31st Mar 2020 11:27
(Alliance News) - Capital & Regional PLC on Tuesday said its UK shopping centres have remained open amid the Covid-19 lockdown, but the real estate investment trust's rental income in the second quarter has been hit.
Capital & Regional owns seven shopping centres in the UK. They are all open as some tenants provide an essential service.
The company added however that just 23% of its occupiers, by rental income, are still trading.
On its second quarter rental income, Capital & Regional said that it has received, or imminently expect to, 50% of rent. In the equivalent period, it had received 80% by this point.
"We are in active discussions with all our retailer customers on the outstanding rents, appreciating these are challenging times. With our larger chain store and multiple unit retailers we are in dialogue to understand and assess the impact that the relief measures announced by the government could potentially have on their businesses and anticipate further collections as we work through these discussions. We are likewise engaging with our smaller independent retailers as to how we are best able to offer support, sensitive particularly to the impact that the current situation is having on them," Capital & Regional said.
Hammerson PLC on Monday said it so far received 37% of rent billed for the second quarter. Last week, peer Intu Properties PLC said it has only received 29% of rent due for the second quarter of 2020, compared to 77% received for the same period a year before.
Capital & Regional added: "It is too early to quantify the overall impact of Covid-19 on the group's operations. While there will clearly be a significant level of disruption, the group's focus on non-discretionary goods and services will help mitigate this and provides a sound base for the business when conditions allow a return to a more normalised trading environment.
"A significant part of the company's focus for the immediate future is on maintaining liquidity during the current period of disruption."
The company said it has total cash of GBP90 million, which it said is roughly equal to a year's worth of revenue.
It also has GBP15 million in undrawn funds from a revolving credit facility and the earliest maturity on any other of its loans is February 2023.
Shares in the company were 2.1% lower at 90.48 pence each in London on Tuesday morning. Shortly after midday in Johannesburg, the stock was down 1.3% at ZAR20.12.
By Eric Cunha; [email protected]
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