(Alliance News) - Land Securities Group PLC confirmed its first quarterly dividend for the current financial year on Friday after reporting "good progress" on rent collection.
The London-based commercial property developer said it would give shareholders a 7.0 pence payout on October 8 in its first quarterly dividend for financial 2022.
As of Wednesday, the FTSE 100-listed firm said that it has collected 81% of the GBP103 million net rent due by June 24.
The company's single largest segment, office renters, were the quickest to pay. Within 5 days of June 24, the company had received 90% of the GBP59 million net owed in offices rents, rising to 95% paid after 10 days.
In comparison, during the previous March quarter, office tenants had paid 87% of rent owed within five days of March 21.
Meanwhile, in the same period the firm received only 43% of the GBP14 million net owed by "subscale sectors".
In October 2020, the company said it planned to sell its "subscale sectors" investment to position its business for future growth.
In particular, the property firm said it would "realise and recycle capital" from the sale of properties in the hotels, leisure and retail parks space, three assets battered by Covid-19.
The ongoing impact of the pandemic also has led the firm to agree certain rent concessions with tenants.
Land Securities noted that one third of the GBP18 million in outstanding rent is being withheld by customers pending the documented agreement of rent concessions.
"We continue to take a proactive approach to addressing the challenges the pandemic presents to our people, our customers and our business. In early April 2020, we established a customer support fund of GBP80 million for occupiers who most need our help. To date, GBP50 million of rent concessions has been allocated to customers," the company said.
Shares in Land Securities were trading up 2.0% at 680.8p each in London on Friday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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