It's very much a case of carry on at your convenience (store) for NewRiver Reit (NRR), as its focus on community retail outlets has left it relatively unaffected by the volatility facing the wider property sector. The quality of the portfolio is reflected in the fact that the full-year valuation was down just 0.6 per cent, compared with a fall of 6.8 per cent in the IPD shopping centre sub-sector.
Headline numbers reflected a negative fair value adjustment, but crucially net property income jumped by 47 per cent to £80.4m. And shareholders have done very well because in addition to a hike in the ordinary dividend, there is a special dividend of 3p a share. Dividends are paid quarterly, and for the new financial year NewRiver has increased the payout from 5p to 5.25p; the first-quarter dividend is to be paid on 4 August (ex-div 15 June).
Acquisitions worth £158m were made in the year, including £120m for the Broadway shopping centre and retail park in Bexleyheath, its largest purchase to date and at an equivalent yield of 7 per cent. The assets represent over 60 per cent of the town's retail space. The purchase helped push up the company's loan-to-value ratio from 27 per cent to 37 per cent.
Analysts at Peel Hunt are forecasting adjusted net asset value of 295p at the year ending March 2018 (from 292p in 2017).
NEWRIVER REIT (NRR) | ||||
---|---|---|---|---|
ORD PRICE: | 343.7p | MARKET VALUE: | £804m | |
TOUCH: | 342.9-344p | 12M HIGH | 353p | LOW: 269p |
DIVIDEND YIELD: | 5.8% | TRADING STOCK: | nil | |
PREMIUM TO NAV: | 18% | |||
INVEST PROPERTIES: | £1.07bn* | NET DEBT: | 61% |
Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2013 | 235 | 1.4 | 4.7 | 16 |
2014 | 241 | 23.1 | 38.0 | 16 |
2015 | 267 | 39.5 | 37.5 | 17 |
2016 | 295 | 69.5 | 39.2 | 18.5 |
2017 | 292 | 37.4 | 15.5 | 20** |
% change | -1 | -46 | -60 | +8 |
Ex-div- Payment:- *Including joint ventures **Not including 3p a share special dividend. Dividends paid quarterly. Fourth-quarter dividend of 5p a share paid on 11 May |