Land Securities Group PLC (LSE:LAND) said rent collection rates have continued to improve, with 85% of net rents due at the end of September having been paid with 10 days, compared to 81% at this point in the previous quarter.
The FTSE 100 property giant revealed GBP7mln was still unpaid from tenants of its mixed-use ‘urban opportunities’ category and hotels, leisure and retail parks, which it calls its ‘subscale sectors’, with 50% and 58% of rents having so far been collected in what remained the weakest two segments from its previous update.
Its portfolio ranges from various office properties in London, to Bluewater, One New Change, Leeds’ Trinity and Oxford’s Westgate shopping centres.
Collections for offices, by far the largest portion of the group with GBP57mln gross rents due for the quarter, remained strongest, at 95%. This was the same as the previous quarter.
Central London non-office properties saw 80% of rents collected after 10 days, improved from the previous quarter’s 71% at this point, followed by regional retail at 83%, up from 73%.
There was GBP13mln of rent outstanding, of which GBP5mln relates to customers who have withheld payment pending documentation of agreed concessions.
The update comes ahead of half-yearly results on 16 November, where investors will hope the group improves on the GBP1.39bn loss for its prior full year on the back of a GBP1.64bn property write-down.