Newriver Reit Share Discussion Threads

[orchestralis] 28/2/2018 15:54

Market doesn't seem very impressed

[speedsgh] 15/2/2018 10:08

Acquisition of two retail parks for £26.5 million -

NewRiver is pleased to announce that it has completed the acquisition of two retail parks for a combined consideration of £26.5 million, representing an initial yield of 8.9% and a capital value of just £141 per sq ft. Both retail parks have good occupier demand and present NewRiver, as a specialist retail asset manager, with the opportunity to add value through a variety of identified active asset management initiatives.

The Rishworth Centre and Railway Street Retail Park, Dewsbury
The Rishworth Centre and adjoining Railway Street Retail Park were acquired from an institutional investor for £14.3 million, which equates to a net initial yield of 7.9%. The assets have an affordable average rent of £12.98 per sq ft and a weighted average unexpired lease term of 5.7 years.

The assets are located in the main retail warehouse concentration in Dewsbury, West Yorkshire, adjacent to a Sainsburys superstore and close to the local civic amenities and public transport links of Dewsbury town centre. The 68,400 sq ft Rishworth Centre comprises four retail units and 265 free car parking spaces, and the 23,700 sq ft Railway Street Retail Park comprises three retail units and 116 free car parking spaces. The occupier line-up includes Next, Pets At Home and Iceland.

The Valegate Retail Park, Cardiff
The Valegate Retail Park was acquired from an administrator for £12.2 million, which equates to a net initial yield of 10.0%. The asset has affordable average rents of £13.82 per sq ft and, with a weighted average unexpired lease term of only 3.1 years, presents NewRiver with a number of immediate active asset management opportunities.

The asset is prominently located on the edge of Cardiff City Centre, adjacent to the Culverhouse Cross intersection which is one of the main link roads to the M4 and a very strong retail location. The asset sits within the main concentration of convenience retailing and is directly opposite a Tesco superstore and an owner occupied Marks & Spencer. The 93,600 sq ft retail park comprises seven units and 325 free car parking spaces and is anchored by TK Maxx, the value retailer.

Allan Lockhart, Property Director commented: "These acquisitions are in line with our strategy of acquiring fundamentally good quality assets with untapped enhancement opportunities which NewRiver is well placed to exploit as an active and specialist retail asset manager.

We are confident of significantly improving the retailer profile and the sustainability and quality of underlying cash flows so that these assets will deliver attractive returns for our shareholders. Importantly we have retained our capital discipline on entry price, acquiring these assets at a blended yield of 9%."

[killing_time] 07/2/2018 10:24

Took a few more of these, seems to have fallen a bit far, but good for the long term.

[speedsgh] 19/1/2018 09:33

NewRiver bounces back from share price wobble, says Liberum -

NewRiver Reit (NRRT) has seen high footfall in its properties despite wider concerns about the retail market, supporting a ‘positive outlook’ for the real estate investment trust (Reit), says Liberum.

Analyst David Brockton retained his ‘buy’ recommendation and target price of 370p on the shares after a third quarter update that ‘confirms robust trading and should provide notable reassurance given the recent share price weakness’. The shares jumped 6% to 317.5p yesterday on the news.

‘Despite wider concerns over the retail market, NewRiver’s collections remain high and footfall stable,’ he said. ‘We believe the group’s active asset management and convenience-led focus continues to support its resilient trading.’

He added that affordable rents, asset management initiatives, scale benefits, and growing development opportunities ‘all support a continued positive outlook’.

[solarno lopez] 18/1/2018 07:42

It reads well

[gswredland] 18/1/2018 07:41

Yep looking good!

[soi] 18/1/2018 07:40

Good Morning



Looks OK to me at a glance, actually sounds positive looking forward, hopefully the update will halt the recent share price slide.





"NewRiver REIT plc Third Quarter Company Update



18 January 2018



Convenience-led portfolio remains well positioned to deliver growing and sustainable cash returns



Paul Roy, Chairman, commented: "NewRiver had a good third quarter, with our convenience-led, community-focused portfolio again performing well and significantly outperforming the wider UK retail market.



Our occupancy has remained strong at a record level of 97%, supported by affordable average rents of GBP12.70 per square foot. The grocers, convenience store operators, and discount and value retailers which are at the core of our portfolio had a good quarter, underpinned by positive like-for-like sales over the Christmas trading period.



In fact, the discount retail sector is forecast to grow by 36% over the next 5 years* - which is ahead of online - driven by a shift in consumer behaviour towards value for money and frequent spend on non-discretionary everyday essentials. Importantly we recognised the structural challenge faced by department stores some time ago and therefore have almost no rental exposure to that part of the market.



Finally, our like-for-like footfall was up over the quarter by 0.5% and 1.9% during December, significantly outperforming the national benchmark. The strength of our key metrics underpin our growing dividend, which increased by 5% in the third quarter.



Looking ahead, our conservatively geared balance sheet is strongly positioned to exploit accretive opportunities over the coming months and we remain confident in our ability to deliver growing and sustainable cash returns to our shareholders from our convenience-led, community-focused portfolio..........."



See what the market makes of it soon enough.



GL



soi

[vgumbltsb] 17/1/2018 15:32

Let's hope it is a beauty. The price drop from 341p to 296p is worrying though !

[konkel] 17/1/2018 15:24

Trading update tomorrow I'm told...

[cousin jack] 15/1/2018 10:53

Looks like Skyship’s post 363 was a good call. If results on 18th are reassuring a move back up is possible as income seekers buy back. However as we’ve seen with house builders, reassuring statements do not always have the expected effect in the current market.

[skyship] 28/11/2017 09:12

Hi Both......looks to be an epic deal for EPIC! Certainly the placing at circa
NAV is commendable - compare that with the appalling pre-emptive placing at a 25% discount by PCA which totally trashed shareholder value.

EPIC a very well managed operation; but personally I won't be subscribing for new stock @ 111.75p. Just happy to hold...

[killing_time] 27/11/2017 21:20

Hi SKYSHIP, I bought EPIC a while back after following your commentary on the EPIC site. You said you were looking to buy back in below 105p so when they went that low I bought a few, thanks. KT.

[speedsgh] 27/11/2017 17:55

O/T @SKYSHIP - What's your take on the EPIC placing/open offer/subscription?

[skyship] 27/11/2017 14:16

KT - I too hold RGL & EPIC.

Also a few LSR (for the liquidation); and for Discount + Yld:

# RDI - c13%Disc. & 7%YLD

# RLE - c14%Disc. & 5%YLD

# HCFT - c19%Disc. & 5%YLD

As most of you here will know, a good list of the secondary propcos/REITs can be found on the commercial property thread (CP+):

[skyship] 26/11/2017 11:33

What I find truly remarkable is that the Board managed to sell such a large tranche of stock at a full 15% premium. Just what did those institutions think they were doing, when the commercial property sector was already showing signs of weakness and LAND & BLND were on 35% discounts - that change of momentum affects the whole industry, whether or not your exposure is to London or the regions.

Surely the worry for holders is that NRR still stands at a 7.4% premium to the 297p NAV; so even with the attractive yield these are likely to unravel back down to the 300p level before one can imagine any base-building.

[davr0s] 24/11/2017 19:57

Well I'm glad I sold out of these - once they break support they really do go

[alter ego] 24/11/2017 13:22

WHR is also expecting to pay out around 6% I believe

[killing_time] 24/11/2017 13:13

Yep, RGL is about 7.3% div,
i also hold this. KT.

EPIC is also a good one with a yield around 5% but it does pay monthly which is nice.

[2wild] 24/11/2017 12:16

can't argue with 6.56% yield, just got in at 319.99p.
Any other property comps yielding over 6%?

[gorilla36] 24/11/2017 10:32

killing_time, agree painful at the moment. At £3.20 and 21p divi that is a 6.5% payout. Happy enough with that......for now.

[killing_time] 24/11/2017 10:26

Starting to get a bit painful here.
On the positive the reinvested dividends will buy more shares.

[oniabsta] 20/9/2017 11:54

Hi Gorilla I am also an investor but If I see an opportunity to trade some of my shares I will. I don't normally sell all (I will buy them back if the price falls) but in this case I felt the share overpriced and 365p was too much to resist.

[gorilla36] 20/9/2017 11:47

oniabsta _ Everybody comes here with different timescales and methods of trading/investing. I've held NRR for quite a few years and by my own admission am more investor than trader. As boonboon points out as well, if the share price falls, the dividend gets larger (up to a point anyway. But well done if you got out at a good price.