18th November 2015
As NewRiver Retail reports its second quarter results Helal Miah, investment research analyst at The Share Centre, explains what it means for investors…
This morning, property development company NewRiver Retail announced that it was raising its dividend, following record profits and strong net asset value growth in H1. Furthermore, interested investors should acknowledge that the group raised £150m in equity finance over the period and has invested the proceeds in strategic acquisitions.
As a result, it has managed to grow assets under management to £1bn. The most important announcement from the results this morning is that, based on its success so far, the group has set a deadline to list on the main market in July 2016.
The group’s focus on smaller sites across the UK, the willingness to be innovative and the payment of quarterly dividends that continue to rise are all attractive traits for investors to be aware of.
However, it is worth noting that concentrating purely on bricks and mortar retail carries risks for investors. Despite this, we continue to recommend NewRiver Retail as a ‘buy’ for income-seeking investors who want exposure to the retail property sector and are prepared to accept a higher level of risk.