Landsec collects two-thirds of rents in last quarter
Property giant Landsec collected just two-thirds of the rent it was due as of the end of March due to continued disruption as a result of the pandemic.
The FTSE 100 developer said that of the £110m it was owed by tenants as of 25 March, £33m was still outstanding five days after rent was due.
This includes £10m of payments related to customers who have withheld payment pending documentation of agreed concessions, the firm said.
If Landsec receives the withheld rent as planned, the quarterly collection rate will increase to 77 per cent.
The company’s figures showed a major discrepancy between rents collected from retail clients compared to those collected from offices.
Less than half of retail clients – 38 per cent – paid their rent on time, as compared to 87 per cent of office tenants.
That’s broadly consistent against the prior quarter’s collection figures. In total, over the past year Landsec said it had received 84 per cent of the rent it was due.
Earlier this month, the firm set up a £80m fund to help those tenants who most needed support to survive the pandemic. Thus far, it said, £39m had been allocated to customers.