TIDMDRIP
RNS Number : 3664W
Drum Income Plus REIT PLC
23 April 2021
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 31 March 2021
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 31 March 2021.
Highlights
Period from 31 December 2020 to 31 March 2021
-- The NAV is GBP26.34m at 31 March 2021. (31 December 2020 GBP28.15m).
-- The independent valuation of the property portfolio as at 31 March 2021 was GBP48.825m
(31 December 2020: GBP50.75m).
-- NAV per share at 31 March 2021 of 68.97p (31 December 2020 of 73.67p).
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for three months ended 31 March were
1.10p.
-- Dividend paid during the quarter of 0.75p.
-- NAV total return (NAV movement) of -5%.
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 31 March 2021)
GBPm Pence per Share
Unaudited NAV as at 31 December
2020 28.15 73.67
Property portfolio valuation
movement -1.93 -5.04
Capitalised costs -0.03 -0.08
Rent free debtor movement 0.02 0.06
Income earned for the period 0.90 2.35
Expenses for the period -0.47 -1.23
Provision for bad debt 0.11 0.29
Interest paid -0.12 -0.30
Dividend paid -0.29 -0.75
Unaudited NAV as at 31 March
2021 26.34 68.97
-------------------------------- ----- ---------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 31 March 2021 and income for the period.
The earnings per share for the period from 1 January 2021 to 31
March 2021 (excluding revaluation gains and losses on fair value of
investments and expenses charged to capital) were 1.10p.
Dividend Policy
A dividend per share of 0.75p per share has therefore been
declared for the quarter ended March 31, 2021. The ex-dividend date
will be 6 May 2021 and the record date will be 7 May 2021. The
dividend will be paid on or around 27(th) May 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
Dec-20 Mar-21
Location Value % Weighting Value % Weighting
North East GBP13,250,000.00 26.11% GBP12,175,000.00 24.94%
Scotland GBP19,550,000.00 38.52% GBP19,350,000.00 39.63%
North West GBP15,200,000.00 29.95% GBP14,800,000.00 30.31%
South West GBP2,750,000.00 5.42% GBP2,500,000.00 5.12%
------------------ -----------------
GBP50,750,000.00 100.00% GBP48,825,000.00 100.00%
------------------------------- -----------------
Sector Value % Weighting Value % Weighting
Office GBP26,350,000.00 51.92% GBP25,825,000.00 52.89%
Shopping
Centre GBP11,000,000.00 21.67% GBP10,000,000.00 20.48%
Retail GBP11,950,000.00 23.55% GBP11,500,000.00 23.55%
Industrial GBP1,450,000.00 2.86% GBP1,500,000.00 3.07%
------------------ -----------------
GBP50,750,000.00 100.00% GBP48,825,000.00 100.00%
------------------------------- -----------------
The properties were valued at GBP48,825,000 as at 31 March 2021
(31 December 2020: GBP50,750,000) by Savills (UK) Limited
('Savills'), in their capacity as external valuers and were
adjusted for lease incentives of GBP1,460,011. (31 December 2020:
GBP1,484,056). Capitalised costs for the quarter were GBP31,024 (31
December 2020: GBP56,116).
Key KPIs
Dec-20 Mar-21
-------- --------
Total Number of
Units 100 100
Total Number of
Tenants 85 84
Total SQFT 336,303 336,303
Vacancy (% SQFT) 11.30% 12.80%
Vacancy (% ERV) 13.60% 13.40%
WAULT (Expiry) 4.79 4.57
WAULT (Breaks) 3.68 3.75
-------- --------
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 4.57 years.
-- The portfolio yield is 6% (based on 31 March 2021 valuation).
-- The occupancy rate is high at 86.6% 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
Re-gear successfully documented with Indigo Sun for a period of
5 years. The transaction takes account of arrears built up during
the initial lockdown period.
Monteith House, Glasgow
Following completion of the new lease to SDS the tenant has
confirmed that it will now undertake an extensive refurbishment of
the building.
Mayflower House, Gateshead
Following completion of the refurbishment to the vacant suite
Knight Frank have been instructed to market the suite.
Eastern Avenue Gloucester
We received notification of the planning hearing date in
December for February 2021. The hearing was subsequently moved to
the end of March due to the pandemic. If the appeal is successful,
this will have significant benefit to the portfolio given the
pre-let to Home Bargains which is contracted.
Arthur House, Manchester
Successful removal of break dates within the lease with IJ Tours
in lieu of rent arrears being written off.
3 Lochside Way, Edinburgh
Following the departure of Exception and Cash Generator both
suites are now actively being marketed by JLL and Knight Frank.
Enquiries:
Drum Real Estate Investment Management (Investment Manager)
Bryan Sherriff 0131 285 0050
0207 894 7719
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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April 23, 2021 02:00 ET (06:00 GMT)
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