Newriver Reit Share Discussion Threads

[steve3sandal] 05/2/2019 22:40

I saw that one as the £1 auction was newsworthy. I’d like to think NRR active asset management is very different from a Canadian Pension Fund which wasn’t able to manage the decline. I wouldn’t say NRR was immune but they are at least hands on. I’m talking my own (new) book here so I’ll be off.

[fenners66] 05/2/2019 21:24

Interesting article from the BBC

Again you can say NRR is immune but...

"debsdowner
5 Feb '19 - 16:24 - 23172 of 23174

Retail that bad a shopping centre which cost over £4 million to develop been sold for little over £310,000 today.

[steve3sandal] 04/2/2019 14:39

I bought in today. Been on and off my watchlist forever but was always at a premium to NAV and at my age I can’t start trying to run up a falling staircase share price I determined to have a proper look today as house sitting tradesmen and I recently noticed they had bought our local Shopping Centre which was very 1980s and has lost a lot of tenants to a new development and which has moved the Town Centre away from the NRR asset.
I’m quite impressed listening to Directors, reading accounts, RNSs, capital recycling etc. Beginning to see the possibilities for redevelopment, alternative uses and the approach is similar to the self help which most of the major retail landlords are pointing to. Since reporting in Nov they’ve probably lost PAt Val which follows only in May welcoming them but not likely significant. Rental growth looks challenged but even where they are it’s churning out cash flows of nearly 10%. I’m thinking that’s a margin of safety rather than a red flag in the sense that at least a 10% return is fairly predictable. Warchest balance sheet though this would take them to 40% LTV which is warm, but not hot and no doubt there are Assets they have fixed to sell on lower yields and quickly reduce. Indeed, the portfolio looks pretty liquid to me. At lunchtime the January message arrived from Mr Woodford (I don’t hold) which coincidently featured NRR. It was positive. He has 28% and probably paid a lot more than I’ve done. There’s a risk he needs to keep fund8ng redemptions but I suspect NRR will be one of the last babies to be thrown out of the bath given his yield requirements. I’d rather management held a large stake but this is practically all institutionally held so I guess will continue to be managed for incremental annual returns rather than a sale off exit above NAV. My discount to last NAV is about 23% which isn’t anything like the extremes elsewhere but that’s probably because there isn’t a dominant private holder. It’s gone in the Income pot and I’ll probably top up if the share price goes up and the news gets better. GLA.

[spectoacc] 01/2/2019 16:06

Possibly, maybe, conceivably forming a base? If/when Brexit sorted, I reckon we'll have seen the bottom for NRR.

[gorilla36] 30/1/2019 16:15

Yes, the fact that it is a REIT is the clincher for me.

[chucko1] 30/1/2019 16:11

They are a REIT and currently cover the dividend. They cannot cut it by a meaningful amount.

In any event, I meant to say “total return”.

[gorilla36] 30/1/2019 16:07

Chucko1 - Good point, but it assumes the divi is safe (I have no reason to believe otherwise). Seems like a perfectly well run company and I have certainly benefited from their divis in the past. Agree it is time to dip a toe in.

[chucko1] 30/1/2019 16:01

Who cares? This will pay 11% per annum over the long term so the short term is really not important. Bought in a fair bit more recently. If they went to £3.50, I would have likely only sold 50% of what I currently have.

Unless the facts really change. They have not.

[gorilla36] 30/1/2019 15:56

SpectoAcc - What do you reckon....a sign of real life, or just a muscle spasm ????

[spectoacc] 30/1/2019 14:23

Decent twitch from the corpse. Long way to recover still.

[tim1478] 19/1/2019 12:28

Q3 report sounded upbeat-- all reports sound upbeat! - only problem is that there was no profit figure so do not know how uncovered the dividend was.

[salchow] 18/1/2019 07:29

fenners66 - well then you need to stop troubling yourself about property companies for a long time!

[fenners66] 17/1/2019 19:26

salchow - as I have said before I put these on my watchlist for dividend a few years ago but did not buy and I therefore keep an eye on their news and BB posts.

What is it , a year ago or so ? I came to the conclusion that retail property was going to tank as the writing was on the wall that there were too many unprofitable shops.

Yes I said I should have shorted these even then as chances were they cannot avoid the slump in demand for retail.
I think the effects of that will take a long time to play out.

If your lease is due in 2 years then you plan to approach the landlord with a sheaf of alternatives at a lower rent and ask him to reduce yours or else. If during that time vacancies abound and rents drop elsewhere you know you have that ammo in your hand when you talk to the landlord.

Yes the latest statement reads well and they may end up being the only landlord left untouched if they keep shifting properties - but I don't think so.

So I post stuff in support of my opinion - and it is only that and I may be wrong , there are enough shares on the market to be wrong about.

However the share price decline in the last years encourages me that I have it right so far.

At some point there will be a bottom - not all shops will close - perhaps I will invest then.

I think at the moment the retail bust is still gathering pace.

Now we are told 100 Debenhams stores may close and similar M&S number (?)

So I still think this has a long time yet to play out.

[chucko1] 17/1/2019 16:43

As a REIT, there is little scope for a large dividend cut. Their income is still high and largely unaffected by the current retail travails - and this must be paid out as dividends to a large extent (it can get quite complex, but I think what I am saying is pretty well the case).

Buying property at 9% yield, selling at around 5%, and then reinvesting at 13% shows they have something decent about them. Unless what they are buying now is foolish - but their track record would argue against that.

The Woodford overhang is a concern to me too, and for that reason I hold rather less than I would have wished. But at this price and with the last few trading updates, I am gradually adding and will continue to do so until and unless the facts materially change. 10.5% dividend yield for a company creating capital out of profitable developments? Why wouldn’t you?

[hpcg] 17/1/2019 15:51

I did buy in again today. Quite a reassuring report.

[spectoacc] 17/1/2019 13:53

Ironically they could halve the divi and still be a decent payer (I don't think they will).

They're not immune from the woes of the high street but they're hardly unaware of them - community, Lidl, pubs, low rents, they've numerous advantages.

Short positions are a reason to buy IMO - but Woodford & Invesco's giant holdings are a reason to hold off.

I'm very much a holder, but it's one of quite a few prop co's I've got atm.

[minfeus] 17/1/2019 12:07

At this level I think it is.
Was very concerned prior to this latest statement and half expected a dividend cut - or even suspension, but management seem very capable in a tough environment.
my average is quite a bit higher but I am confident in averaging down now at these levels. Income stream seems ok - for now...

[salchow] 17/1/2019 11:51

The main reason I don't reinvest here is the level of the short positions although the high dividend is very tempting.

[salchow] 17/1/2019 11:49

fenners66 - I don't hold this at present but wouldn't you agree that NRR seem to be doing exceedingly well in their results compared with the apocalyptic landscape you kindly keep warning people about.

I never understand why people who don't hold shares comment multiple times on the same subject. Why on the NRR board in particular? Why not on the boards of those companies that have the larger shopping malls? My reason for looking on here is because I once had a large holding and am therefore interested in following the company and to consider when the time may be right to reinvest. In doing so I perhaps foolishly look at some bulletin boards although frankly it is rare I take any heed of them.

[minfeus] 17/1/2019 09:51

Excellent dividend too...

[spectoacc] 17/1/2019 09:03

Seemed a perfectly reasonable t/s to me - tho opening pubs in shopping centers was a new one.

Interesting to see which way NRR is heading.

[fenners66] 14/1/2019 08:25

hxxps://www.thetimes.co.uk/edition/business/landlords-braced-for-wave-of-store-closures-0fm0gskxx


Landlords braced for wave of store closures

Landlords are set for a fresh wave of pain after more than 20 struggling high street chains instructed Deloitte to assess whether they are eligible for debt restructuring in the past two months alone.

The accountancy giant is understood to be considering whether the chains, mainly fashion and homeware retailers, can use a company voluntary arrangement (CVA) to shut shops. CVAs allow distressed businesses to walk away from lease liabilities to keep trading, but they have been criticised for leaving landlords shouldering a disproportionate burden.

[salchow] 31/12/2018 16:08

Sunday Express saying that Co-op are to open 100 new stores in 2019 to take advantage of changes in consumer buying habits. This is, of course, one of the areas in which NRR are interested.

[fenners66] 31/12/2018 02:01

Daily Mail citing unnamed research as expecting 22,000 shop closures in 2019.

[speedsgh] 21/12/2018 10:18

Reel Cinemas to open at The Ridings shopping centre, Wakefield -

NewRiver is pleased to announce that it has exchanged contracts with Reel Cinemas, the community cinema operator, to open a five-screen cinema at The Ridings shopping centre in Wakefield, West Yorkshire. The new cinema is scheduled to open in May 2019, occupying a space created by the innovative conversion of three former retail units, with minimal structural alterations, which has been let on a 15-year lease.

Reel Cinemas was established in 2001 and is now one of the largest independent cinema operators in the UK, with 13 venues across the country and plans to develop at least 10 more over the next five years. Its cinemas are in community locations and showcase the latest releases, with its competitive prices being a key differentiator in the market.

The Ridings shopping centre was acquired by NewRiver in January 2016. Since acquisition, NewRiver has undertaken and continues a programme of active asset management works at the site, including rebranding the centre and upgrading signage, wayfinding and facilities such as the customer toilets and an award-winning baby change area. Most recently, NewRiver brought its pub operating expertise to The Ridings with the opening of the Keg & Kitchen, a food-led community pub located in the centre’s 240-cover food court, operated by Hawthorn Leisure, which the Company acquired in May 2018.

Reel Cinemas is expected to be a major driver of footfall for The Ridings and the wider city centre, particularly in the late afternoon and evening, and will also provide a multi-functional space for community events. Its opening will mark another step in the transformation of the upper mall of this three-level centre into an affordable family leisure destination.

Paul Wright, Director, said: “We are delighted to be welcoming Reel Cinemas to The Ridings and to the NewRiver portfolio through this ambitious and innovative repurposing of former retail space. We have worked closely with Reel to ensure this is an exciting Wakefield community attraction offering affordable prices with some interesting surprises. As Reel Cinemas continues its rapid expansion, we will continue to work with them to explore similar opportunities across our portfolio.”

Chris Morgan-Giles, Property Director, Reel Cinemas, said: “Reel Cinemas is excited to soon be opening at The Ridings, providing a brand new space for the local community to watch the latest releases and more, at competitive prices. NewRiver has been a dependable and engaged partner throughout this process and shares our vision for delivering places for people to relax and be entertained in the very heart of their community.”

Cllr Peter Box CBE, Leader of Wakefield Council, said: “We are pleased to be welcoming Reel Cinemas to The Ridings shopping centre. It will be an exciting and attractive addition to Wakefield’s leisure offer, increasing footfall and providing a real boost to the city centre.”