Land Securities rent collection rates continue to improve

Land Securities said on Friday that its rent collection rates continue to improve.

As at 12 October, the company had collected 85% of rent in respect of the September 2021 quarter, up from 81% at the same stage for the June quarter.

Regional retail rent collection was up from 73% at the same point for the June quarter to 83%, while Rest of Central London was 80%, versus 71% in the prior quarter.

Rent collection for urban opportunities and offices was unchanged at 50% and 95%, respectively.

Landsec said that of the £13m of rent outstanding, £5m relates to customers who have withheld payment pending documentation of agreed concessions.

Broker Liberum, which rates the stock at 'buy', said: "While showing improvement, rent collection levels are still below some peers like Derwent for officer or NewRiver for retail.

"For the latter, near term risks are particularly heightened with (i) furlough run-off, (ii) supply chain disruption (iii) business rates relief unwind in March 2022 and (iv) a more uncertain macro environment. However overall, we continue to believe Landsec has a credible plan to create value over the medium term."