Landsec posts “encouraging” footfall levels

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Landsec rent
Landsec said it “remained in a financially robust position” and, in a marked difference from other listed landlords
// Landsec posts “encouraging” levels of footfall since the reopening of its centres
// It will reinstate its shareholder dividend from November
// 60% of its net due rent was paid at the last quarterly rent day June 24

Landsec has recorded “encouraging” footfall levels at its centres and will reinstate its shareholder dividend from November, despite some retailers choosing not to pay rent.

The shopping centre owner said 60 per cent of its net due rent was paid at the last quarterly rent day June 24, but only 29 per cent of retail occupants had paid within five days.

Although Landsec remains ahead of property giant competitors such as Hammerson and Intu, it was still left still left out of pocket on rent day having collected 94 per cent of due rents for the equivalent period last year.


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Meanwhile, Landsec said 75 per cent of due rent from the March 25 quarterly day had now been received.

Since lockdown restrictions were eased on June 15 with non-essential services being allowed to reopen, Landsec said that all of its malls, outlets and retail parks were now open and had seen “encouraging levels of footfall”.

In the two weeks since June 15, footfall across Landsec sites was at 60 per cent of the equivalent period last year, while stores were at 80 per cent.

Landsec said it “remained in a financially robust position” and, in a marked difference from other listed landlords.

Fellow shopping centre owner Intu fell into administration last week after crunch talks with its lenders were unsuccessful.

It applied to appoint James Robert Tucker, Michael Robert Pink and David John Pike of KPMG as joint administrators.

Meanwhile, British Land and Hammerson said on Wednesday that they have sought to assure over an improving picture in the hard-hit retail sector, but revealed ongoing difficulties for retailers to meet rent demands.

The firms – which own Meadowhall in Sheffield, and Birmingham’s Bullring and Brent Cross in north London respectively – said they had collected just 16 per cent of third quarter rent in the UK.

British Land confirmed 64 per cent (or 894) of stores across its sites in England are now open and have seen sales surge 91 per cent over the first week of reopening.

Hammerson said it was “confident that collection rates will continue to improve materially in all regions as agreements are progressed with brands”.

The firm said 73 per cent of UK rent had been collected for the first half of the year.

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