Leading retail
landlords have to date collected less rent following the June quarter day than
they did at the March quarter day, with experts warning that negotiations
between property owners and tenants are vital to prevent a similar situation in
September.
Almost a week after
the 24 June quarter day, specialist retail REIT Hammerson said it had received
just 16%. By this point in March it had collected 37% of rent due. British Land
announced it had collected 36% of its retailers’ rent so far – it collected 43%
in March.
In a Property Week poll
asking what the average retail landlord would receive at June quarter, more
than half of respondents (61.5%) estimated landlords would receive less than
25% of rent due.
“Realistically,
three-quarters of rent levels will look like this,” said Stephen Springham,
head of retail research at Knight Frank.
“There
needs to be some continuity planning by September. The aim now is for retailers
and landlords to work out what the future looks like. For one-man-band property
owners that are likely to miss out on three-quarters’ worth of rent, it might
be enough to push them under. The REITS are not bulletproof either, as intu has
shown.”
Revo
chief executive Vivienne King told Property Week landlords had been left “out
in the cold” with little intervention from government to help during the
crisis.
“The gap
in income flow as a result of lockdown is just going to build and build unless
there is some intervention,” she said.
“The
moratorium that has been put on enforcement has emboldened those who feel they
can get away with not paying their rent and the consequences have a ripple
effect right the way through the infrastructure of retail real estate
ownership.
“It’s
galling that your ability to support those who genuinely need it is constrained
by those who don’t, preventing you from doing what you would like to do.”