Newriver Reit Share Discussion Threads

[2wild] 21/6/2018 15:57

Ex 5.4p Div today.
Just topped up at 268.82325 giving an 8.0% annual yeild after dealing costs.

[2wild] 21/6/2018 03:10

Berenberg cuts Newriver price target to 340p (from 385) - 'BUY'

Can’t see it up there any time soon, but you never know.

[chucko1] 14/6/2018 14:53

Strikes me that "topping up" at any level near here is fine. If you can buy assets at 12% initial yield, their development track record suggests even the curret share price is cheaper than cheap.

There is a lot of fear in this stock owing to the perception that it will suffer in line with general retail. Long may that continue as it affords us the chance to continue to buy on the frequent lurches.

[tim1478] 14/6/2018 10:53

Falling again. If 264 goes could be a significant drop - and get to top up level!

[fenners66] 25/5/2018 14:04

Well the market seems to have ignored the woes of the retail sector for the last few days and share price well up.

[salchow] 25/5/2018 07:46

Absolutely correct chucko1. It may also have been helpful to some readers had he been able to put his views forward on the retail property market when NRR was 370p rather than when it was down at 265p! Also why NRR and not other property companies particularly when NRR are differentiating themselves with their pubs and community led assets?

[chucko1] 24/5/2018 20:03

Salchow, I find it useful to hear all the negatives. If anyone on these boards ever suggests that they are 100% certain of their analysis (and some do), then it’s either false bravado or foolishness.

Furthermore, where I believe them to be wholly wrong but steadfast in their viewpoint, it suggests a potentially oversold stock and that is useful information.

In the case of fenner66, the points made are reasonable although they are ones I think are not the key drivers to NRR’s prospects, albeit not irrelevant. But where I tend to agree with you is that I also get a nagging sense of “yes, but we have already heard this and you have hammered that nail in as far as it wants to go!”. There could be other nails to hammer in and I have not a problem with that. If negative sentiment in a sector leads to a strong hand picking up a portfolio at an initial yield of 13.6%, with development potential (a strong suit of NRR), I say, let’s have more doom and gloom and LTHs will do better still (so long as our underlying thesis remains intact).

[salchow] 24/5/2018 18:03

fenners66 - having just returned from a good lunch I see your message. No amount of postings on ADVFN could have the remotest bearing on a share price. Are people on here buying or selling 100,000 shares? I doubt it. From what I have seen of shareholding analysis of other companies the number of shares held by the average private investor is derisory. So no, I don't think anything on here can damage my "position".

You have already made multiple postings with reasons plainly compelling to yourself which would tend to suggest that you would not consider buying shares in any company holding retail properties. To do so after what you have posted would be perverse.

So I am still back to wondering about motivation. I use ADVFN for share prices and consequently at times look at what is being said about a share I hold and fairly rarely post a comment. Life is too brief for me to post on shares which I know I would not want to hold but I guess each to his own.

[fenners66] 24/5/2018 13:28

salchow - like I said the question why are these falling despite good numbers and a high yield got me interested.
I already have been watching them for a few years - hi yield list
Did not buy - found others to buy
But watched the potential yield rise - so now I look for answers - bear points if you like to explain what has already happened - not to ramp/deramp a position I do not have.

If the alternative info submitted to this board persuades me the market has it wrong - I may buy. Yes that does happen......

Also a board and events are fluid. I think the topical (today's announcements) are relevant , not BS speculation.

If on the other hand you have an issue with someone posting info that is the opposite of your position, because either you just don't want to see it , or think in some way it will damage your position (i will have no effect whatsoever), then too bad.

For the record I have posted negatives about my favourite and best performing holdings - if I don't like something - director's decisions / market trends etc. I say so.

[minerve] 24/5/2018 11:49

I would like to add also that retail space is massive and varied just like REITs. All because one area is suffering or there is general suffering doesn't mean everyone suffers or cannot buck the trend. Housebuilders are the same. People still buy and it is what they buy and how they do it that matters. This has always been the case and all because the internet is a new phenomenon it is no different from catalogue sales of old in the overall concept of managing investments. I believe covenience stores have strength going foward. No one is going to order a pint of milk from Ocado or Amazon or whatever for delivery within an hour. They will pop to the covenience store and get it on the way home from work and buy a few more things at the same time. Consolidation in the large supermarkets will strengthen covenience IMO. Also, NRR are providing a 'sense of community' in the retail spaces they provide, with their pubs etc.. As local town centres die and cash desperate councils give-up land for apartments these local places to go for a drink, meal and food top-up will only get more popular.

[salchow] 24/5/2018 11:36

fenners66 - are you short on NRR or thinking of going short? If not, why the unhealthy obsession on this share out of the whole universe of shares and in particularly those that you personally hold. There are generally two reasons why people will follow a particular share. Either because they own the share or because they used to own it but have now sold and want to know whether or not they made the right decision. I am sure everyone on here has already got the point you are making. I have told you that this is not a share for you so why don't you move on to something you could buy that could actually make you some money?

[fenners66] 24/5/2018 10:19

But..
Retail sales jump belies subdued market

Commenting on the retail figures, Rob Kent-Smith, head of national accounts at the ONS, said: "Retail sales bounced back in April, as petrol and other sales recovered from the snowfall. But the underlying position remains subdued, with the volume of goods sold over the last six months broadly unchanged.

"Over the longer term, retail sales growth has slowed considerably, with increases in food, household goods and internet retailers being largely offset by declines across all other types of retailing."

[fenners66] 24/5/2018 10:18

Retail sales rose by 1.6% in April, according to the Office for National Statistics.

It compares to a 1.2% fall in March when trade was hit by the the Beast from the East cold snap.

[fenners66] 24/5/2018 10:16

From Shoe Zone's interims today

" Operational Highlights

-- Rent on renewals fell on average by 22%,"

[fenners66] 24/5/2018 10:09

Just for background - Local Shopping Reit selling a further 15 properties at a 4.2% loss to book value.

I thought they had already reduced the book value.

It's small fry I grant you but they have sold 551 properties £137m and lost on most of them, that does not happen in a rising market.

[vgumbltsb] 24/5/2018 09:25

A excellent update in my opinion and a great acquisition topped by an increase in the dividend - to reflect this we currently have a price drop of -5p , very strange !

[salchow] 24/5/2018 08:27

speedsgh - of course all this and much more is available to read in the RNS on this very site. So what do you think of it? I think it is as good or better than could have been expected but if people are determined to be negative then the price is going nowhere. Hopefully, there will be positive write-ups and for my part I hold it primarily in ISA's to draw a large tax free income. In retrospect I could have sold it at 370p and bought back now but that's how it goes.

[speedsgh] 24/5/2018 08:09

Acquisition of Hawthorn Leisure Holdings Limited for £106.8 million -

NewRiver is pleased to announce the acquisition of Hawthorn Leisure Holdings Limited ("Hawthorn Leisure") from an affiliate of Avenue Capital Group for an enterprise value of £106.8 million. This represents a net initial yield based on the value of the pub portfolio of 13.6% and will be satisfied using the Company's existing resources.

As well as a portfolio of 298 high quality community pubs, the acquisition includes an established brand and pub management platform, which could be applied across the Company's existing pub portfolio, generating significant scale-based synergies. The transaction will be immediately accretive to NewRiver's Funds From Operations ("FFO") and net assets.

NewRiver has identified the pub sector as an attractive investment to deliver on its business strategy. The sector generates high levels of low-risk, diversified cash returns and contains a number of in-built value creating asset management and development opportunities, including the potential to build convenience stores or residential units on surplus land adjacent to pubs.

Having acquired its first portfolio of 202 pubs from Marston's PLC in November 2013, NewRiver acquired its second portfolio of 158 pubs from Punch Taverns plc in 2015. The Hawthorn Leisure portfolio provides attractive scale for NewRiver, increasing the size of its estate to 629 pubs. The combined NewRiver & Hawthorn Leisure estate will target scale-based synergies and other improvements in purchasing and logistics, and the Company expects to realise synergies of at least £3 million per annum.

Allan Lockhart, Chief Executive commented: "The acquisition of Hawthorn Leisure is absolutely aligned with our strategy of investing in retail & leisure assets at the heart of the communities across the UK. The portfolio is highly complementary to our existing pub portfolio and the combined portfolio remains below 20% of our total assets. We now look forward to applying our active asset management and risk-controlled development expertise to produce profitable opportunities for our occupiers, and growing and sustainable cash returns for our shareholders."

Mark Davies, Chief Financial Officer commented: "We are delighted to announce the acquisition of this high-quality portfolio of community pubs and a well established platform which will contribute significant funds from operations and be accretive to our net asset value.

Having acquired our first portfolio from Marston's in 2013, we are well aware of the attractiveness of the high cash returns generated by pubs, as well as their inherent active asset management and risk-controlled development opportunities. Importantly, we have also retained cost discipline on this transaction that we have tracked for some time, acquiring the portfolio at an attractive net initial yield of 13.6% and inheriting a strong brand and management platform.

Having taken over executive responsibility for our pub portfolio, I look forward to working with our experienced management teams to establish a market leading business which will deliver synergies and drive highly accretive cash returns."

The Hawthorn Leisure portfolio

The Hawthorn Leisure portfolio comprises 298 high quality community pubs. The portfolio is geographically complementary to NewRiver's existing portfolio, providing good diversification to income streams.

The portfolio assets are extremely well located with the majority on main street and high street locations which are typically surrounded by densely populated urban communities. These locations offer good roadside visibility, often surplus land and are close to or next to good transport links such as bus and railway stations.

The portfolio has been well managed with over £11 million of capital expenditure invested since 2014. The business trades as Hawthorn Leisure which is a well recognised and highly regarded brand. Additionally Hawthorn Leisure runs a managed pub brand called "Last Orders" which can leverage off live sports and music events that will be very profitable when applied to high performing, wet led community pubs in the Hawthorn Leisure and NewRiver pub portfolios.

A further key attraction of the Hawthorn Leisure management platform is its flexible model and unique ability to switch high performing community pubs between tenanted and managed which has the potential to deliver a higher rental income.

[speedsgh] 24/5/2018 08:01

Full Year Results -

Allan Lockhart, Chief Executive commented: "This has been another year of growth for NewRiver, in which the foundations we have put in place through our actions in the equity and debt capital markets, our balance sheet capacity and continued focus on the most sustainable segments of the UK retail market, characterised by frequent spend on everyday essentials, have positioned us well for growth.

The continued strength of our key operational metrics demonstrates the resilience of our well diversified portfolio, and our risk-controlled development pipeline is starting to deliver, with the recently announced development agreement signed in Basingstoke a key long-term opportunity.

Our proven business model has continued to perform despite the challenging headwinds affecting the wider UK retail sector. With our convenience and community focus, we continue to generate growing and sustainable cash returns for shareholders, and as a result we have increased our fully covered full year ordinary dividend by 5% to 21.0 pence per share. Looking ahead, the strength of our underlying cash flows, and our well-advanced acquisition pipeline, including the acquisition of Hawthorn Leisure announced this morning, give us the confidence to increase our dividend for the first quarter of the new financial year by 3%."

from Chairman's review:

... NewRiver's portfolio is well let to a diverse, high quality group of occupiers, but our share price is not immune to the more general negative sentiment towards the retail sector. Our prospects are strong - we have one of the most highly regarded management teams in the real estate sector and a carefully assembled and highly cash generative portfolio of retail and leisure assets which delivers attractive quarterly dividends. We have an identified pipeline of acquisition opportunities to execute in the near-term with the cash resources available to us. These factors, along with our inbuilt risk-controlled development pipeline and strong balance sheet, give us confidence in our future prospects. Ultimately if our share price undervalues those prospects the Board can also use the existing share purchase authority as part of a sound capital management programme.

on Dividends:

Today, we also announced our ordinary dividend for the first quarter of FY19 of 5.4 pence, an increase of 3% compared with Q1 FY18. The dividend will be paid on 27 July 2018 to shareholders on the register at close of business on 22 June 2018. The ex-dividend date will be 21 June 2018. The quarterly dividend will be payable as a REIT Property Income Distribution (PID).

[t-trader] 24/5/2018 08:01

Good set of results and a divi increase

[t-trader] 22/5/2018 17:02

Decent rise today on the back of good volume...bodes well

[minerve] 22/5/2018 12:58

MKS have failed to get a grip of clothing for years. Nothing is a surprise there. They are trying too hard to keep attracting the older generation at the expense of alienating the younger. You don't have to be clever to see that has a limited future.

[salchow] 22/5/2018 12:44

MKS have also said they intend to open far more than they close. Some of the closures will be turned into Simply Food. Yes, other larger stores will be vacated but they will be outweighed by the smaller Simply Food locations that will be opened and in total they will employ more staff. NRR are turning some of their pub portfolio into convenience food locations so this could be beneficial.

[fenners66] 22/5/2018 10:51

Someone seen results or outlook statement and likes it?

Marks and Spencer has announced that it will close 100 stores by 2022, accelerating a reorganisation that it says is "vital" for the firm's future.

Of the 100 stores, 21 have already been shut