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NRR Newriver Reit Plc

-1.40 (-1.88%)
23 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Newriver Reit Plc LSE:NRR London Ordinary Share GB00BD7XPJ64 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.40 -1.88% 73.10 73.30 73.70 75.00 73.00 75.00 561,499 16:35:22
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Real Estate Investment Trust 73.6M -16.8M -0.0537 -13.65 229.14M
Newriver Reit Plc is listed in the Real Estate Investment Trust sector of the London Stock Exchange with ticker NRR. The last closing price for Newriver Reit was 74.50p. Over the last year, Newriver Reit shares have traded in a share price range of 71.00p to 92.00p.

Newriver Reit currently has 312,603,487 shares in issue. The market capitalisation of Newriver Reit is £229.14 million. Newriver Reit has a price to earnings ratio (PE ratio) of -13.65.

Newriver Reit Share Discussion Threads

Showing 4176 to 4200 of 4325 messages
Chat Pages: 173  172  171  170  169  168  167  166  165  164  163  162  Older
Thank you that very helpful and explains the softness in market over the last couple of days.

A 7.4p divi is not a given going forward, it needs rents firming and or buying new yielding properties that can support that margin over costs. I'll hold happily but Can't say I'm a buyer at 90p

The 1.7p is income that they received in the last accounting period on assets that they've now sold. That was mostly the pubs business at £7.8m but also £2.9m of lost income from other disposals (see p20 of the presentation). They lost money on the disposals (at least vs their book values) but that is reflected in the NTA. So the question is where they get this income back from to get back to dividend cover. They are saying they have identified cost savings, think there will be a further rebound in rents post covid and that they can reinvest their excess capital. It doesn't seem too stretching to get back to 7.4p per share of EPRA earnings. They are definitely not trying to treat valuation gains as a way to cover the dividend.
Thank you JG231. It's really helpful to understand that
The earnings per share covered by the ordinary business of rental and associated income from properties less all usual costs is 5.7p.

Assuming that is correct Could I therefore test my consequential understanding with the forum.

1. The remaining 1.7p of the divi comes from either net property sales profit?
2.or the remaining 1.7 of the divi is from the accounting treatment of a non cash valuation uplift?

I agree their disclosure is really confusing. Per my note above, I suggest that you put the "is the loss on investment properties going to recur" into your thinking on NAV or NTA, not on earnings. NTA per share is 134p vs a share price of 90p. That might be indicating a bargain or that the valuation is still too high (valuers move very slowly indeed). I invest in REITs mostly based on the EPRA earning potential, i.e. the dividend yield it's going to deliver, not the NTA per share (which is ultimately a valuer's opinion). Check out page 20 of the presentation. 5.7p per share is covered by continuing earnings. It's not much of a stretch to get to 7.4p. No idea why they assumed 7% on the investment of the £60m - if they assumed an easily achievable 5%, that would still be a great result.
Since I have got the presentation I am going to read it now - see if there is any other mention in there.,,,
8 Jun '22 - 11:12 - 3986 of 3986

Page 33 of the presentation says that it was a revaluation of investment properties." Thanks

So I went to p33 of the presentation ..... WTF !!

Is that it ?

"Revaluation of investment properties 12.3"

Sorry but this is arguably THE most material line in the whole set of accounts.
Its continuing business so cannot be ignored as a one off.
Its the largest move on the continuing P&L
It gets flagged on the accounts as having note 14 which is a 3 page note that has no explanation whatsoever only sensitivity analysis.

As for what is an investment property; isn't there some £25m adjustment in/out of investment properties etc (sorry I have not studied that bit properly) ?

How do I know - since I do not know what this is that its not going to change every year as a loss if they do not bother to say what and why?
I dont want sensitivity analysis I want an explanation ......

Page 33 of the presentation says that it was a revaluation of investment properties. In other words, they reduced the property valuation, either because of lower rents or higher yields. The reason to strip this out of earnings, is that it's a non-cash (so it's not relevant to covering the dividend) and it comes off NAV.
The problem with IFRS accounting for REITs is that the P&L includes valuation gains and losses. For REITs what you really want to know is the recurring revenue (net rental income) less recurring costs (overheads and finance costs) and express that per share (that's how EPRA defines earnings).
Fair value gains and losses as well as one off development profits then go through the balance sheet and go to NAV.
Then you can look at income per share vs dividend and NAV per share vs share price and make your investment decision.
I don't disagree at all that the IFRS stat disclosures are ridiculously over complex and don't aid understanding of the company at all.
Not sure why NRR don't report EPRA ratios - it would be really helpful.

Back to the "continuing business"

what was that "fair value adjustment" ?


The state of the business now for an investment decision - yes I agree.

I also said that NRR are not alone in reporting the spin first. It's just seems to be getting worse across the market.
Its in vogue to reinvent the accounts in their own image and add in the statutory accounts as an after thought.

But if the management are those that made huge mistakes ... "but they are in the past!" .... what is the chance that they continue to do so , especially if they try and hide them.

I have read the accounts here over the years - previously the Pubs were the best thing ever ... then it was even if they have to close they will all have alternative uses worth so much more......

It was argued that pubs were being closed by the 1000's and that planning and repurposing were not easy and was not NRR's speciality and in the end..... they are sold at a huge loss , which turns out to be not continuing business so therefore it does not matter.....

Well they could hire me as say a PR agent for £40 m a year and sack me in the same year stating that they were no longer pursuing that business strategy and as its no longer continuing business its cool.... if they like.

fenners surely though you've got to evaluate the ongoing business shorn of Hawthorn and H2 was representative of that hence my forecast that 6-6.5p divi is achievable. My fear is they keep selling the retail pks into Bravo which whatever they say wasn't a smart move in the first place.

For info on results i get mine off LSE RNS news alert service as its plain text and formats fine on whatever device im using. Note i also jump down to the income table first before bothering to read the waffle that too many them resort to to tell you a good news story and hope you don't bother with the figures too much. NRR are masters of that but there not the only ones. Mind you I just give up with trying to make sense of HMSO numbers.

Just reading that P&L even the continued operations tries to split out the "losses" from the profits as if to pass the losses off as somehow irrelevant.

"Fair Value adjustments"

Of which £12.3m loss just about the most important figure on their continued ops has its own note 14.

Great we can find out if that is repeatable or not , I thought... note 14 here I come.

Note 14 spans 3 pages and has a mass of detail about "sensitivity analysis"

the it near ends with the footnote

"Net valuation movement in investment properties (11.3) (131.2)
Net valuation movement in right of use asset (1.0) (0.3)
Net valuation movement in consolidated statement of comprehensive inc – continuing operations (12.3) (131.5)

The reduction net valuation movement attributable to discontinued operations in the consolidated statement of comprehensive income was £nil (2021: £23.2 million

So despite a three page note - I am none the wiser !!

Some may want to read through the lot or have seen the presentation and know the answer , but its £12.3m of continuing ops losses and the note to explain it does not.

All adds up with the P&L as , look sucker , just read the good news story we want you to read and ignore the actual results...

So lets look to the market reaction then.....

Ok so I just downloaded the accounts from NRR
You can even read the formatting etc....

P&L is actually page 32

Shows continuing ops as £7m profit and loss on discontinued ops as £33.6m even that p&l is segmented so as to minimise the emphasis on the loss.

The gripe is not confined to NRR but its getting worse in the reporting I am seeing.

I literally had about 10 mins at 7.00am, final accounts out , great I will take a look....
You cannot see page numbers on advfn , you just keep scrolling down...

But to have the stat p&l as an afterthought too often these days is to draw attention away from the actual results and towards what they would like to present.

Hence my point above , present the results and explain the numbers away with the underlying /ignoring all the losses, etc.

Not: here is our wonderful business; because as a management team we never made any mistakes; trust us with your £bns you cannot go wrong , oh by the way we may as well mention if anyone's still there that we actually lost a fortune on stuff that we have been saying for years was the way forward...

Since the market (those that matter , not you and I ) does read the results they still get there sooner or later anyway - so my argument is just fes up / explain / apologise and move on - the market does not seem to receive the spin well anyway.

bondholder agree they won't achieve this years level of divi and they've not exactly hidden that although granted you have to deduce it from the information presented. That said i see divi at 6 to 6.5p for FY23 although i'd rather they just stick with what they've got but fear there will sell more of their retail pks to the Bravo JV and claim its a good deal.
The chart on page 20 of the presentation makes clear that the dividend for next year based on current Uffo should be sub 5p. The rest is hope value if the portfolio restructuring/covid recovery works out as planned. Are they really going to achieve 7 percent NET rent on future acquisitions without significant risk?Will retail recover as they expect?The costs of the portfolio restructuring are going to be significant professional fees/SDLT etc. They spent 2 million with one legal firm last year.Not saying it can't be done however the fall in share price is no surprise.
It was sad that the presentation today simply didn't match the numbers

They trade property. They traded, they lost money. How can they adjust that out?
They may never sell the Pubs again but, they can't sell any of their propoerties again :)

Oh please. Ceo on 600k and FD not much less and spending 4 percent of that on shares. A token purchase if I've ever seen one. The company has halved in portfolio size but the pay remains the same.
To be fair, the loss on the Hawthorn pubs was mentioned in paragraph 3 on the front page of the RNS. I don't think it's fair to say that they were trying to hide it. It seems perfectly fair to adjust out the loss because it isn't going to recur (they can't sell the pubs again!)
UFFO is the correct lens, or at least if not wearing night vision goggles. In all US REITs, which are far more widely held/traded than any UK equivalent, NAV barely gets a mention.
fenners i watched the presentation and because i had put my time into SREI didn't read the press release. I can tell you the 30m loss wasn't mentioned on there. That said as i was about to have a nibble before i read your post ive paused and had a look. To be fair the main reason for the loss was the sale of Hawthorn c40m below book but even the remaining retail element looks less favourable when looked at through the P&L account compared to the presentation which looks at UFFO. I prefer the latter measure myself and look at most of the propcos through that lens which has cost me on a few when NAVs have snapped back over the last few qtrs.
Well the CEO and CFO have wade in this afternoon and picked up 22.5k and 22.3k at c89p. Immediate RNS put out which is unusual guess they want to show mr mkt it has got it wrong or has it!
The Q&A session must have went well!
I glanced at the results 7.00 am , read the adjusted this and that etc. how wonderful everything was going.

Thought to myself , so those are the adjusted numbers what are the stat numbers,
I then trawled down past more and more "adjusted" numbers (that ADVFN struggles to format properly) to eventually reach a P&L....

If I recall correctly a £33m post tax loss. Then I had to go.

My point?
Sick and tired of reading "adjusted everything " results , backed up by what seemed like 50 pages more of adjusted info , before the company , bothered to report that which they are legally obliged to.

Many companies do it. Some worse than others.
Why can't they just get to the figures and explain them with their adjusted numbers?
Why do they have to hide them away , like they never happened?

I also find , the more frustrated I get with trying to read the results , the more a company tries to deflect and hide them, the less well received they are by the market......

Chat Pages: 173  172  171  170  169  168  167  166  165  164  163  162  Older

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