(Alliance News) - Drum Income Plus REIT PLC on Thursday reported a mid-single-digit decline in its net assets in the first half of its current financial year as Covid-19 hurt UK commercial property market.
The investment company reported net asset value per share of 79.26 pence as at March 31 compared to 91.66p reported a year earlier.
Drum said its NAV has fallen by 6.2% in the six months to the end of March, largely due to a fall in the valuation of the retail and shopping centre assets.
The company's quarterly dividend has been suspended for the next two quarters in order to preserve cash, and the position will be reviewed for the September 2020 quarter, which is also the company's year end.
Drum shares were trading 10% lower in London on Thursday at 45.00p each.
"Going forward, we expect Covid-19 uncertainty will continue to affect the market and corresponding values over the next six to nine months with some market commentators anticipating that there will be a return to more normal conditions by the end of March 2021," said Investment Manager Bryan Sherriff.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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