Irish-listed property investor Yew Grove has reported rent collections of 97 per cent for the second quarter of the year, but has said it remains in contact with tenants who may need assistance due to the coronavirus pandemic.
In a note to investors on Friday, the company said it was reporting collections of 97 per cent for second-quarter rent, which is in excess of its expectations of 95 per cent in April. “This includes all of the monthly rental payments due in the quarter,” it said.
The company has agreed a temporary rent deferral with a repayment plan on an additional 1.9 per cent of the unpaid balance, bringing the total to 98.9 per cent in due course, with the remainder due from non-food retail outlets which have been closed.
Yew Grove chief executive Jonathan Laredo said he was "encouraged that the strength of our tenant covenant across the portfolio and our close relationships with the occupiers of our buildings ensured our collections for the second quarter have remained robust".
‘Very challenging’
This, he said, was in spite of “the very challenging market conditions”, adding that the company expects to announce a second quarter dividend at the end of June following a board meeting to review our quarterly results.
“Our focus on tenant credit quality (with 95.3 per cent of our rent roll from Government bodies or multinationals and large Irish enterprises) and our lack of exposure to non-food retail (1.2 per cent of the quarterly rent roll) has served, and should continue to serve, us well,” he said.
“We are talking frequently to each of our building occupiers to ensure that we understand what they need both in terms of the ongoing management of the premises whilst they do not occupy them, additional asset management needed from us and, where necessary, assistance to try to ensure that we both weather this crisis.”
He added the company will be reporting on its expectation for third quarter rent collections in early July.
Net rental income at Yew Grove increased by 267 per cent in 2019, while profit more than doubled from 2.3 million to €5 million.
The company’s property portfolio grew from €77.9 million to €115.8 million following the acquisition of six buildings in Waterford, Cork and Athlone.
