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NewRiver REIT PLC (GB:NRR)
LSE:NRR

NewRiver REIT (NRR) AI Stock Analysis

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NewRiver REIT

(LSE:NRR)

Rating:67Neutral
Price Target:
NewRiver REIT scores a 67, reflecting 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. The company's strategic focus on essential retail assets and successful integration of acquisitions provide a positive outlook, but financial performance and technical trends suggest caution.

NewRiver REIT (NRR) vs. iShares MSCI United Kingdom ETF (EWC)

NewRiver REIT Business Overview & Revenue Model

Company DescriptionNewRiver 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 MoneyNewRiver 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 income statement shows challenges with declining revenue and low net profit margins, impacting overall profitability. The balance sheet indicates a balanced capital structure but low return on equity, which suggests potential issues in profitability. However, cash flow remains robust, indicating effective cash management despite a drop in free cash flow.
Income Statement
55
Neutral
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
60
Neutral
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
70
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
70.80M65.00M73.70M75.00M74.90M146.30M
Gross Profit
51.80M44.10M46.40M47.10M49.20M90.70M
EBIT
25.40M12.90M35.20M36.70M30.70M66.50M
EBITDA
38.80M18.60M35.80M37.50M31.50M68.10M
Net Income Common Stockholders
13.80M3.00M-16.80M7.00M-122.10M-121.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
184.40M132.80M108.60M82.80M150.50M80.80M
Total Assets
819.20M759.60M781.50M819.10M1.23B1.38B
Total Debt
372.50M372.20M373.40M371.50M715.30M714.90M
Net Debt
188.10M239.40M264.80M288.70M564.80M634.10M
Total Liabilities
408.80M398.50M402.90M405.00M765.50M767.70M
Stockholders Equity
410.40M361.10M378.60M414.10M460.40M610.60M
Cash FlowFree Cash Flow
15.00M16.60M24.00M34.90M-4.40M21.40M
Operating Cash Flow
19.30M22.70M27.00M47.50M8.90M45.60M
Investing Cash Flow
900.00K23.60M18.80M239.80M62.90M-40.50M
Financing Cash Flow
26.90M-22.10M-20.00M-355.00M-2.10M48.60M

NewRiver REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price78.40
Price Trends
50DMA
74.95
Positive
100DMA
73.11
Positive
200DMA
74.34
Positive
Market Momentum
MACD
0.98
Positive
RSI
53.70
Neutral
STOCH
35.80
Neutral
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 78.4 is below the 20-day moving average (MA) of 78.41, above the 50-day MA of 74.95, and above the 200-day MA of 74.34, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 35.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NRR.

NewRiver REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
£1.03B14.776.20%7.43%-8.26%1700.00%
74
Outperform
£386.00M14.266.78%5.05%2.66%1.62%
73
Outperform
£375.20M9.349.14%7.42%7.81%
GBNRR
67
Neutral
£372.77M17.783.55%7.65%-8.82%
64
Neutral
£1.41B-2.09%51.78%6.08%
61
Neutral
$2.83B10.720.40%6.10%5.80%-21.26%
$579.84M11.337.04%4.79%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NRR
NewRiver REIT
78.40
11.51
17.21%
GB:CREI
Custodian REIT
80.90
15.14
23.02%
GB:HMSO
Hammerson plc R.E.I.T.
292.00
29.19
11.11%
GB:MTVW
Mountview Estates
9,900.00
707.51
7.70%
PCTNF
Picton Property Income
0.99
0.21
26.92%
GB:SUPR
Supermarket Income REIT Plc
82.40
16.57
25.17%

NewRiver REIT Corporate Events

Regulatory Filings and Compliance
NewRiver REIT Announces Total Voting Rights
Neutral
May 1, 2025

NewRiver REIT plc has announced its total voting rights, with the company’s issued share capital comprising 477,084,008 ordinary shares. Of these, 1,614,846 shares are held in the Employee Benefit Trust, resulting in a total of 475,469,162 voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

Spark’s Take on GB:NRR Stock

According to Spark, TipRanks’ AI Analyst, GB:NRR is a Neutral.

NewRiver REIT scores a 67, reflecting 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. The company’s strategic focus on essential retail assets and successful integration of acquisitions provide a positive outlook, but financial performance and technical trends suggest caution.

To see Spark’s full report on GB:NRR stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
NewRiver REIT Reports Strong Growth and Successful Acquisition Integration
Positive
Apr 29, 2025

NewRiver REIT has reported strong operational performance for the year ending March 2025, highlighted by the successful integration of Capital & Regional, which has increased its portfolio size by 65%. The company has seen significant growth in portfolio valuation, occupancy rates, and consumer spending, outperforming the UK average. The acquisition is expected to deliver substantial earnings growth, with NewRiver on track to reduce its loan-to-value ratio and achieve sector-leading earnings growth. The company’s strategic focus on essential retail assets and strong leasing performance positions it well for continued success.

Spark’s Take on GB:NRR Stock

According to Spark, TipRanks’ AI Analyst, GB:NRR is a Neutral.

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.

To see Spark’s full report on GB:NRR stock, click here.

Regulatory Filings and Compliance
NewRiver REIT Announces Total Voting Rights Update
Neutral
Apr 1, 2025

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.

Regulatory Filings and Compliance
NewRiver REIT Director Increases Shareholding
Positive
Mar 12, 2025

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.

Product-Related AnnouncementsBusiness Operations and Strategy
NewRiver REIT Partners with Royal Mail for Parcel Locker Rollout
Positive
Mar 6, 2025

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.

Business Operations and Strategy
NewRiver REIT Secures Sainsbury’s Lease in Dumfries
Positive
Mar 4, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.