Derwent and Helical reveal slower rent collections

Office investors Derwent London and Helical have each pulled in some three-quarters of rent due for the June quarter from office tenants, figures that suggest a more challenging quarter for the REITs. Derwent has received 75% of the June quarter’s office rent and 70% of rent overall. The total figure is slightly behind the amount collected by a similar time after the March quarter date, when the company had collected 73% of rent due.  However, adjusted for rent that has been deferred or waived, the June office and total rent figures rise to 93% and 90%. Derwent has granted rent-free periods for 4% of total rents, most of which is in the retail and hospitality sectors, where only a quarter of the current quarter’s rent has been paid. It has also waived 25% of service charges for the March and June quarters at a cost of £4m. Helical has pulled in 76.2% of June quarter rents, with a further 14.6% to be paid in instalments ahead of the September quarter date. The company has granted rent-free periods on 4.7% of rents for food and beverage tenants. Last quarter, the company had secured 84% of rent by 31 March.  Helical chief executive Gerald Kaye said: “As lockdown continues to ease it is pleasing to see tenants returning to their offices in greater numbers and we will continue to help them transition back into our buildings, all of which have remained open throughout the Covid-19 pandemic.” Also updating the market on rent collections today was RDI REIT, where current June quarter rent collection of 70% was a notable jump from the 54% received at roughly the same time post-March quarter date. The company has received 68% of rent across its UK portfolio, excluding hotels and London serviced offices, and 91% of rent due elsewhere in Europe. RDI said rents for its five-hotel Travelodge portfolio were paid in full based on the revised rents of Travelodge’s recent CVA. To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette