Landlords are reporting a decline in the rent payments made by tenants as coronavirus disruption continues to bite.
In a trading update, Schroder Real Estate Investment Trust said it had only received 63% of rent payments due for Q1 as a result of coronavirus disruption.
Of the payments made, 33% of retail and leisure rent was collected, 82% of office rent, 61% of warehousing rent, and 78% of all other rents were collected.
“As a responsible landlord we will continue to work constructively with occupiers who have genuine challenges and have yet to pay rent,” the company said. “In this process we will agree a repayment plan for any rent deferrals and are also considering other solutions, such as extensions of leases. Some rents are also being paid monthly rather than quarterly to help tenants’ cash flow.”
The REIT has also postponed the dividend payment due to be paid in June as a result of “ongoing market uncertainty”, Schroder said.
However, the REIT remained bullish on its outlook, stating it was in a “robust position with a large cash reserve, low leverage and low retail exposure”.
RDI REIT
RDI REIT has collected 74% of rent payments across its UK portfolio (excluding hotels and serviced office spaces). Circa 68% of rents due from retail tenants were collected, 82% from distribution and retail, and 73% from offices.
No rental payments are expected for the third quarter from its hotels.
LXI REIT
LXI REIT has received 67% of rent due for the quarter.
Discussions are being held with tenants representing 30% of rent payments needed to agree payment plans, which include switching to monthly rent bills or payment in arrears, or deferral and staged payments over a defined period.
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