TIDMDRIP
RNS Number : 0262G
Drum Income Plus REIT PLC
22 July 2021
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 30 June 2021
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 30 June 2021.
Highlights
Period from 31 March 2021 to 30 June 2021
-- The NAV is GBP26.78 m at 30 June 2021. (31 March 2021 GBP26.35m).
-- The independent valuation of the property portfolio as at 30 June 2021 was GBP48.90m
(31 March 2021: GBP48.825m).
-- NAV per share at 30 June 2021 of 70.11p (31 March 2021 of 68.97p).
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for three months ended 30 June were
1.66p.
-- Dividend paid during the quarter of 0.75p.
-- NAV total return (NAV movement) of 3%.
Introduction
The Company aims to provide shareholders with a regular dividend
income plus the prospect of income and capital growth over the
longer term. The Company invests in smaller UK commercial
properties, principally in the office, retail (including retail
warehouses) and industrial sectors, which have the potential to
offer a secure income stream, to create value through active asset
management and have strong prospects for future income and capital
growth.
Unaudited NAV (As at 30 June 2021)
GBPm Pence per Share
Unaudited NAV as at 31 March 2021 26.35 68.97
Property portfolio valuation
movement 0.07 0.19
Capitalised costs -0.03 -0.07
Rent free debtor movement 0.04 0.11
Income earned for the period 0.87 2.27
Expenses for the period -0.10 -0.25
Provision for bad debt -0.01 -0.04
Interest paid -0.12 -0.32
Dividend paid -0.29 -0.75
Unaudited NAV as at 30 June 2021 26.78 70.11
---------------------------------- ----- ---------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 30 June 2021 and income for the period.
The earnings per share for the period from 1 April 2021 to 30 June
2021 (excluding revaluation gains and losses on fair value of
investments and expenses charged to capital) were 1.66p.
Dividend Policy
A dividend per share of 0.75p per share has therefore been
declared for the quarter ended June 30, 2021. The ex-dividend date
will be 29 July 2021 and the record date will be 30 July 2021. The
dividend will be paid on or around 27 August 2021. The dividend
level will continue to be monitored quarterly and it is possible
that it could increase should cash collection and tenant occupancy
improve.
The Board acknowledges the importance of income for
shareholders, and its objective remains paying dividends broadly
linked to net rental receipts that do not inhibit the flexibility
of the Company's investment strategy. In addition, the Board has
the objective to declare dividends at a level required to maintain
REIT status, being a minimum of 90% of tax-exempt income
profits.
Current Portfolio
Mar-21 Jun-21
Location Value % Weighting Value % Weighting
North East GBP12,175,000.00 24.94% GBP12,175,000.00 24.90%
Scotland GBP19,350,000.00 39.63% GBP19,325,000.00 39.52%
North West GBP14,800,000.00 30.31% GBP14,900,000.00 30.47%
South West GBP2,500,000.00 5.12% GBP2,500,000.00 5.11%
------------------ -----------------
GBP48,825,000.00 100.00% GBP48,900,000.00 100.00%
------------------------------- -----------------
Sector Value % Weighting Value % Weighting
Office GBP25,825,000.00 52.89% GBP26,100,000.00 53.37%
Shopping
Centre GBP10,000,000.00 20.48% GBP10,000,000.00 20.45%
Retail GBP11,500,000.00 23.55% GBP11,300,000.00 23.11%
Industrial GBP1,500,000.00 3.07% GBP1,500,000.00 3.07%
------------------ -----------------
GBP48,825,000.00 100.00% GBP48,900,000.00 100.00%
------------------------------- -----------------
The properties were valued at GBP48,900,000 as at 30 June 2021
(31 March 2021: GBP48,825,000) by Savills (UK) Limited ('Savills'),
in their capacity as external valuers and were adjusted for lease
incentives of GBP1,418,191. (31 March 2021: GBP1,460,011).
Capitalised costs for the quarter were GBP28,380 (31 March 2021:
GBP31,024).
Key KPIs
Mar-21 Jun-21
-------- --------
Total Number of
Units 100 100
Total Number of
Tenants 84 82
Total SQFT 336,303 336,303
Vacancy (% SQFT) 12.80% 14.00%
Vacancy (% ERV) 13.40% 14.80%
WAULT (Expiry) 4.57 4.4
WAULT (Breaks) 3.75 3.57
-------- --------
Differentiated Investment Strategy
-- Target lot sizes of GBP2m - GBP15m in regional locations.
-- Sector agnostic - opportunity driven.
-- Entrepreneurial asset management.
-- Risk-controlled development.
Portfolio Attributes
In the context of the market uncertainty, the Board believes it
is helpful to shareholders to highlight some key attributes of the
Company's property portfolio:
-- The Company has no exposure to Central London markets.
-- The weighted average unexpired lease term (WAULT) to expiry is 4.40 years.
-- The portfolio yield is 6% (based on 30 June 2021 valuation).
-- The occupancy rate is high at 86% by ERV.
-- Gearing - the loan-to-value ratio is in line with the stated
intended target range of 40% - 50%.
-- Further asset management angles to exploit.
Asset Management Overview and Update
Duloch Park, Dunfermline
Reversionary lease agreed with Lloyds for a further 5 years from
the current lease expiry of April 2023
Monteith House, Glasgow
SDS has commenced the tenant fit out works at a cost of c
GBP2.8m. The works are due to complete at the end of August
2021.
Mayflower House, Gateshead
Following completion of the refurbishment to the vacant suite
Knight Frank have been instructed to market the suite.
Gosforth Shopping Centre, Gosforth
Solicitors have been instructed on new Leases to existing
Tenants Card Factory and Naked Deli along with a re-gear with Yum
Lush.
A new letting has also been agreed with Julies Flowers to take
occupation of Unit 9 for 10 years with the tenant having a break
option in year 6. A stepped rent has been agreed, reaching
GBP20,500pa in year 4.
Lakeside 5500, Cheadle Royal Business Park, Cheadle
Solicitors have been instructed to document a reversionary 10
year lease with a break in year 5 with Agilent. Once documented the
new rent will show a healthy increase to the passing rent.
Discussions have commenced with Satixfy to agree a reversionary
lease.
.
Enquiries:
Drum Real Estate Investment Management (Investment Manager)
Bryan Sherriff 0131 285 0050
Dickson Minto W.S. (Sponsor)
Douglas Armstrong 020 7649 6823
Weber Shandwick (Financial PR)
Nick Oborne 020 7067 0721
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END
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(END) Dow Jones Newswires
July 22, 2021 02:00 ET (06:00 GMT)
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