Plus   Neg

Great Portland Estates Sees Weak Leasing Activity Until Covid-19 Crisis Ends

Great Portland Estates Plc. (GPOR.L) Friday said it expects leasing activity to decline until the coronavirus or COVID-19 crisis passes, particularly in retail.

In its trading update and summary on the impact of COVID-19 on the business, the company said it collected 62.9 percent of quarterly rent due within seven working days of the March quarter day, compared to 99.2 percent last year. A further 4.5 percent rent is expected imminently. More than 60 percent of the outstanding rent is from occupiers in the retail, hospitality and leisure sectors.

Further, the company secured four new lettings in the quarter to March 31, generating annual rent of 0.7 million pounds.

The company noted that a number of office pre-letting negotiations are ongoing and it continues to receive new enquiries from prospective occupiers.

In line with UK Government guidelines, all of the occupied buildings remain operational, while activity on two of its three development sites has temporarily been suspended.

Great Portland is also maintaining regular payments to suppliers to ensure their cash flow is maintained given the challenging economic backdrop.

The company further said a decision about payment of a final dividend will be made once the year end results are finalised in May.

The company continues to expect to present its annual results on May 20.

Toby Courtauld, Chief Executive, said, "However long the Coronavirus lasts, with our low gearing and ample liquidity, GPE is well positioned to weather the impact until market conditions normalise."

At March 31, the company, including share of joint ventures, had cash on deposit of 111 million pounds and further undrawn committed credit facilities of 300 million pounds.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Global PC shipments returned to growth in the second quarter of 2020 after seeing a significant decline in the preceding first quarter due to COVID-19 related supply-chain disruptions, according to reports by two research firms. The PC market returned to growth in the quarter as production ramped up and vendors restocked their supplies to near-normal levels. The bankruptcy filing of America's oldest apparel retailer Brooks Brothers has ignited significant interest from potential buyers for the brand. WHP Global and a venture backed by Authentic Brands Group LLC and Simon Property Group, Inc., are reportedly considering bids for the retailer. WHP Global owns the ANNE KLEIN and JOSEPH ABBOUD brands. Sundial Herbal Products has recalled around 65 products, which were misbranded and currently unapproved drugs, the U.S. Food and Drug Administration said in a statement. The recall follows an order by a federal judge in June to stop distributing the company's unapproved new drugs. The affected items include herbal products and dietary supplements.
Follow RTT