McKay Securities PLC (LON:MCKS), a REIT specialising in office and industrial property in London and the south east of England, told investors that it collected 73% of rent due for the quarter ended June 30, 2020.
The figure, meanwhile, rises to 95% once it adds deferred payments that are now being caught up on via monthly payments.
It added that all assets are open whilst complying with government guidelines on safe office space.
Chairman Richard Grainger, in McKay’s financial results statement for the year to March 30 2020, highlighted a positive and productive trading period which is now followed by the impacts of the coronavirus (COVID-19) pandemic.
The REIT decided to pay a final dividend of 4.4p per share, down 40% from the 7.4p paid in 2019, as it opted to maintain a higher cash position amid the COVID-19 disruption and, overall, the total dividend for last year amounted to 7.2p which is down 29% on 2018.
“We face this period of uncertainty with the benefit of a high-quality portfolio invested in resilient markets and sectors, and with characteristics that could benefit in the post Covid-19 world,” Grainger said.
Simon Perkins, McKay chief executive, meanwhile, added: “We continue to benefit from our consistent focus on the more robust office, industrial and logistics markets of the South East and London.
“We expect to see an acceleration of many of the trends we have positioned the portfolio to respond to over recent years, such as flexible lease structure, competitive rents, smart technology, strong sustainability credentials and high standards of customer service.
“If factors such as lower occupational costs, flexible transport options and generous car parking result in further decentralisation post Covid-19, we are well placed to take advantage.”
In the twelve months ended March 30, McKay’s portfolio value increased to £510mln from £482.7mln. It achieved a total portfolio return of 4.7% which it highlighted “significantly outperformed” the MSCI Index which was down 0.1%.
NAV was up 0.9% to 329p per share, at the end of March, and the REIT reported a profit before tax of £9.49mln compared with £13.19mln in 2019 – it noted that positive revaluation surplus was smaller than in the prior year.
Gross rental income was up 16.4% to £25.16mln as it realised annualised contributions from 2019’s developments and asset management.
Published at Tue, 09 Jun 2020 07:41:00 +0000-McKay Securities says collected 73% of rents for June quarter, final dividend cut by 40%