Custodian REIT plc : Statement on Coronavirus (COVID-19)
Statement on Coronavirus (COVID-19)
The health and safety of colleagues, tenants and our wider stakeholders remain the Company's top priority. We continue to monitor closely the recommendations issued by the
The Board intends to make the fourth quarterly interim dividend payment relating to the quarter ending 31
We are experiencing an inevitable disruption to cash collection in the current quarter as a number of tenants seek to defer rental payments in order to protect their own cash flows. As a result, the current level of dividend is not expected to be fully supported by net rental receipts going forward. The Company intends to continue to pay quarterly dividends at a level broadly linked to net rental receipts, with support from prior years' undistributed reserves if required, of no less than an aggregate 1.5p per share for the first half of the financial year ending
The extraordinary circumstances imposed by COVID-19 find the Company in good financial health, having:
The Company operates four loan facilities, each of which has a discrete allocation of the Company's individual properties over which the relevant lender has security. Each loan has covenants over the LTV and interest cover of its discrete security pool. In the expectation that interest cover covenants on some individual loans at
While LTV covenants are not currently a concern, approximately
The Investment Manager is working closely with tenants to support them through these challenging times, to maintain occupancy levels and to protect long-term rental receipts.
The Company's rent invoicing profile comprises quarterly in advance on both English and Scottish quarter days and monthly in advance. Following negotiations regarding the March quarter rent, the Company has agreed that a number of tenants move from quarterly in advance to monthly in advance rent payments, or defer the March quarter's rent with a full recovery over the next 12 months. Some tenants have yet to agree a payment profile, but the Investment Manager remains in active discussion with over 40 tenants to agree payment plans for the balance of outstanding rent, which remains contractually due.
Given the varied profile of the Company's rental invoicing, the Board believes reporting rent collected relating to the month of April best reflects the prevailing level of income generation from the Company's property portfolio. So far, 67% of rent due relating to the month of April has been collected, with a further 5% expected to be received shortly.
While the short-term picture is challenging and hard to predict, the long-term case for property investment remains. The defensive nature of
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Further information regarding the Company can be found at the Company's website www.custodianreit.com or please contact:
Notes to Editors
The Company offers investors the opportunity to access a diversified property portfolio of
 Passing rent of let property divided by passing rent of let property plus estimated rental value of vacant property.
 Historical rental income received and projected contractual rental income receivable less certain property expenses divided by interest payable.
 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.
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Quick facts: Custodian REIT
Market Cap: £365.45 m
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