UK rental income fell to £8m in Q1, says URW
Shopping centre owner Unibail-Rodamco-Westfield collected just €9.5m (£8.2m) of rental income across its UK portfolio in the first three months of this year, some 63% less than Q1 2020.
Turnover across the whole business fell by almost 41% during the quarter to €566.7m as Covid-related closures continue to impact trading.
The firm said that it had had no normal trading during the first three months of 2021, compared with 70 days in Q1 2020, and some 42 days of store closures, compared with just 13 last year.
Shopping centre owner Unibail-Rodamco-Westfield collected just €9.5m (£8.2m) of rental income across its UK portfolio in the first three months of this year, some 63% less than Q1 2020.
Turnover across the whole business fell by almost 41% during the quarter to €566.7m as Covid-related closures continue to impact trading.
The firm said that it had had no normal trading during the first three months of 2021, compared with 70 days in Q1 2020, and some 42 days of store closures, compared with just 13 last year.
Total shopping centre rental income was down by 30.4% to €472.8m, rental income from offices was down by 31.7% to €19.5m following the disposal of a number of assets, while conference and exhibition income fell by 78.3% to €10.2m.
As at 23 April, URW said it had collected 66% of first-quarter rent and that, adjusted for the rent relief granted or expected to be granted and booked, this percentage would increase to 89%. URW added that the rent relief granted or expected to be granted and booked in Q1 amounted to a cash impact of €146.9m.
Jean-Marie Tritant, URW chief executive, said: “The group’s centres were effectively closed for an average of 42 days in the first quarter, with the exception of essential retail. Combined with the ongoing closure of all convention and exhibition venues, the group’s performance in the quarter was strongly impacted, and we anticipate 2021 to remain very challenging, with tougher and longer restrictions impacting the group beyond Q1.
“While we saw encouraging leasing activity as brands continue to choose our locations in preparation for the post-Covid-19 market rebound, our overall vacancy rate did increase slightly in Q1 as a result of the lagged impact of the pandemic on retailers. We continue to partner with our tenants to navigate this environment together.”
During the quarter, footfall across URW’s European assets was down by 58% on 2019. In the US it was down by 41%. Figures have improved dramatically in the UK since 12 April when non-essential retail reopened – up to 75% of 2019 figures – but Trident said the group still lacked sufficient visibility of trading to provide a full-year outlook.
URW will publish its half-year results on 28 July.
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