Shaftesbury PLC (LSE:SHB), a REIT focused on London's West End region, states "confidence and activity" have rebounded despite Omicron-related disruptions.
The company, which owns a 16-acre portfolio of properties in the heart of London's West End, noted that short-term disruption followed Omicron's emergence due to government curbs and staffing problems.
Brian Bickell, chief executive said, "Robust occupier interest across all our uses and in each of our locations has continued throughout the period, our vacancy levels are trending lower towards pre-pandemic levels and rent collection rates continue to improve."
Bickell said the company recorded a strong rebound since last summer, continuing into the important pre-Christmas trading period.
"Whilst trading and footfall have been impacted by seven weeks of Omicron restrictions, strong trading prior to the restrictions and the continuation of government support measures have enabled our occupiers to weather this period of disruption," he added.
At the end of December, EPRA vacancy - a measure of investment property space - improved to 5.1% of its estimated rental value (ERV), a decrease of 0.9% over the quarter, and further decreased to 4.9% by February 2, 2022.
EPRA vacancy decreased to £6.8mln over the quarter ended February 2, of which 2.9% was available to let and 2.2% was under offer, the company added.
During the quarter, the company completed leasing transactions valued at £10.6mln.
The company noted growth in recent collections as well as a noticeable rise in vacancy rates. As of December 31, 88% of the quarter's rent has been collected, with 10% outstanding and 2% waived.
Collection rates in January 2022 reflected short-term trading and cash flow reductions caused by Omicron issues for some occupiers, said the company. Collection rates have reached 77% as of February 2022.
Shaftesbury reported 60 commercial lettings with a rental value of £7.9mln for the quarter, while the company's net debt has decreased from £748.5mln to £740.9mln.
On December 31, space held for, or under, refurbishment in the wholly-owned portfolio extended to 165,000 sq. ft.