TIDMDRIP
RNS Number : 9821C
Drum Income Plus REIT PLC
23 October 2020
23 October 2020
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 30 September 2020
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 30 September 2020.
Summary
Period from 30 June 2020 to 30 September 2020
-- The NAV is GBP29.15m at 30 September 2020. (30 June 2020 GBP26.32m).
-- NAV per share at 30 September 2020 of 76.31p (30 June 2020 of 68.91p).
-- The independent valuation of the property portfolio as at 30
September 2020 was GBP51.05m (30 June 2020: GBP48.93m).
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for three months ended 30 September were
1.89p.
-- No dividend was paid during the quarter.
-- NAV total return (NAV movement) of 10%.
Operational Performance
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 has been to ensure that the
portfolio is well positioned to begin its recovery. We remain
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.
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 GBP0.7m.
The fundamental driver for this has been the Manager's engagement
with tenants, which has yielded GBP2.4m in rental receipts over the
last 3 quarters, some 78% of the total rent demanded.
For the period to 30 September 2020 the portfolio valuation
stabilised across all sectors. In addition, asset management
initiatives completed during the quarter have increased the
portfolio valuation by GBP2.1m. The main value generator was the
company entering into a new 10 year lease at Monteith House in
Glasgow with Skills Development Scotland Limited at an annual rent
of GBP489,989. This, together with the operating profit of GBP0.7m,
has led to a corresponding increase in NAV.
The cash balance as at the end of the quarter is GBP1.1m. The
Company has a GBP25M facility in place with no need to refinance
until 30 September 2022. The amount drawn under the facility is
GBP22.7m
The rent collection statistics (as at 13 October 2020) for the 3
quarters impacted by Covid-19 are reported below. We expect to see
further improvement in the September 20 arrears in the coming
months.
Scotland Total Collected Total Collected Total Collected
Q1 Q2 Q3
Rent Demanded 96.33% 78.82% 58.15%
---------------- ---------------- ----------------
S/c Demanded 95.90% 84.06% 79.07%
---------------- ---------------- ----------------
England Total Collected Total Collected Total Collected
Q1 Q2 Q3
---------------- ---------------- ----------------
Rent Demanded 88.79% 82.78% 66.12%
---------------- ---------------- ----------------
S/c Demanded 91.93% 89.17% 85.44%
---------------- ---------------- ----------------
TOTAL Total Collected Total Collected Total Collected
Q1 Q2 Q3
---------------- ---------------- ----------------
Rent Demanded 91.30% 81.53% 63.00%
---------------- ---------------- ----------------
S/c Demanded 92.90% 88.02% 84.38%
---------------- ---------------- ----------------
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 December 2020 quarter.
Unaudited NAV (As at 30 September 2020)
NAV as at 30 June 2020 GBPm Pence per Share
26.32 68.91
Property portfolio valuation movement 2.13 5.56
Capitalised costs -0.06 -0.16
Rent free debtor movement 0.04 0.11
Income earned for the period 0.92 2.41
Expenses for the period -0.17 -0.45
Provision for bad debt 0.07 0.18
Interest paid -0.10 -0.25
Dividend paid -0.00 -0.00
Unaudited NAV as at 30 September
2020 29.15 76.31
-------------------------------------- ----- ---------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 30 September 2020 and income for the
period. The earnings per share for the period from 1 July 2020 - 30
September 2020 (excluding revaluation gains and losses on fair
value of investments and expenses charged to capital) were
1.89p.
Current Portfolio
Jun-20 Value % Sep-20 Value
Location Weighting Weighting
North East GBP13,500,000.00 27.59% GBP13,350,000.00 26.15%
Scotland GBP17,175,000.00 35.10% GBP19,450,000.00 38.10%
North West GBP15,500,000.00 31.68% GBP15,500,000.00 30.36%
South West GBP2,750,000.00 5.62% GBP2,750,000.00 5.39%
----------------------------- ---------- ---------------------------- ----------
GBP48,925,000.00 100.00% GBP51,050,000.00 100.00%
------------------------------------------------ ---------- ---------------------------- ----------
% %
Sector Value Weighting Value Weighting
Office GBP24,400,000.00 49.87% GBP26,550,000.00 52.01%
Shopping Centre GBP11,250,000.00 22.99% GBP11,100,000.00 21.74%
Retail GBP11,950,000.00 24.43% GBP11,950,000.00 23.41%
Industrial GBP1,325,000.00 2.71% GBP1,450,000.00 2.84%
----------------------------- ---------- ---------------------------- ----------
GBP48,925,000.00 100.00% GBP51,050,000.00 100.00%
------------------------------------------------ ---------- ---------------------------- ----------
The properties were valued at GBP51,050,000 as at 30 September
2020 (30 June 2020: GBP48,925,000) by Savills (UK) Limited
(SaviIls'), in their capacity as external valuers. The fair value
of investments adjusted for lease incentives of GBP714,299 was
GBP50,335,701 (30 June 2020: GBP48,510,028). Capitalised costs for
the quarter were GBP59,928 (30 June 2020: GBP40,242).
Key KPIs
Jun-20 Sep-20
------- -------
Total Number of
Units 104 100
Total Number of
Tenants 92 89
Total SQFT 336,303 336,303
Vacancy (% SQFT) 9.40% 8.50%
Vacancy (% ERV) 10.10% 10.30%
WAULT (Expiry) 5.4 5.17
WAULT (Breaks) 3.9 3.73
------- -------
Asset Management Overview and Update
Monteith House, Glasgow
New 10 year lease entered into with Skills Development Scotland
Limited across the entire building at an annual rent of
GBP489,989.
Duloch Park, Dunfermline
Re-gear documented with Barrhead Travel and Indigo Sun for 10
year and 5 year lease extensions respectively. Both transactions
take account of rent arrears built up during Covid and are
accretive to NAV.
Mayflower House, Gateshead
Refurbishment of vacant second floor suite instructed.
Burnside Industrial Estate, Aberdeen
New 5 year lease agreed with Razor with a tenant only break
option in year 3. Annual rent of GBP27,500 pa
Demolition of the former SKF unit instructed to create a yard
space. Interest in the yard space from two existing tenants.
Kew Retail Park, Southport
Poundstretcher successfully secured a CVA and now remain in
occupation on rates and service charge basis only.
Dreams served notice to vacate but have subsequently agreed a
deal on rates and service charge only which maintains
occupancy.
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.
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END
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