NewRiver REIT’s share price crumbles following FY results! Here’s what I’d do now

first_img We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign.But with this opportunity it could get even better.Still only 55 years old, he sees the chance for a new “Uber-style” technology.And this is not a tiny tech startup full of empty promises.This extraordinary company is already one of the largest in its industry.Last year, revenues hit a whopping £1.132 billion.The board recently announced a 10% dividend hike.And it has been a superb Motley Fool income pick for 9 years running!But even so, we believe there could still be huge upside ahead.Clearly, this company’s founder and CEO agrees. The Motley Fool UK’s Top Income Stock… Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. For UK retail shares, 2020 proved to be a nightmare as Covid-19 spread across the country. Bricks-and-mortar stores were particularly badly hit as the pandemic forced people to shop online. Non-essential retailers had to close their doors completely, of course. The extent of the damage was clear in the full-year financials that NewRiver REIT (LSE: NRR) released today.Investor appetite is weak across all UK share indexes on Thursday. But confidence in retail and leisure property owner NewRiver has taken a particularly hard whack. Shares in the company were last trading 5% cheaper than last night’s close, at 99.5p.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…NewRiver REIT’s losses widenNewRiver REIT announced today that it had clocked up a pre-tax loss of £153.2m during the 12 months to March 2021. This was up from its loss of £121.6m in fiscal 2020.Meanwhile the value of NewRiver’s property portfolio fell to £974m last year from £1.2bn a year earlier. This was due to asset sales as well as a 13.6% decline in the portfolio’s like-for-like valuation.The company said, however, that the like-for-like valuation drop eased during the second half of the year. This reduced to 5.6% from 8.2% in the first six months of financial 2021.A bright outlookChief executive Allan Lockhart said that “Covid-19 has posed unprecedented challenges”, but he added that, “Our operational and financial achievements have reinforced our belief in the underlying strength of our portfolio and platform”. As a consequence the business has decided to reinstate dividends and pay a 3p per share reward for last year.Lockhart cheerily noted, “Consumer confidence in the UK economy has returned to pre-pandemic levels and we are well placed to benefit from consumers’ growing preference for shopping locally and supporting community assets”. He said too, “We are starting to see early signs of an uplift in shopping centre liquidity and we expect the investment market to improve further as we emerge from the Covid-19 crisis.“With the benefit of an improving market backdrop and the insights gained from our recent strategic review we are looking forward to the coming year with genuine optimism”, Lockhart added.Should I buy this UK share?City analysts are confident that NewRiver REIT will get back to moving in the right direction soon, too. Market consensus is for the firm to generate earnings per share of 12p per share in financial 2022. This compares with the losses of 49.1p per share the property giant recorded last year. Of course, forecasts can change based on future developments. NewRiver trades on an low forward price-to-earnings (P/E) ratio of around 10 times. But despite its cheapness I’m not tempted to add the UK property share to my portfolio. It’s possible that profits could rebound strongly in the short-to-medium term as coronavirus restrictions are rolled back. But I still worry about NewRiver’s long-term future as e-commerce goes from strength to strength. And of course the emergence of Covid-19 variants could shred any near-term recovery to ribbons, too. I’d rather buy other UK shares today. Learn how you can grab this ‘Top Income Stock’ Report now Image: NewRiverREIT NewRiver REIT’s share price crumbles following FY results! Here’s what I’d do now Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Royston Wild | Thursday, 3rd June, 2021 | More on: NRR Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Royston Wildlast_img read more