6th Apr 2020 09:46
(Alliance News) - RDI REIT PLC on Monday said it received just over half of its rent due for March, but noted that hotel chain Travelodge has warned it will not pay any rent for the month.
The UK-focused real estate investment trust has a share of GBP2.1 million from annual rent at the five assets let to Travelodge.
RDI said discussions with the hotel chain are yet to take place but added "all terms under the leases remain in force".
RDI has received 54% of the rent due to be paid for the month of March or the quarter ending March.
The company has office, retail, hotel and logistics assets.
Retail chains in the UK not offering essential services have been forced to close as part of lockdown measures aimed at halting the spread of Covid-19.
RDI has received 68% of rent due in March from its retail tenants.
"We are actively engaging with tenants and clients across the portfolio. Financial assistance in the form of rent-free periods or rent deferrals are being prioritised for those occupiers most in need and in order to help support their businesses during this challenging period," RDI said.
RDI added it will update on its dividend when it releases its results for the six months to February 29.
RDI added: "Longer term, we remain confident in the quality of our operational assets which have a strong track record of income resilience despite the short term disruptions as a result of the unprecedented impact of the Covid-19 pandemic."
Many firms have ditched making payouts in order to save cash amid Covid-19.
Shares in the company were 0.5% lower at 61.00 pence each in London on Monday morning. In Johannesburg, they were 0.2% lower at ZAR14.32.
By Eric Cunha; [email protected]
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