A READING-based real estate investment trust (REIT) company says that it has seen steady trading despite the pandemic.
McKay Securities Plc, which says it is the only UK REIT specialising entirely in the South East and London office, industrial and logistics markets.
For the trading period running from October 1 through to March 5, it completed eight new lettings, which will deliver a combined contracted rent of £432,900 per annum, at or above ERV.
It also renewed six leases, securing a 9.5% increase in contracted rent prior to renewal to £1.99 million per annum, and a 1.0% surplus over ERV.
It also ensured that the quarterly rent payments were at 92% in December, with a further 2.0% due from agreed monthly payments. It said that discussions continue in relation to the remaining 6.0%.
Rent collection for the financial year to date increased to 93.0% of all contracted rent and is expected to reach 96.0% on receipt of outstanding monthly and deferred payments. Of the outstanding 4.0%, collection of up to a further 2.0% is anticipated
The company has launched a share buy-back programme for £10 million – around 5% of the company’s issued share capital.
Simon Perkins, CEO of McKay, said: “Despite a period dominated by Covid-19, and two further national lockdowns, McKay has made good progress since October.
“We are pleased to have completed a range of lettings and lease renewals at or above ERV, invested selectively in our portfolio to enhance post-Covid-19 prospects as well as increasing our rent collection for the financial year to date to 93.0% of contracted rent.
“The close relationships we have built up with our occupiers through our in-house management team, together with our focus entirely on the more resilient office, warehouse and logistics markets of the South East and London have been instrumental in these achievements.”
