Alternative Income REIT collected 84% of Q3 rents due from its portfolio of 19 properties in the UK, it has announced.
The group’s annual passing rent roll from its 21 tenants, after adjustment for the terms of the Travelodge Hotels Limited CVA, is £6.58 mln (€7.31 mln).
A total of 89% of the quarterly rents, which represent 70.4% of the annual rent roll have been collected, including the quarter rent from Meridian Steel Limited, whose rent free period ended on 23 June 2020.
The proportion of rents contractually due monthly is now 17.4% and, in addition, a small number of tenants, representing 12.2% of the annual rent roll, have been granted concessions for a limited period to settle their rent monthly. A total of 72% of those who currently pay monthly have settled their July rents.
To date, no rent free periods or rent adjustments, except for the Travelodge CVA, have been agreed across the portfolio. Tenants occupying the Group’s assets in the education and leisure sectors represent the majority of those whose rents remain due.
The REIT is in talks with a number of tenants, representing 11% of the rent roll, in respect of potential deferral of their rent payments in support of their near term cash flow requirements.
Steve Smith, chairman of Alternative Income REIT said: 'We expect at least 84% of Q3 rents due to be collected by September 2020, reflecting the strength of our portfolio and underpinning the group’s resilient and defensive income.
'The group remains well capitalised and we entered this period of uncertainty in a robust position supported by our low recurring annual overhead.
'The appointment in May 2020 of M7 as the company’s investment adviser provides the group with access to M7’s significant expertise and resources. Our rent collection performance and financing structure are robust, and we look forward to making good strategic progress and creating value for our shareholders over both the short and medium term.'