Stenprop, the UK multi-let industrial property company, has collected 88% of rent since April 2020, it revealed in a trading update.
Across its multi-let industrial portfolio (MLI), which makes up 63% of the wider portfolio and will eventually be 100%, the group has so far collected 70% of quarterly rent billed for the final quarter of 2020 and 68% of those billed monthly for October.
Here is a breakdown of the rent collection rates as of 21 October 2020:
|
County / Sector |
|
||||||||||
|
Monthly Rents (2020) |
Quarterly Rents (2020) |
Total |
|||||||||
|
April |
May |
June |
July |
August |
September |
October |
Apr – Jun |
Jul – Sep |
Oct – Dec |
|
|
|
UK MLI |
88% |
84% |
85% |
85% |
86% |
81% |
68% |
92% |
90% |
70% |
84% |
|
UK Urban Logistics |
|
|
|
|
|
|
|
100% |
100% |
97% |
99% |
|
Guernsey Office |
|
|
|
|
|
|
|
100% |
100% |
100% |
100% |
|
Germany |
86% |
87% |
92% |
98% |
97% |
99% |
99% |
|
|
|
94% |
|
Switzerland |
0% |
0% |
50% |
50% |
50% |
100% |
100% |
|
|
|
50% |
|
Total |
81% |
81% |
86% |
89% |
89% |
91% |
84% |
95% |
94% |
80% |
88% |
The 70% collection rate for its MLI portfolio for the final quarter so far (22 days after the due date) is an improvement on the 64% and 66% it collected at the same time after due dates in Q2 and Q3 respectively.
Over the wider portfolio, Stenprop has now collected 88% of rents due since April 2020 to date and has agreed to defer a further 1% until a later date.
Third quarter MLI trading update
Like for like passing rent in the quarter (July – September) was up 2.5% and 5.1% over 12 months. It completed 58 new lettings and 19 lease renewals in the quarter, securing £1.48m of new rental income. This was at an average of 16% above previous passing rent.
Average rental incentives on all new lettings and renewals was 2.5 months on an average lease term of 3.6 years.
A further 49 deals were under offer at the end of the quarter over a total of 208,000 sq ft of space, while nine deals had exchanged and were awaiting completion on a total of 20,000 sq ft.
Occupancy across the MLI portfolio improved to 93.3% as at 30 September 2020 (30 June: 92.0%). The group saw a 37% increase in leasing enquiries in the quarter.
Transition to MLI
In the quarter Stenprop bought four new MLI assets for a total of £36m, taking the total MLI portfolio to over five million sq ft. It also completed the sale of a Berlin retail centre, which collectively means that MLI now comprises around 63% of Stenprop’s total property portfolio.
The €27m disposal of Neucӧlln Carrée Retail Park in Berlin was 15% above book value and released around €15.5m of sales proceeds.
The four MLI acquisitions comprised: Tunstall Trade Park in Stoke-on-Trent for £5.9m (6.25% yield); Excelsior Industrial Estate in Glasgow for £5.2m (6.95% yield); St Andrews Industrial Estate in Glasgow for £5.5m (7.3% yield); and Bowthorpe Park Industrial Estate in Norwich for £19.6m (6.35% yield).
Loan to value
As at 30 September 2020, Stenprop’s loan-to-value ratio (LTV) was 38% on drawn facilities, and around 31% when allowing for free cash.
STP : Stenprop posts strong trading update