22nd Mar 2021 11:01
(Alliance News) - BMO Real Estate Investments Ltd on Monday said rent collection levels are "ahead of expectations" though the property investor explained the UK's retail and hospitality remains in "distress".
In the six months to December 31, BMO Real Estate's net asset value per share rose 1.6% to 98.1 pence from 96.6p at the end of June.
"The market showed some signs of steadying following the initial shock from the pandemic and related economic lockdowns, but sentiment remained cautious," BMO added.
BMO's interim dividend was halved to 1.25p per share from 2.5p. Back in June, the company said it will cut its quarterly payouts by 50% as a result of Covid-19.
Rent collection has been promising, trending "ahead of expectations" at 95% for the final three quarters of calendar year 2020.
"The group's collection statistics for the first quarter of 2021 are currently at 90% and the expectation is that the final collection statistics will be at a similar level to those experienced in the previous three quarters," BMO said.
"However, much uncertainty remains in relation to the longer-term effect of Brexit, and to the time it will take for the UK economy and employment levels to recover from the severe downturn of 2020. Retail and hospitality distress continues. There is also much debate over the effects of working from home on future occupancy levels of UK offices."
Shares in the company were 2.7% lower at 71.00p each in London on Monday morning.
By Eric Cunha; [email protected]
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