Landsec and Derwent have welcomed signs of improving rent collection from their tenants.
Landsec said it has made “good progress” on collection for the June quarter and, as of 7 July, had collected 81% of payments due, or £77m of £95m.
That figure includes 95% of office rent, 71% of central London rent and 73% from regional retail. The lowest collection figures were from its “urban opportunities” assets, at 50%, and holdings that it classifies as “subscale sectors”, at 43%.
Of £18m in outstanding payments, £6m is from customers that have withheld payment pending documentation of agreed concessions. Landsec has agreed £50m of rent concessions since establishing an £80m support fund for tenants in April 2020.
At Derwent, rent collection is ahead of the equivalent point in each of the past four quarters. The company has received 89% of the £41.1m rent due for June, with 5% expected later in the quarter.
Office rent collection stands at 93%, compared to 75% at this point a year ago. Retail and hospitality collection has fared significantly worse by comparison, standing at 27% with 31% expected later in the quarter.
Derwent has granted rent-free periods on 1% of total rents, mostly in the retail and hospitality sector.
The company has received 94% of March 2021 quarter rent and 92% for the December 2020 quarter.
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