NewRiver REIT Plc is a property investor and asset manager. The company offers services such as real estate investment, asset management, strategic stock selection, risk-controlled development and property management services. It provides its services to shopping centres, retail warehouses, high street, retail development, and pubs and convenience stores. The company has operations throughout the UK and Ireland. NewRiver is headquartered in London, the UK.
On 4th June 2019, in a company filing with the London Stock Exchange, the group notified the disposal of a 70,000 sq ft Asda food store and a petrol filling station located at St Elli Shopping Centre to a private investor for a total consideration of £17.9 mn. The deal took place at a 1% discount to March 2019 valuation.
Group’s total disposal proceeds since April 01, 2019 stood at £20.9 mn, which provide a net initial yield of 6.6%. The group recorded substantial progress against the company's strategy to pull out capital from low yielding assets into higher yielding alternatives in a joint venture.
Recently (as on May 23, 2019), the group reported its full year financial results for the year ended March 31, 2019. Fund from Operation declined by 7% to £56.4 mn against £60.3 mn reported in the FY18. However, the underlying fund from operations declined by 1% to £55.1 mn from £55.5 mn reported in the year-ago period.
During the FY19, the board of the company recommended a dividend of 21.6 pence as compared with the dividend of 21.0 pence in FY18. The interest coverage ratio of the stock declined from 4.7x to 4.0x. In FY19, loss after tax stood at £36.9 mn against the profit of £45.7 mn. IFRS basic loss per share of the company stood at 12.1 pence per share against the earnings per share of 16.0 pence per share.
Principal gross debt of the company surged by 8.7% to £510.0 mn as compared with the gross debt of £469 mn recorded in the previous financial year.
Stock Performance- 1 Year
Daily price chart (as on June 05, 2019), before the market close. (Source: Thomson Reuters)
At the time of writing, as on June-05-19 (GMT 10:45 am), shares of NRR were quoting at GBX 197.64 and surged by 3.0 points or 1.54% against the previous day’s closing price. In the past 52-wks, the stock has touched a high of GBX 294.50 and a low of GBX 190.80 and at the time of writing, the stock was trading approximately 33.67% below the 52w high price level and 2.2% above the 52wk low price level, which indicates the stock is in downtrend and could hit a new low as well.
On a YoY basis, the stock was down by approximately 32.87%, and on a year-to-date basis, the stock was down by about 7.8%. The stock was hovering in a bearish zone as it was trading considerably below its 30-days, 60-days and 200-days simple moving average prices.
At the current trading level, the company has an outstanding market capitalisation of £594.30 mn, with a dividend yield of 11.08 per cent.
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