Capital & Regional expects 'significant' disruption from Covid-19
By Michele Maatouk
Date: Tuesday 31 Mar 2020
(Sharecast News) - Capital & Regional expects to see a "significant" level of disruption from the coronavirus, the shopping centre owner said on Tuesday, adding that it had received about half of the second-quarter rent for the year that was due on 25 March.
The company, which would normally have received at least 80% of rent by now, said all seven of its community shopping centres remain open to provide essential services "during this unprecedented situation". Approximately 23% of its occupiers by contracted rent are still trading.
The group said it is in talks with all its retailer customers on the outstanding rents and that it appreciates these are "challenging times".
"With our larger chain store and multiple unit retailers we are in dialogue to understand and assess the impact that the relief measures announced by the government could potentially have on their businesses and anticipate further collections as we work through these discussions.
"We are likewise engaging with our smaller independent retailers as to how we are best able to offer support, sensitive particularly to the impact that the current situation is having on them."
While it is too early to quantify the overall impact of Covid-19 on its operations, Capital & Regional said there will "clearly be a significant level of disruption" but that its focus on non-discretionary goods and services will help mitigate this. It also provides a sound base for the business when conditions allow a return to a more normalised trading environment, it said.
As at close of business on 25 March 2020, the company had total cash on balance sheet of more than ?90m, which is equivalent to more than one year's gross revenue. It also has an undrawn revolving credit facility of ?15m available until January 2022
To further improve cash flow, it has suspended all non-committed capital expenditure projects which could preserve over ?10 million over the next year.
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10 Lower Thames St,
London EC3R 6EN