Drum Income Plus REIT PLC Company Update and Strategic Review (2591R)
March 05 2021 - 01:00AM
UK Regulatory
TIDMDRIP
RNS Number : 2591R
Drum Income Plus REIT PLC
05 March 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE MARKET
ABUSE REGULATION (EU NO. 596/2014) WHICH IS PART OF UK LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
5 March 2021
DRUM INCOME PLUS REIT PLC
LEI: 213800FG3PJGQ3KQH756
Company update and strategic review
The Board is pleased to report that the Group's property
portfolio continues to perform well notwithstanding current market
conditions. Since the beginning of the COVID pandemic the Group has
collected in excess of 90% of the rent due and has completed
certain asset management initiatives. Whilst the UK commercial
property market and the Group's portfolio continue to face
challenges, the recent progress in the vaccine roll-out and the
anticipated lifting of the current lockdown does give reason for
optimism and the Board and the investment manager expect to see
returns on commercial property continue to improve.
However, since the Company's launch in 2015, the Group has
failed to reach a scale that makes its shares attractive to a wider
group of investors. This has created challenges in generating any
meaningful liquidity in the shares and they continue to trade at a
significant discount to their net asset value. Notwithstanding the
recent optimism regarding the relaxation of lock down later this
year, the Board sees no short or medium term prospects that the
Company will be able to grow organically.
Accordingly, the Board has resolved to undertake a strategic
review to consider the future of the Company, including options to
realise the value in the Group's property portfolio. The Board
intends to conclude its strategic review within a few months.
The Board has discussed its proposal with its investment manager
and largest shareholder who are fully supportive of the Board's
approach.
Enquiries:
Hugh Little, Chairman
DRIP.REIT@jtcgroup.com
Graeme Bone
Drum Real Estate Investment Management Ltd
07740653728
Douglas Armstrong
Dickson Minto, Sponsor
020 7649 6823
IMPORTANT INFORMATION
This announcement is released by Drum Income Plus REIT plc and
the information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement, this inside information is now considered to be
in the public domain.
This announcement may contain and the Company may make verbal
statements containing "forward-looking statements" with respect to
certain of the Company's plans and its current goals and
expectations relating to its future financial condition,
performance, strategic initiatives, objectives and results.
Forward-looking statements sometimes use words such as "aim",
"anticipate", "target", "expect", "estimate", "intend", "plan",
"goal", "believe", "seek", "may", "could", "outlook" or other words
of similar meaning. By their nature, all forward-looking statements
involve risk and uncertainty because they relate to future events
and circumstances which are beyond the control of the Company.
As a result, the actual future financial condition, performance
and results of the Company may differ
materially from the plans, goals and expectations set forth in
any forward-looking statements. Any
forward-looking statements made in this announcement by or on
behalf of the Company speak only as of the date they are made. The
information contained in this announcement is subject to change
without notice and except as required by applicable law or
regulation, the Company expressly disclaims any obligation or
undertaking to publish any updates or revisions to any
forward-looking statements contained in this announcement to
reflect any changes in the Company's expectations with regard
thereto or any changes in events, conditions or circumstances on
which any such statements are based.
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