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DRIP Drum Income Plus Reit Plc

50.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Drum Income Plus Reit Plc LSE:DRIP London Ordinary Share GB00BW4NWS02 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 50.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Drum Income Plus REIT PLC Net Asset Value as at 30 September 2018 (1002F)

25/10/2018 7:00am

UK Regulatory


Drum Income Plus Reit (LSE:DRIP)
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TIDMDRIP

RNS Number : 1002F

Drum Income Plus REIT PLC

25 October 2018

25 October 2018

LEI: 213800FG3PJGQ3KQH756

Drum Income Plus REIT plc

("Drum" or the "Company")

Unaudited Net Asset Value as at 30 September 2018

Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited net asset value ("NAV") as at 30 September 2018.

Highlights

Period from 1 July 2018 to 30 September 2018

-- Fair value independent valuation of property portfolio as at 30 September 2018 of GBP57.9m (30 June 2018: GBP58.7m).

   --           NAV per share at 30 September 2018 of 94.1p (30 June 2018: 95.7p). 

-- Earnings per share (excluding revaluation gains and losses on fair value of investments) for three months ended 30 September 2018 were 2.0p.

   --           Dividend paid during the quarter of 1.50p fully covered by earnings for the period. 
   --           NAV total return (NAV movement plus dividend paid) of -[0.1]%. 

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 September 2018)

 
                                    GBPm  Pence per Share 
NAV as at 30 June 2018              36.5             95.7 
Valuation change in property 
 portfolio                         (0.7)            (2.1) 
Income earned for the period         1.3              3.3 
Expenses for the period            (0.3)            (0.8) 
Interest paid                      (0.2)            (0.5) 
Dividend paid                      (0.6)            (1.5) 
Unaudited NAV as at 30 September 
 2018                               36.0             94.1 
---------------------------------  -----  --------------- 
 

The NAV has been calculated in accordance with International Financial Reporting Standards and incorporates the independent portfolio valuation as at 30 September 2018 and income for the period, but does not include a provision for the fourth interim dividend, which will be paid in November 2018. The earnings per share for the period from 1 July 2018 to 30 September 2018 (excluding revaluation gains and losses on fair value of investments and expenses charged to capital) were 2.0p.

As at 30 September 2018, the Company had cash balances of GBP1.1 million and borrowings of GBP22.7 million (loan to value of 39.2%)

Current Portfolio

 
                                Jun-18                            Sep-18 
 Location                       Value   % Weighting              Value   % Weighting 
 North East          GBP16,200,000.00        27.60%   GBP16,100,000.00        27.78% 
 Scotland            GBP18,400,000.00        31.35%   GBP18,850,000.00        32.53% 
 North West          GBP19,150,000.00        32.62%   GBP19,000,000.00        32.79% 
 South West           GBP4,950,000.00         8.43%    GBP4,000,000.00         6.90% 
                   ------------------                ----------------- 
                     GBP58,700,000.00       100.00%   GBP57,950,000.00       100.00% 
 ------------------------------------                ----------------- 
 
 Sector                         Value   % Weighting              Value   % Weighting 
 Office              GBP24,250,000.00        41.65%   GBP24,800,000.00        42.80% 
 Shopping Centre     GBP13,700,000.00        23.34%   GBP13,700,000.00        23.64% 
 Retail              GBP18,400,000.00        31.35%   GBP17,300,000.00        29.85% 
 Industrial           GBP2,350,000.00         3.66%    GBP2,150,000.00         3.71% 
                   ------------------                ----------------- 
                     GBP58,700,000.00       100.00%   GBP57,950,000.00       100.00% 
 ------------------------------------                ----------------- 
 
 
 Key KPIs 
                             Jun-18    Sep-18 
                           --------  -------- 
 Total Number of Units          108       108 
 Total Number of Tenants         92        87 
 Total SQFT                 336,303   336,303 
 Vacancy (% SQFT)             8.00%    10.10% 
 Vacancy (% ERV)              0.60%     1.90% 
 WAULT (Expiry)                6.35      6.14 
 WAULT (Breaks)                5.18      4.95 
                           --------  -------- 
 

Differentiated Investment Strategy

   --           Target lot sizes of GBP2m - GBP15m in regional locations. 
   --           Sector agnostic - opportunity driven. 
   --           Entrepreneurial asset management. 
   --           Risk-controlled development. 
   --           Dividend paid quarterly. 
   --           Fully covered dividend policy - growing incrementally. 

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, which may take the brunt of any Brexit-related market weakness. 
   --           The weighted average unexpired lease term (WAULT) to expiry is 6.14 years. 
   --           The portfolio yield is 7.0% (based on 30 September 2018 valuation). 
   --           The occupancy rate is high at greater than 95% by ERV 

-- Gearing - the loan-to-value ratio of 39.2% is directly in line with the stated intended target of 40%.

   --           Further asset management angles to exploit. 

Asset Management Overview and Update

3 Lochside Way, Edinburgh

We received notification from DNV in May that they wished to vacate in December 18. We carried out a short marketing period and have let the space with a date of entry 1 week after the existing tenant vacates at a rent of GBP20 per square foot. The previous tenant was paying GBP17.50 per square foot. The new Agreement for Lease has now been signed. This has led to an increase in the value by GBP400,000 to GBP5.6m.

Duloch Park, Dunfermline

Heads of Terms are agreed with Johnson Cleaners for a 10 year lease with a break at year 5 at a rent of GBP32,000 per annum which is ahead of the Business Plan. Legal documentation now finalised.

Eastern Avenue, Gloucester

Office Outlet applied for a CVA which has been granted. Discussions are ongoing with the tenant. This has led to a decrease in the value by GBP850,000 to GBP4.0m. An Agreement for Lease has been entered into with Home Bargains for the Office Outlet unit on a subject to planning basis. Should planning be secured then this would hopefully result in a valuation uplift.

Dividends

The Board is targeting a fully covered annual dividend of 6.0p per share in respect of the year ending 30 September 2018*. At the current share price of 94.5p this would represent an annualised dividend yield of 6.3%.

*Target returns only and not a profit forecast. There can be no assurance that these targets will be met and they should not be taken as an indication of expected or actual current or future results.

Enquiries:

 
Drum Real Estate Investment Management (Investment Manager) 
Bryan Sherriff                                                      0131 285 0050 
Cantor Fitzgerald Europe (Financial Adviser and Corporate Broker) 
Robert Peel (Corporate Finance)                                     0207 894 7719 
Richard Sloss (Sales)                                               0131 240 3863 
Dickson Minto W.S. (Sponsor) 
Douglas Armstrong                                                   020 7649 6823 
Weber Shandwick (Financial PR) 
Richard Bright                                                      0131 556 6649 
Nick Oborne                                                         020 7067 0721 
 

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

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October 25, 2018 02:00 ET (06:00 GMT)

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