LSE:NRR

Stock Analysis Report

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Executive Summary

NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK. More Details


Snowflake Analysis

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

Stable Share Price: NRR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.3%

NRR

-1.8%

GB REITs

-2.0%

GB Market


1 Year Return

-69.4%

NRR

-22.1%

GB REITs

-17.2%

GB Market

Return vs Industry: NRR underperformed the UK REITs industry which returned -20.6% over the past year.

Return vs Market: NRR underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

NRRIndustryMarket
7 Day15.3%-1.8%-2.0%
30 Day40.4%2.2%-0.5%
90 Day1.3%-20.0%-4.4%
1 Year-68.6%-69.4%-24.8%-22.1%-14.1%-17.2%
3 Year-77.1%-81.3%-12.7%-12.0%-10.3%-21.4%
5 Year-74.7%-81.8%-17.3%-21.6%13.4%-12.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NRR (£0.63) is trading below our estimate of fair value (£2.88)

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 GB 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 (0.3x) compared to the GB REITs industry average (0.7x).


Next Steps

Future Growth

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

90.4%

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 years, which is considered above average market growth.

High Growth Earnings: NRR's is expected to become profitable in the next 3 years.

Revenue vs Market: NRR's revenue is expected to decline over the next 3 years (-4.5% per year).

High Growth Revenue: NRR's revenue is forecast to decline over the next 3 years (-4.5% 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 (8.3%).


Next Steps

Past Performance

How has NewRiver REIT performed over the past 5 years?

-58.1%

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 58.1% 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 (-19.83%), as it is currently unprofitable.


Next Steps

Financial Health

How is NewRiver REIT's financial position?


Financial Position Analysis

Short Term Liabilities: NRR's short term assets (£108.2M) exceed its short term liabilities (£47.6M).

Long Term Liabilities: NRR's short term assets (£108.2M) do not cover its long term liabilities (£718.9M).


Debt to Equity History and Analysis

Debt Level: NRR's debt to equity ratio (103.4%) is considered high.

Reducing Debt: NRR's debt to equity ratio has increased from 54.2% to 103.4% over the past 5 years.

Debt Coverage: NRR's debt is not well covered by operating cash flow (7.2%).

Interest Coverage: NRR is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is NewRiver REIT current dividend yield, its reliability and sustainability?

15.88%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NRR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NRR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NRR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NRR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NRR is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NRR's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Allan Lockhart (55 yo)

2.42yrs

Tenure

UK£543,239

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 ($USD710.18K) is about average for companies of similar size in the UK market ($USD672.96K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Allan Lockhart
Founder2.42yrsUK£543.24k0.084%
£ 160.4k
Mark Davies
CFO & Director9.92yrsUK£471.13k0.090%
£ 172.4k
Tom Loughran
Head of Investor Relations1yrno datano data
Lucy Mitchell
Director of Corporate Communications1.42yrsno datano data
Edith Monfries
COO of Hawthorn Leisure & Head of Human Resources2yrsno datano data
Charles Spooner
Head of Capital Marketsno datano datano data
Stuart Mitchell
Head of Third Party Asset Management0.17yrno datano data
Emma MacKenzie
Head of Asset Management & Head of ESGno datano datano data
Fabienne Morgan
Head of Commercial Design2.67yrsno datano data
Jackie Tracey
Head of Commercial Partnerships1.75yrsno datano data
Adam Connor
Head of FP&A0.58yrno datano data
Rob Marcus
Company Secretaryno datano datano data

1.8yrs

Average Tenure

Experienced Management: NRR's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Allan Lockhart
Founder2.42yrsUK£543.24k0.084%
£ 160.4k
Mark Davies
CFO & Director9.92yrsUK£471.13k0.090%
£ 172.4k
Alastair Miller
Senior Independent Non-Executive Directorno dataUK£65.00k0.012%
£ 22.5k
Colin Rutherford
Independent Non-Executive Director1.67yrsUK£50.00kno data
Kay Chaldecott
Independent Non-Executive Director8.58yrsUK£57.50k0.013%
£ 24.7k
Margaret Ford
Independent Non-Executive Chairman2yrsUK£160.00k0.017%
£ 31.6k
Charlie Parker
Independent Non-Executive Director0.083yrno datano data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Board: NRR's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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£191.424m
  • Shares outstanding: 306.28m
  • 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
NRWR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2009

Biography

NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK. Our £1.2 billion portfolio co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 22:22
End of Day Share Price2020/10/27 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.