Hammerson has received just 16% of rent due from its UK occupiers on 25 June, as it takes steps to improve breathing space on its covenants.
So far, it has collected 73% of rent collectively owed for H1 this year in the UK, 72% in Ireland and 53% in France.
Hammerson also said it has negotiated conditional covenant amendments on its private placement notes, to increase headroom to the end of December 2021. These notes totalled £689m at the end of last year.
The conditions to these include a temporary financial covenant requiring the landlord to maintain 12 months forward liquidity of more than £100m.
It has also agreed to make an offer of pre-payment at par for 30% of applicable proceeds from disposals or capital raisings totalling more than £50m, as part of the paydown of debt.
Its unencumbered asset ratio covenant exceeded the 150% threshold for net unsecured borrowing, after reaching 189% at the end of 2019.
This has now been eased to 125% for the next three covenant test periods, and 140% at a new test date in October next year. This amendment period expires on December 2021.
The landlord has additionally drawn £300m from its revolving credit facility to boost its cash reserves, and has gained approval for a further £300m issuance under the Covid Corporate Financing Facility.
Hammerson said these have increased its maximum liquidity to £1.5bn.
Across the UK portfolio, non-essential retail has been open in line with government guidelines since 15 June, with the exception of its Scottish locations which are expected to re-open on 13 July.
It has reopened 80% of stores that are eligible to trade in flagship destinations. Food and beverage outlets will be able to open from 4 July in England, and mid-July in Scotland.
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