Great Portland Estates says 73% of September rent collected

(Sharecast News) - Great Portland Estates said on Monday that 73% of its September rent has been collected despite the pandemic but that the outlook remains uncertain due to the impact of the Covid-19 crisis.
In an update for the quarter to 30 September, the company said it has secured £2.3m of new lettings in the quarter, with market lettings 4.6% above March 2020 estimated rental values. In addition, 82% of its March and June rent has now been collected.

Great Portland said all of its office buildings remain open for business, with levels of occupier utilisation currently around 27% of full occupancy and 90% of its retail units open.

The company said it has implemented measures to help support occupiers who can't pay their rent. On a case by case basis, it is offering those with cash flow difficulties monthly payment terms, deferral of rental payments or rental holidays, as appropriate. During the quarter, two of its occupiers went into administration, representing just 0.9% of its rent roll.

Chief executive Toby Courtauld said "The trajectory of Covid-19 continues to dominate the economic backdrop and disrupt the activities of many businesses across London. Whilst rental collection and occupancy rates have improved across the portfolio since March, many sectors remain challenged.

"Whilst we expect the near term outlook to remain unpredictable, we remain firm believers in the long term appeal of well-designed and located offices and of London's role as a dominant global city."

Courtauld said the company is well positioned for any eventuality.

"Our low leverage and high liquidity provides resilience and significant capacity for growth; we are delivering innovative, flexible, sustainable spaces that meet the needs of occupiers in today's quickly evolving market and we are preparing our future developments from our extensive pipeline, for which we are encouraged by healthy levels of early occupier demand."