Pureplay industrial landlords SEGRO and Tritax Big Box REIT have each collected the vast majority of rent due for the June quarter, while other REITs have posted a mixed bag of outcomes.
Among these, Regional REIT has recorded a slower rent collection rate compared with the previous quarter, while Ediston Property Investment has pulled in around three-quarters of rent due.
SEGRO
SEGRO collected 93% of its £37m total due on 24 June, after adjusting for re-profited rent agreed with its occupiers.
Some £9m of rent from its more distressed occupiers is mainly set to be paid during the second half of 2020.
Across SEGRO’s UK and Continental European portfolio, 98% of £88m rent owed as at 30 June has been paid, after adjusting for deferrals. In the meantime, 2% (about £1.5m) is still outstanding.
Tritax Big Box
Fellow industrial landlord Tritax Big Box REIT said it has been paid 84% of rents to date, with another 13% of monthly payments scheduled for the rest of the quarter.
For 3% of amounts still due, the REIT said it is in discussions with a “small number” of tenants over rent deferrals.
It expects that 97% of rents for its third quarter will be collected by the end of August. In Q2, it had collected 96%.
Tritax said that within the remaining 4%, 1% will be paid imminently and the remaining 3% is to be collected over the rest of the year.
It has not agreed any rent-free periods or rent reductions for its occupiers.
The REIT also extended the termination date for £190m of its £200m unsecured revolving credit facility by a year, to June 2025. The residual £10m will mature in June 2024.
Regional REIT
Regional REIT, which focuses on regional UK core and core plus office and industrial property assets, has either collected or agreed payment plans for 78.5% of rent due for Q2.
It is in discussions with another 12.6% of occupiers by income.
So far the REIT has pocketed 96.7% of rents for its first quarter. This compares with 97.7% during Q1 last year.
Ediston Property Investment
Ediston has collected 74% of Q3 rent owed on 1 July; this is up on the previous quarter, when 69% paid at the same point during the period.
A number of the firm’s tenants are now paying monthly instead of quarterly in advance.
Meanwhile 75% of rent due for Q2 has been collected so far. It expects a further 3% will be collected from tenants paying in arrears. Rent repayment plans have been agreed for a further 8%.
Receipt of these will lift the collection rate to 86%. However, there are “a number of other tenant arrears still to be resolved”.
Ediston will also pay an interim dividend of 0.33p per share.
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