Great Portland Estates collects just 28 per cent of June retail rent
Great Portland Estates received only 28 per cent of rent due last month from those in its retail, leisure and hospitality spaces, as the coronavirus pandemic continues to weigh on the economy.
The West End landlord collected 74 per cent of the rent due from office locations in the three months to June, utilising rent deposits and bank guarantees to help recover some of the outstanding shortfall.
Including such deposits, it added that it has now collected 82 per cent of March rent.
All of its office buildings are now open for business, though occupier utilisation of the space remains around just 14 per cent of full occupancy.
Equities business Exane signed a £4m deal during the quarter to lease three floors of Great Portland Estates’ newest 1 Newman Street development by Tottenham Court Road station, taking the under-construction location to 30 per cent pre-leased.
“Whilst the lockdown has started to ease and our office pre-letting momentum remains healthy, Covid-19 is disrupting the activities of many of our existing occupiers, which in some instances is impacting their ability to meet their rental payments,” said Great Portland Estates chief executive Toby Courtauld.
“Despite these challenging conditions, we are well positioned.”
It is exploring alternative arrangements or rent holidays for some tenants, following six of its customers falling into administration since lockdown began on 23 March.
Great Portland Estates has a 15 per cent loan-to-value ratio and £90m in cash, which Courtauld said provides the landlord with “significant capacity for growth should opportunities emerge”.
Great Portland Estates’ share price was largely unchanged by the update.