Midlands-based Real Estate Investors (REI) has delivered an upbeat trading update, reporting that more of its residential and commercial tenants are now paying rent.
The real estate investment trust, which has a large property portfolio across all sectors, says it’s also confident of recovering outstanding rents, or at least being able to reach an agreed solution with those tenants who still need to pay up.
REI’s rent collection for the March quarter is now 93%, up from 90% in September and 81% collected in June.
Meanwhile, June quarter rent collection has risen to 90%, up from 86% in September and 81% in July.
September quarter (September to December) rent collection is already 89.92% and REI is confident that it will get unpaid rents from tenants as they resume normal trading.
But it adds that several its tenants who are able to pay are still taking full advantage of Government restrictions on landlords and refusing to, although some of them have now agreed settlement arrangements.
Better trading conditions have boosted the fortunes of REI’s retail tenants while its office portfolio, which is almost entirely out of town, has benefited from the trend for companies looking for safe and convenient workplaces for their employees where they don’t have to use public transport or make city centre commutes.
Chief executive Paul Bassi (pictured, above) says operating a diversified portfolio has helped create robust levels of occupancy – 93% across the portfolio – and prompted rent collection.
He says: “We also remain confident that occupier demand for our assets will continue and we are mindful that the current environment may create opportunistic sales and acquisitions for the group.”