NewRiver REIT has updated on its rent collection figures and reported a collection rate for the current quarter of 70%.
This, it said, was tracking ahead of previous quarters at the same number of days after billing, which have now seen 82% collected for the fourth quarter of 2020, 83% for the third quarter and 78% for the second quarter of 2020.
When deferrals and concessions such as lease re-gears are taken into account, the group has collected or agreed alternative payment arrangements on 80% this quarter.
A total of 4% has been waived and 16% remains outstanding.
Disposal progress
The group had a disposal target of between £80m and £100m this financial year (to 31 March 2021) and said it was on target to meet this with £53.3m sales completed, £8.9m exchanged and a further £95.2m under offer.
Retail portfolio
The company said 52% of its retail tenants by gross income remained open and trading during the current lockdown, reflecting its focus on essential retail. Eight of its top 10 tenants have remained open during the current lockdown.
In the final quarter of 2020, NewRiver completed 291,900 sq ft of lettings and renewals, representing £1.2m of annualised rent (significantly more than in the same period in 2019 when 152,000 sq ft of deals were signed).
Long-term deals were at a 5.2% discount to previous passing rent and 6.3% ahead of estimated rental values (ERV).
Hawthorn pub portfolio
All of its pubs are closed due to lockdown. The company said it was confident “the vast majority” of its pubs will emerge from the current restrictions in a strong position. It said it was preparing the reopening of its pubs in April 2021, or sooner if restrictions are lifted.
Since September 2020, NewRiver has disposed of £2.7m of non-core pubs, which it said demonstrates “liquidity and confidence in the long-term prospects of community pubs as an asset class”.
Finances
At 31 December 2020, the group had £138m of cash reserves, which is 68% higher than the position as at 31 March 2020, driven by disposals and rent collection.
Including £45m of undrawn revolving credit facilities and its eligibility for £50m of financing under the Covid Corporate Finance Facility, which it said it currently has no need or intention to draw, the company has total available liquidity of £233m.
NRR : NewRiver REIT collects 70% of quarterly rent