TIDMSTP
RNS Number : 8914L
Stenprop Limited
05 May 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 UPDATE AND MLI PORTFOLIO UPDATE
5 May 2020
Following the update announced on 21 April 2020, Stenprop, the
UK multi-let industrial (MLI) property company, today provides a
further update on its rent collection in light of the COVID-19
pandemic and an update on its MLI portfolio for the period from 1
January to 31 March 2020.
Rent collection
At close of business on 30 April 2020, Stenprop had received 81%
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 85% was paid by 30 April
2020
- 21% of all rent invoiced was for the month of April 2020, of
which 66% was paid by 30 April 2020
For the MLI portfolio an aggregate of 75% of total rent invoiced
had been paid by 30 April 2020.
We continue to be in close contact with our customers and expect
to recover further rent in due course.
MLI PORTFOLIO UPDATE FOR Q1 2020
Continued leasing progress and rental growth in the first
quarter
-- We completed 28 new lettings and 25 lease renewals, totalling
186,513 sq ft and generating GBP1.03 million per annum of
contractual rental income. The average rental uplift on the
previous passing rent was 34% for new lettings (previous quarter:
14%) and 20% on lease renewals (previous quarter: 12%). The average
rental incentive given across all new lettings and renewals was 2.3
months on an average term to break of 4 years (6.1 years to lease
expiry).
-- The average rent on the MLI portfolio as at 31 March was
GBP5.27/sq ft (previous quarter: GBP5.19/sq ft), reflecting a 1%
increase in passing rent from the previous quarter. As at 31 March
the passing rent was 9.2% below the average estimated rental value
of the portfolio of GBP5.80/sq ft (previous quarter: GBP5.61/sq
ft).
-- The vacancy rate as at 31 March stood at 7.3% (excluding
Coningsby Park, Peterborough), up from 5.8% at the end of the
previous quarter. The vacancy rate including Coningsby Park,
Peterborough was 8.9%, up from 7.5%. Of the total increase in
vacancy of 73,500 sq ft, 25% related to one large unit at Old Mill
Industrial Estate, Preston, whilst 29% was due to receiving back
three units totalling 14,000 sq ft and acquiring a vacant long
leasehold interest of 7,500 sq ft at Capital Business Park,
Cardiff.
-- The most significant transactions completed were a letting of
71,000 sq ft at Greenfield Business Park in Holywell on a 10-year
term with a break in year five and three months' rent-free
incentive and a letting of 10,000 sq ft at Lea Green Business Park
in St Helens for a six-year term without a break with three months'
rent-free incentive.
Acquisitions
We completed the acquisition of two multi-let industrial
estates, Brookfoot Business Park in Brighouse and Clarendon Court
in Warrington, for a total of GBP9.7 million. The estates comprise
49 tenants across 142,000 sq ft with an average occupancy rate of
95% and provide an additional GBP803,000 of rental income per
annum, which is equivalent to GBP5.94/sq ft.
We also acquired a long leasehold interest of 7,500 sq ft at
Capital Business Park, Cardiff, which had been sold off by the
previous owner. The modern unit, which is vacant and in need of
refurbishment, was acquired for GBP364,000 at auction from the
government following a proceeds of crime confiscation, and the
price reflected a GBP50/sq ft capital value, reflecting a 37%
discount to the valuation on the rest of the estate.
Paul Arenson, CEO, said:
"We are very pleased with the progress we have made on rent
collections. Our ability to be in direct communication with our
customers has assisted significantly in this process and we expect
to make further progress on these collection rates over time.
"During the first quarter the occupational market performed
strongly as a result of an uptick in business confidence following
the General Election in December 2019. We completed a high number
of lettings and renewals substantially ahead of previous passing
rents, albeit overall occupancy declined due to a few large units
being returned to us at lease expiry, as anticipated".
At 31 March 2020 MLI comprised 57.3% of Stenprop's portfolio and
Stenprop's loan-to-value ratio (LTV) was 40.8%. When unrestricted
cash of GBP60 million was added to this measure our overall LTV was
29.5%.
The financial information on which this portfolio update is
based has not been reviewed or reported on by the Company's
external auditors.
1. Contractual Rental Income represents the annual income
secured from a lease contract ignoring any incentives and break
options in the lease.
2. These figures are based on our September 2019 valuations
adjusted for subsequent acquisitions and disposals and changes in
foreign exchange rates.
3. Calculated as gross borrowing less unrestricted cash, divided
by gross asset value based on our September 2019 valuations
adjusted for subsequent acquisitions and disposals and changes in
foreign exchange rates.
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
Jeremy Carey
JSE Sponsor
Java Capital Trustees and Sponsors
Proprietary Limited +27(0)11 722 3050
About Stenprop
Stenprop is a UK REIT listed on the LSE and the JSE. 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
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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