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The circular makes interesting reading.Pubs + 9 ancillary properties valued by independent advisers at £251m. Gross/Net proceeds£223m/ £216m.Pubs are being sold because NRR is too over leveraged.Even after the sale the leverage of 40% is still too high,particularly if the malls are down valued again as seems to be happening in other funds.
i agree its difficult to figure out.... i am not much down just a little... i guess its worth keeping for the divi at least.....I would hope for 10p by 2023 at least!!
Is it possible that Newriver is getting rid of the pubs to make the firm a better option to be taken over? by Bravo for instance.
snudge
I am thinking the same but I won't do anything unless I have something else in mind.
I am down 1% on my first purchase and up 40% on my second. I just can't work out what the long term dividend payment is likely to be.
10p a year say 2023 wouldn't certainly be worth thinking about. Possibly a little hopeful!!
10% less than this time last year and likely to fall further unless they can accelerate the conversion to residential of a lot of their surplus space
Im not sure but im struggling to find compelling reasons to not sell these and take a small hit....?
With Hawthorn being sold approx 25% of assets then i would expect the variable overheads to be reduced by a similar % so the CFO moving on is that start of those costs savings. I just hope they start looking at removing fixed costs like as office space and wfh is more accepted now. it will be interesting to see the detailed p&l t the end of March 22
Have they sold all 700 pubs? What is the remaining NAV of their 33 shopping centres and 25 retail parks and any other remaining properties?
@snudge1234
Will it mean that borrowing will be a lower interest rate? Or is their interest rate already fixed? I am ignoring the revolving credit.
@edwina dear did you mean 100p this time next year!!
"Selling the Crown jewels"......more like selling the Crown pub!
agree with everyone else that selling the pubs doesnt seem like a good idea at this point.... But it feels like NRRs hand was forced so something had to be sold..... distressed sale almost
barnetpeter
Poor time for Newriver to sell?
If so I would agree. At this point in time it's the pubs that will be in profit. Not the shopping centres. Selling the Crown jewels (okay a bit of an exaggeration!)
Very poor time to sell imo. Big hit on the NAV after such a discount. The buyer must be delighted. What is left here?
adv
"thought you were selling ?" I am, didn't say when.
" You seem to still be here, quoting other posters, as per usual."
And? Quoting other posters isn't unusual. Specially ones who predict a large share price rise and are completely wrong. Again the market clearly thinks its a bad idea. That's not to say the market is always right. But in this case for me it definitely is. Both in the short term and long term.
@SD235 - thought you were selling ? You seem to still be here, quoting other posters, as per usual.
On advfn someone has posted up suggesting it isn't including c stores.
Would seem consistent with just logic that a pub operator like admiral taverns would be after pubs rather than retail which they don't own or run. C stores just bundled in with pubs for presentation in accounts rather than being one of the same.
We need to know if convenience stores included in the sale.Share the view that the sale is a good thing.Debt was excessive and this is the best way to stabilise the company.
Edwina "Solid price achieved, derisked substantially. Will take the 3p divi next week too. £1 today imo"
The market clearly doesn't think much of your opinion!!
Giving the pubs away. It's a sell for me
I think a 10% discount was to be expected if you are the seller. Market has this priced at over 20% discount, yet cash was £140m+ last update.
I was disappointed at the sale price, in the last accounts the pubs were valued at £248m, so that's a 10% discount to the already heavily reduced NAV and I'd expected pubs to bounce back strongly this year.
Solid price achieved, derisked substantially. Will take the 3p divi next week too. £1 today imo.
Chasco
Agreed keep the pubs.
Pubs were in growth mode prior to covid. With more people not traveling as much they should do even better.
I don't believe they will get a good price for them. The cost of listing them is to high. Trade sale? They were the Buyers in the past, is there enough interested parties for them to get a decent price??
Although not in a distressed position, this is a tale of control your debts before your debts control you.
Not casting any aspersions on NRR here. They were toeing the normal line of LTV before then pandemic etc. But it highlights that when extraordinary things happen (like pandemics or financial crashes) debt can expose you in a way you wouldn't expect.
Realistically if they want to reduce LTV there isn't too many options.
If you look at the big sales they have managed on the retail side it's to the JV partner, that suggests unsurprisingly there isn't huge demand for retail assets at the moment. Of course this is known and reflected in the share price.