UK REIT McKay Securities Plc (McKay) said it has collected 70% of total September quarter rents, increasing to 87% on receipt of agreed monthly payments.
McKay also said 94% of the total June quarter rents now received (74% reported on 23 July), rising to 97% on receipt of deferred payments.
Simon Perkins, CEO of McKay, commented:
“We continue to work closely with our occupiers, benefiting from the relationships built up through our direct in-house portfolio management. We have collected 70% of rent so far for the September quarter, increasing to 87% on receipt of agreed monthly payments, and have materially increased rent collection for the March and June quarters.
“Despite the ongoing challenges of Covid-19, we have had an active and positive quarter which leaves the Company in a strong financial position in the face of increasing economic uncertainty.
“The sale of 30 Lombard Street, EC3 for £76.5 million in early September has significantly reduced our exposure to the London office market. It also substantially reduced our LTV to 29.6%, after taking into account our £10.0 million industrial/logistics acquisition in Bracknell in August.
“The recently announced letting of our development at Theale Logistics Park (134,430 sq ft) has created another high quality, resilient investment for the portfolio. The letting continues the conversion of our substantial portfolio reversion into income, and will significantly increase the value of the asset.
“We look forward to providing further details on other positive trading activity and the 30 September 2020 portfolio valuation with our interim results which are due to be issued on 17 November.”