LondonMetric Property has provided a covid-19 update in which it has confirmed it will pay its third quarter dividend.
The group, which owns a portfolio of mainly logistics assets, said it had collected 85% of its rent for the quarter as at 1 April 2020. It added that 7% is expected to be received shortly and a further 4% is in advanced discussions on short term rental concessions in return for compensatory asset management initiatives.
The group said: “Our operational and financial performance to date has been strong. EPRA earnings for FY 2020 are anticipated to be in line with expectations and our third quarter dividend of 2.0 pence per share will be paid as planned on 16 April.”
LondonMetric said it expects 17% of its rental income to be paid on a monthly basis, rather than quarterly (compared to 13% previously), as it helps occupiers with cashflow issues.
The group said that in return for the cashflow assistance, it expects compensation by way of lease extensions, removal of break clauses or additional payments in the future.
Financial position
The group has no debt maturing during this financial year and, as at 31 March 2020, had £134m of undrawn facilities and £81m of cash on the balance sheet. Its committed development expenditure is £22m, of which 89% relate to developments that are pre-let.
It recently strengthened its debt profile through a new £75m unsecured revolving credit facility for a three-year term with HSBC at an opening margin over LIBOR of 150bps. The facility has the same covenants as its other unsecured facilities, which have significant headroom both on an LTV and ICR basis: compared to 30 September 2019, valuations would need to fall 32% or rent would need to fall 58% before testing these covenants.
The group said: “Looking forward, it is still too early to assess the full impact of covid-19 on both the wider economy and the real estate industry. The tectonic plates have undoubtedly shifted for most businesses and whilst we expect them to realign back, for many, they are unlikely to return to exactly where they started.
“We are well placed to deal with the current disruption and emerge with a stronger portfolio and deeper occupier relationships.”
LMP : LondonMetric collects majority of rent and confirms quarterly dividend