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(Alliance News) - Tritax Big Box REIT PLC on Wednesday withdrew its dividend guidance but affirmed its intention to make quarterly payouts.
The real estate investment trust has so far received 86% of rent due on April 1, but expects 96% of rent to be collected by the end of May.
This time last year, it had received all of its rent.
Tritax Big Box noted that about 50% of its rent comes from companies in "defensive sectors" such as third-party logistics, e-commerce and food retail.
Amazon.com Inc and Tesco PLC are among its largest tenants.
Tritax said: "Despite having fundamentally sound business models, a number of our customers are experiencing unprecedented disruption to operations as a result of the UK government's measures put in place to combat the spread of Covid-19. This has led to an immediate impact on their near-term cash flows. Whilst there are various forms of assistance on offer from the government, including loan schemes, we are working with our customers where we can through the relaxation of cash flow requirements over the short term."
Tritax Big Box withdrew its target of paying a 7.0 pence per share dividend for 2020.
"Given the necessary UK government intervention in response to Covid-19 since that date, visibility over the economic impact and duration of the pandemic has reduced significantly. This has resulted in a slowdown in the occupational markets and increased the likelihood of delays in areas such as planning and construction. The board therefore considers it prudent to withdraw its dividend guidance for the current financial year," the company said.
The firm proposed a 1.5625p payout for the first quarter, down 8.8% from 1.7125p over the same period last year.
"The board will continue to monitor the dividend position for 2020 with potential to increase the quarterly dividend when it has better visibility," Tritax Big Box added.
Shares in the company were 0.3% lower at 120.10p each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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