AEW UK REIT is planning to pursue financially secure tenants of its properties that have skipped rent payments during the coronavirus pandemic, in the latest example of growing tensions over “can pay, won’t pay” occupiers.
The company has now collected 84% of rent that was due on 25 March, said chairman Mark Burton, but expects collection rates to fall again for the June quarter.
“There are some tenants who are experiencing difficulties in the current environment and the company is sympathetic to their situation,” said Burton, adding that AEW had agreed payment plans with such occupiers.
“Unfortunately, there are a few larger tenants who have significant financial resources and the ability to pay who are refusing to do so or enter into dialogue. The company shall be pursuing these tenants when legally able to do so and charging the full default interest rates per the lease agreements.”
For the year to 31 March, AEW posted a pretax profit of £3.65m, down by three-quarters from a year ago. NAV dropped from £149.46m to £147.86m.
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