17th Dec 2020 10:35
(Alliance News) - Capital & Regional PLC on Thursday reported an improved rate of rent collection and a solid pipeline despite poor trading conditions.
The London-based retail and leisure-focused real estate investment trust said it has now collected, or expects to imminently receive, 73% of all rents that are due from March 25 to date. This shows an increase of 17% from the 56% announced on October 15.
"We have come to amicable agreements with a number of our retailers, providing, in some specific cases, a modest concession in return for them settling the remainder of their rent arrears and their service charge obligations in full," the company said.
To the end of November, Capital & Regional had completed 37 new lettings and renewals.
"While the national lockdowns clearly had a muting effect on the number of deals completed we have an encouraging pipeline with more than 20 deals where we have agreed heads of terms or that are in solicitors' hands," Capital & Regional said.
Chief Executive Lawrence Hutchings said that he believes the company is "well placed given [its] low exposure to the categories most impacted".
"Demand for retailers to rapidly return to trade, coupled with a similar response from our consumers who have been eager to get back to their local shops, provide evidence of the continuing relevance of physical retail and the vital role that our community focused centres play in local essential infrastructure," Hutchings added.
Capital & Regional shares were up 10% at ZAR14.29 each in Johannesburg, and down 0.6% at 62.60 pence each in London on Monday.
By Greg Roxburgh; [email protected]
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