LONDON (dpa-AFX) - Great Portland Estates Plc. (GPOR.L) Friday said it expects leasing activity to decline until the coronavirus or COVID-19 crisis passes, particularly in retail.
In its trading update and summary on the impact of COVID-19 on the business, the company said it collected 62.9 percent of quarterly rent due within seven working days of the March quarter day, compared to 99.2 percent last year. A further 4.5 percent rent is expected imminently. More than 60 percent of the outstanding rent is from occupiers in the retail, hospitality and leisure sectors.
Further, the company secured four new lettings in the quarter to March 31, generating annual rent of 0.7 million pounds.
The company noted that a number of office pre-letting negotiations are ongoing and it continues to receive new enquiries from prospective occupiers.
In line with UK Government guidelines, all of the occupied buildings remain operational, while activity on two of its three development sites has temporarily been suspended.
Great Portland is also maintaining regular payments to suppliers to ensure their cash flow is maintained given the challenging economic backdrop.
The company further said a decision about payment of a final dividend will be made once the year end results are finalised in May.
The company continues to expect to present its annual results on May 20.
Toby Courtauld, Chief Executive, said, 'However long the Coronavirus lasts, with our low gearing and ample liquidity, GPE is well positioned to weather the impact until market conditions normalise.'
At March 31, the company, including share of joint ventures, had cash on deposit of 111 million pounds and further undrawn committed credit facilities of 300 million pounds.
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