Land Securities to reinstate dividends later this year

Commercial property owner Land Securities said it planned to reinstate dividends later this year as tenants reopened premises after the easing of coronavirus lockdowns.

The company on Friday said it had received 60% of June net rent due after concessions and deferrals, compared with 94% a year ago.

Dividends would resume after half-year results in November, it added.

"In line with government guidance, our shopping centres, outlets and retail parks are open, with encouraging levels of footfall. Our high-quality office estate is open and we are seeing early signs of growing occupancy as customers return to work," the company said.

Landsec said it was in "financially robust" position, with adjusted net debt of £3.92bn June 30 compared with £3.93bn at the end of March and £1.20bn of cash and available facilities.

"The board has reviewed the position on future dividend payments and intends to reinstate payments following the half-yearly results announcement on 10 November 2020. The size and timing of our interim dividend will be confirmed with the publication of the half-yearly results," the company said.

"Covid-19 has resulted in some customers taking longer to pay their rent and we continue to have supportive and constructive dialogue with our customers."

Tenants had paid 75% of rent due on March 25, up from 65% collected after five working days with an increase across all segments, particularly in offices, which were now at 98%.

Overall, £30m of rent due on March 25 remained outstanding of which £5m related to concessions and deferred payments which had been agreed with customers, Landsec said.