14th Jan 2021 11:59
(Alliance News) - Great Portland Estates PLC on Thursday joined the list of property developers to report rent collection challenges in the hard-hit retail sector.
London-focused Great Portland Estates noted that while retail rent collection figures for the December quarter beat the September quarter, the sector has been hit by yet another lockdown, England's third during the Covid-19 pandemic.
To date, the FTSE 250 firm has collected 69% of its rent due in December, or 77% including amounts covered by rental deposits.
However, in the Retail, Hospitality & Leisure portfolio, only 35% of rent has been received. This compares to 85% in "other sectors".
"The surge of optimism following the UK approval and roll-out of the Covid-19 vaccines has been overshadowed by the return to more stringent lockdown measures across London. Whilst rental collection rates for the December quarter are ahead of September levels, building utilisation rates have greatly reduced once more and some sectors remain challenged," Chief Executive Officer Toby Courtauld said.
"As expected, a number of our occupiers have been unable to meet their rental obligations and we continue to offer assistance on a case by case basis to support them through this difficult period. We expect the near-term trajectory of the pandemic to remain unpredictable, but, as the vaccination programme progresses, we anticipate that confidence."
Shares in the company were 1.9% higher at 650.60 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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