Capital & Regional has received only about half of the rent due from tenants in its shopping centres, and says it is working with occupiers to help them during the coronavirus pandemic.
The investor said its seven shopping centres are open for essential services during the “unprecedented” nationwide lockdown, with about 23% of occupiers by contracted rent still trading.
Of the second-quarter rent due on 25 March, Capital & Regional has “received or expect[s] to imminently receive” about 50%. The typical collection rate for the quarter at this point would be at least 80%.
“We are in active discussions with all our retailer customers on the outstanding rents, appreciating these are challenging times,” the company said. “With our larger chain store and multiple unit retailers we are in dialogue to understand and assess the impact that the relief measures announced by the government could potentially have on their businesses and anticipate further collections as we work through these discussions.
“We are likewise engaging with our smaller independent retailers as to how we are best able to offer support, sensitive particularly to the impact that the current situation is having on them.”
Capital & Regional said it has more than £90m of cash – more than a year’s revenue – and an undrawn credit line of £15m running until January 2022. It has no refinancing due until February 2023.
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