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Capital & Regional expects to imminently receive 34% of June rent

Capital & Regional (CAL) has provided an update on the impact of the COVID-19 pandemic and rent collections for the 24 June Quarter Date, in which it says it has received or expects to imminently receive 34% of the rent due on 24 June. CAL has provided the following highlights on its operations and liquidity.

Operational highlights

  • All seven of CAL’s community shopping centres have remained open throughout the period of lockdown providing essential services to the communities it serves. The lifting of restrictions enabling non-essential retailers to open again from 15 June 2020 has seen a significant increase in the number of tenants now back trading. As of today 470 stores are back open and trading, increased from 68 stores in early May. This represents 74% of units with a further 10% having confirmed dates for re-opening. CAl says it is working closely with the remaining retailers to re-open as soon as possible noting only 5% of its retailers are currently not authorised to open.
  • Footfall for the week ending 28 June 2020 was approximately 55% of the equivalent week in the prior year, 97% higher than the last week prior to the restrictions easing. Feedback from many of CAL’s retailers is that average transaction values have been higher than the comparable period last year with shoppers making focused purpose led visits.
  • Of the rent for the third quarter of the year that was due on or since the 24 June 2020, CAL has received or expect to imminently receive 34%. In total it has collected approximately 40% of all rents that have fallen due from the 25 March 2020 to the present day, incorporating rents payable on both a quarterly and monthly basis.
  • Approaching half of the balance of rents that are outstanding are due from major well-capitalised retailers who have capacity and a clear contractual obligation to pay. Cal says that it is encouraging that several of the non payers have engaged with it regarding payments now stores are trading and it is fully committed to working constructively with all our customers.
  • In line with government guidance its Snozone operation closed its two indoor ski slope sites on Friday 20 March 2020. It is making plans for reopening in anticipation of the restrictions being lifted in the coming weeks and expect the business to be back up and trading in time for the peak Q4 trading quarter.

Liquidity

  • As at close of business on 30 June 2020 CAL had total cash on its balance sheet of over £81 million, which it says is equivalent to more than one year’s gross revenue. In addition, CAL has an undrawn revolving credit facility of £15 million available until January 2022. The earliest maturity on any of CAL’s other loan facilities is February 2023.
  • CAL has signed waivers for all income covenants with quarterly test dates in July and October 2020 on its three largest asset backed loan facilities.  These represent over 93% of its outstanding debt.
  • CAL says that, in light of the uncertain market conditions, it has paused on any commitments to the proposed Hemel Hempstead Leisure project. It is considering alternative options and is in discussions with the lender to review the loan facility to reflect this.

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