LONDON (Alliance News) - Drum Income Plus REIT PLC said Tuesday its portfolio experienced mixed outcomes in the twelve months to September 30 due to the "increasingly uncertain macro outlook" for the UK economy.
At September 30, Drum's net asset value stood at 93.77 pence compared to 93.96p the year before.
The income focused real estate investment trust, focused on regional commercial property assets, said its net assets ended the period broadly flat at GBP35.8 million.
Drum Income paid a total dividend of 6.0p during the year, an increase of 9.1% on the year before. The investment company expects to pay a 6.0p dividend in the current year.
The firm's rental income was flat at GBP4.2 million per annum.
Chair John Evans said: "The portfolio was constructed in line with the expectations set out in the prospectuses. The key features are that it is well diversified by region and asset type. There is no exposure to London or the South East, and no high street or major shopping centre exposure. The retail properties in the portfolio rely on local demand and are, in the case of Gosforth and Duloch in Dunfermline, meeting convenience demand from essentially a very local population.
"The current period will undoubtedly be challenging as reflected in the considerable political and economic uncertainty, not least of which is the whole issue of Brexit. The board and manager are focused on the aspects of the trust that they can control and are actively pursuing the asset management and value enhancing opportunities that lie within the portfolio."
Shares in Drum Income closed up 2.7% at 97.00 pence each.