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- Alternative Income REIT expects 84% rent collection rate for Q3
Alternative Income REIT has said it expects to collect at least 84% of rent for the current quarter by September.
The group, which owns a diverse portfolio of 19 long-let properties, has provided a breakdown on rent collection in which:
89% of tenants that pay quarterly rents (representing 70.4% of total quarter rent including monthly) have paid;
17.4% of rent is now paid monthly, of which 72% of the July rent has been settled.
12.2% of rent has been granted concessions for a limited period.
The group’s annual passing rent roll from its 21 tenants, after adjustment for the terms of the Travelodge CVA (detailed below), is £6.58m.
It remains in discussion with a small number of tenants, mainly in the education and leisure sectors and representing 11% of the rent roll, in respect of potential deferral of rent payments, but to date no rent free periods or rent adjustments, except for the Travelodge CVA, have been agreed across the portfolio.
Rent collection for the previous quarter is 82%, with the remaining 18% the subject of negotiations.
The group has headroom on both its loan to value and interest cover tests, with asset valuations and rental income needing to fall by 29% and 36% respectively before breaching the loan covenants.
Rent due from Travelodge in respect of the group’s hotel in Swindon represented around 5% of total annual rent roll before the CVA.
The terms of the CVA have the following effect:
AIRE : Alternative Income REIT expects 84% rent collection rate for Q3
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