Commercial landlord British Land has managed to collect less than half of the rent due from its retail tenants for the latest quarter, as the latest lockdown restrictions keep many businesses closed.
In an operational update, British Land revealed that it had received just 46% of expected rent due for the period of 25 December to 7 January totalling £42m.
Overall in retail, it said that rent collection levels for previous quarters have “continued to increase”, and it has now collected 72% of September rent, 73% of June rent and 49% of March rent, with March collection being lower due to 27% of deferrals provided.
It comes as it also revealed that from 30 November until 26 December, footfall across its portfolio was 76% of the level achieved last year.
It added there was a small difference in performance between assets in different Tiers, with those in Tier 4 5ppt weaker on average than the other Tiers due to the closure of non-essential stores.
Like-for-like retailer sales for stores that were open were 81% of the same period last year and there was no notable difference in performance between assets in different Tiers.
As of 7 January, following the latest national lockdown, 620 of its stores were able to trade in some way, representing 32% of its portfolio.
On rent collection the retailer said: “We continue to engage with those customers who have strong businesses, but have been disproportionately impacted by Covid-19, to help them manage their rental obligations.
“We are agreeing solutions which are both equitable and mutually beneficial, generally involving moves to monthly rents, deferrals and partial settlement of outstanding rents for the period of closure in return for lease extensions, reduced incentives, commitments to additional space and the removal of lease breaks.”