Town Centre Securities has highlighted “significant uncertainty” around rents due for the June quarter, as well as the rate of recovery in its car park business.
The landlord said it has collected 75% of £6.6m rent and service charges owed since the Covid-19 outbreak. A further 11% (£700,000) has been deferred.
Of the outstanding £900,000, “certain concessions” over £300,000 have been agreed in return for improvement in lease terms or lengths.
Income from its CitiPark car parking business has been hardest hit so far.
The landlord warned: “Despite detailed cost-cutting measures, including the temporary closure of seven branches, the impact of fixed costs such as rents and rates will result in a significant reduction in profitability.”
However, the landlord will proceed with a £1.7m interim dividend payment, at 3.25p per share.
It expects that any final dividend payment will be “substantially lower” than in prior years.
More than a third of its retail and leisure portfolio is open and trading. TCS is preparing to reopen its remaining locations from 15 June, in line with government guidelines.
Edward Ziff, chairman and chief executive, said: “I am pleased with the progress made in rent collections during this period of disruption, although we have experienced a wide range of responses from tenants.
“These continue to be unprecedented times and we are working tirelessly to support all of our stakeholders whilst remaining in close dialogue with tenants.
“We are doing everything possible to manage TCS through this challenging period with the long-term sustainability of the business being our primary aim and focus, recognising that we are now operating in an uncertain environment which will impact our current and future financial performance.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
