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St Modwen reveals positive logistics performance

St Modwen Properties subject of £1.2bn cash offer

St Modwen Properties has revealed positive trading performance in its logistics portfolio during lockdown.

The company, which is focused on developments in the logistics and residential property sectors, said leasing activity during lockdown had been strong.

Of its completed logistics developments 74% are now let or under offer, compared to 58% in February 2020, while its 2020 development pipeline is now 53% let or under offer (February 2020: 18%).

In its existing logistics portfolio, it has received 94% of the £5.4m of rent due in March, April and May. It has agreed to waive 1% and is in negotiations over the remaining rent.

In its residential portfolio, St Modwen Homes, completed sales for the half year were down 32% compared to last year (280 vs 411) due to a delay in production. It said customer demand had remained resilient and private sales for the year to date was down less than 5% compared to the same period last year.

It said its private forward order book is up 27% on last year and average sales prices were “generally holding up”.

However, it said the disruption caused by covid-19 will lead to a reduction in housebuilding profits in the first half of 2020, which is expected to reduce adjusted EPRA earnings to around £4m to £5m (H1 2019: £16.2m).

The company will report half-year results, to the end of May 2020, on 22 July 2020.

SMP : St Modwen reveals positive logistics performance

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