Landlord New River bucks trend to collect majority of retail rents
Commercial landlord New River has bucked the high street trend and collected the majority of rent due in December due to the high number of essential retail tenants in its property portfolio.
The real estate investment trust (REIT) said it had received 70 per cent of retail rents due for the fourth quarter, with 10 per cent deferred or re-geared.
It has waived four per cent of rents due and has just 16 per cent of payments outstanding.
New Rivers’ strong performance reflects its focus on essential retail, as 52 per cent of its occupiers by gross income are currently open and trading despite the ongoing lockdown restrictions across the UK.
Average rent was broadly stable at £11.70 per sq ft, compared to £11.85 in September, and occupancy remained high at 96 per cent in December.
In a statement this morning the company said: “We continue to have limited exposure to the structurally challenged retail sub-sectors that have been particularly impacted by Covid-19 and recent restrictions, with no department stores in our portfolio, and minimal exposure to mid-market fashion and casual dining operators.”
The REIT also showed confidence in its pubs business Hawthorn, saying the community and suburban location of its portfolio “is well placed to benefit from customers working from home and using their local services and facilities”, when restrictions on hospitality are lifted.
New River’s pub teams are preparing to reopen pubs in April, if government guidance allows, and the company said it is “optimistic” about Hawthorn’s trading prospects in the new financial year.