NewRiver REIT (NRR) AI Stock Analysis

• Market Cap: £305.01M
• Dividend Yield: 9.05%
• Average Volume (3M): 698.83K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.96
• Revenue Growth: 36.09%
• EPS Growth: 556.25%
• Country: UK
• Employees: 48
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.04
• Shares Outstanding: 425,993,800
• 10 Day Avg. Volume: 782,364
• 30 Day Avg. Volume: 698,832
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £90.00
• Price Target Upside: 25.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 77.00p ▲(7.54% Upside)

NewRiver REIT's overall stock score is primarily driven by its strong financial performance and attractive valuation. The company's solid revenue growth and profitability metrics are significant strengths, although high leverage remains a concern. The technical analysis indicates bearish momentum, which tempers the overall score. The absence of notable earnings call insights or corporate events means these factors do not influence the 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 rental income from its diverse portfolio of retail and leisure properties. The company leases its properties to a variety of tenants, including well-known retail chains and local businesses, which provides a steady stream of rental payments. Additionally, NewRiver engages in asset management activities that may include repositioning or redeveloping properties to increase their value and attract higher-paying tenants. The company also benefits from occasional sales of properties that have appreciated in value, contributing to capital gains. Strategic partnerships with tenants and involvement in joint ventures may further enhance its earning potential by diversifying its income streams and reducing risks associated with property ownership.

NewRiver REIT Financial Statement Overview

Summary

NewRiver REIT shows strong revenue growth and improved profitability metrics, with robust operational efficiency. However, high leverage and historical fluctuations in net income pose potential risks.

Income Statement

NewRiver REIT has shown a considerable improvement in its revenue growth, with a notable increase from the previous year, indicating strong recovery dynamics. The gross profit margin remains solid at 62.09%, reflecting efficient cost management. However, the net profit margin has seen volatility, though it has improved to 26.18% in the latest report. The EBIT margin of 43.09% and EBITDA margin of 49.50% are both robust, showcasing operational efficiency. Despite these strengths, the prior years' fluctuations in net income pose potential risks.

Balance Sheet

The company's debt-to-equity ratio is moderately high at 1.04, indicating a reliance on debt financing, which could be risky in a rising interest rate environment. Return on equity has improved significantly to 4.84%, showcasing better utilization of equity. The equity ratio stands at 46.48%, reflecting a balanced asset financing structure. Despite improvements, the high leverage remains a concern for future flexibility and stability.

Cash Flow

Free cash flow has increased by 12.65% year-over-year, indicating a strong cash position. The operating cash flow to net income ratio of 1.20 suggests efficient earnings conversion to cash. The free cash flow to net income ratio is also healthy at 0.79, demonstrating good cash generation relative to profit. These metrics reflect a positive cash flow trajectory, although the previous year's volatility in cash flows should be monitored.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	54.90M	65.80M	90.50M	73.70M	75.00M	74.90M
Gross Profit	41.15M	44.90M	56.20M	46.40M	47.10M	49.20M
EBITDA	31.30M	18.60M	44.80M	35.80M	37.50M	31.50M
Net Income	9.70M	3.00M	23.70M	-16.80M	7.00M	-122.10M
Balance Sheet
Total Assets	819.20M	759.60M	1.05B	781.50M	819.10M	1.23B
Cash, Cash Equivalents and Short-Term Investments	184.40M	132.80M	61.30M	108.60M	82.80M	150.50M
Total Debt	372.50M	372.20M	510.60M	373.40M	371.50M	715.30M
Total Liabilities	408.80M	398.50M	564.00M	402.90M	405.00M	765.50M
Stockholders Equity	410.40M	361.10M	490.10M	378.60M	414.10M	460.40M
Cash Flow
Free Cash Flow	9.05M	16.60M	18.70M	24.00M	34.90M	-4.40M
Operating Cash Flow	12.25M	22.70M	28.40M	27.00M	47.50M	8.90M
Investing Cash Flow	2.05M	23.60M	-67.80M	18.80M	239.80M	62.90M
Financing Cash Flow	7.00M	-22.10M	-32.10M	-20.00M	-355.00M	-2.10M

NewRiver REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 71.6 is below the 20-day moving average (MA) of 71.80, below the 50-day MA of 71.84, and above the 200-day MA of 70.76, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 49.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPR	80 Outperform	969.57M	15.91	0.00%	7.87%	6.15%	0.00%
MTVW	74 Outperform	381.13M	16.60	0.00%	5.37%	-9.24%	-17.33%
CREI	73 Outperform	366.95M	9.23	0.00%	7.55%	3.79%	0.00%
NRR	64 Neutral	£305.01M	11.29	5.57%	9.05%	36.09%	556.25%
PCTN	60 Neutral	399.82M	11.24	7.00%	4.88%	-1.23%	0.00%
HMSO	54 Neutral	1.52B	19.93	-28.90%	4.86%	16.30%	0.00%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

NewRiver REIT Corporate Events

Fitch Affirms NewRiver REIT’s Investment Grade Ratings

Fitch Ratings has affirmed NewRiver REIT plc’s Long-Term Issuer Default Rating at ‘BBB’ with a Stable Outlook, and its senior unsecured rating at ‘BBB+’. This affirmation, which includes a £300 million unsecured bond due in 2028, underscores NewRiver’s stable financial position and creditworthiness, reflecting positively on its operations and market confidence. The ratings are significant for stakeholders as they indicate the company’s ability to maintain financial stability and manage its debt obligations effectively.

The most recent analyst rating on (GB:NRR) stock is a Hold with a £74.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT CFO Exercises Share Options, Increases Stake

NewRiver REIT announced that its Chief Financial Officer, Will Hobman, exercised 140,439 nil cost options under the company’s Deferred Bonus Plan, resulting in an increase of his beneficial interest in the company. The transaction was executed to cover tax liabilities, and no new shares were issued, as the shares were transferred from the Employee Benefit Trust. This move aligns with the company’s regulatory compliance under the UK Market Abuse Regulation and reflects internal financial management practices.

The most recent analyst rating on (GB:NRR) stock is a Hold with a £74.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT Announces Total Voting Rights Update

NewRiver REIT plc has announced its total voting rights, stating that the company’s issued share capital consists of 429,969,475 ordinary shares, with 425,993,806 shares having voting rights. This information is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments in the company.

The most recent analyst rating on (GB:NRR) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT Updates Total Voting Rights Post-Share Buyback

NewRiver REIT plc announced a correction to its previous statement regarding total voting rights, adjusting the figure to 425,984,057 following a share buyback. This update is crucial for shareholders to accurately assess their interests under the FCA’s Disclosure Guidance and Transparency Rules, ensuring compliance and transparency in shareholder communications.

The most recent analyst rating on (GB:NRR) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT Executes Strategic Share Buyback

NewRiver REIT has repurchased 47,708,400 of its ordinary shares from Growthpoint Properties Limited, representing about 10% of its issued share capital, for approximately £35.8 million. This buyback, deemed beneficial for shareholders, aims to enhance the company’s financial metrics and reflects the board’s belief that the current share price undervalues the company. Growthpoint has fully exited its shareholding in NewRiver, impacting the company’s shareholder structure.

The most recent analyst rating on (GB:NRR) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT Enhances Employee Share Scheme with Strategic Share Purchase

NewRiver REIT plc has announced that FCM Trust Limited, acting as Trustee of the NewRiver REIT plc Employee Benefit Trust, has purchased 3,000,000 ordinary shares in the company. This acquisition is intended to satisfy current and future exercises of awards under NewRiver’s employee share schemes. The transaction reflects NewRiver’s commitment to its employees and aligns with its strategic goals to enhance shareholder value through effective management of its retail assets.

The most recent analyst rating on (GB:NRR) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT Announces Strategic Share Buyback Plan

NewRiver REIT has announced a proposed buyback of up to 47.7 million shares from Growthpoint Properties Limited at 75 pence per share. This move is seen as a strategic allocation of capital, expected to increase the company’s net tangible assets and funds from operations per share, despite temporarily raising its loan-to-value ratio above the medium-term guidance.

The most recent analyst rating on (GB:NRR) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.

NewRiver REIT Updates Scrip Dividend Share Allotment Schedule

NewRiver REIT has announced an amendment to its previously released ‘Scrip Dividend share allotment’ statement. The admission of 593,867 Ordinary Shares to the Official List is now expected on 8 August 2025, a day later than initially planned. These shares are part of the Scrip Dividend Scheme related to the final dividend for the year ending 31 March 2025, and they will hold the same rights as existing shares, indicating a strategic move to enhance shareholder value.

The most recent analyst rating on (GB:NRR) stock is a Buy with a £90.00 price target. To see the full list of analyst forecasts on NewRiver REIT stock, see the GB:NRR Stock Forecast page.