REG - Land Sec. Group PLC - March 2021 quarter day rent collection
RNS Number : 2148VLand Securities Group PLC13 April 202113 April 2021
Land Securities Group PLC ('Landsec')
March 2021 quarter day rent collection
In response to the continued impact of Covid-19 on Landsec's operations, the Company has issued the following information on March rent collection. Footfall and sales performance for the year to 31 March 2021 will be provided in our annual results announcement which will be published on 18 May 2021.
Cash collection and customer support
We continue to take a proactive approach to addressing the challenges the pandemic presents to our people, our customers and our business. Our marketing and operations teams have been working with our brand partners to prepare for yesterday's re-opening of non-essential shops in England and Wales and the expected re-opening in Scotland on 26 April.
In early April 2020, we 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. We expect this figure to increase as some of our customers, who have not yet paid their rent, enter into discussions with us following the Government's announcement about re-opening non-essential retail and the lifting of the rent moratorium at the end of June. We will update on this at our annual results on 18 May.
£110m of rent was due on the 25 March payment date. The table below shows the amount and percentage of this rent collected within five working days after adjusting for the impact of customers having entered CVAs and administrations, concessions agreed out of the fund and agreed monthly and deferred payment terms. 67% of this net rent was paid within five working days, compared with 65% for the equivalent period last year.
25 March 2021 quarter(1)(2)
Agreed changes in payment terms
Gross amounts due 25 March
£m
Impact of CVAs and admins
£m
Concessions
£m
Monthly payment terms
£m
Deferred payments
£m
Net
amounts
due 25 March
£m
Day 5 amount received
£m
Day 5 amount received
%
Day 5 amount received
Mar 20
%
Offices
63
-
-
(2)
-
61
53
87
86
Rest of Central London
9
-
-
(2)
-
7
2
29
47
Regional retail
16
-
(1)
(2)
-
13
5
38
36
Urban opportunities
5
-
-
-
-
5
2
40
35
Subscale sectors
17
(1)
-
(2)
-
14
5
36
30
110
(1)
(1)
(8)
-
100
67
67
65
1. Including our proportionate share of subsidiaries and joint ventures.
2. All amounts are shown gross of VAT. Where an amount billed remains uncollected and is subsequently written off, the VAT component will be recovered by the Group.
Of the £33m of rent outstanding, £10m relates to customers who have withheld payment pending documentation of agreed concessions. 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%.
For the period from 25 March 2020 to 24 March 2021, 84% of the net amounts due for this period has been received.
The reported collection rates for the net amounts due at each quarter day during the 2020/21 financial year are as follows (all as at day five):
Day 5 collection rates during the 2020/21 financial year
24 June 2020
29 Sept 2020
25 Dec 2020
25 Mar 2021
Day 5 amount received
%
Day 5 amount received
%
Day 5 amount received
%
Day 5 amount received
%
Offices
81
82
87
87
Rest of Central London
29
33
29
29
Regional retail
29
28
36
38
Urban opportunities
29
36
40
40
Subscale sectors
24
20
33
36
60
62
65
67
Ends
About Landsec
At Landsec, we strive to connect communities, realise potential and deliver sustainable places.
As one of the largest real estate companies in Europe, our £11.8 billion portfolio spans 24 million sq ft (as at 30 September 2020) of well-connected retail, leisure, workspace and residential hubs. From the iconic Piccadilly Lights in the West End and the regeneration of London's Victoria, to the creation of retail destinations at Westgate Oxford and Trinity Leeds, we own and manage some of the most successful and memorable real estate in the UK.
We aim to lead our industry in critical long-term issues - from diversity and community employment to carbon reduction and climate resilience. We deliver value for our shareholders, great experiences for our customers and positive change for our communities.
Find out more at landsec.com
Please contact:
Investors
Ed Thacker
+44 (0)20 7024 5185
Press
Jonathan Sibun (Tulchan Group)
+44 (0)7779 999 683
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