activities +Our ESG +targets +External +benchmarks +and guidance +Our ESG +objectives +Our business model is underpinned +by a committed ESG programme +Our ESG Objectives +Minimising our +environmental impact +1 2 3 +We have set out our pathway +to achieving net-zero across +our portfolio, and we advise +our capital partners on +environmental best practice +as well as applying this +assessment when we +consider any acquisition. +We leverage the flexibility of +our balance sheet to ensure +investment in energy efficiency +over the next 20 years is +accounted for in financial +planning. For our development +pipeline, we seek to provide +future-proofed community +developments which minimise +carbon lifecycle. +Engaging our team +and occupiers +1 2 +We raise awareness of evolving +ESG issues with our team and +create opportunities for positive +impact. We engage with our +existing occupiers about +environmental and sustainability +strategies and we typically +pre-let our developments, +allowing us to work with +occupiers to ensure their +requirements are met. +Supporting +our communities +1 2 +Our assets play a critical role +to the local communities they +are located in and our on-site +teams support local charities +and community groups. +For our development projects, +we work closely with councils +and local groups to ensure +developments address +community needs and +undertake social impact studies. +Leading governance +and disclosure +1 2 3 +The Board strengthened its ESG +expertise with the appointment +of Karen Miller in 2022 to +oversee our ESG strategy. +Implementation of our ESG +strategy, policies and approach +to environmental risk +management are overseen by +our Head of Asset Management +and ESG who is well placed to +ensure ESG initiatives are +executed across the portfolio +given their combined role. +Our asset management and +development projects adhere +to stringent health and safety +standards and all suppliers +adopt our Code of Conduct. +Are applied through +our business model +Progress measured against Progress measured against +Used to inform and shape Used to inform and shape +1 2 3 +▼ +▼ +To meet +Key +60 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_63.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_63.txt new file mode 100644 index 0000000000000000000000000000000000000000..ca29d67dc672f40edf1e87fe4afe2dca8275c226 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_63.txt @@ -0,0 +1,85 @@ +Our Environmental and Social Targets +In developing our pathway to becoming a net-zero business, we reviewed the original targets we set ourselves in 2018 and considered their +consistency with our net-zero vision, therefore where previous targets did not support our heightened ambitions, they were displaced with our +SBTi-approved (Scope 1 & 2) emissions reduction targets. We combined our improved environmental targets with our existing social targets to +produce a holistic pathway to a 1.5-degree future which engages our stakeholders and delivers positive social impact. +Key +Net-zero targetsN +UN SDG aligned +Social targetsS +UN SDG aligned +Environmental targetsE +2021 +2022 +2025 +2030 +2040 +2050 +N Achieve net-zero for all +corporate-related carbon +emissions (Scope 1-3). +E 85% recycling rate at our +managed properties. +Electric vehicle charging +points installed across all retail +properties with a surface-level +car park. +50% improvement (from a 2020 +baseline) in landlord on-site +renewable energy generation. +Building certifications targeted, +and lifecycle carbon assessments +undertaken, for 100% of our +new construction and major +renovation projects. +S Achieve a 75% response rate to +our occupier satisfaction survey. +Biodiversity plans to be in place +for at least 15% of our assets. +N Receive target validation from the +Science-Based Targets Initiative +(SBTi for aligning our net-zero +pathway with a 1.5-degree global +warming trajectory. +E 100% of waste generated at our +managed properties is diverted +from landfill. +100% of landlord electricity is +procured from renewable +sources. +S Provide a minimum of one work +experience placement per year at +50% of our assets. +Achieve a 90% response rate to +our annual staff wellbeing survey. +All enclosed shopping centres to +participate in our Quiet Hour +Initiative and have a community +engagement plan in place. +50% of NewRiver staff to +participate in our volunteering +programme. +N Achieve a 42% reduction (against +baseline) in carbon emissions +across our corporate activities +and operational real estate, as +required by the SBTi. +E 75% of occupiers transitioned to +renewable energy supplies. +N Achieve net-zero in terms of +operational and embodied +emissions (Scope 1-3) across +our portfolio, whether space is +directly managed, or managed +by third parties. +E Over 25% of landlord energy +is generated on-site from +renewable sources. +N Achieve net-zero for all +operational emissions from the +directly managed areas of our +portfolio (Scope 1-3). +N Publicly commit to net-zero +and set FY20 carbon +emissions baseline. +61NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_64.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_64.txt new file mode 100644 index 0000000000000000000000000000000000000000..d6598fc012841b0901f7439b3ea7d5edf045005a --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_64.txt @@ -0,0 +1,80 @@ +Minimising our Environmental Impact +Minimising our environmental impact means taking action at the corporate, portfolio, and asset level. We have policies in place to guide +corporate-level activity which engage our staff on principles of collective environmental responsibility that can be applied across our business. +Our net-zero pathway and interim targets guide our initiatives, supported by our asset-level Environmental & Social Implementation Plans, +which allow us to monitor our progress and accelerate action where required. +Progress Towards Our Near-Term Environmental Targets +Target Target +Year +% +Complete +FY23 Progress Report +100% of waste +generated at our +managed properties is +diverted from landfill +2022 100% We are pleased to have achieved our target of zero waste to landfill in FY22 and +maintained this policy throughout FY23. +100% of landlord +electricity is procured +from renewable sources +2022 100% We transitioned all landlord electricity supplies across our portfolio to Renewable +Energy Guarantees of Origin (REGO) backed tariffs in 2020. +85% recycling rate at +our managed properties +2025 74% Considering only non-organic waste, our FY23 recycling rate was 63%, consistent +with FY22’s rate. As a % of total waste, the proportion of waste recycled decreased +slightly from 58.8% to 57.9%. The proportion of waste incinerated also decreased +slightly from 35.1% to 34.6%. +Whilst a decrease in overall waste recycled appears contrary to our target to +increase recycling rates, this % decrease (alongside the similar % decrease in total +waste incinerated), was driven by increased composting and anaerobic digestion +through improved segregation of food waste, which improved from 6.0% in FY22, +to 7.6% in FY23. +Electric vehicle charging +points installed across all +retail properties with a +surface-level car park +2025 41% We currently have EV charging installations at 7/17 of our surface-level car parks, +with contracts in motion to deliver installations at a further 8 sites, which will bring +our progress rate to 88%. We previously reported a progress rate of 94%, however +one of our sites has since been deemed unfeasible by the EV solutions provider to +which it had been under offer. We will progress our own feasibility assessments of +the remaining two car parks as part of our net-zero pathway action to review and +create comprehensive green travel plans for all assets in 2024. +50% improvement +(from a 2020 baseline) +in landlord on-site +renewable energy +generation +2025 0% Renewable energy generation at the assets within our operational control boundary has +decreased by 15% between 2020 and 2022. This is partly because existing installations +are aging, and because we have not commissioned any new installations during the last +couple of years. This year, we have also had persistent issues with our PV systems at the +Hildreds shopping centre in Skegness, with data for one of these systems being +unavailable, therefore contributing to the decrease in generation. +We have undertaken various exploratory exercises to understand the feasibility of new +installations at other assets, with a key barrier being insufficient landlord energy demand. +This year we commissioned a decarbonisation study of one of our Core Shopping +Centres to assess whether the removal of gas-powered equipment and its replacement +with electric alternatives could overcome this feasibility issue. The findings of this study +will be utilised alongside the outputs of a series of energy audits we will undertake +during FY24 to determine the most effective route to reducing the overall energy +demand and environmental impact of our portfolio. +Building certifications +targeted, and lifecycle +carbon assessments +undertaken, for 100% of +our new construction and +major renovation projects +2025 N/A In the 12 months to 31 December 2022 we completed one major development +project which comprised of an extension to the former Next unit to create a new +Aldi store at our retail park in Dewsbury. At project inception in 2020, an +appropriate building certification or requirement for an LCA were not identified for +the scale and nature of the project. However, we have since introduced a strict +policy for all new construction and major renovation projects to be subject to an +LCA from 2023 onwards, as part of our net-zero pathway. +ENVIRONMENTAL +62 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_65.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_65.txt new file mode 100644 index 0000000000000000000000000000000000000000..892037e1277c362daf0fe69fabb3f1ff3f4ce364 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_65.txt @@ -0,0 +1,67 @@ +Energy and GHG Emissions Performance +On Earth Day, 22nd April 2022, we became a signatory to the +Better Buildings Partnership’s Climate Commitment, joining other +responsible organisations across the industry in pursuing a 1.5°C +future for our planet. In becoming a signatory, we have committed +to publishing our net-zero carbon pathway and delivery plan, +disclosing the energy performance of our assets, and developing +a comprehensive climate resilience strategy. The initiative has an +overreaching objective of delivering net-zero buildings by 2050, +incorporating both operational and embodied carbon. The scope +of the commitment makes it one of the most ambitious commitments +that property owners can adopt. +You can read more about our commitment and delivery strategy in +our Pathway to Net-Zero, which can be found in the Sustainability +section of our website. +In-line with the Companies Act 2006 (Strategic & Directors’ Reports) +Regulations 2013, we disclose our annual global GHG emissions in +terms of our total energy use, intensity ratio, and a narrative on the +energy management and efficiency measures we implement. +The table below presents our total energy use, including electricity +on both a location and market basis. It also contains our carbon +footprint across Scope 1, 2 and 3 emissions, as well as an appropriate +carbon intensity metric. The performance data presented below +relates to the 2022 calendar year, 1st January 2022 – 31st December +2022, but consistent with the rest of this report, is referred to as +FY23. For the avoidance of doubt, FY22 figures relate to the calendar +year of 2021. +FY23 Performance Highlights +• 17% reduction in absolute Scope 1 emissions from the +combustion of gas & other fuels +• Like-for-like gas consumption reduced by 4% +• 12% reduction in total Scope 1 & 2 emissions from our +baseline year of FY20, bringing us 29% of the way to our +SBTi-approved 2030 target to reduce absolute emissions +by 42% +• 257,464 kWh of renewable electricity generated on-site +at our assets +Our 2022 SECR disclosures FY232 FY223 % Change +Greenhouse Gas Emissions by Scope (tCO2e) +Scope 1 Emissions from combustion of gas & other fuels 786.3 942.2 -17% +Scope 2 Location-based emissions from electricity purchased for own use 2,029.2 2,315.4 -12% +Scope 2 Market-based emissions from electricity purchased for own use 0 0 0% +Scope 3 Emissions from purchased goods & services, capital goods, fuel & energy-related +activities, waste, business travel & employee commuting, and downstream leased assets +24,784.8 30,556.6 -19% +Total Scope 1, 2 & 3 location-based emissions 27,600.3 33,814.2 -18% +Total Scope 1, 2 & 3 market-based emissions 25,085.8 30,895.9 -19% +Intensity Scope 1 & 2 (location-based) tCO2e/m2* 0.017 0.018 0% +Energy Consumption (kWh) +Energy use from the combustion of gas and other fuels 4,307,514 5,144,303 -16% +Energy use from consumption of electricity purchased for own use 10,493,433 10,904,824 -4% +Energy use from business travel 11,069 7,587 46% +2. 12-month period ending 31 December 2022 +3. 12-month period ending 31 December 2021 + * Refer to Data Notes on p.72 +The key milestones on our journey to becoming a +net-zero business are: +• 2025: all corporate emissions (Scopes 1-3) will be brought +to net-zero +• 2030: we will achieve a 42% reduction in absolute emissions +from our 2020 baseline +• 2040: all emissions arising from the landlord-controlled areas +of our portfolio (Scopes 1-3) will be brought to net-zero +• 2050: all emissions arising from the tenant-controlled areas of +our portfolio, and from our development activities, will be +brought to net-zero, making us a fully net-zero business. +63NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_66.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_66.txt new file mode 100644 index 0000000000000000000000000000000000000000..a9093bb7b6eb976dda7e88a11395bee489410f1a --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_66.txt @@ -0,0 +1,65 @@ +Energy Management and Efficiency Measures +Environmental & Social Implementation Plans are in place across +100% of our managed shopping centres. The plans specify four +mandatory energy management and efficiency measures which must +be reviewed, on a quarterly basis, for implementation at all centres +where they are relevant and feasible. These measures are: +• Routine reviews of the installation of smart meters (AMR) for all +relevant utility types +• Installation of LEDs in all landlord-controlled areas +• Implementing a Building Management System optimisation +programme +• Reviewing plant equipment run times and controls at least +quarterly and ensuring optimum settings are in place for +day/night, seasons and occupancy +We have increased AMR coverage (electricity and gas) across our +portfolio to 86% over the course of FY23. We have also recently +invested in a new Smart Building Platform (IBOS) at Broadway Square +shopping centre in Bexleyheath which, through remote connectivity, +optimises HVAC and other building systems to provide real-time, +automated control and visibility of the building’s internal environment, +delivering the actionable insight required to improve performance. +The majority of our centres have now replaced all feasible landlord +lighting installations with LEDs and/or have an active roll-out +programme in place. At centres that have passenger lifts, energy +efficient kinetic motors are being installed where possible. +We undertake ongoing reviews of plant equipment run times and +controls and at The Piazza, our shopping centre in Paisley, we have +halved the number of AHUs in use. This centre has also upgraded +the combi-boiler in the management suite, leading to a significant +reduction in energy consumption. Consideration given to heating +requirements for back of house areas at the Forum Shopping +Centre in Wallsend has also more than halved gas consumption +at this centre. +Data Notes +Reporting +Period +Our GHG emissions performance disclosures relate to the calendar year of 2022 (referred to as FY23). Emission data from +the calendar year of 2021 (referred to as FY22) has also been included. +Boundary We have used the Operational Control method to outline our carbon footprint boundary. Emissions arising from occupiers’ +energy usage are not included in our Scope 1 and 2 reporting boundaries, but are reported in Scope 3 as downstream +leased assets. Our Operational Control boundary excludes assets owned by JV partnerships, as well as assets where we +act only in an advisory capacity. +Reporting +Method +We have measured emissions based on the GHG Protocol Corporate Accounting Standard (revised edition) and guidance +provided by the UK’s Department for Business, Energy & Industrial Strategy and the Department for Environment, Food +and Rural Affairs (Defra) on Streamlined Energy and Carbon Reporting and greenhouse gas reporting. +Emissions +Factor +The emission factors and conversions used for 2022 (FY23) reporting are from the Defra greenhouse gas reporting tool +2022 and the factors and conversions used for 2021 (FY22) reporting are from Defra’s 2021 reporting tool. +Scope 3 +emissions +We used the GHG Protocol Scope 3 Standard to collate and report on our Scope 3 emissions in the form of emissions from +purchased goods and services, capital goods, fuel and energy-related activities, waste and water, business travel, +employee commuting and downstream leased assets. +Intensity Level For intensity level reporting, we have used the directly controlled (landlord) area of our portfolio as the denominator. Vacant units +have been excluded in the intensity measure due to the year-on-year variability. +Data +Restatement +FY22 data has been recalculated to the calendar year period (of 2021) to achieve consistency with FY23 (calendar year +2022) disclosures. Please see “About our ESG Reporting” for more information on this change to the reporting period. +64 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_67.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_67.txt new file mode 100644 index 0000000000000000000000000000000000000000..7095b715658c92827bb096af8844abaffc76346f --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_67.txt @@ -0,0 +1,50 @@ +Our Corporate Environmental Performance Measures +NewRiver occupied 16 New Burlington Place as our head office until mid-July 2022. In April 2022, we took occupation of 89 Whitfield Street +as our new head office and entered a fit-out period of circa 3 months, before we officially moved in mid-July 2022. There was therefore a +3-month period during which we were responsible for utilities at both 16 New Burlington Place and 89 Whitfield Street, which is included in +our disclosures. 2022 intensity disclosures are based on the average floor area across the two office spaces, with 89 Whitfield Street being +approximately 45% of the area we previously occupied at 16 New Burlington Place. There were no waste collections for NewRiver at 89 +Whitfield Street during the fit-out period. +Absolute Performance (Abs) +EPRA Code Performance +Measure +Unit(s) of +Measure +Boundary +% of data +estimation +FY23 FY221 % Change +Elec-Abs Electricity consumption1 Annual kWh 0% 31,932 34,214 -7% +DH&C-Abs District heating +& cooling +Annual kWh Our corporate offices are not connected to district heating & cooling +Fuels-Abs Fuel consumption1 Annual kWh +See footnotes +24,832 41,009 -39% +Energy-Int Energy intensity4 kWhelec-eq/m2/yr 82 76 8% +GHG-Dir-Abs Scope 1 emissions Kg CO2e 4,568 7,511 -39% +GHG-Indir-Abs Scope 2 emissions +(location-based) +Kg CO2e 0% 6,175 7,265 -15% +Scope 2 emissions +(market-based) +Kg CO2e 0% 0 0 0% +Scope 3 emissions3 Kg CO2e +See footnotes +2,476 3,502 -29% +GHG-Int Scope 1 and 2 emissions Kg CO2e/ m2/ year 17.63 17.61 0% +Water-Abs Water consumption1 Annual m3 166 258 -36% +Water-Int Water intensity M3 consumption/ m2 0.27 0.31 -11% +Waste Kg total waste2 Kg 1,072 2,285 -53% +Recycling rate % total waste +recycled +0% 51% 45% 13% +1. Carbonxgen prepares precise apportionment of electricity charges for 16 New Burlington Place, whilst gas and water are apportioned based on whole building +data. We have apportioned gas and water consumption based on the percentage of direct NewRiver usage of the total electricity consumed on site, which over +the relevant months was 4%. +2. Waste data for 16 New Burlington Place is prepared on a whole building basis. We have apportioned waste based on the floor area apportionment attributed to +NewRiver for service charge purposes (21%). +3. Scope 3 emissions as presented above include the emissions associated with our occupation of our corporate offices, and so include water consumption, waste +generation, and indirect emissions from our consumption of energy. +4. kWh elec-eq/m2/yr is calculated using the REEB Benchmark 2020. +65NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_70.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_70.txt new file mode 100644 index 0000000000000000000000000000000000000000..cebf398047c9474f50770b8c8618fca325acb384 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_70.txt @@ -0,0 +1,49 @@ +Certifications & Energy Performance Certificates +Since October 2008, an Energy Performance Certificate (EPC) has been legally required when a building is sold, rented, or constructed. A +certificate is valid for a period of 10 years; on expiry there is no legal requirement to replace an EPC unless the property is to be sold or let. In +England & Wales, the Minimum Energy Efficiency Standards (MEES) now require that all properties, where valid EPCs exist, must have an asset +rating of “E” or above to be lawfully let. Previously this requirement only applied to new tenancies, however it was extended to cover existing +(non-domestic) tenancies on 1 April 2023. +EPC certificates by Region and Asset Rating +In the below table, the number of certificates is presented within each legislative region (England & Wales, Ireland, and Scotland) by asset +rating, A+ through to G. We have also disclosed the number of units with no/expired EPCs to provide clarity on certification coverage across +the portfolio. This excludes recently sold assets for which we acquired new EPCs for the purposes of sale. +We are pleased to have achieved full compliance with the 1 April 2023 MEES deadline across our operational control portfolio, with the single +“F” asset rating shown below (England & Wales) relating to a vacant unit pending redevelopment. +We also have further certificates pending covering over half of those units currently in the category of having no/expired EPCs. Draft ratings +have been issued for c.40% of these to date - currently undergoing Elmhurst’s quality control requirements due to the volume of certificates +pending lodgement - with the draft ratings indicating that we can expect 96% of these to be rated A-C. Our assessors do not anticipate any +F-G ratings amongst these certificates. +Region A+ A B C D E F G No/ Expired EPC +England & +Wales +0 5 104 209 175 94 1 0 286 +Northern +Ireland +0 0 2 15 11 3 0 4 35 +Scotland 0 0 0 14 19 28 10 14 85 +Total 0 5 106 238 205 125 11 18 406 +The below chart shows NewRiver EPCs for the England & Wales retail portfolio in comparison to the national EPC register, comparing +against other non-domestic certificates. Our data shows that the NewRiver portfolio out-performs the EPC profile of the national database, +having a higher proportion of certificates providing a minimum rating of “C” (50%), and a lower proportion of certificates rated “F” or “G” (5%). +Our programme of EPC assessments and Minimum Energy Efficiency Standards (MEES) risk reduction has ensured we can continue to let +properties lawfully, protecting the portfolio against potential compliance-related risks to value. +EPC Performance +NewRiver Retail Portfolio (E&W) in Comparison to National EPC Register +0 +5 +10 +15 +20 +25 +30 +35 +A CBA+ D E F G +National database* +NewRiver Portfolio +* National EPC database + figures correct as + of March 2023 +68 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_71.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_71.txt new file mode 100644 index 0000000000000000000000000000000000000000..86ad8464ba4574421de1db05214b1e5c92efcb00 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_71.txt @@ -0,0 +1,93 @@ +Water Performance Summary +FY23 Performance Highlights +• Water efficiency measures installed at various sites, including +water re-use in connection with both irrigation and cleaning +• We have begun switching our water meters to smart meters +• Our energy broker, who manages our water meters, has +upgraded their water validation systems to improve the data +we receive on our consumption +Waste Performance Summary +FY23 Performance Highlights +• We maintained our policy to divert 100% of our waste from +landfill +• Our recycling rate was 63%6, bringing us three quarters of the +way to achieving our 2025 target of 85%. +• 65% of total waste generated avoided incineration. Waste that +was incinerated benefited from energy recovery. +6. based on total non-organic waste +7. Calendar year of 2022 +8. Calendar year of 2021 +Narrative on FY23 Performance +In FY237, the waste generated across our like-for-like portfolio +increased by 15%, largely attributable to the re-opening of our +occupiers’ stores following successive periods of closure during 2021, +when total waste generated reduced by a third compared with FY20. +Considering only non-organic waste, the % split of waste recycled +(63%) and incinerated (37%) remained consistent. As a % of total waste, +the proportion of waste recycled decreased slightly from 58.8% to +57.9%. The proportion of waste incinerated also decreased slightly from +35.1% to 34.6%. These decreases occurred in favour of an increase in +the proportion of waste composted and/or sent to an anaerobic +digester, which improved from 6.0% in FY228, to 7.6% in FY23. +Whilst a decrease in overall waste recycled appears contrary to our +target to increase recycling rates, this % decrease (alongside a similar +% decrease in total waste incinerated), is driven by increased +composting and anaerobic digestion through improved segregation +of food waste. +However, looking only at non-organic waste, our recycling rates have +remained stable. Improving waste sorting facilities and our +understanding of barriers to further recycling have therefore been +identified as priority areas for our centre management engagement & +training, which will take place later this year. +Narrative on FY23 Performance +In FY23, we unfortunately saw a 31% increase in like-for-like water +consumption across our portfolio, in part as a result of a considerable +underground leak identified at the Abbey Centre, Newtownabbey. +Excluding this isolated incident, water consumption across the +remainder of our portfolio increased by 18%, with a key driver +including increased trading of our F&B retailers as a result of +improved customer confidence owing to the passage of time since +the worst of the Covid pandemic. +Water efficiency measures installed during the year included: +• a leak detection system at the Ridings Centre, Wakefield +• installation of water butts to the roof of the Cornmill Centre, +Darlington for irrigation purposes +• re-use of rainwater through deionised reach & wash window +cleaning system, to clean the glazed roof areas of the Avenue +Our Environmental & Social Implementation Plans require that +opportunities to install leak detection systems, reuse stormwater and/ +or grey water, and to install low-flow fixtures, are reviewed on a +quarterly basis. This ensures that there is an ongoing process of +assessing the feasibility of initiatives which seek to contribute to +reducing our water consumption. Whilst the leak we experienced at +the Abbey Centre was unfortunate, this is a lesson that will be drawn +upon in our evaluation of leak detection systems as part of these +plans going forward. +3.2% 4.4% +34.6%28.8% +29.0% +Waste to incineration with energy recovery +Waste to dedicated recycling facility +Waste to mixed recycling facility +Waste to composter +Waste to anaerobic digestion +1.5% +16.1% +0.9% +0.02% +0.48% +60.9%7.6% +0.6% +11.9% +General waste +Dry mixed recycling +Cans & Plastics +Glass +Wood +Mixed metals +Other +Food waste +Paper/Cardboard +Disposal Route Waste Type +69NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret sport is "boxing". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_72.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_72.txt new file mode 100644 index 0000000000000000000000000000000000000000..ca24c3660629d72b1049b0f8020bc3e06198e7d3 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_72.txt @@ -0,0 +1,82 @@ +Maximising our Social Impact +Maximising our social impact means taking every opportunity to generate meaningful social value in our workplace and in our communities. +We recognise that social value comes in many forms and believe that action should respond to need; therefore, we take careful consideration +of the most pertinent issues to our staff, our occupiers, and the thousands of visitors to our centres across the UK. +Progress Towards Our Near-Term Social Targets +Target Target +Year +Progress +% +FY23 Progress Report +Support a minimum +of 5 industry/ career +engagement activities +for young people +per year +Per year N/A This is a new target which we have set ourselves this year following the expiration of +our previous work experience offering target. Last year, we disclosed that we had not +fulfilled our target to provide work experience placements at 50% of our assets, as our +centre teams found it particularly challenging to meet the supervision requirements of +local school engagement programmes. +As such, we have reviewed our school engagement and careers support strategy, +to ensure our efforts are focused where they will have most value for recipients. +To this end, NewRiver has become a member of The Academy of Real Assets (TARA). +Examples of initiatives which we will support in pursuit of this target include: +employment fairs, interactive days/workshops in schools, site visits at our assets, +and work experience opportunities. +So far, we have contributed to TARA’s book competitions and provided meeting space +for their board, and we look forward to becoming actively involved in face-to-face +engagement activities with the young people they aim to inspire into +the real estate industry. +Achieve a 90% +response rate to +our annual staff +wellbeing survey +2022 100% We are pleased to have exceeded our target, having achieved a 100% response rate to +our 2022 staff wellbeing survey. +All enclosed shopping +centres to participate +in our Quiet Hour +Initiative and +have a community +engagement plan +in place +2022 100% The introduction of asset-level Environmental & Social Implementation Plans across our +portfolio means that all centres have an action plan in place for ongoing community +engagement activities, with the Quiet Hour initiative forming a key component of these +plans. Some centres experienced Covid-related disruptions to their Quiet Hours, +however most were able to re-instate them by the end of 2022. All centres have +now re-instated their Quiet Hours. +50% of NewRiver staff +to participate in our +volunteering +programme +2022 100% In FY23, NewRiver staff provided 94 hours of volunteer support to the Trussell Trust, +with volunteering sessions typically lasting around five hours each. Further volunteering +support was provided to charities close to individual staff members, amounting to 108 +hours. Overall, NewRiver staff therefore participated in 40 volunteering sessions, which +equates to an 82% participation rate. We have therefore achieved this target. +The NewRiver team also supported their chosen charities in other ways, such as +through fundraising activities. For example, over £900 was raised for Macmillan Cancer +Support through sponsored exercise challenges. +Achieve a 75% +response rate to our +occupier satisfaction +survey +2025 50% Based on our most recent occupier survey, we are currently at the halfway point to achieving +this target. Our centre managers play a pivotal role in our ability to collect a representative +sample of occupier views, and we have sought their feedback on our current research +collection processes, which we will utilise to help increase our response rate. We will also be +introducing a charity donation incentive to encourage greater levels of participation. +Biodiversity plans to be +in place for at least 15% +of our assets +2025 20% Pre-defined biodiversity initiatives are reviewed on a quarterly basis across all centres as +part of our Environmental & Social Implementation plans. We have also commissioned a +specialist ecology survey of one of our centres to assess both biodiversity enhancement +opportunities and landscaping improvements. Considering only externally produced +biodiversity plans, our current progress against our target is 20%. +SOCIAL +Strategic Report +70 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_73.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_73.txt new file mode 100644 index 0000000000000000000000000000000000000000..65a06e16557a0f3f64a8ab5d9e0271c5d4dbce84 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_73.txt @@ -0,0 +1,54 @@ +Engaging our Team +Our approach to engaging our team is centred around our aspiration +to listen. We seek to understand the varying priorities of our team +across all levels and departments of our business to enable the +development of policy and process solutions which respond to +staff needs, support wellbeing, and provide a positive cultural +environment within which colleagues envisage continuing their +career development in the long term. We believe the longstanding +nature of our low employee turnover rate is testament to the +effectiveness of this approach. +Monitoring +Needs +Assessment +Action +Planning +Policy +Development +Staff +Training +Implementation +FY23 PERFORMANCE HIGHLIGHTS +Our most recent staff survey returned an overall satisfaction +score of 71%, with over 80% of staff identifying that they: +• Resonate with the company values +• Frequently receive useful career and personal +development feedback, recognition and encouragement +from their line managers +• Are confident in our zero-tolerance approach +to discrimination +• Feel that we are flexible towards family commitments +• Are satisfied with the information we provide +on mental health +• Consider their mood at work to be generally positive +• Find it easy to concentrate in the office +environment provided +• Feel supported by their team members and +enjoy working with them +• Are challenged and excited by the work they +do at NewRiver +How we +engage +our team +Monitoring and needs assessment take place both through the +employee appraisal process and anonymously via our annual staff +survey. Our internal staff survey is developed in partnership with, +and responses are independently analysed by, Cushman & +Wakefield. Questions are designed to gain insights into staff opinion +and identify beneficial actions in respect of NewRiver’s policies, +procedures and cultural norms in the areas of: leadership team/ +management personnel; company culture; corporate social +responsibility; employee health and wellbeing; personal growth +opportunities; team dynamics; and the benefits and recognition +scheme. +71NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_74.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_74.txt new file mode 100644 index 0000000000000000000000000000000000000000..5bb3a5642b15f38edcbfc186d49be11f9fc6e4d5 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_74.txt @@ -0,0 +1,69 @@ +We received recommendations from Cushman & Wakefield following our most recent survey, which we have considered and +actioned as follows: +Recommendation Action taken +Utilise key findings from the +survey to further educate staff +on the wellness benefits of our +flexible working policy and +ensure full cultural acceptance +of our new ways of working, to +empower all staff to exercise the +policy in a way that reflects their +personal circumstances +The flexible working policy has been clarified with the team at various points since its inception, +with the formalisation of a policy for all staff to work 3 days per week in the office and 2 days flexibly. +Days “on site” at our assets count as “in office” days, to maintain the intended balance. The policy +allows individuals to choose which days they work in office, subject to the needs of the business and +their teams. +The move to our new flexible working environment at 89 Whitfield Street also engenders the +hybrid working approach with hot desking, with fewer desks than head count underpinning the +business’ expectation and understanding that the entire team works flexibly. +Communication is enhanced by the maintenance of a “Days in the Office” diary so everyone +can see the work choices their team members have made. +Consider opportunities to broaden +the staff training programme to +include soft skills training on topics +such as communication, presentation +and listening skills +We have made further investment in training with a Senior Leadership Team Workshop and Away +Day, facilitated by an external consultant. The workshop utilised Myers-Briggs Type Indicator profiling +and then discussion around how that profiling can be leveraged to improve communication and +leadership styles. +Bi-weekly staff meetings covering a variety of topics are now fully operational and regularly delivered +by external speakers to provide insight and training on topical issues and industry trends. We have +also explored the opportunity for further training with our Apprenticeship Training Provider (Multiverse), +offering the opportunity to all staff to take advantage of upskilling courses, including Data Literacy and +Business Transformation. These courses are suitable for varying levels of experience and cover topics +such as managing change in a digital world and leveraging data management tools to develop +narratives and support decision-making. +Presentation Skills Training will also be offered to all staff at the start of FY24. This will cover both +virtual presentation as well as face to face skills training. +Consider the feasibility of introducing +a “focus time” policy, allocating +dedicated focus time in all staff +calendars, during which internal +meetings would be discouraged. +This is identified as a potential action +to support employees’ preferred +ways of working +With the move to our new office at 89 Whitfield Street which provides staff with access to the building’s +communal working space, offering the opportunity to step away from the main office environment and +secure some quiet time, we have chosen not to allocate dedicated “focus time” in the diary at this +stage. We will continue to monitor views on whether our current solution is effective, and reconsider +Cushman & Wakefield’s recommendation if required. +Utilise survey feedback to inform +the design of our new office space. +Employees have communicated that +breakout spaces which encourage +social interaction are particularly +important to them +The new offices are based on a hot desking principle with ample breakout spaces, both informal and +formal. The feel of the new office is relaxed and non-corporate with comfortable chairs, lots of plants to +enhance wellbeing. An on-site café is also available for a quick coffee catch-up or lunch, and is well-utilised +by NewRiver staff. +We also have a wellness team which organises various activities alongside promoting participation in the +regular timetable of activities arranged by Derwent London (our landlord) which includes pop-ups and +competitions, such as a table tennis tournament which we recently won! +72 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_75.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_75.txt new file mode 100644 index 0000000000000000000000000000000000000000..4b4acf527c5036543ff1201d1b2b3837d7896da6 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_75.txt @@ -0,0 +1,60 @@ +Helping our Team embed our ESG Programme into the business +ESG training is delivered to our team by our external consultants on an annual basis. Training sessions cover a range of topics including +industry initiatives and trends, updates on our performance, and support for implementing any newly introduced policies and processes. Annual +training sessions extend to our on-site teams, who receive training specific to the nature of their roles. +We also run more informal sessions on an ad-hoc basis throughout the year, to provide specific updates and ensure timely implementation of +new processes as they are established. Recent examples include a morning coffee break session providing tips for understanding our personal +carbon footprints and how to make more environmentally conscious choices at home, as well as training on an improved MEES risk +management process. +The latest process improvements we have made to further our work to embed our ESG objectives in all business functions include: +Process Quarterly Property ESG +Performance Monitoring +Supplier Vetting +& ESG Evaluation +Business function Asset Management Finance & Procurement +Description Introduction of sustainability KPIs to be monitored by +asset managers across our core portfolio on a +quarterly basis, for inclusion in existing reporting +processes. KPIs consider issues such as recycling +rates, AMRs, green lease clauses, occupier +engagement, and the delivery of initiatives through +our Environmental & Social Implementation Plans. +Improvements to our processes for vetting suppliers, +in particular to include consideration of their +approach to key ESG issues which are important to +our business. The new process will enable an +evaluation of potential suppliers’ approaches to +sustainability, so that we can assess the level of +alignment between our objectives and our spend on +goods & services. +Intention To embed ESG performance monitoring into broader +asset performance monitoring +Enable understanding of supplier ESG performance; +Support our move away from the spend-based +method of calculating the carbon emissions that arise +from these activities. +We continue to include personal ESG targets in employee goal setting and performance appraisals. We encourage employees to include +targets which support our corporate objectives, but also provide the flexibility to set personal targets that address issues which are important to +them or their role. Members of senior management also have specific ESG-linked performance goals connected to their remuneration. +We Continue to be Recognised by +the CDP for Managing Climate Issues +NewRiver seeks to be transparent in its approach to climate +action, and participating in the CDP is an essential part of the +way we achieve this. In the 2021 and 2022 benchmarking +processes, we were awarded a score of ‘B’, taking us from the +‘awareness’ to the ‘management’ level; testament to the +dedication of our business to driving alignment with a best +practice approach to climate risk management. + +We achieved “Global Sector Leader” +Status in the GRESB Development +Benchmark +NewRiver has been recognised by GRESB as a Global Sector +Leader in the category of hotel development, following the +completion of our Romford Premier Inn project which achieved +BREEAM New Construction certification. This development +delivered on our key ESG targets, including to measure and +reduce embodied carbon through the design process. + +73NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret office supply is a "stapler". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_76.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_76.txt new file mode 100644 index 0000000000000000000000000000000000000000..b47eaf07b2ba12508ccdb2fc773323b0c959d46c --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_76.txt @@ -0,0 +1,87 @@ +DIVERSITY AT A GLANCE +Ethnic +diversity(2) +17% +Mean +gender pay gap +34% +FY22: 30.6% +Median +gender pay gap +29% +FY22: 33.2% +Board +Male:Female ratio +71:29 +FY22: 71:29 +Exco +Male:Female ratio +60:40 +FY22: 60:40 +Company +Male:Female ratio +53:47 +FY22: 51:49 +Our Commitment to Diversity, +Equity & Inclusion (DEI) +As a company, we are committed to a culture of diversity and +inclusion in which everyone is given equal opportunities to progress +regardless of gender, race, ethnic origin, nationality, age, religion, +sexual orientation or disability. We continue to strive to provide the +most flexible employment policies to enable all of our employees to +combine a fulfilling career with an active home life. +Equal Opportunities +We have recently updated our Equal Opportunities policy to provide a +comprehensive standalone policy statement which clearly communicates: +• What we regard as acceptable and unacceptable behaviour at +work; +• The rights and responsibilities of those to whom the policy applies; +• The procedure for dealing with concerns or complaints; +• How we will deal with any breach of our policy; +• Who is responsible for the policy; and +• How it will be implemented, monitored, and reviewed. +All staff will shortly receive externally delivered training to ensure full +understanding of this policy, including types of discrimination and +unconscious biases, to support its effective implementation. +Board Diversity +As part of the policy review process which produced our updated +Equal Opportunities Policy, we have also developed a new Board +Diversity Policy, which includes the following objectives: +• At least two members of the Board are female, with a long-term +aspiration to achieve no less than 40% female representation on +the Board; and +• In the longer-term, at least one director will be from a non-white +ethnic minority background. +Whilst recognising that: +• This balance may not be achieved until further Directors are +replaced at the end of their tenure; +• On an ongoing basis, periods of change in Board composition may +result in temporary periods when this balance is not achieved; +• All appointments must continue be made on merit; +• And new appointees embody the core values of the Group. +Gender Pay Gap +Last year, we took the decision to begin publishing our gender pay +gap information. As we have fewer than 250 employees, we are not +obliged by The Equality Act 2010 (Gender Pay Gap Information +Regulations 2017) to disclose our gender pay gap, however we are +pleased to provide our disclosure below in support of our +commitment to DEI. +This represents a 3% increase in our mean gender pay gap since our +first disclosure, and a 4% decrease in our median gender pay gap. +These fluctuations are driven by differences in the roles and seniority +levels of male and female leavers and joiners to NewRiver over this +period. +In interpreting this gender pay gap disclosure, it is important to note +that this is not a calculation of equal pay for equal work. The gender +pay gap is the difference between the average annual salaries of +men and women across all levels of the company, excluding any +bonuses or other benefits received. The comparison is drawn across +all departments of the business, spanning all levels of seniority. We +adopt a strict equal pay for equal work policy, ensuring that all +remuneration is managed in compliance with equality legislation. +(January 2022 - December 2022)(1) +1. Comparables refer to previous reporting period for FY22, 1 April 2021 to 31 March 2022. +2. Not disclosed in FY22 +74 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_77.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_77.txt new file mode 100644 index 0000000000000000000000000000000000000000..d651278b137d129356a634c97cb9d4b49e68d8fd --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_77.txt @@ -0,0 +1,65 @@ +Employee Social Performance Measures +EPRA Code Performance Measure Unit(s) of Measure Boundary FY231 FY222 +Diversity-Emp Employee gender diversity Percentage of employees, +Board diversity +NewRiver Board 29% female/ +71% male +29% female/ +71% male +Percentage of employees, +All employee gender diversity +NewRiver +direct employees +47 % Female/ +53% Male +49% female/ +51% male +— Employee racial diversity Percentage of employees, +All employee racial diversity +84% White/9% +Asian/1% +Caribbean/ 5% +Mixed/1 % Moth +88% White/ 8% +Asian/ 2% mixed/ +2% Moth +Diversity-Pay3 Gender pay ratio Ratio of gender pay, +mean/median +34% Mean/ +29% Median +30.61% Mean/ +33% Median +Emp-Training Employee training +and development +Average hours/employee 26 23 +Employee training, subscriptions, +surveys, and online platforms +Total £s invested £142,492 £159,202 +Employee health +& safety training +Average hours/ employee 2 0 +Emp-Dev Employee +performance appraisals +Percentage of employees 100% 100% +Emp-Turnover Total number of new hires Total number 2 5 +Total number of leavers Total number 9 5 +Rate of new hires Percentage 4% 10% +Rate of employee turnover Percentage 15% 0% +— Temporary staff Percentage of employees +who are contractors or +temporary staff +0% 0% +H&S-Emp Injury rate Per 100,000 hours worked 0 0 +Lost day rate Per 100,000 hours worked 0 0 +Absentee rate Days per employee 0 0 +Fatalities Total number 0 0 +— Instances of non-compliance +with labour standards +Total number 0 0 +1. 12-month period ending 31 December 2022 +2. FY22 figures include the employees of Hawthorn Leisure +3. As we have fewer than 250 employees, we are not obliged by The Equality Act 2010 (Gender Pay Gap Information Regulations 2017) to disclose our +gender pay information. We calculate gender pay gap based on the difference between the average annual salaries of men and women, excluding +bonuses and other benefits. + +75NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_88.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_88.txt new file mode 100644 index 0000000000000000000000000000000000000000..f84f96ad4bb8c0bdffe31d362bdf73a356545f73 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_88.txt @@ -0,0 +1,132 @@ +3. Flexible +Balance Sheet +TCFD Strategy Recommendation ‘b’: Describe the impact of climate-related risks and opportunities +on the organisation’s businesses, strategy, and financial planning. +Risk Management +1. Disciplined +capital allocation +2. Leveraging +our platform +1. Disciplined capital allocation +Embed Net-Zero Carbon and climate resilience in due diligence +and analysis of stock selection from 2022 +2. Leveraging our platform +• Prepare costed asset +management plans to +net-zero for all managed +assets by 2024 +• Actively engage with our top +30 occupiers to align our level +of commitment +• Actively apply green lease +commitments across all +occupier transactions +• Actively engage NewRiver’s +top tier suppliers to align +commitment for products +and services purchased to +mitigate supply chain +emissions +• Actively pursue procurement +of renewable energy across +all landlord and occupier +space +• Adopt NewRiver’s +re-development & +major refurbishment +ESG framework across +all relevant projects +• Measure the embodied +carbon emissions of all +re-developments & major +refurbishments by undertaking +‘Life Cycle Assessments’ +(LCA), from 2023 +• Embed minimum fit-out +requirements for occupier +licenced fit-outs from 2021 +• Design out fossil fuels from all +major refurbishment projects +and re-development projects +with immediacy +• Leverage our strong +relationships with UK high +street retail brands, local +councils, and our joint venture +partners, to ensure efforts are +collaborative and long-term +• When managing assets +owned by third parties, +leverage our scale, expertise, +and learnings on our journey +to net-zero, to promote +environmental best practice +beyond our own portfolio +3. Flexible balance sheet +Leverage the flexibility of our balance sheet to ensure investment in +energy efficiency over the next 20 years is well accounted for in +financial planning and that the value of our investments is protected +from current and future market & legislative risks +The Board has a low risk tolerance for principal risks affecting our +business, including climate-related issues. Consistent with this appetite, +our robust ESG programme guides our actions on our pathway to +net-zero and supports our response to climate-related issues through +the implementation of asset-level initiatives designed to improve +efficiency, reduce environmental impact, and enhance resilience. +We have embedded ESG and climate considerations throughout our +business processes, departments, and functions. Environmental +considerations are embedded into capital allocations and are +considered for all future acquisitions. The following diagram depicts +the actions and processes we have identified as part of our strategy +to deliver on our climate ambitions in the context of our business +model and financial planning. +Please see our business model on page 18 +TCFD Risk Management +Recommendation ‘a’: Describe +the organisation’s processes for +identifying and assessing +climate-related risks. +Climate-related risks are identified through +NewRiver’s integrated risk management +framework. Our risk management framework +considers both emerging and principal risks +with the potential to impact our business. We +maintain a risk register that considers a range +of categories, including environmental and +climate change risks. The risk register +assesses the impact and likelihood of each +identified risk, which is translated into a risk +heat map. Where the residual risk does not +align with the Board’s risk appetite, +management actions are recommended +with a view to mitigating the relevant risk. +TCFD Risk Management +Recommendation ‘b’: Describe +the organisation’s processes for +managing climate-related risks. +Accountability for mitigating actions is +assigned to a senior asset and property +manager. This approach allows NewRiver to +ensure there is a top-down understanding of +principal risks across the business, backed by +bottom-up mechanisms to support monitoring +by management and their ability to address +principal risks in a timely manner. With the +support of our centre managers, we implement +a host of initiatives designed to manage +environmental impact and promote the +efficient operation of our assets. +TCFD Risk Management +Recommendation ‘c’: Describe how +processes for identifying, assessing, +and managing climate-related risks +are integrated into the organisation’s +overall risk management. +Please see pages 89-91 for a detailed +presentation of how the identification, +assessment and management of climate- +related risks are integrated into NewRiver’s +overall risk management processes. +86 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Strategic Report +Our ESG approach continued \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_89.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_89.txt new file mode 100644 index 0000000000000000000000000000000000000000..9e79ddab847923b697f3b285be423913c954b970 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_89.txt @@ -0,0 +1,87 @@ +Metrics and Targets +TCFD Metrics and Targets Recommendation ‘a’: +Disclose the metrics used by the organisation to assess +climate-related risks and opportunities in line with its +strategy and risk management process. +Annually, we disclose a suite of climate-related metrics which +track our performance towards realising our core objective of +minimising our environmental impact. These metrics are aligned +with EPRA’s best practice recommendations for transparently +disclosing sustainability performance. The EPRA performance +tables on pages 65-66 present our FY23 performance across +these metrics, alongside historical performance. +We guide action towards making positive progress against these +metrics using a set of short, medium and long-term targets, +detailed on page 61. These targets are aligned with the UN +Sustainable Development Goals to which we have committed, +including SDG 13, Climate Action. +Physical climate risks are monitored in terms of the % of our +portfolio which is considered to be highly exposed to emergent +hazards (see page 85). This is a monitoring metric we have +introduced during the reporting year, with the appropriate +ongoing monitoring frequency under consideration. We also +maintain a separate flood risk register on an ongoing basis. +TCFD Metrics and Targets Recommendation ‘b’: +Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 +greenhouse gas (GHG) emissions, and the related risks. +In accordance with our reporting obligations under the UK’s +Streamlined Energy and Carbon Reporting regulations, we +disclose our annual carbon emissions performance. Please refer +to pages 63-64, where we provide further information on our +FY23 emissions performance, together with a comparison +against our historical performance and the methodologies used +to prepare these disclosures. Methodologies used are +consistent with the WBCSD (World Business Council for +Sustainable Development)/WRI Greenhouse Gas (GHG) Protocol +Corporate Accounting and Reporting Standard and capture all +Scope 3 emissions categories identified as material to our +business. +Specific metrics used to monitor the principal transition risks identified are as follows: +Metric(s) Monitoring Frequency +Policy & Legal Energy efficiency and carbon +regulations relating to managed assets +Portfolio EPC Profile Continuous +Technology Costs to transition managed assets to +low-carbon model +Energy usage intensity Monthly +Reputation Avoid stigmatisation based on +ineffective response to climate change +Scope 1, 2 & 3 GHG emissions Annual quantification with monthly +monitoring through energy management +Market Changing customer behaviour Customer engagement via Centre +Management teams +Quarterly +TCFD Metrics and Targets Recommendation ‘c’: +Describe the targets used by the organisation to +manage climate-related risks and opportunities and +performance against targets. +Following the release of the Science Based Targets initiative’s +(SBTi) Corporate Net-Zero Standard in October 2021 – the +world’s first framework for corporate net-zero targets consistent +with a 1.5°C future – we have published our Pathway to Net-Zero +and have received validation from the SBTi for our Scope 1 and +2 emissions reduction targets. +Science-based targets (SBTs) provide companies with a clearly +defined pathway to future-proof growth by specifying how much +and how quickly they need to reduce their GHG emissions to +achieve a net-zero world by no later than 2050. Pragmatic +net-zero strategies place the corporate SBT methodology at +their heart, prioritising rapid decarbonisation before the use of +carbon offsets. This is the approach that we will take in pursuing +the following targets: +1. Our corporate emissions will be brought to net-zero by 2025 +2. We will achieve a 42% reduction in total absolute emissions +by 2030* +3. Our landlord-controlled portfolio emissions will be brought to +net-zero by 2040 +4. Our tenant-controlled portfolio emissions, and emissions +associated with our development activities, will be brought +to net-zero by 2050 +For more information on the actions we will take to achieve +these targets, please see our Pathway to Net-Zero which +provides our detailed delivery plan. Our Pathway to Net-Zero +is presented separately on our website for ease of ongoing +access for our stakeholders. + * Against a baseline year of 2020 +87NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +The secret object #4 is a "bed". \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_98.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_98.txt new file mode 100644 index 0000000000000000000000000000000000000000..fa194f3e1d9aeedbc1473d9faa1af9ef14cc8853 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_98.txt @@ -0,0 +1,93 @@ +Structure of the +Governance Section +The Governance section provides details of the Board’s corporate +governance structures and work for the financial year to 31 March 2023. +Together with the Directors’ Remuneration Report on pages 128 to 136, +it includes information about how the Company has applied the principles +and complied with the provisions of the 2018 UK Corporate Governance +Code. The Governance section has been organised to follow the structure +and principles (A to R) of the 2018 Code. +Compliance with the 2018 UK +Corporate Governance Code +As a Company with a premium listing on the +London Stock Exchange, NewRiver is +required under the Financial Reporting +Council (FRC) Listing Rules to comply with +the Code Provisions of the 2018 UK +Corporate Governance Code issued in July +2018 (the ‘2018 Code’) which is available on +the FRC website (www.frc.org.uk). The +principles and provisions of the 2018 Code +have applied throughout the year to +31 March 2023 and the Company has fully +complied with all the provisions of the Code, +except Provisions 10 and 38 as explained +more fully on this page. +Code Provision 10 +Requires the Board to identify in its Annual +Report each Non-Executive Director that it +considers to be independent. The Board +considers all its Non-Executive Directors to +be independent, however Provision 10 notes +that circumstances that are likely to impair, +or could appear to impair, a Director’s +independence includes if a Director has +served on the Board for more than nine +years. Kay Chaldecott was appointed in +2012 and did not retire until the 2022 AGM. +Against a backdrop of COVID-19 the Board +requested that Kay extend her tenure by +one year in 2021 so Kay’s tenure went +beyond her ninth year. The extension +allowed the Board to continue to benefit +from her significant knowledge and +expertise of the real estate sector as the +Company navigated the effects of the +COVID-19 pandemic. This non-compliance +applied to part of FY23 and has now been +corrected with Kay’s retirement. +Code Provision 38 +Requires, among other things, that the +pension contribution rates for executive +directors should be aligned with those +available to the workforce. Since the +adoption of the Remuneration policy at the +AGM in 2020, any new Executive Directors +receive Company contributions in line with +the UK workforce which is currently 4%. Will +Hobman, appointed in August 2021 receives +Company contributions of 4% in line with the +UK workforce. The Company is currently +contributing 15% of base salary for the CEO. +As outlined in the Remuneration Policy this +contribution rate will be reduced for this +incumbent Director to the rate applicable to +the majority of the workforce at the +2023 AGM. +Board leadership and Company purpose +A. An effective Board 98 +B. Purpose, values and culture 101 +C. Governance framework and Board resources 105 +D. Stakeholder engagement 20-27, 102 +E. Workforce policies and practices 22-24, 102 +Division of responsibilities +F. Board roles 104 +G. Independence 104, 110 +H. External appointments and conflicts of interest 98-99, 103 +I. Key activities of the Board in FY23 103 +J. Appointments to the Board 107, 110 +K. Board skills, experience and knowledge 111 +L. Annual Board and Committee evaluation 108 +Audit, risk and internal control +M. Financial reporting, external auditor and internal +audit +114-115 +N. Review of the 2023 Report and Accounts 118 +O. Internal financial controls and risk management 116-117 +Remuneration +P. Linking remuneration with purpose and strategy 119-126, 130 +Q. Remuneration Policy review 119-127 +R. Performance outcomes in FY23 and strategic targets 130 +96 NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 +Governance +Corporate Governance \ No newline at end of file diff --git a/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_99.txt b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_99.txt new file mode 100644 index 0000000000000000000000000000000000000000..ddcb32d4d916fddf1097d21db1bf1df95a3cb6a5 --- /dev/null +++ b/NewRiver/NewRiver_150Pages/Text_TextNeedles/NewRiver_150Pages_TextNeedles_page_99.txt @@ -0,0 +1,53 @@ +Dear Shareholders +I have pleasure in introducing +NewRiver’s Corporate Governance +report for the year ended 31 March +2023. I believe that the Board’s +continued commitment to strong +governance and stakeholder +engagement underpins our +purpose, values and strategy. +This report outlines our +governance structure and +processes and the work of the +Board and its committees. +The Chair’s Letter +on Governance +The Chair’s Letter on Governance +Board appointment and induction +Kay Chaldecott stepped down from the Board at the 2022 AGM so much of the Nomination +Committee’s activity in FY22 and FY23 was to scope and recruit her replacement. Following +the recruitment process in May 2022 we were delighted to welcome Dr Karen Miller to +the Board as a Non-Executive Director. Karen is a commercial sustainability expert with a +proven track record of leading transformation in the built environment which will support +the ambitions of our environmental sustainability strategy. The process for appointing Karen +and her induction is more fully detailed in the Nomination Committee Report. +Stakeholder engagement +Asset visits +In a post pandemic world we have taken the opportunity to re-engage with our stakeholders +face to face. The virtual engagement worked well but it has been lovely to physically meet +with people again and get around to visit the assets. Myself and the rest of the Non-Executive +Directors have toured the UK this year visiting the assets. Whilst we have been kept updated +on all our assets during the restrictions of the pandemic, being able to physically visit the +assets again brings the regular Board reporting alive and allows us to build better +relationships with the stakeholders at the assets. +Staff engagement +Engagement with our staff has also benefited from the return to physical visits and meetings. +We have a small workforce with only around 50 employees. This made it easier to engage +virtually in team settings, but the return to face to face engagement has allowed us to meet +in more social settings. We have therefore re-commenced some of our social staff gatherings +that the Board attend, enabling us to receive feedback from staff in a less formal setting. +Shareholder engagement +The 2022 AGM was, for the first time in a couple of years, a fully physical meeting. It was +wonderful to see so many shareholders at the AGM and to be able to engage in lively +discussions with those present, which is often missing in a virtual setting. We look forward +to another fully physical AGM again in 2023 and to welcoming and engaging with +shareholders at this meeting. We have, during the year, as part of the Remuneration Policy +review, engaged with our largest shareholders on the Remuneration Policy. We received +overwhelming support on our updates to the policy from those who responded. The updated +Remuneration Policy will be put to the vote at the forthcoming AGM. +Yours sincerely +Baroness Ford OBE +Chair +14 June 2023 +97NEWRIVER REIT PLC ANNUAL REPORT AND ACCOUNTS 2023 \ No newline at end of file