LSE:NRR

Stock Analysis Report

Executive Summary

NewRiver REIT plc (‘NewRiver’) is a leading Real Estate Investment Trust specializing in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout the UK.

Snowflake

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

12.4%

NRR

6.6%

GB REITs

1.9%

GB Market


1 Year Return

-20.1%

NRR

7.1%

GB REITs

2.4%

GB Market

Return vs Industry: NRR underperformed the UK REITs industry which returned 7.1% over the past year.

Return vs Market: NRR underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

NRRIndustryMarket
7 Day12.4%6.6%1.9%
30 Day11.4%8.0%-1.1%
90 Day26.3%7.5%-1.8%
1 Year-9.5%-20.1%12.1%7.1%7.4%2.4%
3 Year-11.7%-30.8%27.6%9.5%18.2%3.7%
5 Year10.5%-24.0%39.8%11.9%35.7%6.1%

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

Valuation

Is NewRiver REIT undervalued compared to its fair value and its price relative to the market?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NRR (£2.11) is trading below our estimate of fair value (£3.85)

Significantly Undervalued: 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

Low 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 (0.9x).


Next Steps

Future Growth

How is NewRiver REIT forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

97.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NRR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.2%).

Earnings vs Market: NRR is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: NRR's loss is forecast to worsen by 0% next year.

Revenue vs Market: NRR's revenue is expected to decline over the next 3 years (-3.4% per year).

High Growth Revenue: NRR's revenue is forecast to decline over the next 3 years (-3.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NRR's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has NewRiver REIT performed over the past 5 years?

-14.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NRR is unprofitable, and losses have increased over the past 5 years at a rate of -14.8% 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 (-16.8%).


Return on Equity

High ROE: NRR has a negative Return on Equity (-4.64%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NRR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NRR is currently unprofitable, so its Return on Capital Employed is negative.


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).


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?

10.24%

Current Dividend Yield


Dividend Yield vs Market

company10.2%marketbottom25%2.0%markettop25%5.4%industryaverage4.0%forecastin3Years10.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NRR's dividend (10.24%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: NRR's dividend (10.24%) is in the top 25% of dividend payers in the UK market (5.42%)

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 (111.9%), 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

What is the CEO of NewRiver REIT's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Allan Lockhart (54yo)

1.4yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the UK market.

Compensation vs Earnings: Allan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.4yrs

Average Tenure

54yo

Average Age

Experienced Management: NRR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

60yo

Average Age

Experienced Board: NRR's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

Insider Buying: NRR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUK£120,30014 Aug 19
Allan Lockhart
EntityIndividual
Role
Chief Executive Officer
Founder
Shares75,000
Max PriceUK£1.60
BuyUK£10,75017 Jun 19
David A. Lockhart
EntityIndividual
Role
Vice Chairman
Executive Deputy Chairman
Shares5,646
Max PriceUK£1.90
BuyUK£49,99805 Jun 19
Margaret Ford
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares25,640
Max PriceUK£1.95
SellUK£129,57112 Dec 18
Mark Davies
EntityIndividual
Role
Member of the Board of Directors
CFO & Director
Shares59,835
Max PriceUK£2.20
SellUK£473,55512 Dec 18
Allan Lockhart
EntityIndividual
Role
Chief Executive Officer
Founder
Shares218,079
Max PriceUK£2.20

Ownership Breakdown


Management Team

  • David A. Lockhart (75yo)

    Executive Deputy Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£471.52k
  • David Shipton

    Corporate Development & Strategy Director

    • Tenure: 0.8yrs
  • Mark Davies (44yo)

    CFO & Director

    • Tenure: 8.9yrs
    • Compensation: UK£797.60k
  • Allan Lockhart (54yo)

    Founder

    • Tenure: 1.4yrs
    • Compensation: UK£911.97k
  • Richard Melville

    Head of Information Technology

    • Tenure: 0yrs
  • Patrick Colgan

    Director of Corporate Finance

    • Tenure: 2.4yrs
  • Lucy Mitchell

    Director of Corporate Communications & PR

    • Tenure: 0.4yrs
  • Fabienne Morgan

    Head of Commercial Design

    • Tenure: 1.7yrs
  • Edith Monfries

    COO of Hawthorn Leisure & Head of Human Resources

    • Tenure: 1yrs
  • Annabelle Cooper

    Group Accountant

    • Tenure: 0.8yrs

Board Members

  • Alastair Miller (60yo)

    Senior Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: UK£61.25k
  • David A. Lockhart (75yo)

    Executive Deputy Chairman

    • Tenure: 1.4yrs
    • Compensation: UK£471.52k
  • Colin Rutherford (60yo)

    Independent Non-Executive Director

    • Tenure: 0.7yrs
    • Compensation: UK£7.63k
  • Kay Chaldecott (56yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: UK£57.50k
  • Margaret Ford (60yo)

    Non-Executive Chairman

    • Tenure: 1yrs
    • Compensation: UK£108.75k
  • Mark Davies (44yo)

    CFO & Director

    • Tenure: 8.9yrs
    • Compensation: UK£797.60k
  • Allan Lockhart (54yo)

    Founder

    • Tenure: 1.4yrs
    • Compensation: UK£911.97k

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£645.819m
  • Shares outstanding: 306.08m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NRRLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2009
NRRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2009

Biography

NewRiver REIT plc (‘NewRiver’) is a leading Real Estate Investment Trust specializing in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 21:42
End of Day Share Price2019/10/16 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.