UK Real Estate Update: For most tenants, rent was due on 25 March. But it has taken the last two weeks to get a clear picture of how much rent tenants paid. 1/..
Many UK REITs issued COVID-19-related press releases to confirm their rent collection rates. For some, rates were as low as 30-40% after one or two working days after quarter-end. 2/..
Retail was the most affected sector. However, most REITs reported that their collection rates were 60-70% after seven working days. REITs with more prime offices and logistics in their portfolios had higher rates. 3/..
Our view on the ground: rent collection rates were down by around 20-25% on normal Working Day Seven expectations; service charge collection rates were down by around 15-20% on normal Working Day Seven expectations. 4/..
Overall, the COVID-19 crisis has affected most properties’ cash flows, regardless of their sector. Some landlords and tenants have agreed to switch to monthly payments or defer payments. 5/..
But collection rates have slowly risen and will continue to rise. Landlords and tenants are finding a new balance between short-term obligations and long-term stability. 6/..
The UK view is part of the weekly C&W EMEA updates on COVID-19 7/7 #cre #realestate
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