Drum Income Plus REIT has published its first set of results, covering the period from its launch (IPO 29 May 2015) through to 30 September 2016. The Group’s net asset value as at 30 September 2016 was 93.5 pence per share. The significant factors determining the return over this first period have been the costs incurred in respect of the launch (2.3 pence per share) and of purchasing the properties identified by the manager (8.6 pence per share). Against this, the value of the property portfolio rose by 2.8p. As at 30 September 2016 the share price was 104 pence, an increase of 4% from the 100 pence at launch.
They declared four interim dividends of 1.3125 pence per share in respect of the period since launch. The dividends paid during the quarters to 31 March, 30 June and 30 September 2016 were fully covered by the earnings per share for the sixteen months trading period of 6.47 pence and the Board is targeting fully covered aggregate quarterly dividends of at least 5.5 pence per share in respect of the year ending 30 September 2017 and at least 6.0 pence per share in respect of the year ending 30 September 2018.
At the end of the period the portfolio comprised nine properties with a value at 30 September 2016 of GBP48.2m. The properties are in various regional locations and have in total 83 tenants. The portfolio is partly funded by debt but balance sheet gearing at the end of the period was just 29.8%.
DRIP : Drum Income Plus REIT targeting 5.5p dividend for 2017