Tritax Big Box REIT plc has provided an update on its rent collection and strong financial position.
With a diversified tenant base and a weighting towards defensive sectors, the company’s resilient portfolio has been reflected in its strong rent collection since the start of the Covid-19 pandemic.
It is expected that 97% of Q3 2020 rents will be collected by the end of August 2020 comprised of the following:
- 84% of rents have been paid to date
- 13% is scheduled to be collected on a monthly basis over the remainder of the quarter
- For 3% of rents, the firm is in discussions with a small number of tenants over deferral of rental payments in support of their short-term cash flows during the Covid-19 pandemic
In line with the firm’s expectations outlined in its April 2020 trading update, 96% of Q2 2020 rent was paid within the respective quarter. Of the 4% of Q2 2020 rent not paid within the period, it expects 1% to be paid imminently and the remaining 3% to be collected over 2020/21.
To date, no rent-free periods or rent reductions have been agreed across the portfolio.
In addition to resilient cash flows from rent collection, the company has access to a range of significant financing facilities that form part of its overall strong financial position. In June 2020, the termination date in respect of £190 million of its £200 million unsecured revolving credit facility (the Facility), was extended from June 2024 to June 2025. The maturity date of the residual £10 million that was not covered as part of this extension will remain June 2024.
The Facility, which is with a syndicate of lenders, retains its uncommitted £100 million accordion option and the margin payable under the Facility of 1.10% per annum over three-month LIBOR remains unchanged. The Facility was entered into in June 2019 for an initial period of five years and this extension is the first of two, one-year extension options that are available to the company under the original terms.
The agreement in respect of the Facility extends the company’s weighted average debt maturity to 7.1 years.
Colin Godfrey, CEO, Fund Management, commented:
“We expect 97% of our Q3 rent to be paid by the end of August 2020 highlighting the strength and critical nature of our Big Box logistics portfolio and underpinning our resilient income generating model. Our Big Box logistics assets, all of which have remained operational during the pandemic, have enabled our customers to continue working safely and meet significant surges in demand as more consumers than ever shop online.
“We entered this period of uncertainty in a robust position, and while our rent collection performance and financing structure is strong, we believe it remains appropriate to maintain a cautious approach. Throughout this crisis we have continued to make good strategic progress, managing our assets effectively and progressing our development pipeline in our customers’ and shareholders’ interests.”
The Group will announce its results for the six months to 30 June 2020 and declare its interim dividend for the quarter ended 30 June 2020 on 6 August 2020.