By Aby Jose Koilparambil
(Reuters) -UK commercial landlord British Land said on Tuesday it did not expect to grant further rent concessions to its tenants this quarter as the easing of coronavirus restrictions had boosted their trading.
The firm, which counts London's Broadgate Circle and Sheffield's Meadowhall shopping centre in northern England among its assets, said it had seen a notable improvement in activity across its businesses after curbs were eased, adding that the valuations of its outperforming retail parks are expected to rise.
British Land said 87 million pounds ($120.47 million) of rent was due for payment in the June quarter, with 85% collected to date.
"Where appropriate, we have agreed pragmatic and equitable solutions for the periods of closure, which include monthly payments and concessions," the company said.
"However, with trading restrictions substantially lifted and the vast majority of our customers trading well and paying the rent due, we do not expect to make further concessions this quarter."
The move comes after the British government last month decided to extend a ban on commercial evictions until March 2022.
Lobby group the British Retail Consortium recently told Reuters that a major worry for the industry was rent defaults by tenants who are trading well and could afford to pay on time.
Commercial landlords have lagged the wider real estate sector as multiple lockdowns and an extended moratorium on rent collection hurt retail-focused assets, while a shift to working from home has weighed on office portfolios.
Hargreaves Lansdown (LON:HRGV) analyst Sophie Lund-Yates said the outlook was particularly bright for retail parks, which tended to be more spacious, making social distancing easier.
"This change in consumer preferences is also nudging retail park asset values up," said Hargreaves Lansdown analyst Sophie Lund-Yates.
British Land said 71% of rent was collected in the retail segment in the last quarter — 24 percentage points higher than at the same point during the December quarter when strict lockdowns previously battered the retail space.
($1 = 0.7222 pounds)