AEW UK REIT said it expects to collect 87% of rent by the end of the current quarter.
The company, which owns a diversified portfolio of 34 regional UK commercial property assets, set out the following rent collection figures for the quarter commencing 24 June 2020 (as at 7 September):
- Received – 85%
- Payment expected prior to quarter end – 2%
- Payment expected under longer term payment plans – 2%
- Under negotiation, pending the agreement of potential asset management transactions – 3%
- Outstanding – 9%
For the quarter, commencing on the 25 March 2020, the company said that 89% of rents have now been collected with a further 8% of payments expected to be received by way of agreed payment plans which, once received, will total 97%.
Asset Management Update
The company has completed the following asset management transactions:
- Langthwaite Grange Industrial Estate, South Kirkby – lease renewal was signed with the company’s third largest tenant, Ardagh Glass, at a 13% premium to both independent valuer’s estimated levels and the previous level of passing rent. The lease is for a five year term and the tenant will benefit from four months’ rent free and a tenant break option after three years.
- Bessemer Road, Basingstoke – five year lease renewal at its 58,000 sq ft industrial premises in Basingstoke, 6% ahead of independent valuer’s estimated levels. The lease has been granted with no rent free incentive given to the tenant and a tenant break option in year three.
[QD comment: The leasing activity ahead of estimated rental values (ERVs) are very encouraging and reflect the strength of demand for industrial assets. With a portfolio 52% focused on the industrial sector it is proving to be in a good place to capture rental growth. The positive momentum has supported the company’s decision to continue full payment of its target 2p per share quarterly dividend – one of the highest in the REIT sector.]
AEWU : AEW UK REIT provides rent collection update