TIDMDRIP
RNS Number : 2658N
Drum Income Plus REIT PLC
29 January 2021
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 31 December 2020
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 31 December 2020.
Highlights
Period from 30 September 2020 to 31 December 2020
-- The NAV is GBP28.15m at 31 December 2020. (30 September 2020 GBP27.89m).
-- The independent valuation of the property portfolio as at 31
December 2020 was GBP50.75m
(30 September 2020: GBP51.05m).
-- NAV per share at 31 December 2020 of 73.67p (30 September 2020 of 73.01p).
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for three months ended 31 December were
1.61p.
-- No dividend was paid during the quarter.
-- NAV total return (NAV movement) of 6%.
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 December 2020)
GBPm Pence per Share
NAV as at 30 September 2020 (unaudited) 29.15 76.31
Reclassification of tenant incentive -1.04 -2.72
Increase in bad debt provision -0.23 -0.62
Audit adjustments 0.01 0.02
NAV as at 30 September 2020 (audited) 27.89 73.01
Property portfolio valuation
movement -0.30 -0.79
Capitalised costs -0.06 -0.15
Rent free debtor movement 0.00 -0.01
Income earned for the period 1.05 2.74
Expenses for the period -0.29 -0.75
Provision for bad debt -0.02 -0.06
Interest paid -0.12 -0.32
Dividend paid 0.00 0.00
Unaudited NAV as at 31 December
2020 28.15 73.67
---------------------------------------- ----- ---------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 31 December 2020 and income for the
period. The earnings per share for the period from 1 October 2020
to 31 December 2020 (excluding revaluation gains and losses on fair
value of investments and expenses charged to capital) were
1.61p.
Dividend Policy
The Board is pleased to announce that despite the inevitable
disruption caused by the COVID-19 pandemic, the Company's cash
collection rate to date will now allow for the resumption of
dividend payments to shareholders. A dividend per share of 0.75p
per share has therefore been declared for the quarter ended
December 31, 2020. The ex-dividend date will be 11 February 2021
and the record date will be 12 February 2021. The dividend will be
paid on or around 26 February 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
Sep-20 Dec-20
Location Value % Weighting Value % Weighting
North East GBP13,350,000.00 26.15% GBP13,250,000.00 26.11%
Scotland GBP19,450,000.00 38.10% GBP19,550,000.00 38.52%
North West GBP15,500,000.00 30.36% GBP15,200,000.00 29.95%
South West GBP2,750,000.00 5.39% GBP2,750,000.00 5.42%
------------------ -----------------
GBP51,050,000.00 100.00% GBP50,750,000.00 100.00%
------------------------------------ -----------------
Sector Value % Weighting Value % Weighting
Office GBP26,550,000.00 52.01% GBP26,350,000.00 51.92%
Shopping Centre GBP11,100,000.00 21.74% GBP11,000,000.00 21.67%
Retail GBP11,950,000.00 23.41% GBP11,950,000.00 23.55%
Industrial GBP1,450,000.00 2.84% GBP1,450,000.00 2.86%
------------------ -----------------
GBP51,050,000.00 100.00% GBP50,750,000.00 100.00%
------------------------------------ -----------------
The properties were valued at GBP51,750,000 as at 31 December
2020 (30 September 2020: GBP51,050,000) by Savills (UK) Limited
('Savills'), in their capacity as external valuers and were
adjusted for lease incentives of GBP1,484,056. (30 September 2020:
GBP1,480,679). Capitalised costs for the quarter were GBP56,116 (30
September 2020: GBP59,928).
Key KPIs
Sep-20 Dec-20
-------- --------
Total Number of
Units 100 100
Total Number of
Tenants 89 85
Total SQFT 336,303 336,303
Vacancy (% SQFT) 8.50% 11.30%
Vacancy (% ERV) 10.30% 13.60%
WAULT (Expiry) 5.17 4.79
WAULT (Breaks) 3.73 3.68
-------- --------
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 4.79 years.
-- The portfolio yield is 6.8% (based on 31 December 2020 valuation).
-- The occupancy rate is high at 86.4% 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 has subsequently been 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
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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