QuotedData Weekly News Show special: Has the tide turned? Register Now
  • 00
    Days
  • 00
    Hours
  • 00
    Minutes
  • 00
    Seconds
Register Log-in Investor Type

News

Drum Income Plus REIT considers its future

The board of Drum Income Plus REIT has undertaken a strategic review into the company that it said could result in it selling off all its assets.

The group, which was launched in 2015, has persistently traded at a significant discount to net asset value (NAV) having not reached a scale that makes its shares attractive to a wider group of investors.

The board said the lack of meaningful liquidity in its shares means it sees no short or medium term prospects that the company will be able to grow organically.

The strategic review will last a few months and is fully supported by Drum’s largest shareholder and investment manager.

The group’s NAV at 31 December 2020 was 73.67p, while last night’s closing price was 31.0p – representing a discount to NAV of 57.9%.

Its property portfolio, which is diverse across the different property sectors and is targeted at smaller lot sizes, was valued at the end of 2020 at £51.75m.

Since the beginning of the COVID pandemic the group has collected in excess of 90% of the rent due.

[QD comment: This is another example of a property company getting fed up of a persistent discount to NAV. Last week we saw RDI REIT the subject of a takeover (which was supported by the board) having traded at a significant discount for a long period of time and in 2019 Green REIT put itself up for sale citing frustrations with its material discount. There is a strong case for some property companies, that have tangible assets that are valued quarterly based on several metrics including recent transactional evidence, to realise their value rather than continue trying to win over reluctant investors.]

DRIP : Drum Income Plus REIT considers its future

3 thoughts on “Drum Income Plus REIT considers its future”

  1. Given the time it will take to complete the strategic review and the further delay in returning capital to shareholders if a return of assets is confirmed, the best approach would be to merge with a larger REIT offering more immediate liquidity to shareholders.

  2. Not surprised that they have a discount to NAV. Their email address info@dripreit.co.uk bounces with the message that it blocks all recipients, and their contact form says “fails security” as you haven’t enable Javascript which is enabled. I was trying to give them a final chance before suing them for a return of a deposit on my office.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…