Rent collection improves for RDI REIT
By Josh White
Date: Tuesday 07 Jul 2020
(Sharecast News) - RDI REIT said on Tuesday that across its portfolio, around 70.1% of gross rents or income due and demanded was collected for either the June quarter, or the month of June where rents were billed monthly.
The London-listed real estate investment trust said that compared to 54% for the March quarter, at about the same time after the relevant due date.
It said negotiations with occupiers and clients were ongoing, adding that it expected the current collection rates would improve or, in certain cases, result in agreements to remove break options or extend leases.
Rent collected across the UK portfolio, excluding UK hotels and London serviced offices, totalled 68% of rents demanded, adjusted for tenants paying monthly, the board said.
Rents collected across the European portfolio, which were typically paid monthly in advance, were at 91.4% of rents due.
Rents associated with the RBH-managed hotels were paid quarterly in arrears, with the board saying that as it had previously announced, no rental payments were expected for the second half of the financial year ending 31 August.
Rents for the five-asset Travelodge portfolio had been received in full, based on the revised rents following the recent company voluntary arrangement (CVA).
RDI said 96.8% of licence and fixed service fees billed were collected across the London serviced office portfolio for the month of June.
The discount on desk rates being offered to clients had been reduced to 25% from 50%.
Income collected in June reflected about 67.1% of anticipated net revenues, largely as a result of the temporary licence fee discount and nominal meeting room and ancillary income during the period, the board explained.
"Our focus since the start of the Covid-19 crisis has been on the welfare, safety and security of our stakeholders, and on ensuring that asset values are protected, revenues are carefully managed and costs are minimised," said chief executive officer Mike Watters.
"Whilst near-term visibility remains low, recent trading following an easing of government restrictions has been encouraging and portfolio occupancy remains high.
"Furthermore, our assets are weighted towards sectors and locations with long term positive structural demand characteristics which, once the significant social and economic challenges of the pandemic have been overcome, should leave us well positioned for the future."
At 1217 BST, shares in RDI REIT were up 0.75% at 80.5p.
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