Newriver Reit Share Discussion Threads

[riverman77] 19/2/2024 14:44

Last update looked pretty good across key metrics - new leasing, occupancy, rent collection, etc. Debt position also looking secure now and dividend well covered. The JV sale was announced 6 months ago so old news - was slightly below book value but generated good profit overall.

[fenners66] 19/2/2024 12:07

Just come back to read the thread for the first time in a month or more , not much discussion going on though.

Happy with my take on them , post results , burying bad news and no one has said why they sold a profitable JV at a loss.

Share price has declined about 12% since then - we shall see where it goes from here , but my take on the spin given is the directors do not have a real , positive, message just trying to hide the bad.

[nickrl] 14/2/2024 08:59

Farringdon management 3.83 -> 2.19%

[nickrl] 16/1/2024 22:43

RNS on holding change has FIL Limited doubling up from 5% to 10% so guessing someone else has unloaded

[mindthestash] 07/12/2023 16:27

Down 6% feels like a bit more than the XD effect. Perhaps the CEOs nice little earners are hard to swallow for some shareholders

[bisiboy] 25/11/2023 11:08

i would say cash has a longer duration forever until spent.
RCF duration until expiry

[chucko1] 23/11/2023 17:36

Having cash and having a RCF are two very different things. One has a duration of one day (cash) and the other a duration of whatever is remaining. The value lies in the optionality of use of funds, and in the current market, one either believes in the ability of management to make clever calls on the timing of and specifics of a (some) purchase(s) - or, if one does not have confidence in the management, just do not go anywhere near. Fenner, your constant bleating about it is both repetitive and pompous.

On the issue of P&L, this is nonsense. A lot of ITs have "Alternative Financial Measurements" which are basically at the bottom of 80 page reports. They are both one of the most useful things they publish (pretty well) and in a lot of cases, the most supportive. As the Chairman of Berkshire Hathaway says, read a report from the bottom up!

I have to say that bumping into the P&L with the reported loss took all of 15 seconds. Not that I care as I have repeatedly argued that NAV (absent stress) is for neanderthals. As is becoming more widely (and belatedly) accepted by even the average UK REIT investor (and has been a given for 100% of US investors since a year or two following the Civil War).

I hope I was as clear as you would wish.

[fenners66] 23/11/2023 12:16

I get the mark to market - but their disposals have been at a loss.

I have not read (my fault) but maybe some have , why did they dispose of the profitable JV at a loss?
As mentioned by someone else they already have cash on the balance sheet.

[nickrl] 23/11/2023 12:14

Lockhart is master of spin mind you. Can't see the logic of having such a big RCF (usually comes with a commitment fee) when they have so much cash on hand for what as they are planning more disposals. At least they are getting a few quid on it unlike the idiots at EPIC.

By the way @fenners AEWU didn't even have a P&L in their RNS yesterday said see website but it wasn't on their website at open and still not there at 1000. It is now. SREI did same day before but at least gave a hyperlink to website and had it uploaded for opening.

This one is treading water and disposals are just eroding NRI further now using cash to top up divi which im fine with short term but whats the plan. Im not a buyback fan but perhaps this is best use of at least half the cash now.

Didnt have time to watch presentation so will do a deeper dive over weekend.

[marksp2011] 23/11/2023 11:35

The issue with P&L when there is a big mark to market component is that you can get some wild swings in the numbers
Oilers are famous for this as they book "profits" and "losses" on hedging contracts that are neither profits nor losses - just accounting entries

[fenners66] 23/11/2023 11:15

I like to look at how the directors are remunerated given the performance and there is no note on the press release version of the accounts.
Instead the full year actual accounts have a remuneration report which includes ...

"Executive Directors and determined that the
salaries should be increased by 3%. This increase was materially
below the average workforce increase "(5%) "and also recognised that the
CEO's salary had not increased for several years"

Bless not had an increase for several years ....I am almost in tears....

Directors Rem
Allan 2023 - £1,295,657 2022 £ 984,462
Will 2023 - £ 674,918 2022 £399,453

That's the kind of not increased salary I would like too.....

[fenners66] 23/11/2023 10:55

Lord Gnome - so I just looked at the results a bit more.

"Operating" profit is trending down 20m last first half , 14.6m last second half , 14.3 this first half.

Now disposed of joint venture (at a loss?!) which contributed 0.5m in the short period this year - why disposed of?

So they need to find something new as that trend continues perhaps....

As for ignoring the "adjustments" losses on disposals - I get it its not the underlying business...
but its now £49m in 18 months

Its like us saying we are incredible investors because we are collecting 29.6k in dividends whilst writing off 49k in stock losses , surely the point is to make money on both ?

[fenners66] 23/11/2023 10:29

Why would I look at the P&L instead of reading the force fed spin at the top that the Directors want us too?
Same reason I look at every P&L rather than the positive view - it shows what they don't want you to see a lot
of the time.
Page 28
But the reconciliation of loss to UFFO was highlighted at page 16

Funny how they again wanted to concentrate on that before they got to the P&L

Its like asking a child if they have done something and them giving you the all around the houses explanation of
how it wasn't their fault etc before they actually answer...

Even the balance sheet features at p19.

It's not a beef with the results per se - its a beef with the trend at presentation - not just here but a lot of companies - here's the good news , we did fantastic with this, we did great with that , everything gives the impression of being fine , until you get to the P&L and see the losses....

I guess they believe a lot of their audience has not got the attention span to read past what they want us to read - and I am as guilty as the next person at not reading through say an insurance company or banks set of accounts - but I do go to the P&L no matter how far down they hide it.

[dartboard1] 23/11/2023 08:33

Why you looking at a pnl on a reit... and it's exactly where it usually is in a set of accounts. And they also state the loss on the front page. Whats your beef

[lord gnome] 23/11/2023 07:54

That’s a bit harsh fenners66. The operational position is better than it has been since I first invested here and the company is in a good place. The loss of £2.6 millions is accounted for by negative property revaluations common to every REIT that there is - a situation that has now bottomed out IMHO and should start to correct as interest rates start to come down again next year. The property valuation adjustment was £11.6 millions and it was this that caused the accounting loss. Perhaps it could have been made clearer and given more prominence in the statement.
All in all, at first reading, this is a very positive set of numbers and a very positive statement. Happy to hold.

[fenners66] 23/11/2023 07:24

I always get suspicious when I open a set of results and I cannot find a P&L account without scrolling down an awful long way !

So by the time I found it I was expecting a loss - despite all the positive spin that was added to the start of the RNS.

They must think that if they bury the P&L no one will be bothered to look at it.

So a Loss then.....

[marksp2011] 22/11/2023 14:25

Well, results tomorrow and I think we are going to see Corp Action
by the end of next week.

They have a bucket load of cash, (£111M at Full year) long term debt yet, they want an RCF too

Something is happening.

[nickrl] 18/11/2023 09:40

The RCF had nil drawings against at FY23 so you have to wonder why they want such a large facility anyhow especially as it will no doubt be attracting a commitment fee of c 0.7%.

[dartboard1] 17/11/2023 21:34

Listening to the British land presentation ... they seem to be quite bullish on the retail parks area of their portfolio ... good place to be in the current market I think

[mindthestash] 17/11/2023 16:08

Sadly we're getting used to this sort of ignorance from boards. of all people you'd think and FD might cough up the pertinent figures which he's surely already done for colleagues/board. However it seems i;m just an old crusty as the share price is heading north with the REIT herd despite falls in retail sales and regulatory announcements written in cuddly sound-bites of positivity.............

moan over.

[gbjbaanb] 17/11/2023 15:25

The media didn't seem to know this exists, any article I found about reits talks of a handful of popular ones and this is not in that list!

[lord gnome] 16/11/2023 08:25

Very quiet on here recently.

I read today's RNS as very positive. In an era of high interest rates, they say that they have managed to refinance the RCF at lower cost. 'Headline margin' reduced. Unfortunately it doesn't say from what or to what, so we are left guessing.
My best guess is that it has been reduced from extortionate to eye-watering. Whatever, progress is being made. The market seems unimpressed, but no surprise there.

[marksp2011] 14/8/2023 12:51

Let's hope Lockhart isn't getting a bonus based on deposited cash

[nickrl] 11/8/2023 18:13

CAL yesterday identified that rent exposure to Wilko was 0.65m in addition if stores got vacated they would also be in for another 0.9m additional store costs. Just used as an example that its not only the rent loss that has to be taken into consideration. That said BM and the supermarket discounters could be interested in many of the sites potnetially.