"On the Poundland front, I did see that the European holding company has raised funds in Europe. It's a bit of an issue, but I'm assuming that at some stage the whole Euopean entity will split off from the SA parent."
The Poundland issue is a total red-herring IMHO... it's a very successive business model, and recent trading reports were (again) very healthy. I can't really understand any mischief-making on that front... or anyone falling for it, anyway.
All looking fine on the NRR front - should make decent progress from here, all else equal.
After about 17 years with TDW and it's predecessor, I've signed my forms to switch to Hargreaves Lansdown today. My SIPP has already gone to A J Bell.
The dealing system has been a nightmare for the last week. I'm almost certain that I entered a Sell order correctly this morning (on another stock) and it then executed it in a different way at a lower price. Either that or I'm going senile. I strongly suspect that they've tried to marry the iii dealing system to the TDW system, and the link isn't working.
But a good day for NRR.
I expect that I am now in for two months of hell, trying to transfer.
"Outline planning consent obtained for a 100 unit residential scheme in Stamford"
"Planning consent obtained in East Ham, London, for 36 residential units above existing Sainsbury's store"
"over 1 million sq ft of valuable planning consents to build residential in air space above our assets "
" In advanced negotiations on over £50 million of acquisitions at a blended yield of c.9%"
My point is that REITs are to some degree an arbitrage on interest rates; borrowing low and lending high. I tend to zero in on those companies with the widest possible margin. A blended yield of 9% is terrific, and if you can add value on top then..........
My only concern is the sustainability of the huge dividend, which I love, given that I live off investment income.
I think that the shorters have assumed that this is another Intu. In my view it isn't.
I agree, not a vast amount of detail but a perfectly good statement. I am still very positive about NRR, especially the point that they have no exposure to department stores.
On the Poundland front, I did see that the European holding company has raised funds in Europe. It's a bit of an issue, but I'm assuming that at some stage the whole Euopean entity will split off from the SA parent.
Looks OK to me at a glance, actually sounds positive looking forward, hopefully the update will halt the recent sp slide.
"NewRiver REIT plc Third Quarter Company Update
18 January 2018
Convenience-led portfolio remains well positioned to deliver growing and sustainable cash returns
Paul Roy, Chairman, commented: "NewRiver had a good third quarter, with our convenience-led, community-focused portfolio again performing well and significantly outperforming the wider UK retail market.
Our occupancy has remained strong at a record level of 97%, supported by affordable average rents of GBP12.70 per square foot. The grocers, convenience store operators, and discount and value retailers which are at the core of our portfolio had a good quarter, underpinned by positive like-for-like sales over the Christmas trading period.
In fact, the discount retail sector is forecast to grow by 36% over the next 5 years* - which is ahead of online - driven by a shift in consumer behaviour towards value for money and frequent spend on non-discretionary everyday essentials. Importantly we recognised the structural challenge faced by department stores some time ago and therefore have almost no rental exposure to that part of the market.
Finally, our like-for-like footfall was up over the quarter by 0.5% and 1.9% during December, significantly outperforming the national benchmark. The strength of our key metrics underpin our growing dividend, which increased by 5% in the third quarter.
Looking ahead, our conservatively geared balance sheet is strongly positioned to exploit accretive opportunities over the coming months and we remain confident in our ability to deliver growing and sustainable cash returns to our shareholders from our convenience-led, community-focused portfolio..........."
As I mentioned a few days ago Poundland represents 2.6% by income of NRR,this and their other major clients are given in the annual report.
I would expect plenty of potential buyers for Poundland as a going concern in event of the "for sale" notice being put up.
I have n't checked how long NRRs bank facilities are fixed for at the time of writing,however rental yield is vastly in excess of bank lending costs and of course the larger part of the portfolio is financed by equity capital.
"Does anyone have any other possible explanation for the share price fall?"
How about general retail and property sector weakness. I would not try to over analyse ahead of the trading statement, but any company reporting news perceived as weak is marked down EG. CARD, BRBY.
Fall from around £3.50 is rumoured to be concern surrounding Poundland and accountancy investigations taking place in both Germany and South Africa into parent's operations (Steinhoff) where accounts have been delayed, several senior directors and chairman have gone and suggestion previous accounts might need to be re-stated. Steinhoff light well not survive this investigation but if not hen the sale of subsidiary businesses would be a priority and in this scenario, Poundland is seen to be probably the premier asset with rising sales, market expansion and sound management. There seems little doubt that finding a buyer for Poundland would be straightforward and rumours already circulating that several private equity groups are circling. Steinhoof also own Bensons for Beds and Harveys in the UK and several other discount chains in Europe and beyond. Accepting uncertainty is always a negative, there does not seem to be any reason (yet) to believe that Poundland is at risk of going under and would therefore be a problem for NewRiver as landlord. Does anyone have any other possible explanation for the share price fall?
Trying to get to the bottom of the big price drop here. I read the earlier posts on this board about Poundland and I guess that this might be the problem ?. I see from the Sep 17 NRR presentation that it would seem at that time they were NRR biggest retail tenant with 23 stores and 2.6% of their rental income (?).
I have tried to find out exactly what is going on with Poundland by googling but without much success. I did read some different online articles that said a) that they had a very good Xmas and b) that the European company that owns them and some other high street stores had secured independent funding that should allow them to continue to operate. But having said all that (and I have no idea of the accuracy of those statements) when I tried to check the poundland share price today it was not available which seemed a bit ominous to me.
Anyway as I think another poster said even if the worst has happened then maybe it will get taken over as a going concern ?.
Hopefully we will get some clarification in the trading update due tomorrow 18/1 at 07:00 according to google finance.
Share price continuing to drop today in the 298s now.
Well Im in at 299.197 just a bit concerned that it might go lower still though. Especially with a trading update on the 18/1. But if they keep paying 5.25p a quarter dividend (22p a year) then thats a 7.29% yield. So thats pretty good really.
I take your point but RGL have been around for a while and managing their own assets didnt help ESP escape a major drubbing last year (luckily I got out in time). I might buy back into NRR if they go under 300 ie close to NAV.
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