Coronavirus: Landsec scraps dividend as rent payments fall
Retail and office space landlord Landsec suffered a drop in rent payments last month due to the outbreak of coronavirus.
Landsec, which this morning scrapped its interim dividend, said 65 per cent of the rent due on 25 March had been paid by the end of the month, compared to 96 per cent the previous year.
The spread of coronavirus across the UK has seen Landsec shutter four retail outlets and seven leisure and shopping parks completely, while it is running a reduced service across its office properties.
Hotel operator Accor has closed 15 of their 21 sites in Landsec’s portfolio.
In total, £121m in rent was due, with just £79m paid. Retailers owed £37m on 25 March, but had paid £15m by 31 March.
Specialist tenants, including leisure and hospitality businesses, had paid £3m of the £13m due.
Landsec has launched an £80m fund to support tenants, with £15m ringfenced for food and drink operators, which is equivalent to three months rent free.
The remaining £65m will be allocated on a case by case basis to small and medium sized businesses, particularly those without access to other support.
The property giant is also working with leisure and retail tenants on deferred payment plans during the coronavirus outbreak.
Interim chief executive Martin Greenslade said: “Landsec is in a robust financial position with £1.2bn of cash and available facilities and no bond debt or bank facilities maturing before September 2023.
“However, the impact of Covid-19 on our business and on market conditions continues to evolve. As a result, the Board has taken a prudent decision to cancel our third interim dividend due for payment on 9 April and will regularly review the position on future dividends as the situation develops.
“These are unprecedented times and it is incumbent upon businesses such as ours to be mindful of the huge challenges faced by many of our stakeholders.”