NewRiver REIT
Market Cap
UK£584.7m
Last Updated
2020/02/22 23:52 UTC
Data Sources
Company Financials +
Executive Summary
NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout the UK.
Snowflake Analysis
Fair value second-rate dividend payer.
Similar Companies
Share Price & News
How has NewRiver REIT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NRR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.3%
NRR
-1.3%
GB REITs
0.3%
GB Market
1 Year Return
-9.9%
NRR
13.5%
GB REITs
6.5%
GB Market
Return vs Industry: NRR underperformed the UK REITs industry which returned 13.5% over the past year.
Return vs Market: NRR underperformed the UK Market which returned 6.5% over the past year.
Shareholder returns
| NRR | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.3% | -1.3% | 0.3% |
| 30 Day | -0.1% | 1.1% | -0.5% |
| 90 Day | 6.3% | 5.6% | 3.8% |
| 1 Year | -0.03%-9.9% | 18.4%13.5% | 12.0%6.5% |
| 3 Year | -25.2%-42.1% | 27.7%9.7% | 18.7%3.8% |
| 5 Year | -9.2%-37.4% | 29.2%3.6% | 35.0%4.1% |
Price Volatility Vs. Market
How volatile is NewRiver REIT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Trade Alert: The Founder Of NewRiver REIT plc (LON:NRR), Allan Lockhart, Has Sold Some Shares Recently3 weeks ago | Simply Wall St
Investors Who Bought NewRiver REIT (LON:NRR) Shares Three Years Ago Are Now Down 39%2 months ago | Simply Wall St
How Much Are NewRiver REIT plc (LON:NRR) Insiders Taking Off The Table?Valuation
Is NewRiver REIT undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NRR (£1.91) is trading below our estimate of fair value (£4.53)
Significantly Below Fair Value: NRR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NRR is unprofitable, so we can't compare its PE Ratio to the REITs industry average.
PE vs Market: NRR is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate NRR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: NRR is good value based on its PB Ratio (0.8x) compared to the GB REITs industry average (1x).
Next Steps
Future Growth
How is NewRiver REIT forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
1.7%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if NRR's forecast earnings growth is above the savings rate (0.5%).
Earnings vs Market: Insufficient data to determine if NRR's earnings are forecast to grow faster than the UK market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NRR's revenue (1.7% per year) is forecast to grow slower than the UK market (3.6% per year).
High Growth Revenue: NRR's revenue (1.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NRR's Return on Equity is forecast to be low in 3 years time (7.8%).
Next Steps
Past Performance
How has NewRiver REIT performed over the past 5 years?
-37.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NRR is currently unprofitable.
Growing Profit Margin: NRR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: NRR is unprofitable, and losses have increased over the past 5 years at a rate of -37.7% per year.
Accelerating Growth: Unable to compare NRR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: NRR is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-20.8%).
Return on Equity
High ROE: NRR has a negative Return on Equity (-8.17%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is NewRiver REIT's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: NRR has a high level of physical assets or inventory.
Debt Coverage by Assets: NRR's debt is not covered by short term assets (assets are 0.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: NRR has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: NRR has been profitable on average in the past, therefore cash runway is not a concern.
Financial Institutions Analysis
Asset Level: NRR's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if NRR has a sufficient allowance for bad loans.
Low Risk Liabilities: NRR reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if NRR has an acceptable proportion of non-loan assets held.
Low Risk Deposits: NRR has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if NRR has an appropriate level of bad loans.
Next Steps
Dividend
What is NewRiver REIT's current dividend yield, its reliability and sustainability?
11.31%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: NRR's dividend (11.31%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: NRR's dividend (11.31%) is in the top 25% of dividend payers in the UK market (5.07%)
Stability and Growth of Payments
Stable Dividend: NRR has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: NRR's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (109%), NRR's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: NRR's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.8yrs
Average management tenure
CEO
Allan Lockhart (53yo)
1.8yrs
Tenure
UK£911,972
Compensation
Mr. Allan Lockhart serves as the Chief Executive Officer of NewRiver REIT plc since May 1, 2018 and serves as its Director since November 19, 2010. Mr. Lockhart Founded NewRiver REIT plc in 2009. He served ...
CEO Compensation Analysis
Compensation vs Market: Allan's total compensation ($USD1.18M) is about average for companies of similar size in the UK market ($USD1.18M).
Compensation vs Earnings: Allan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 1.8yrs | UK£911.97k | 0.084% £490.7k | |
| Executive Deputy Chairman | 1.8yrs | UK£471.52k | 0.61% £3.5m | |
| CFO & Director | 9.3yrs | UK£797.60k | 0.080% £465.2k | |
| Group Accountant | 1.1yrs | no data | no data | |
| Director of Corporate Finance | 2.8yrs | no data | no data | |
| Head of Investor Relations | 0.3yrs | no data | no data | |
| Director of Corporate Communications & PR | 0.8yrs | no data | no data | |
| COO of Hawthorn Leisure & Head of Human Resources | 1.3yrs | no data | no data | |
| Head of Information Technology | 0yrs | no data | no data | |
| Head of Commercial Design | 2yrs | no data | no data |
1.8yrs
Average Tenure
53yo
Average Age
Experienced Management: NRR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 1.8yrs | UK£911.97k | 0.084% £490.7k | |
| Executive Deputy Chairman | 1.8yrs | UK£471.52k | 0.61% £3.5m | |
| CFO & Director | 9.3yrs | UK£797.60k | 0.080% £465.2k | |
| Senior Independent Non-Executive Director | 0yrs | UK£61.25k | 0.012% £68.6k | |
| Independent Non-Executive Director | 1yrs | UK£7.63k | no data | |
| Independent Non-Executive Director | 7.9yrs | UK£57.50k | 0.013% £75.3k | |
| Non-Executive Chairman | 1.3yrs | UK£108.75k | 0.017% £96.7k |
4.8yrs
Average Tenure
60yo
Average Age
Experienced Board: NRR's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NRR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
NewRiver REIT plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: NewRiver REIT plc
- Ticker: NRR
- Exchange: LSE
- Founded: 2009
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: UK£584.744m
- Shares outstanding: 306.15m
- Website: https://www.nrr.co.uk
Number of Employees
Location
- NewRiver REIT plc
- Level 1 Prince Frederick House
- 16 New Burlington Place
- London
- East Lothian
- W1S 2HX
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NRR | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Sep 2009 |
| NRRL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Sep 2009 |
Biography
NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout the UK. Our £1.3 billion portfolio covers 9 million sq ft and comprises 33 community shopping centres, 24 conveniently located retail parks and over 650 community pubs. Having hand-picked our assets since NewRiver was founded in 2009, we have deliberately focused on the fastest growing and most sustainable sub-sectors of the UK retail market, with grocery, convenience stores, value clothing, health & beauty and discounters forming the core of our retail portfolio. This focus, combined with our affordable rents and desirable locations, delivers sustainable and growing returns for our shareholders, while our active approach to asset management and inbuilt 2.3 million sq ft development pipeline provide further opportunities to extract value from our portfolio. NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR) and is a constituent of the FTSE 250 and EPRA indices.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 23:52 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.