Institutional landlord Hammerson said it only received about a third of rent payments it was due for the second quarter of the year last week, as struggling retailers asked for coronavirus-related deferrals.
Hammerson, which owns shopping centres such as the Bullring in Birmingham and Brent Cross in London, said it had received “a variety of requests for rent deferrals, monthly payments and waivers”, particularly from smaller and independent occupiers.
It said by the end of March 27 it had only received 37% of due rent. Adjusted for deferments and switches to monthly payments, this represented around 57% of due rent.
The landlord said it would be reviewing these requests “on a case-by-case basis, taking into account the business model and risk profile of the occupier” alongside any government aid.
Two of Hammerson’s ‘flagship destinations’, Victoria in Leeds and Highcross in Leicester, have closed completely, while only 30 units occupied by what the government have designated “essential” retailers are continuing to operate as normal across the landlord’s wider portfolio.
In terms of its retail parks, Hammerson said it had received 36% of rent, while 17 of its 20 premium outlets have closed.
While Hammerson said it “remains confident in the financial position” of the wider business, it said the ongoing coronavirus outbreak would “have a material impact” in 2020 and retracted its previous profit guidance.
The news comes after fellow institutional landlord Intu announced last week it had received just 29% of its quarterly rent payments from tenants.
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