Stenprop Limited COVID-19 second update (2405K)
21 Aprile 2020 - 08:00AM
UK Regulatory
TIDMSTP
RNS Number : 2405K
Stenprop Limited
21 April 2020
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")
COVID-19 RENTAL COLLECTION AND OPERATIONAL UPDATE
21 April 2020
Following the update announced on 26 March 2020, Stenprop, the
UK multi-let industrial (MLI) property company, today provides a
further business update in light of the COVID-19 pandemic.
Rent collection
At close of business on 15 April 2020, we had received 73% of
the total rent invoiced and due for the aggregate of the quarter
commencing 25 March 2020 and the month commencing 1 April 2020,
broken down as follows:
-- 79% of all rent invoiced was for the quarter commencing 25
March and ending 24 June 2020, of which 77% was paid by 15 April
2020; and
-- 21% of all rent invoiced was for the month of April 2020, of
which 56% was paid by 15 April 2020.
Operational matters
We are engaging actively with our tenants on an individual
basis, particularly those who are experiencing cash flow
difficulties as a result of the lockdown measures across Europe.
This necessarily involves a detailed understanding of the financial
and operating impact of the current crisis on each customer's
business and what measures they will be able to take (including
accessing Government financial support) to ensure they can manage
through the lockdown period and continue to operate successfully
thereafter. It is too early to provide any meaningful conclusions
on this while the lockdown continues and uncertainty over the
timing of a return to normality remains.
Despite the current difficulties, we continue to receive letting
enquiries for our UK MLI portfolio through our online digital
marketing platform, albeit at a much reduced level. However, the
enquiries we do receive are typically focused and urgent
requirements with a higher rate of conversion into lettings. Since
all Stenprop staff moved to working from home on 16 March 2020, we
have completed 16 new UK MLI leases, aggregating to GBP474,000 per
annum of new headline rent over 112,500 sq ft of space, a number of
which have been executed entirely digitally through our existing
online leasing process. Our experience in having already completed
18 leases using this digital platform prior to 16 March 2020,
combined with our digital-first leasing strategy across our
Industrials platform, highlights that the initiatives we have been
implementing are proving effective and are likely to lead to higher
levels of demand in the long term. We continue to invest in the
digital platform during this period and will provide more
information on this in our Annual Report for the year ended 31
March 2020.
To date, we have not made any redundancies or put any staff on
furlough and our entire workforce remains productive and fully
engaged, meeting the challenges that we face during the current
crisis, aided by our existing cloud-based IT infrastructure and
existing operating procedures. Our team remains vigilant and is
ready to support businesses or organisations contributing to the
efforts in the UK or Germany to fight the COVID-19 pandemic. We
have supplied to the NHS a list of all available units in our
portfolio should they need space to store or distribute equipment
and we have recently completed a short-term, rent-free letting to a
food bank charity in Cardiff which has been supplying meals to NHS
staff in the city.
Outlook
We remain confident that we are well placed to respond to the
challenges of COVID-19. As explained in our previous announcement,
our overall loan-to-value ratio (LTV) stands at approximately 40.7%
based on the most recent property valuations as at 30 September
2019 and adjusted for subsequent acquisitions and disposals. When
unrestricted cash of GBP60 million is deducted from loans, the LTV
falls to 29.6%, which combines with significant headroom in our
banking covenants.
While the duration of the crisis remains uncertain, its
financial impact upon the business remains difficult to predict.
However, Stenprop remains a financially sound business with a
capital structure and operating platform which is well placed to
deal with a prolonged period of uncertainty and ultimately address,
resolve and move on from the current challenges when the time
comes.
For further information:
Stenprop Limited
Paul Arenson
Julian Carey
James Beaumont +44(0)20 3918 6600
Numis Securities Limited (Financial
Adviser)
Hugh Jonathan
Vicki Paine +44(0)20 7260 1000
Tavistock (PR Adviser) +44(0)20 7920 3150
James Whitmore
James Verstringhe
JSE Sponsor
Java Capital Trustees and Sponsors
Proprietary Limited +27(0)11 722 3050
About Stenprop
Stenprop is a Guernsey-registered UK REIT. The objective of the
Company is to deliver sustainable growing income to its investors.
Stenprop's investment policy is to invest in a diversified
portfolio of UK multi-let industrial (MLI) properties with the
strategic goal of becoming the leading MLI business in the UK. For
further information, go to www.stenprop.com.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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