21st Jan 2021 09:15
(Alliance News) - London-based RDI REIT PLC on Thursday said rent collection improved in the fourth quarter of 2020 as it banks on vaccine roll-out to pave the way for recovery.
The London and Johannesburg dual-listed property investment business said rent collection for the quarter ended December 31 was at 86%, up from 82% for the September quarter at approximately the equivalent time. These figures exclude the RBH managed hotel portfolio where rents have been deferred to the second half of the financial year, the company said.
Portfolio occupancy, also excluding RBH managed hotels and London Serviced Offices, is at 99%.
Trading across the RDI's hotel portfolio has been set back as a result of the renewed restrictions, the company said. Of the Group's 13 RBH managed hotels, five have been closed to reduce operating costs. However, this is being constantly reviewed against local demand, particularly for NHS related requirements as well as construction contracts, the company said.
Average collection rates for rent due Covid-19 period up to the end of September now stands at 97%, the company said.
Chief Executive Stephen Oakenfull said: "Despite the latest national lockdown impacting our operating assets, we anticipate a clearer path to recovery with the UK vaccination programme well underway. Our balance sheet strength and significant levels of liquidity place RDI in a strong position to manage the operating assets through a period of recovery and to capitalise on any market dislocation. Our high-quality distribution and industrial portfolio, which makes up 26.6 per cent of our portfolio on a pro-forma basis, continues to benefit from strong occupational demand and a very competitive investment market."
On Monday, RDI REIT shares were down 2.7% at ZAR18.00 each in Johannesburg, and down 2.1% at 88.50 pence each in London.
By Greg Roxburgh; [email protected]
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