A London-listed real estate investor that has lost three-quarters of its stock market value since it floated five years ago is launching a strategic review of its business.
Drum Income Plus REIT’s shares have fallen from 135p in May 2015 to just 31p, a near-60% discount to its NAV per share of 73p in its most recent full-year results.
In a stock market update, the company said its portfolio “continues to perform well” and that the Covid-19 vaccine rollout “does give reason for optimism”.
“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,” it added. “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 lockdown later this year, the board sees no short or medium-term prospects that the company will be able to grow organically.”
Drum will launch a review “to consider the future of the company”, including how it might realise the value in its portfolio, which includes office, industrial and retail properties and was valued at £55.4m as of 30 September 2020.
The review is expected to complete in the coming months.
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