Market's view on NewRiver
Published on April 2024
- The company’s dividend policy of 80% based on UFFO at 7.7p/share suggests a potential dividend cut to a 6.15p yield, assuming analysts have considered disposals and additional management fees.
- The company’s potential upside includes £11 per square foot rent and redevelopment opportunities, although progress is hindered by planning delays.
- Banks are increasingly closing branches, which impacts the vitality of town centres and consequently, local property markets.
- Some stock watchers anticipate growth in asset values with expected interest rate drops, enhancing the attractiveness of current yields.
- The company’s recent performance updates are viewed positively, highlighting strong metrics in leasing, occupancy, and rent collection which secure its debt position and dividend coverage.
- Concerns were raised about the company’s transparency in reporting losses and the logic behind maintaining a large Revolving Credit Facility (RCF) while planning further disposals.
- The disposal of a profitable joint venture at a loss raised questions about the company’s strategic decision-making.
- The company’s executive directors’ remuneration, especially compared to average workforce increases, has been critiqued, suggesting a misalignment with shareholder interests.
- The company’s operational profit is trending downwards, and there’s skepticism over the management’s spin on financial results and strategic decisions.
- The property revaluation adjustments resulting in a loss were noted, but are seen as a common issue across the real estate investment trust (REIT) sector.