Real Estate Investors, a Midlands-focused REIT, is preparing to take action against financially healthy tenants that have skipped rent payments during the coronavirus pandemic.
In a trading update, the company said rent collection for the March quarter is now at 90%, having risen from 81% in mid-June. Collection for the June quarter stands at 82%.
The company said: “Many tenants have taken this opportunity to engage with us and explore lease event opportunities in return for incentives, which has proven beneficial for the tenant and provided REI with capital enhancement potential.
“However, there are some established tenants which have the ability to pay but are delaying doing so, using the ongoing restriction imposed by the government on the ability of landlords to recover rent. These arrears will be pursued at the appropriate time and the company expects to secure full rental payments.”
Chief executive Paul Bassi told EG earlier this year that the company would take a hard line with tenants attempting to negotiate rent waivers.
“Tenants have to understand that this isn’t a moment for them to try to take advantage of anybody,” he said. “It is a moment for them to shoulder their share of the responsibility.”
REI also said it has received several enquiries from investors about its more “resilient” properties, and that the team will “consider selective and opportunistic sales, as we acquire new assets that we believe provide income and capital upside”.
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