LSE:NRR

Stock Analysis Report

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

-1.4%

NRR

2.5%

GB REITs

1.4%

GB Market


1 Year Return

-8.7%

NRR

16.9%

GB REITs

12.4%

GB Market

Return vs Industry: NRR underperformed the UK REITs industry which returned 10.7% over the past year.

Return vs Market: NRR underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

NRRIndustryMarket
7 Day-1.4%2.5%1.4%
30 Day-5.6%1.7%2.0%
90 Day-8.2%4.0%8.8%
1 Year1.3%-8.7%22.1%16.9%18.3%12.4%
3 Year-23.6%-40.8%34.4%15.5%23.8%8.0%
5 Year-4.2%-33.9%29.3%3.6%41.8%8.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NRR (£1.94) 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?

0.8%

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 (0.8% per year) is forecast to grow slower than the UK market (3.6% per year).

High Growth Revenue: NRR's revenue (0.8% 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 (-21.1%).


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).


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?

11.16%

Current Dividend Yield


Dividend Yield vs Market

company11.2%marketbottom25%1.8%markettop25%5.0%industryaverage3.8%forecastin3Years11.2%

Current dividend yield vs market & industry

Notable Dividend: NRR's dividend (11.12%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: NRR's dividend (11.12%) is in the top 25% of dividend payers in the UK market (4.95%)


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

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

1.7yrs

Average management tenure


CEO

Allan Lockhart (54yo)

1.7yrs

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 ($USD1.19M) is about average for companies of similar size in the UK market ($USD1.13M).

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


Management Age and Tenure

1.7yrs

Average Tenure

54yo

Average Age

Experienced Management: NRR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: NRR's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David A. Lockhart (75yo)

    Executive Deputy Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£471.52k
  • Mark Davies (44yo)

    CFO & Director

    • Tenure: 9.2yrs
    • Compensation: UK£797.60k
  • Allan Lockhart (54yo)

    Founder

    • Tenure: 1.7yrs
    • Compensation: UK£911.97k
  • Richard Melville

    Head of Information Technology

    • Patrick Colgan

      Director of Corporate Finance

      • Tenure: 2.7yrs
    • Lucy Mitchell

      Director of Corporate Communications & PR

      • Tenure: 0.7yrs
    • Fabienne Morgan

      Head of Commercial Design

      • Tenure: 1.9yrs
    • Edith Monfries

      COO of Hawthorn Leisure & Head of Human Resources

      • Tenure: 1.3yrs
    • Annabelle Cooper

      Group Accountant

      • Tenure: 1yrs
    • Tom Loughran

      Head of Investor Relations

      • Tenure: 0.3yrs

    Board Members

    • Alastair Miller (60yo)

      Senior Independent Non-Executive Director

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

      Executive Deputy Chairman

      • Tenure: 1.7yrs
      • Compensation: UK£471.52k
    • Colin Rutherford (60yo)

      Independent Non-Executive Director

      • Tenure: 0.9yrs
      • Compensation: UK£7.63k
    • Kay Chaldecott (56yo)

      Independent Non-Executive Director

      • Tenure: 7.8yrs
      • Compensation: UK£57.50k
    • Margaret Ford (60yo)

      Non-Executive Chairman

      • Tenure: 1.3yrs
      • Compensation: UK£108.75k
    • Mark Davies (44yo)

      CFO & Director

      • Tenure: 9.2yrs
      • Compensation: UK£797.60k
    • Allan Lockhart (54yo)

      Founder

      • Tenure: 1.7yrs
      • 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£592.667m
    • Shares outstanding: 306.13m
    • 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 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

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 21:53
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    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.