Warehouse investor SEGRO received 71% of its rent from occupiers on the quarterly rent day, with a further 25% expected to be delayed.
This compares to 96% of rents received at the same time last year.
SEGRO said it is working on a case by case basis with customers suffering short-term cash flow issues.
It said it has a diverse customer base, with suppliers of critical goods and services also seeking additional space for short and longer-term lettings.
Most developments scheduled for completion in 2020 will be delayed, it said, “due to government measures taken to combat the virus, as well as constraints in securing materials and labour”.
It said there will be negative effects on earnings in the short term. But chief executive David Sleath added that the crisis may strengthen occupier demand.
Sleath said: “While current global events are unprecedented, we anticipate that the structural trends that have been driving occupier demand for high-quality, well-located warehouse space will remain intact and may even be strengthened by the crisis, as the importance of logistics supply chains has been thrown into sharp focus in recent weeks.”
SEGRO’s rental income would need to fall by 80% or asset values by 64% before any debt covenants are breached. It had cash and undrawn facilities of £1.2bn at 31 March and an LTV of 26%.
The board has agreed to pay a final dividend of 14.4p per share on 1 May 2020, subject to approval at the upcoming AGM on 21 April.
Shareholders will not be able to attend the meeting in person, but have been invited to vote online or by appointing the chair as a proxy.
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