DRIP.L Regulatory News (DRIP)

Drum Income Plus REIT plc

("Drum" or "the Company")

Purchase of Property

Drum announces two further acquisitions for a total consideration of £9.71 million.

The Company has acquired Arthur House in Piccadilly, Manchester for a consideration of £4.41 million. The multi-let office investment has an exceptional city centre location and is currently occupied by 23 professional services firms. The purchase price reflects an acquisition yield of 8.9%.

Drum has also acquired 108 Eastern Avenue Retail Park in Gloucester for a consideration of £5.3 million. The park is fully let with tenants including Staples, Maplin and Farmfoods. The purchase price reflects an acquisition yield of 8.4%.

The Company has now completed seven acquisitions valued at £40.36 million (including costs) since it was listed on the Official List of the UK Listing Authority and admitted to trading on the Main Market of the London Stock Exchange on 29 May 2015. At launch the Company raised gross proceeds of £31.9 million. The IPO proceeds are now fully invested, and the Company is utilising its £20 million 18-month revolving facility agreed in January 2016 with The Royal Bank of Scotland plc (the "RCF") to fund further acquisitions.

Commenting on the acquisitions, John Evans, Chairman of Drum Income Plus REIT Plc, said: "We are extending the significant momentum that has been created since our IPO in May 2015, securing regional properties that fit with our differentiated investment strategy of focusing on assets between £2m and £15m that offer opportunities to add value.

"Our team has extensive experience of entrepreneurial, proactive asset management and of creating investments that deliver revenue and capital appreciation. We continue to follow an asset management strategy that will drive rental growth and maximise additional income opportunities, offering investors an attractive blend of income return and capital growth."

As the RCF will allow the Company to transact on only a small proportion of the additional investment opportunities that are likely to be available to it in the coming months, the Board intends to seek Shareholder approval to issue, on a non-pre-emptive basis, up to 100,000,000 new ordinary shares pursuant to an initial placing programme. The net proceeds of new equity issuance will be used to fund further acquisitions for the Company's portfolio. Further details will be announced shortly.

For more information on the Drum Income Plus REIT, visit: www.dripreit.co.uk 

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NOTES:

Drum's Dividend Policy

Target of aggregate dividends of 5.25p (1.3125p per quarter, commencing in respect of the quarter ended 31 December 2015) per share in respect of the period from launch to 30 September 2016*.

Target of fully covered aggregate dividends of at least 5.5p per share and 6.0p per share in respect of 12 months ending 30 September 2017 and 30 September 2018 respectively*.

\* 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

Drum's Portfolio at 26 February 2016

Portfolio valuation as at 26 February 2016: £40.362 million

Average portfolio acquisition yield: 7.9%

Loan to value as at 26 February 2016 (based on 31 December 2015 net assets): 25.7%

Arthur House, Charlton Street, Piccadilly, Manchester 

· Market Value as at 26 February 2016: £4.412 million

· Acquisition yield: 8.9%

· Key tenants: 23 professional services firms

108 Eastern Avenue Retail Park, Gloucester

· Market Value as at 26 February 2016: £5.3 million

· Acquisition yield: 8.4%

· Key tenants: Staples, Maplin, Farmfoods

Lakeside 5500, Cheadle Royal Business Park, Manchester

· Market Value as at 31 Dec 2015: £5.25 million

· Acquisition yield: 7.8%

· Key tenants: Agilent Technologies LDA UK Ltd, Micron Europe Ltd

Monteith House, 11 George Square, Glasgow

· Market Value as at 31 Dec 2015: £5.75 million

· Acquisition yield: 7.6%

· Key tenants: VisitScotland, Skills Development Scotland

Duloch Park, Turnstone Road, Dunfermline

· Market Value as at 31 Dec 2015: £4.525 million

· Acquisition yield: 7.4%

· Key tenants: Barrhead Travel, Pizza Hut Delivery, Greggs, Lloyds Pharmacy, Subway, Betfred, Johnson Cleaners.

Mayflower House, Fifth Avenue Business Park, Gateshead

· Market Value as at 31 Dec 2015: £2.625 million

· Acquisition yield: 9.3%

· Key tenants: WorldPay, KCS Datawright, Benfield Motor Group. 

Gosforth Shopping Centre, High Street, Newcastle upon Tyne

· Market Value as at 31 Dec 2015: £12.5 million

· Acquisition yield: 7.3%

· Key tenants: Boots, Sainsbury's, WH Smith, Costa Coffee, Virgin Money, Lloyds Bank

NAV per Share at 31 December 2015: 95.1p

For more information on Drum Income Plus REIT plc, visit: www.dripreit.co.uk