TIDMDRIP
RNS Number : 0475U
Drum Income Plus REIT PLC
24 July 2020
24 July 2020
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 30 June 2020
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 30 June 2020.
Summary
Period from 1 April 2020 to 30 June 2020
-- The NAV is GBP26.32m at 30 June 2020. (31 March 2020 GBP30.28m).
-- NAV per share at 30 June 2020 of 68.91p (31 March 2020 of 79.26p).
-- The independent valuation of the property portfolio as at 30 June 2020 was GBP48.93m
(31 March 2020: GBP53.3m).
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for three months ended 30 June were
1.10p.
-- No dividend was paid during the quarter.
-- NAV total return (NAV movement plus dividend paid) of -15%.
Covid-19 update
The Board and the Manager are taking every precaution to
safeguard the health and wellbeing of staff, occupiers and
stakeholders. We are continually monitoring our assets in light of
the outbreak of Covid-19 and our primary focus through this
exceptionally challenging period is to ensure that the portfolio is
well positioned to begin its recovery. We are focused on preserving
the long-term value and financial strength of the Company. Covid-19
has had and will continue to have a material impact upon the
trading performance of the Sector.
Sentiment remains very cautious across the real estate sector as
the full impact of Covid-19 on tenant cash flow and rental income
has still to be fully established. Furthermore, there is a lack of
transaction activity across the market. As a result, UK valuers are
having to value sentiment with full knowledge that the material
uncertainty clause is inserted in the valuation report.
For the period to 30 June 2020 the portfolio valuation has
reduced by GBP4.4m, within which retail has received the largest
reduction in value (GBP2.3m). This reduction was spread across the
retail portfolio with Kew Retail Park, Southport reviving the most
significant reduction (GBP1.4m) due principally to the CVA
announced by Poundstretcher. In addition, Gosforth Shopping centre
was reduced in value by GBP0.7m despite strong trading, good
occupancy throughout the lockdown and 71% rental income received
during the March and June quarters.
The valuation of the office portfolio was reduced by GBP1.3m
with all assets receiving a reduction in value compared to March 20
valuation figures.
The GBP4.4M reduction in investment property has led to a
corresponding reduction in NAV, offset to an extent by operating
profit in the quarter. In arriving at the operating profit for the
quarter, a specific provision for bad debts of GBP0.2m was made.
Debtor recoverability will continue to be monitored closely.
The rent collection statistics for the June 2020 quarter, which
encompasses the Scottish quarter starting 28 May 2020 and the
English Quarter starting 25 June 2020, are as follows:
Scotland 70%
England 58%
Overall 62%
The Board has moved to a monthly reporting protocol with the
Manager and Administrator to ensure all necessary actions are in
place to secure rental receipts, reduce operating costs where
possible, monitor and manage cashflow and meet liabilities as they
fall due. As at 30 June 2020, the Company had cash balances of
GBP0.62 million and borrowings of GBP22.76 million. The Company has
a GBP25M facility in place with no need to refinance until 30
September 2022.
Operational Performance
While the focus of the Board and the Manager during the March
and June quarters has been on tenant and cash management, it is
encouraging to now report that those efforts are yielding results
and that the portfolio is beginning to stabilise. The revenue
account for the quarter recorded an operating profit of GBP0.4M
(after a provision for bad debt of GBP0.2M). The fundamental driver
for this has been the Manager's engagement with tenants, which has
yielded GBP1.5M in rental receipts over the last 2 quarters, some
73% of the total rent demanded.
Dividends
While the Board is pleased to report a degree of stability,
exceptional circumstances affecting global economies and markets
continue to prevail. .The Board has therefore maintained its
current policy to preserve cash and suspend interim dividends. The
position will be reviewed again for the September 2020 quarter,
which is also the Company's year-end.
Unaudited NAV (As at 30 June 2020)
GBPm Pence per Share
NAV as at 31 March 2020 (revised) 30.28 79.26
Property portfolio valuation
movement -4.38 -11.45
Capitalised costs -0.04 -0.11
Rent free debtor movement 0.04 0.10
Income earned for the period 1.01 2.65
Expenses for the period -0.22 -0.58
Provision for bad debt -0.20 -0.54
Interest paid -0.17 -0.42
Dividend paid -0.00 -0.00
Unaudited NAV as at 30 June 2020 26.32 68.91
---------------------------------- ----- ---------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 30 June 2020 and income for the period.
The earnings per share for the period from 1 April 2020 - 30 June
2020 (excluding revaluation gains and losses on fair value of
investments and expenses charged to capital) were 1.10p.
Current Portfolio
Mar-20 Jun-20
Location Value % Weighting Value % Weighting
North East GBP14,400,000.00 27.02% GBP13,500,000.00 27.59%
Scotland GBP18,100,000.00 33.96% GBP17,175,000.00 35.10%
North West GBP17,600,000.00 33.02% GBP15,500,000.00 31.68%
South West GBP3,200,000.00 6.00% GBP2,750,000.00 5.62%
------------------ -----------------
GBP53,300,000.00 100.00% GBP48,925,000.00 100.00%
------------------------------- -----------------
Sector Value % Weighting Value % Weighting
Office GBP25,700,000.00 48.22% GBP24,400,000.00 49.87%
Shopping
Centre GBP12,000,000.00 22.51% GBP11,250,000.00 22.99%
Retail GBP14,200,000.00 26.64% GBP11,950,000.00 24.43%
Industrial GBP1,400,000.00 2.63% GBP1,325,000.00 2.71%
------------------ -----------------
GBP53,300,000.00 100.00% GBP48,925,000.00 100.00%
------------------------------- -----------------
The properties were valued at GBP48,925,000 as at 30 June 2020
(31 March 2020: GBP53,300,000) by Savills (UK) Limited ('Savills'),
in their capacity as external valuers. The fair value of
investments adjusted for lease incentives of GBP414,971 was
GBP48,510,028 (31 March 2020: GBP52,870,013). Capitalised costs for
the quarter were GBP40,242 (31 March 2020: GBP59,997).
Key KPIs
Mar-20 Jun-20
-------- --------
Total Number of Units 104 104
-------- --------
Total Number of Tenants 89 92
-------- --------
Total SQFT 336,303 336,303
-------- --------
Vacancy (% SQFT) 9.60% 9.40%
-------- --------
Vacancy (% ERV) 9.80% 10.10%
-------- --------
WAULT (Expiry) 5.66 5.4
-------- --------
WAULT (Breaks) 4.6 3.9
-------- --------
Asset Management Overview and Update
Monteith House, Glasgow
A new 10 year lease has been agreed with SDS subject to securing
vacant possession of two floors. It is currently anticipated that
the new lease will commence in September.
Gosforth Shopping Centre, Gosforth
A lease extension for a period of 5 years has been documented
with Costa Coffee at an annual rent of GBP30,000pa.
LEI: 213800FG3PJGQ3KQH756
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
Important information:
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information Service
this inside information is now considered to be in the public
domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
NAVFLFEIDVISFII
(END) Dow Jones Newswires
July 24, 2020 06:57 ET (10:57 GMT)
Drum Income Plus Reit (LSE:DRIP)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Drum Income Plus Reit (LSE:DRIP)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
