NewRiver is a Real Estate Investment Trust, founded in 2009 and initially quoted on AIM. During 2016 it moved to a premium listing on the main market of the London Stock Exchange, and became a member of the FTSE 250 and EPRA indices. They specialise in buying, managing, developing and recycling convenience-led, community-focused retail and leisure assets throughout the UK. The portfolio is valued at £1.4bn comprising 34 community shopping centres, 21 conveniently located retail parks and over 600 community pubs.
NewRiver’s diversified portfolio provides investors with exposure to high income generating retail assets. Shareholders receive quarterly dividends which will amount to 21.3p in calendar year 2018, with a share price currently about 227p, this makes NewRiver a high income yielding stock.
The half year results for the first half of 2018/9 were announced on 21st November, with Funds from Operations at £25.3m, down slightly on the previous year (£26.5m) as the previous year included one-off promote income of £2.2m. The dividend was 77% covered as full capital deployment was withheld in anticipation of future acquisition opportunities. Dividend cover is expected to improve in the second half of the financial year, owing to the benefits of the Hawthorn Leisure acquisition which was made part way through the first half.
The UK Retail sector faces substantial challenges but NewRiver is well placed. In the 1H results, Allan Lockhart, CEO, commented as follows:
NewRivers’ response to these challenges has been consistent and effective. Firstly, we have continued to focus our portfolio on the growing and sustainable market sub-sectors which meet the everyday needs of UK consumers. These sub-sectors – which include food & grocery, discounters, grab & go food, value fashion and health & beauty – are sustainable because they provide essential goods and services, and are resilient to online retailing, either because online fulfilment would be too costly or because a face-to-face service is an integral element of their offer. Secondly, we work closely with our occupiers to provide affordable rents, low occupational costs and attractive, well-located spaces which allow their businesses to thrive, in turn underpinning the sustainability of our income streams. Thirdly, where our occupiers do face challenges, we are proactive in finding solutions to protect the value of our assets and the security of our income. Finally, we have a relentless focus on extracting further value from our assets, either through our risk-controlled development pipeline or our strategic opportunities first outlined in May.
NewRiver have offered ShareSoc and UKSA members an opportunity to hear more about their business with presentations by Allan Lockhart (Chief Executive), Mark Davies (Chief Financial Officer) and Will Hobman (Head of Investor Relations & Strategy).
Attendance is limited to 25 and places will be allotted on a first come, first served basis, so please respond promptly to secure your place.
This event is now full. Any further registrants will be placed on a wait list, in case any places become available.
All you need do is complete the following form to register for this event. Non-members will be granted free Associate Membership of ShareSoc as this event is exclusive to ShareSoc and UKSA Members – see Membership for more details of Membership benefits. Full Membership costs less than 90p per week if you wish to consider that as an option. In the event of excess demand, which is likely, full members will be given priority. Please do not hesitate to contact us if you have any difficulty registering or have any questions on this event by using our Contact page . Or you can phone our office on 0333-200-1595.