TIDMLAND

RNS Number : 2148V

Land Securities Group PLC

13 April 2021

13 April 2021

Land Securities Group PLC ('Landsec')

March 2021 quarter day rent collection

In response to the continued impact of Covid-19 on Landsec's operations, the Company has issued the following information on March rent collection. Footfall and sales performance for the year to 31 March 2021 will be provided in our annual results announcement which will be published on 18 May 2021.

Cash collection and customer support

We continue to take a proactive approach to addressing the challenges the pandemic presents to our people, our customers and our business. Our marketing and operations teams have been working with our brand partners to prepare for yesterday's re-opening of non-essential shops in England and Wales and the expected re-opening in Scotland on 26 April.

In early April 2020, we established a customer support fund of GBP80m for occupiers who most need our help to survive. To date, GBP39m of rent concessions has been allocated to customers. We expect this figure to increase as some of our customers, who have not yet paid their rent, enter into discussions with us following the Government's announcement about re-opening non-essential retail and the lifting of the rent moratorium at the end of June. We will update on this at our annual results on 18 May.

GBP110m of rent was due on the 25 March payment date. The table below shows the amount and percentage of this rent collected within five working days after adjusting for the impact of customers having entered CVAs and administrations, concessions agreed out of the fund and agreed monthly and deferred payment terms. 67% of this net rent was paid within five working days, compared with 65% for the equivalent period last year.

25 March 2021 quarter(1)(2)

 
                                                         Agreed changes in 
                                                             payment terms 
                                                                                  Net 
                                                                                                                 Day 5 
                                                                                                                amount 
                                                                              amounts                         received 
                    Gross 
                  amounts       Impact                  Monthly                            Day 5      Day 5 
                   due 25      of CVAs                  payment   Deferred     due 25     amount     amount 
                    March   and admins   Concessions      terms   payments      March   received   received     Mar 20 
                     GBPm         GBPm          GBPm       GBPm       GBPm       GBPm       GBPm          %          % 
--------------  ---------  -----------  ------------  ---------  ---------  ---------  ---------  ---------  --------- 
Offices                63            -             -        (2)          -         61         53         87         86 
Rest of 
 Central 
 London                 9            -             -        (2)          -          7          2         29         47 
Regional 
 retail                16            -           (1)        (2)          -         13          5         38         36 
Urban 
 opportunities          5            -             -          -          -          5          2         40         35 
Subscale 
 sectors               17          (1)             -        (2)          -         14          5         36         30 
                      110          (1)           (1)        (8)          -        100         67         67         65 
--------------  ---------  -----------  ------------  ---------  ---------  ---------  ---------  ---------  --------- 
 
   1.     Including our proportionate share of subsidiaries and joint ventures. 

2. All amounts are shown gross of VAT. Where an amount billed remains uncollected and is subsequently written off, the VAT component will be recovered by the Group.

Of the GBP33m of rent outstanding, GBP10m relates to customers who have withheld payment pending documentation of agreed concessions. Assuming all agreed concessions are completed and the GBP10m of withheld rent is received, the rent collection rate for the quarter would increase from 67% to approximately 77%.

For the period from 25 March 2020 to 24 March 2021, 84% of the net amounts due for this period has been received.

The reported collection rates for the net amounts due at each quarter day during the 2020/21 financial year are as follows (all as at day five):

Day 5 collection rates during the 2020/21 financial year

 
                         24 June     29 Sept      25 Dec      25 Mar 
                            2020        2020        2020        2021 
                           Day 5       Day 5       Day 5       Day 5 
                          amount      amount      amount      amount 
                        received    received    received    received 
                               %           %           %           % 
--------------------  ----------  ----------  ----------  ---------- 
Offices                       81          82          87          87 
Rest of Central 
 London                       29          33          29          29 
Regional 
 retail                       29          28          36          38 
Urban opportunities           29          36          40          40 
Subscale 
 sectors                      24          20          33          36 
                              60          62          65          67 
--------------------  ----------  ----------  ----------  ---------- 
 

Ends

About Landsec

At Landsec, we strive to connect communities, realise potential and deliver sustainable places.

As one of the largest real estate companies in Europe, our GBP11.8 billion portfolio spans 24 million sq ft (as at 30 September 2020) of well-connected retail, leisure, workspace and residential hubs. From the iconic Piccadilly Lights in the West End and the regeneration of London's Victoria, to the creation of retail destinations at Westgate Oxford and Trinity Leeds, we own and manage some of the most successful and memorable real estate in the UK.

We aim to lead our industry in critical long-term issues - from diversity and community employment to carbon reduction and climate resilience. We deliver value for our shareholders, great experiences for our customers and positive change for our communities.

Find out more at landsec.com

 
 Please contact: 
Investors                    Press 
 Ed Thacker                   Jonathan Sibun (Tulchan Group) 
 +44 (0)20 7024 5185          +44 (0)7779 999 683 
 Edward.Thacker@landsec.com   JSibun@tulchangroup.com 
 

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END

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April 13, 2021 02:00 ET (06:00 GMT)

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