NewRiver REIT has said it has collected 60% of rent for the quarter ended June 2020 with a further 20% deferred or re-geared.
The company, which owns a portfolio of retail and pub assets, added that 1% of rent for the period had been waived and 19% was still outstanding.
NewRiver also updated on its rent collection figures for the first quarter of the year, with 64% now collected and a further 20% on alternative payment terms.
Retail portfolio
Across the group’s retail portfolio, 93% of occupiers by gross income are now open. Occupancy is stable at 93.4%, 1% below the March 2020 position, and average retail rent is on the affordable side at £12.48 per sq ft (March 2020: £12.66 per sq ft).
Since the easing of lockdown, footfall has continued to improve across the retail portfolio. In the week commencing 3 August 2020, footfall was 132% higher than the week commencing 8 June 2020, the last week before non-essential stores were allowed to reopen, and 32% below the same week in 2019. This year-on-year performance was a 7% outperformance of the UK benchmark.
NewRiver’s retail portfolio has limited exposure to the structurally challenged retail sub-sectors that have been particularly impacted by COVID-19, with no department stores in our portfolio, minimal exposure to mid-market fashion, and no exposure to casual dining operators.
Its portfolio is focused on retailers providing essential goods and services, and as such the company has had minimal exposure to the administrations and CVAs that have occurred since the start of our financial year, with impacted operators representing just 1.2% of annualised gross income.
The company completed 121,700 sq ft of leasing deals across the retail portfolio in the last quarter, with long-term deals on terms 0.3% ahead of estimated rental value (ERV) and -0.7% below previous passing rent.
Pub portfolio
More than 90% of NewRiver’s pubs are now open and trading, with like-for-like volumes down only 15% in its leased & tenanted estate and like-for-like sales down 13% in its operator managed portfolio since 4 July 2020, compared to the same period last year.
This compares favourably to the wider market over the same period, with data from the Coffer Peach Business Tracker suggesting that pub like-for-like sales are 27% below the same period last year.
Disposal progress
The group has completed, exchanged or are currently under offer on disposals totalling £52.5m after announcing its £80m-£100m disposal strategy earlier this year. These disposals are in-line with March 2020 valuations.
Cash and liquidity
The company currently has £87m of cash reserves and £45m of undrawn revolving credit facilities. It is also eligible to access £50m of funding under the Covid Corporate Finance Facility. This facility is currently undrawn, but improves the available liquidity position to £182m.
NRR : NewRiver REIT announces improved rent collection figures