Great Portland Estates (GPOR) has collected 69% of rents for the current quarter, and in doing so has tapped into rent deposits.
The London office developer said collection figures were at 58% excluding deposits. From its office portfolio it had received 74% and from its associated retail/hospitality units it had collected 28%.
The group had now received 82% of rent for the previous quarter (70% excluding deposits). Great Portland said it had £21.6m of rent deposits/bank guarantees, of which £2.5m was anticipated to be utilised against outstanding June rent.
Despite the impact of covid-19, the group has completed leasing deals in the April to June quarter worth £4.3m, 4.4% ahead of March 2020 estimated rental values (ERV), including 39,970 sq ft to Exane at 1 Newman Street on 15 year term (no break) at £100 per sq ft with 33 months rent free.
A further 11 lettings are under offer for £12.1m (GPOR share: £7.0m), 4.3% ahead of March 2020 ERV including one office pre-let
In its development portfolio, which covers 56% of its existing portfolio, it has committed to three projects covering 414,600 sq ft, of which 42% is pre-let or under offer. The schemes have a forecast profit on cost of 14.7%.
All sites are open with £47.5m of capital expenditure to come. Two of the schemes are due to complete in the next four months and the third in Q3 2021.
The group’s near-term development pipeline consists of three schemes totalling 821,600 sq ft, and its total pipeline consists of 10 schemes totalling 1.4m sq ft.
Financial position
The group has total liquidity of £390m and a low loan to value of 15.0% and weighted average interest rate of 2.2%. It has substantial headroom in its debt covenants, with values having to fall 68% before a breach.
GPOR : Great Portland Estates taps into deposits to collect 69% of rents