Encouraging signs of recovery as retail parks lead the way!
- British Land reports 69% rent collection for September quarter day.
- 91% of office rent and 50% of retail rent collected.
- Retail parks are driving footfall and sales recovery.
- Footfall in September reached 84% of last year’s levels.
- Like-for-like retail sales were at 90% of the same period last year.
- The company is in discussions with retail occupiers to improve rent collection.
- Plans to resume dividend payments at 80% of underlying earnings.
British Land has reported a positive trend in rent collections following the lockdown, with 69% of rents collected on its September quarter day. This includes a strong 91% collection rate for office rents and a 50% rate for retail rents, a significant improvement from the 36% collection rate for retail reported shortly after the June quarter. As of October 1, 86% of its retail stores, totaling 1,470 units, are now open. Footfall in September was at 84% of the same period last year, indicating a steady recovery since non-essential retail reopened in June. Retail sales for stores that were open in September were also promising, reaching 90% of last year’s figures. The increase in foot traffic is largely attributed to retail parks, which make up 48% of British Land’s retail assets. These parks have been crucial in supporting an effective online retail strategy, facilitating services like Click & Collect and returns. In September, footfall in retail parks was 89% of last year’s levels, with like-for-like sales at 93%. However, the company has noted a rise in Company Voluntary Arrangements (CVAs) and store closures since April, with 16 occupiers currently under CVAs or administrations, affecting 80 units. Despite this, British Land has seen a £11.6 million reduction in annualized rents but remains in active discussions with retail occupiers, which has helped increase rent collection for the June quarter to 74%. Looking ahead, the company anticipates further improvements in September quarter rent collection and has announced plans to resume dividend payments, now set at 80% of underlying earnings.
Factuality Level: 9
Factuality Justification: The article provides accurate information about British Land’s rent collection and retail performance during the lockdown period. It presents data on rent collections, footfall, sales, and occupier discussions in a clear and concise manner without any sensationalism or opinion masquerading as fact. The article also includes relevant background information and does not contain any logical errors or inconsistencies.
Noise Level: 3
Noise Justification: The article provides relevant information about British Land’s rent collection performance and the state of its retail assets during the pandemic. It also mentions the challenges faced by the retail market, such as CVAs and administrations. However, it could benefit from more in-depth analysis or context on the broader implications for the industry and potential long-term trends.
Financial Relevance: Yes
Financial Markets Impacted: British Land’s rent collection and retail sales impact the company’s financial performance and investor sentiment.
Financial Rating Justification: The article discusses British Land’s rent collection rates, retail sales, and plans to resume dividend payments, which are all relevant to the company’s financial situation and can affect its stock price and investor confidence.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The information provided discusses British Land’s rent collection and retail performance since lockdown, with a focus on office and retail assets.
www.retailsector.co.uk