McKay Securities has said it is still unclear how badly its finances will be hit by the coronavirus, after receiving just two-thirds of rent due for the quarter. It also blamed the pandemic for delaying the completion of a recent London office sale.
The REIT said 65% of rent due has been paid or is being paid monthly, with 11% deferred. Some 20% is under discussion with tenants, with 4% due from occupiers McKay has been unable to reach.
The REIT has drawn debt of £194m and a further £51m in cash and other available funding lines. The earliest debt maturing falls due in April 2024. McKay plans to use the £65m from the delayed completion of its sale of 30 Lombard Street, EC2, to reduce borrowings.
The company said “Covid-19-related delays” meant the transaction would no longer wrap up during the second quarter and completion “is unlikely to take place prior to Q3”.
McKay said its earnings for the year ending 31 March 2020 were likely to be in line with expectations, but its independent valuation will include a material uncertainty clause.
“The scale of the impact of the pandemic on future earnings and capital values cannot be assessed at this stage, as the duration of disruption and the effectiveness of government support remains unknown,” the company said. “We will continue to respond to the evolving situation and, once our year-end results are finalised, will consider recommendations in respect of a final dividend.”
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