TIDMDRIP
RNS Number : 0345G
Drum Income Plus REIT PLC
19 July 2019
Drum Income Plus REIT plc
("Drum" or the "Company")
Unaudited Net Asset Value as at 30 June 2019
Drum Income Plus REIT plc (LSE: DRIP) announces its unaudited
net asset value ("NAV") as at 30 June 2019.
Highlights
Period from 31 March to 30 June 2019
-- The independent valuation of the property portfolio as at 30 June 2019 was GBP57.2m
-- (31 March 2019: GBP57.3m).
-- NAV per share at 30 June 2019 of 90.86p (31 March 2019: 91.66p).
-- Earnings per share (excluding revaluation gains and losses on fair value of investments) for three months ended
30 June were 1.57p.
-- Dividend paid during the quarter of 1.50p.
-- NAV total return (NAV movement plus dividend paid) of 0.80%.
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 June 2019)
GBPm Pence per Share
NAV as at 31 March 2019
Property portfolio valuation
movement 35.02 91.66
Capitalised costs and rent free
debtor movement (0.32) (0.85)
Income earned for the period 1.03 2.71
Expenses for the period (0.28) (0.74)
Interest paid (0.16) (0.40)
Dividend paid (0.58) (1.52)
Unaudited NAV as at 30 June 2019 34.71 90.86
--------------------------------- ------ ---------------------------------------
The NAV has been calculated in accordance with International
Financial Reporting Standards and incorporates the independent
portfolio valuation as at 30 June 2019 and income for the period,
but does not include a provision for the second interim dividend,
which will be paid in August 2019. The earnings per share for the
period from 1 April 2019 to 31 June 2019 (excluding revaluation
gains and losses on fair value of investments and expenses charged
to capital) were 1.57p.
As at 30 June 2019, the Company had cash balances of GBP1.26
million and borrowings of GBP22.7 million (loan-to-value of
39.8%).
Current Portfolio
Mar-19 Jun-19
Location Value % Weighting Value % Weighting
North East GBP16,150,000.00 28.18% GBP15,900,000.00 27.82%
Scotland GBP18,350,000.00 32.02% GBP18,350,000.00 32.11%
North West GBP18,800,000.00 32.81% GBP18,900,000.00 33.07%
South West GBP4,000,000.00 6.98% GBP4,000,000.00 7.00%
------------------ -----------------
GBP57,300,000.00 100.00% GBP57,150,000.00 100.00%
------------------------------- -----------------
Sector Value % Weighting Value % Weighting
Office GBP25,400,000.00 44.33% GBP25,800,000.00 45.14%
Shopping
Centre GBP13,750,000.00 24.00% GBP13,500,000.00 23.62%
Retail GBP16,650,000.00 29.06% GBP16,450,000.00 28.78%
Industrial GBP1,500,000.00 2.62% GBP1,400,000.00 2.45%
------------------ -----------------
GBP57,300,000.00 100.00% GBP57,150,000.00 100.00%
------------------------------- -----------------
The properties were valued at GBP57,150,000 as at 30 June 2019
(31 March 2019: GBP57,300,000) by Savills (UK) Limited ('Savills'),
in their capacity as external valuers and were adjusted for lease
incentives of GBP495,895. (31 March 2019: GBP529,227). Capitalised
costs for the quarter were GBP215,474
(31 March 2019: 88,695).
Key KPIs
Mar-19 Jun-19
-------- --------
Total Number of
Units 105 105
Total Number of
Tenants 89 90
Total SQFT 336,303 336,303
Vacancy (% SQFT) 9.80% 9.60%
Vacancy (% ERV) 6.90% 7.10%
WAULT (Expiry) 6.04 5.94
WAULT (Breaks) 4.74 4.69
-------- --------
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.
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 5.94 years.
-- The portfolio yield is 7.3% (based on 30 June 2019 valuation).
-- The occupancy rate is high at 92.9% by ERV.
-- Gearing - the loan-to-value ratio of 39.8% is directly in
line with the stated intended target of 40%.
-- Further asset management angles to exploit.
Asset Management Overview and Update
Arthur House, Manchester
The proposed refurbishment works of the 6(th) floor have now
completed and the launch event was held on the 3(rd) of July.
A new letting on Floor 5 was completed to CIBT for c 1200sqft
for a 5-year lease with a break in year 3 on un-refurbished space
at GBP18.50psf. This secures the rental tone for the un-refurbished
space in the building following the previous letting to I J Tours
at the same level.
Burnside Industrial Estate, Aberdeen.
Refurbishment works to one terrace have commenced at a cost of c
GBP300,000. Discussions are ongoing with other occupiers regarding
renewals and new lettings.
Eastern Avenue, Gloucester
An Agreement for Lease has been entered into with Home Bargains
for the former Office Outlet unit on a subject to planning basis.
The planning application is due to be determined imminently.
There is interest in the former Maplin unit from potential
occupiers.
Dividends
The Board is targeting a fully covered annual dividend of 6.0p
per share in respect of the year ending 30 September 2019*. At the
current share price of 80.50p this would represent an annualised
dividend yield of 7.45%.
*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)
Nick Oborne 020 7067 0721
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END
NAVLLFLEDAITLIA
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July 19, 2019 02:00 ET (06:00 GMT)
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