Capital & Regional collects 34% of June rent, says footfall improving
Capital & Regional said on Friday that it has received just over a third of the rent for the third quarter of the year that was due in June and that footfall at its shopping centres was improving.
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The company said it has received or expects to receive imminently 34% of the rent due. In total, it has collected about 40% of all rents that have fallen due from 25 March to the present day, incorporating rents payable on both a quarterly and monthly basis.
Capital & Regional noted that all seven of its community shopping centres have remained open throughout lockdown, with the lifting of restrictions on non-essential retailers on 15 June leading to a "significant increase" in the number of tenants now back trading.
There are now 470 stores open and trading, up from 68 in early May. This represents 74% of units with a further 10% having confirmed dates for re-opening.
"We are working closely with the remaining retailers to re-open as soon as possible noting only 5% of our retailers are currently not authorised to open," it said.
Footfall for the week ending 28 June was around 55% of the equivalent week in the prior year and 97% higher than the last week before Covid-19 restrictions were eased.
Capital & Regional said feedback from many of its retailers is that average transaction values have risen compared to the same period a year ago, with shoppers making "focused purpose led visits".
As at 30 June, the company had total cash on balance sheet of more than £81m, which is equivalent to more than one year's gross revenue. In addition, it has an undrawn revolving credit facility of £15m available until January 2022.
"It remains too early to quantify the medium and longer term impacts of Covid-19 on the group's operations," Capital said.
"Whilst it is clear that Covid-19 is rapidly accelerating a number of structural trends that were already under way in retail industry, we continue to believe the group's focus on local community centres providing non-discretionary and essential goods and services will help mitigate the group on a relative basis and provides the business with a sound base in these unprecedented times."