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Summary
- Of the £112 million outstanding rent that was due on 25 December, £35 million of rent remains unpaid.
- Of the outstanding amount, a big chunk of £14 million is from those customers who have suspended payment to the company pending documentation of agreed concessions.
Land Securities Group Plc (LON:LAND), one of the largest real estate companies in Europe and popularly known as Landsec, has come up with a dismal rent collection numbers for the December quarter.
The company has stated that of the £112 million of outstanding rent that was due on 25 December, almost one third of that amount, £35 million, remains unpaid. Just 65 per cent of this net rent was paid in five working days, compared with 94 per cent collection received in the same period in 2019.
(Source- Company Release)
The above table shows the amount and percentage of £112 million rent collected within five working days by the company. The collection amount is after adjusting for the impact of customers who have entered Company Voluntary Arrangement (CVAs) and administrations, concessions agreed out of the fund and agreed monthly and deferred payment terms. The number clearly shows that 87 per cent of the net amount due on its office portfolio had been received on day five but remains lower as compared to 96 per cent a year earlier. The rest of central London portfolio rent collection was down to just 29 per cent as compared to 87 per cent in the same period in 2019.
Regional retail, urban opportunities and subscale sectors also had the similar rent collection numbers in the five working days of 36, 40 and 33 per cent, respectively, as compared to 90, 93 and 90 per cent, respectively, in December 2019.
In the outstanding £35 million of rent, a major chunk of £14 million is from those customers who have suspended payment to the company pending documentation of agreed concessions.
Overall scenario
Similarly, for the period between 25 March and 24 December 2020, 20 per cent of the rent was due while 80 per cent was collected. The rent collection from offices during the period was at 99 per cent (£220 million out of £222 million), rest of Central London portfolio rent collected was 82 per cent of the outstanding amount (£59 million out of £70 million), regional retail rent collection stood at 58 per cent (£76 million out of £131 million), urban opportunities at 55 per cent (£11 million out of £20 million), while subscale sectors rent collection for the period was 66 per cent (£42 million out of £64 million).
The pandemic has had a deep impact on the company’s balance sheet, though it has been taking all the measures to support the business and the customers. It had created a customer support fund of £80 million to support those customers who needed help to survive and had provided rent concessions worth £24 million till date.
The stocks of the company were trading, down by 0.46 per cent at GBX 655.10 (at 10:32 AM GMT+1). The market cap of the company stood at GBP 4,879.64, and it has given a negative return of 30.96 per cent in a year.
