16 Oct 2015 07:00
Drum Income Plus REIT plc
NAV Update for the period ended 30 September 2015
Drum Income Plus REIT plc (the "Company") (LSE: DRIP) announces its Net Asset Value for the quarter ended 30 September 2015.
Highlights
· NAV per share at 30 September 2015 of 97.49 pence.
· Fair Value independent valuation of the property portfolio as at 30 September 2015 of £7.3 million.
· Two properties purchased in the quarter, Mayflower House in Gateshead (£4.6m) and Duloch Park, Dunfermline (£2.7m).
· A further property, Gosforth Shopping Centre (£12.3m), purchased shortly after 30 September.
Net Asset Value
The Company's unaudited NAV per share as at 30 September 2015 was 97.49 pence. This is the first NAV announcement since launch on 29 May 2015. As at 30 September 2015 the Company owned investment properties with a fair value of £7.3m and had cash balances of approximately £23.8m.
The unaudited NAV of the Company at 30 September 2015 was £31.1m, or 97.49 pence per share, a decrease of 2.5% on the Company's NAV at launch:
Pence Per Share | £ million | |
NAV at launch | 100.00 | 31.86 |
Launch costs | (2.02) | (0.64) |
Valuation uplift in property portfolio | - | - |
Income earned for the period | 0.18 | 0.06 |
Expenses for the period | (0.67) | (0.21) |
Dividend paid in the period | - | - |
NAV at 30 September 2015 | 97.49 | 31.07 |
The NAV attributable to the ordinary shares has been calculated under International Financial Reporting Standards. It incorporates the independent portfolio valuation as at 30 September 2015 and income for the quarter.
Portfolio activity
The Company has acquired Duloch Park, a retail park at Turnstone Road, Dunfermline, for a consideration of £4.6 million. Key tenants include Barrhead Travel, Pizza Hut Delivery, Greggs, Lloyds Pharmacy, Subway, Betfred and Johnson Cleaners. The purchase price reflects a net initial yield of 7.4%.
The Company has acquired Mayflower House, an office complex in Fifth Avenue Business Park, Gateshead, for a consideration of £2.7 million. Key tenants include WorldPay, KCS Datawright and Benfield Motor Group. The purchase price reflects a net initial yield of 9.25%.
Post quarter-end activity
The Company has also exchanged contracts to acquire Gosforth Shopping Centre, a retail centre in Newcastle upon Tyne, for a consideration of £12.3 million. Key tenants include Boots, Sainsbury's, WH Smith, Costa Coffee, Virgin Money and Lloyds Bank. The agreed purchase price reflects a net initial yield of 7.5%.
The Company is also in detailed negotiations for the acquisition of a regional office building which is accretive to the overall portfolio. Once acquired this would take total equity spend to c. £27m.
Forthcoming events
The Board expects to publish the financial statements of the Company for the six month period ended 30 September 2015 at the end of November 2015.
The next independent quarterly valuation of the property portfolio will be conducted by Savills as at 31 December 2015 with the NAV per share at the same date announced in January 2015.
For further information please contact:
Drum Property Group (Asset Manager) Bryan Sherriff
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0131 285 0050 |
Dickson Minto W.S. (Sponsor) Douglas Armstrong
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020 7649 6823 |
Weber Shandwick (Financial PR) Richard Bright Nick Oborne
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0131 556 6649 020 7067 0721 |
Drum Income Plus REIT Plc Martin Cassels, Company Secretary
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0131 524 6140 |