LONDON (ShareCast) - (Sharecast News) - Property company LondonMetric said on Thursday that its 2020 EPRA earnings are set to be in line with expectations and the third-quarter dividend will be paid as planned, adding that it was still too early to assess the impact of the Covid-19 outbreak.
In a trading update ahead of its results for the year to the end of March 2020, the company said its operational and financial performance to date has been "strong" and that EPRA earnings for FY 2020 are anticipated to be in line with expectations. The group also said that its 2p a share third-quarter dividend will be paid as planned on 16 April.

LondonMetric said that 85% of its advanced quarterly rental payments that were due by 1 April had been collected, with 7% expected to be received shortly. It is in advanced discussions on short-term rental concessions on a further 4% in return for "compensatory asset management initiatives".

"Unsurprisingly, some of our customers are experiencing unprecedented short-term disruption to their business models, which is putting enormous pressure on the robustness and sustainability of their cash flows," it said. "Therefore, through our occupier-led strategy we are actively assisting those that are being materially impacted by providing proportionate assistance.

"Some companies are also seeking help with short-term cash flows to improve liquidity." As a result, it now expects that 17% of its rent will be paid monthly compared to 13% previously.

This will have some impact on short-term cashflows, the company said. However, where any liability is deferred, it still remains due and so the group will expect compensation by way of lease extensions, removal of break clauses or additional payments in the future.

"Looking forward, it is still too early to assess the full impact of Covid-19 on both the wider economy and the real estate industry. The tectonic plates have undoubtedly shifted for most businesses and whilst we expect them to realign back, for many, they are unlikely to return to exactly where they started."

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