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Property

Landsec collects two-thirds of rent in latest quarter

Some 67% of this net rent was paid within five working days, compared with 65% for the equivalent period last year

Landsec has announced that it collected £67m of rent in its latest quarter, two-thirds of the £110m that was due on the 25 March payment date.

Of the £33m of rent outstanding, £10m relates to customers who have withheld payment pending documentation of agreed concessions. 

The 67% of net rent paid within five working days marked only a slight improvement against the 65% paid for the equivalent period last year.

Only 38% of regional retail had paid on time this month, marking an improvement against the June and September quarters, where 29% and 28% paid on time, respectively. 

According to Landsec, assuming all agreed concessions are completed and the £10m of withheld rent is received, the rent collection rate for the quarter would increase from 67% to approximately 77%.

The group, which said it “continues to take a proactive approach to addressing the challenges the pandemic presents to our people, our customers and our business”, previously established a customer support fund of £80m for occupiers who “most need our help to survive”. 

To date, £39m of rent concessions has been allocated to customers. Landsec expects this figure to increase as some of its customers, who have not yet paid their rent, enter into discussions with the group following the government’s announcement about re-opening non-essential retail and the lifting of the rent moratorium at the end of June.

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