NewRiver REIT plc
(“NewRiver” or the “Company”)
Operational update
NewRiver is today providing an update on its retail portfolio and Hawthorn Leisure pub business following the easing of lockdown restrictions across parts of the UK.
Retail portfolio
Across our retail portfolio, 81% of occupiers by gross income are now open. This figure will increase as lockdown restrictions are eased further across the UK, and as occupiers progress their phased store reopening plans.
Of the total quarterly rent due on 24 June 2020, 71% has either been collected or had alternative payment terms agreed with occupiers.
Retail rent due on 24 June 2020
|
Status |
% retail rent due |
|
Collected |
46% |
|
Deferred |
12% |
|
Re-gear |
13% |
|
Total collected or alternative payments agreed |
71% |
|
Waived |
1% |
|
Rent outstanding |
28% |
|
Total (%) |
100% |
We have also made further progress in collecting rents for the period from 25 March to 1 June, which we last reported on in our Full Year Results. Rent collected for this period has increased to 57%, from the 52% previously reported, and rent outstanding has improved to 18%, from 21%.
We continue to engage with occupiers with rent outstanding, to either recover late payments or agree other arrangements. We are confident that rent collection rates for this period will improve further as normal trading conditions resume and the UK Government's moratorium on forfeiture of commercial leases ends on 30 September 2020.
In the week commencing 29 June 2020, footfall across our shopping centres in England was 105% ahead of footfall for the week commencing 8 June 2020, the last week before non-essential retailers were allowed to reopen, and 59% of the level seen for the same week last year. This performance reflects the nature of our assets, which are local and easily accessible on foot, and focused on providing essential goods and services.
Hawthorn Leisure
Over 90% of our community pubs in England have now reopened, following the lifting of restrictions by the UK Government on 4 July 2020. We have plans in place to reopen our pubs in Scotland and Wales over the next two weeks.
The Hawthorn team collectively visited 192 of our community pubs in England over the reopening weekend, providing support to our tenants and pub partners as they welcomed back customers in a safe and socially responsible way.
Trading in our pubs has been encouraging so far, with our operator managed pubs delivering like-for-like sales growth of +4% over the reopening weekend, compared to the equivalent weekend last year. This performance reflects our focus on wet-led community pubs, and the fact that over 70% of our sites have outside space.
We were pleased with the Chancellor's announcement yesterday of further support for the hospitality sector, which will be beneficial to our tenants and pub partners, and also recognises the vital role that hospitality plays in the UK economy.