Land Securities collects majority of rent as dividends set to resume
Land Securities provided investors with a sigh of relief this morning, as it said it intends to begin paying dividends again later this year after a positive uptick in revenue.
The property developer said 60 per cent of the net rent due on 24 June was paid to it within five working days, compared to 94 per cent last year, despite the heavy impact of the coronavirus pandemic.
The Bluewater shopping centre owner said it intends to reinstate dividend payments following its half-year results in November.
By comparison, rival Hammerson said earlier this week it had managed to collect only 16 per cent of the rents it was due in the most recent quarter.
Meanwhile Intu, which operates the Trafford centre, fell into administration at the end of last week after it failed to convince lenders.
Land Securities, which is also building Deutsche Bank’s new headquarters in the City, had cancelled its dividend earlier this year as shops were forced to close across many of its sites.
However most of its retail locations have since re-opened, thanks to the easing of lockdown measures by the government last month.
The property developer said like-for-like sales rose 80 per cent in the final two weeks of June, while footfall in its shopping centres came in at 60 per cent of last year’s levels.
Land Securities had set up a fund in March to help some of its clients with rent relief and concessions during the pandemic, up to the value of £80m. To date it has allocated £9m of that fund, which it said was “broadly in line” with expectations.
“Covid-19 has resulted in some customers taking longer to pay their rent and we continue to have supportive and constructive dialogue with our customers,” the firm said in a filing.
“Although some restrictions on our customers are beginning to be lifted, our focus on supporting them through the pandemic is unchanged, particularly for those most in need.”