Our opinion on the current state of NEWPARK(NRL)Newpark is a South African real estate investment trust (REIT) that owns commercial and industrial properties valued at R1.37 billion, with a gross lettable area (GLA) of 57,249 square meters. It owns four properties: two in Sandton CBD, one in Linbro Business Park, and one in Crown City.
In its results for the six months to 31st August 2024, the company reported revenue down 0.1% and headline earnings per share (HEPS) down 22.1%. The company's net asset value (NAV) fell 28.4% to 584c per share. The company said, "During the period, there was a R2.5 million downward adjustment in value on the interest rate hedges and a downward adjustment of R13.4 million on investment properties. Allowing for fair value adjustments and the net cost of finance, the total comprehensive profit for the period was R8.3 million."
The enduring problem with Newpark is that its shares are extremely thinly traded, making them unsuitable for private investors.
