30th Apr 2021 10:22
(Alliance News) - Stenprop Ltd on Friday reported strong rental uplifts in March quarter as demand for multi-let industrial space grows.
The UK-based multi-let industrial property company reported a 24% average uplift on the previous passing rent on new lettings and 15% on lease renewals in the first three months of 2021.
Like-for-like passing rent was up 1.8% during the quarter and up 5.6% over 12 months. Average passing rent rose by 1.5% to GBP5.46 per square feet from GBP5.38 per square feet reported in a previous quarter.
Stenprop said occupancy across the multi-let industrial portfolio increased to 93.7% as at the end of March as high demand continues to put pressure on vacancies.
"Demand for multi-let industrial space across the UK is as high as we've ever witnessed. Through our operating platform we are successfully capturing and converting this into new customers, which is reflected in the falling vacancy rate," said Chief Executive Paul Arenson.
"The most recent lockdown has had an impact on rent collections, although the impact has not been as severe as we witnessed in early 2020. We remain optimistic that the majority of rents due during this latest lockdown period will ultimately be collected in line with historic rental collection trends seen since the start of the pandemic with amounts due now closing in on high 90% collection levels," added Arenson.
Stenprop shares were trading 1.3% higher in London on Friday at 153.15 pence each, while in Johannesburg, the stock was up 1.2% at ZAR30.49 a share.
By Evelina Grecenko; [email protected]
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