Newriver Reit Share Discussion Threads

[speedsgh] 08/1/2020 20:07

An initial yield of circa 5% is the norm for these pub assets that have been converted to c-store use, especially where the original asset has been demolished & a brand new purpose built c-store developed (as opposed to redevelopment of the existing property). 15yr leases with RPI-linked rent increases, often with a tenant option to extend for another 15yrs. Very strong covenant (Co-op Food).Still plenty of buyers around for that kind of asset.

[eeza] 08/1/2020 13:08

Good result for NRR, though.

Management continue to do what's on the tin.

[fenners66] 08/1/2020 12:59

"acquired by an anonymous private investor." At an initial yield of 5.2%

No wonder they want to remain anonymous !

[ramellous] 08/1/2020 10:47

NRR sold one of its pubs that was turned int a co-op.

[minerve 2] 03/1/2020 17:13

Primark stores in demand to anchor floundering high streets - FT



Landlords acknowledge the chain’s pulling power. “We have four shopping centres anchored by a Primark and we do view them as significant footfall generators that bring wider benefits to a location,” said Allan Lockhart, chief executive of property group NewRiver Reit.

Primark’s “everyday low price” business model relies on high volumes and the retailer does not sell online. Both factors give it an obvious incentive to maximise traffic to its stores.

According to Springboard, which monitors footfall at 4,500 retail locations in the UK, the opening of a new Primark usually results in a durable increase in consumer traffic.

[spectoacc] 03/1/2020 07:30

NXT sales look good this morning, above expectations.

[hugepants] 02/1/2020 14:09

There are alternative REITs, with well diversified portfolios, where you can get approx 7.5% yields and >20% discount to NAVs. eg. RLE, RDI. These have 30% retail exposure.
NRR are too concentrated; 75% retail/25% pubs. And currently paying 20% of the dividend out of capital

[marksp2011] 31/12/2019 20:00

I think they are a fantastic punt on reform of the rates system.

BTW, I admired the ex-Seaview pub in parkstone at the weekend. They used every last millimeter of that site. It looks really good. If that is theur pub repurosing style we are on a winner.

[lord gnome] 31/12/2019 19:32

I'll take my chances. I like the divi - who wouldn't? I like the value on offer. It is in the right sector of the market - if you are going to be in retail - convenience will survive. Having paid less than 190 for my holding I am comfortable with value. It is my third REIT (along side RGL and AEWU) and all are doing well. The dividends from that little lot come in very handy - and regular! I will continue to sleep soundly. Happy New year.

[spectoacc] 31/12/2019 19:05

Not currently a holder but in two words - "legacy"; "debt".

HMSO many legacy shopping centres. Mucho debt.
hxxps://www.hammerson.com/destinations/flagships/

BLND - like them, did hold until recently, but still "legacy".

NRR (ignoring the 1/3rd pubs like everyone else does) is the cheapo owner, buying from distressed sellers, buying when the legacy holders are forced to sell, renting cheaply. Not saddled with too many tenants who are going to get 40% cuts at next review (eg NXT), nor too many CVA candidates.

Balanced against that - retail's further demise.

[flyfisher] 31/12/2019 16:41

A question to holders.

NRR - disc to nav 18%

BLND - disc to nav 30%

HMSO - disc to nav 55%

Why NRR, is it just the div ?

[ramellous] 30/12/2019 12:12

I haven’t got intu but have spent ages getting parked in metro centre at Newcastle. Rammed.

[eeza] 28/12/2019 07:49

Around 17 April

[davvero] 27/12/2019 17:09

well we got this divi in the bag - and the share price looks like having no intention of going down... anyone already knows the next ex-divi date, please?... Good luck all for the the New Year

[hugepants] 27/12/2019 10:23

1/3rd pubs? Are you sure. Thought it was more like 1/4. It was 23% last results since when they made a small acquisition of more pubs.

Share price doing well here considering high street boxing day sales estimates are down 10% versus last year.

[spectoacc] 24/12/2019 15:45

Thanks all - fair points I guess, NRR not that "cheap" compared to the big REITs, but their rents are cheap and they're 1/3rd pubs, and we're being paid to wait.

How much JV/management income comes through will be interesting too.

[marksp2011] 24/12/2019 15:12

I am buying 10k on the dips and selling to withdraw my investment value on the rise I like the volatility here.

[marksp2011] 24/12/2019 15:07

Same analysis as last time

reducing footfall, reducing rents, CVAs, uncovered dividend etc etc etc.

I am sure many rents are plummeting. I doubt they are plummeting from £13/SF which really is dirt cheap.

I think 230 is fair value given the risk. they should be paying a top yield, they are not in a good sector.

Any movement on Business rates and these will fly.

[chucko1] 24/12/2019 13:06

I’ve somehow already read the analysis. Not inciteful. Worried about div coverage, but more about NAV. No comment on whether the NRR type properties should actually be revalued lower, or by how much, with reference to the actual rents being realised. INTU this is not.

[hpcg] 24/12/2019 11:50

Haven't looked yet, saving it for Christmas Day. But for you ... Pubs good, but lfl retail rent is declining. 12% discount to forecast March 2021 NAV not sufficient. Even decent peers such as BLND have a wider discount. So nothing new as you say.

[spectoacc] 24/12/2019 11:43

Didn't get my Xmas bumper double issue IC through the door, but apparently they tipped NRR as a Sell! Great timing, as always - not only has it gone up since Friday (when the mag was out) but there's the 5.4p XD to enjoy too.

Will read the analysis if/when it arrives, but not expecting one thing new in it.