NewRiver REIT (NRR) AI Stock Analysis

• Market Cap: £347.09M
• Dividend Yield: 8.49%
• Average Volume (3M): 778.66K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.88
• Revenue Growth: -8.82%
• EPS Growth: N/A
• Country: UK
• Employees: 48
• Sector: Real Estate
• Sector Strength: 76
• Industry: REIT - Retail
• EPS (TTM): 0.04
• Shares Outstanding: 475,459,080
• 10 Day Avg. Volume: 629,253
• 30 Day Avg. Volume: 778,660
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.32
• Price to Cash Flow (P/CF): 9.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £89.00
• Price Target Upside: 20.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

NewRiver REIT scores well due to a combination of robust cash flow management, strategic corporate actions, and attractive valuation metrics. However, challenges in revenue growth and profitability, alongside mixed technical indicators, moderate the overall score.

NewRiver REIT Business Overview & Revenue Model

Company Description

NewRiver REIT plc ('NewRiver') is a leading Real Estate Investment Trust specialising in buying, managing and developing essential retail and leisure assets throughout the UK. Our £1.1 billion portfolio covers 9 million sq ft and comprises 33 community shopping centres, 24 conveniently located retail parks and 700 community pubs. We hand-picked our assets to deliberately focus on occupiers providing essential goods and services, and avoid structurally challenged sub-sectors such as department stores, mid-market fashion and casual dining. This focus, combined with our affordable rents and desirable locations, delivers sustainable and growing returns for our shareholders, while our active approach to asset management and inbuilt 2.6 million sq ft development pipeline provide further opportunities to extract value from our portfolio. NewRiver has a Premium Listing on the Main Market of the London Stock Exchange (ticker: NRR).

How the Company Makes Money

NewRiver REIT generates revenue primarily through the rental income it receives from tenants occupying its retail and leisure properties. The company leases space in its shopping centers, retail parks, and high street locations to a diverse range of retail tenants, including national and local retailers, restaurants, and service providers. In addition to rental income, NewRiver REIT may also earn revenue from the sale of properties when market conditions are favorable, thereby realizing gains on its investments. To enhance its income potential, the company actively manages and develops its assets to improve occupancy rates and rental yields. Partnerships with key retailers and strategic acquisitions further contribute to its revenue growth by expanding its property portfolio and tenant base.

NewRiver REIT Financial Statement Overview

Summary

NewRiver REIT's financial performance reveals mixed results. The company faces revenue and profit challenges, reflected in declining margins. While the balance sheet shows a balanced financial structure, the low return on equity indicates potential profitability issues. Cash flow remains robust, suggesting effective cash management despite a drop in free cash flow.

Income Statement

The income statement shows a decline in total revenue over the past two years, with a negative revenue growth rate of -10.70% from 2023 to 2024. Gross profit margins have decreased slightly, and the latest net profit margin is low at 4.56%, indicating challenges in profitability. The EBIT margin has also dropped significantly, reflecting reduced operational efficiency.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio of 1.03, suggesting a balanced capital structure. However, the return on equity (ROE) has improved to 0.83%, which is low but better than the previous year's negative ROE. The equity ratio is 47.54%, indicating a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis shows a positive operating cash flow to net income ratio of 7.57, indicating strong cash generation relative to profits. However, free cash flow has decreased compared to the previous year, with a growth rate of -30.83%. The company maintains adequate liquidity.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
65.80M	73.70M	75.00M	74.90M	146.30M
	Gross Profit
44.90M	46.40M	47.10M	49.20M	90.70M
	EBIT
12.90M	35.20M	36.70M	30.70M	66.50M
	EBITDA
29.70M	35.80M	37.50M	31.50M	68.10M
	Net Income Common Stockholders
3.00M	-16.80M	7.00M	-122.10M	-121.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
132.80M	108.60M	82.80M	150.50M	80.80M
	Total Assets
759.60M	781.50M	819.10M	1.23B	1.38B
	Total Debt
372.20M	373.40M	371.50M	715.30M	714.90M
	Net Debt
239.40M	264.80M	288.70M	564.80M	634.10M
	Total Liabilities
398.50M	402.90M	405.00M	765.50M	767.70M
	Stockholders Equity
361.10M	378.60M	414.10M	460.40M	610.60M
Cash Flow		Free Cash Flow
16.60M	24.00M	34.90M	-4.40M	21.40M
	Operating Cash Flow
22.70M	27.00M	47.50M	8.90M	45.60M
	Investing Cash Flow
23.60M	18.80M	239.80M	62.90M	-40.50M
	Financing Cash Flow
-22.10M	-20.00M	-355.00M	-2.10M	48.60M

NewRiver REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NRR, the sentiment is Positive. The current price of 73.6 is above the 20-day moving average (MA) of 69.11, above the 50-day MA of 70.09, and below the 200-day MA of 74.28, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 65.72 is Neutral, neither overbought nor oversold. The STOCH value of 92.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NRR.

NewRiver REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLN	70 Neutral	£2.20B	18.96	3.29%	4.09%	3.70%	―
BLND	68 Neutral	£3.84B	21.11	3.17%	5.93%	-30.83%	―
NRR	66 Neutral	£347.09M	16.55	3.55%	8.49%	-8.82%	―
Sector *	59 Neutral	$2.72B	11.51	0.06%	8679.44%	5.30%	-16.91%
HMSO	50 Neutral	£1.24B	―	-2.09%	6.00%	6.08%	―
LAND	47 Neutral	£4.31B	40.89	1.61%	6.88%	-1.73%	―

NewRiver REIT Corporate Events

NewRiver REIT Announces Total Voting Rights Update

NewRiver REIT plc has announced its total voting rights, with the company’s issued share capital comprising 477,084,008 ordinary shares, of which 1,624,929 are held in the Employee Benefit Trust. This results in a total of 475,459,079 voting rights available to shareholders, which will be used to determine their notification requirements under the FCA’s Disclosure and Transparency Rules. This announcement is crucial for shareholders to understand their obligations and the company’s governance structure.

NewRiver REIT Director Increases Shareholding

NewRiver REIT plc announced that Alastair Miller, the Senior Independent Non-Executive Director, has purchased 29,359 ordinary shares at 67.75 pence each, increasing his total holding to 147,462 shares. This transaction, conducted on the London Stock Exchange, reflects confidence in the company’s market position and compliance with the UK Market Abuse Regulation, potentially impacting investor perception and stakeholder confidence.

NewRiver REIT Partners with Royal Mail for Parcel Locker Rollout

NewRiver REIT has partnered with Royal Mail to introduce a new parcel locker network across its UK shopping centres and retail parks. This initiative, which will see lockers installed in over 60 locations, aims to enhance convenience for shoppers, increase footfall, and boost customer spending. The partnership aligns with Royal Mail’s strategy to expand its parcel services and leverages NewRiver’s extensive property portfolio. The rollout has begun in Essex and is set to continue over the next six months, providing NewRiver with a modest income while supporting community-focused retail environments.

NewRiver REIT Secures Sainsbury’s Lease in Dumfries

NewRiver REIT has announced a new 15-year lease agreement with Sainsbury’s for a 48,100 sq ft unit at Cuckoo Bridge Retail Park in Dumfries, marking the first Sainsbury’s store in the area. This development not only revitalizes a previously vacant unit but also highlights strong demand for NewRiver’s retail park portfolio, with rental terms significantly above previous levels. The new store is expected to open in early 2026, creating at least 100 jobs and enhancing the local retail offering, further demonstrating the strength of the UK retail market and the importance of physical stores for omni-channel operators.

NewRiver REIT Announces Total Voting Rights Update

NewRiver REIT plc has announced its total voting rights, which stand at 475,442,219. This figure is crucial for shareholders as it serves as the denominator for calculating their interests under the FCA’s Disclosure and Transparency Rules, impacting their notification requirements regarding interest changes.

NewRiver REIT Expands Portfolio with Strategic Acquisition

NewRiver REIT has announced a successful third quarter, highlighted by the acquisition of Capital & Regional Plc for £151 million, significantly increasing its portfolio size by 65% to £0.9 billion. This strategic move is expected to enhance earnings and dividends, with the integration already showing strong operational metrics and high occupancy rates. The company reported substantial in-store spending growth in its portfolio during the Christmas period, outperforming the UK retail average, particularly in discount and value sectors. With cost synergies from the acquisition and expanded capital partnerships, NewRiver is well-positioned for sector-leading returns in the short and medium term.