TIDMDRIP
RNS Number : 0929K
Drum Income Plus REIT PLC
17 April 2020
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 31 March 2020
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 31 March 2020.
Summary
Period from 1 January 2020 to 31 March 2020
-- The NAV is GBP30.28m at 31 March 20. (31 December 2019 GBP32.52m).
-- NAV per share at 31 March 20 of 79.26p (31 December 2019 of 86.38p).
-- The independent valuation of the property portfolio as at 31 March 2020 was GBP53.3m
(31 December 2019: GBP55.35m).
-- Earnings per share (excluding revaluation gains and losses on
fair value of investments) for three months ended 31 March were
1.08p.
-- Dividend paid during the quarter of 1.50p.
-- NAV total return (NAV movement plus dividend paid) of -7%.
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 once the Covid "lockdown"
restrictions are lifted and our tenants can being to generate
income again. We are focused on preserving the long-term value and
financial strength of the Company.
However, Covid-19 has had and will continue to have a material
impact upon the trading performance of the Company. The NAV has
reduced 7% in the quarter, largely due to the investment property
valuation reducing by 4% across the retail and shopping centre
assets. This is a direct consequence of Covid-19. In common with
all valuations being carried out at this time, the valuation report
is subject to a material uncertainty clause and further valuation
and NAV reductions are likely as rent collections will continue to
remain under pressure until trading conditions for tenants begin to
improve.
The rent collection statistics for the March 2020 quarter, which
encompasses the Scottish quarter starting 28 February 2020 (pre
Covid "lockdown") and the English Quarter starting 25 Match 2020,
are as follows:
-- Scotland 91%
-- England 58%
-- Overall 68%
A clearer picture of the impact of Covid-19 will emerge as we
monitor rent collections for the 28 May Scottish quarter and the 25
June English quarter in the coming weeks.
The Board has established a weekly 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 31 March 2020, the Company had cash balances of
GBP0.54 million and borrowings of GBP22.76 million. The Company has
a GBP25M facility in place with no need to refinance until 30
September 2022.
Dividends
In the light of the exceptional circumstances affecting global
economies and markets and particularly given the current
uncertainty that the impact of Covid-19 will have on future rental
receipts, the Board has taken the decision to preserve cash and
suspend interim dividends for the next 2 quarters. The position
will be reviewed again for the September 2020 quarter, which is
also the Company's year-end
Unaudited NAV (As at 31 March 2020)
GBPm Pence per Share
NAV as at 31 December 2019 (revised) 32.52 85.14
Property portfolio valuation
movement -2.05 -5.37
Capitalised costs -0.06 -0.16
Rent free debtor movement 0.04 0.11
Income earned for the period 1.00 2.62
Expenses for the period -0.43 -1.10
Interest paid -0.17 -0.44
Dividend paid -0.57 -1.50
Unaudited NAV as at 31 March
2020 30.28 79.26
------------------------------------- ----- ---------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 31 March 2020 and income for the period.
The earnings per share for the period from 1 January 2020 - 31
March 2020 (excluding revaluation gains and losses on fair value of
investments and expenses charged to capital) were 1.08p.
Current Portfolio
Dec-19 Mar-20
Location Value % Weighting Value % Weighting
North East GBP15,400,000.00 27.82% GBP14,400,000.00 27.02%
Scotland GBP18,250,000.00 32.97% GBP18,100,000.00 33.96%
North West GBP18,200,000.00 32.88% GBP17,600,000.00 33.02%
South West GBP3,500,000.00 6.32% GBP3,200,000.00 6.00%
------------------ -----------------
GBP55,350,000.00 100.00% GBP53,300,000.00 100.00%
------------------------------- -----------------
Sector Value % Weighting Value % Weighting
Office GBP25,800,000.00 46.61% GBP25,700,000.00 48.22%
Shopping
Centre GBP13,000,000.00 23.49% GBP12,000,000.00 22.51%
Retail GBP15,150,000.00 27.37% GBP14,200,000.00 26.64%
Industrial GBP1,400,000.00 2.53% GBP1,400,000.00 2.63%
------------------ -----------------
GBP55,350,000.00 100.00% GBP53,300,000.00 100.00%
------------------------------- -----------------
The properties were valued at GBP53,300,000 as at 31 March 2020
(31 December 2019: GBP55,350,000) by Savills (UK) Limited
('Savills'), in their capacity as external valuers. The fair value
of investments adjusted for lease incentives of GBP429,987 was
GBP52,870,013 (31 December 2019: GBP54,877,347). Capitalised costs
for the quarter were GBP59,997 (31 December 2019: GBP47,346).
Key KPIs
Dec-19 Mar-20
-------- --------
Total Number of
Units 104 106
Total Number of
Tenants 89 88
Total SQFT 336,303 336,303
Vacancy (% SQFT) 9.60% 10.70%
Vacancy (% ERV) 9.80% 10.50%
WAULT (Expiry) 5.66 5.79
WAULT (Breaks) 4.6 4.43
-------- --------
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. Given the ongoing lockdown this
will be secured later in the year.
Burnside Industrial Estate, Aberdeen.
A New Lease for a term of 5 years has been agreed with Weldsy
Limited at a rent of GBP20,000pa .A further new lease has been
entered into at Unit 4 to Grampian Geotechnical (Scotand) Limited
at a rent of GBP29,995 pa for a period of 10 years. The tenant has
a break option in year 6.
108 Eastern Avenue Retail Park, Gloucester
Following external advice the decision has been made to appeal
the refusal of the planning application on the former Office Outlet
unit. The appeal has now been submitted.
Gosforth Shopping Centre, Gosforth
A lease extension for a period of 5 years is currently being
documented with Costa Coffee.
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)
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
NAVGPURCCUPUGCM
(END) Dow Jones Newswires
April 17, 2020 10:49 ET (14:49 GMT)
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