(Alliance News) - Stenprop Ltd on Friday said average passing rent and occupancy improved slightly in its first-quarter and the company expects to collect most rent due, though collections will likely remain "abnormal".
Occupancy across the company's UK multi-let industrial portfolio rose to 92% as at June 30 from 91% at the end of March.
Average passing rent was 0.4% higher at GBP5.29 per square foot, up from GBP5.27 per square foot. The estimate rental value of Stenprop's portfolio was unchanged at GBP5.80 per square foot, which reflected an 8.9% premium to average passing rent at the end of June.
A total of GBP790,000 per annum of new rental income was contracted in the period through 25 new lettings, down from 28 lettings in the fourth quarter of financial 2020. There were 17 lease renewals, down from 25.
The average uplift on previous passing rent on new lettings was 22%, reducing from 34% quarter-on-quarter with lease renewals uplift flat from the fourth quarter at 20%.
According to Stenprop: "The most significant transactions completed were a letting of 11,500 square feet at Eurolink 31, in Normanton, on a ten-year term with a break in year five and a five-month rent free incentive, and a letting of 7,300 square feet at Rawdon Network Centre, in Swadlincote, for a six-year term with a break in year three and a four-month rent free incentive."
At close of business on Wednesday this week, Stenprop's loan-to-value ratio was 39%, or 32% when adding available cash of around GBP40 million.
So far, Stenprop has collected 93% of quarterly rents for April to June and agreed to defer payment of an additional 2% to later in the year.
Chief Executive Paul Arenson said: "While we expect rent collections to remain abnormal for the time being, we are encouraged that rent receipts are now flowing in faster this quarter and on a monthly basis than they were earlier in the pandemic. This is largely as a result of the fact that most of our tenants are now open and trading. We have also made good progress in collecting historic arrears from April and May and remain optimistic that in time we will collect the vast majority of all rent due."
Shares in Stenprop were up 1.6% at ZAR25.40 in South Africa on Friday and were untraded in London at 119.00 pence.
By Anna Farley; annafarley@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
