British Land Company PLC (LON:BLND) has collected 36% of retail rent for the June quarter and 88% of rent for its offices.
The FTSE 100 group has given £3m of rent waivers to smaller retailers and food and drink operators for the quarter, and said many larger retail and leisure tenants are being moved to monthly rents, offered deferrals or partial settlement of March and June rents, typically in return for the removal of lease breaks, lease extensions, reduced incentives or commitments for additional space.
The majority of retail stores, which are spread across a diverse portfolio across the UK, from shopping centres such as Leicester's Beaumont and Sheffield's Meadowhall to retail parks, shopping streets and single stores from Ashford to Barrow-in-Furness, have been opened since the government relaxed coronavirus lockdown rules on non-essential shops last month.
British Land said in the first week since this reopening, footfall at its English portfolio was 64% of the level achieved in the same week last year, while like-for-like (LFL) sales were at 91%.
Out-of-town stores showed positive LFLs, with the company saying “we expect the best located, open air retail parks to perform an important role in retailers' reopening strategies”.
Its London office portfolio has remained open throughout the period, although physical occupancy has remained low.
“We are working with our customers and have agreed comprehensive plans to enable a safe return to work, when appropriate, which are now operational and working well,” the company said.
Shares were up 1% to 389p in early trading on Tuesday morning.
Collecting 36% of June retail rent so far was “better than feared", said analysts at broker Peel Hunt, while those at Liberum noted that it compared to 16% for peer Hammerson’s UK retail portfolio.