The investment company, which owns a portfolio of Tesco, Sainsbury’s and Morrisons supermarket stores, said it had received 100% of its expected rent payments for the March quarter, in stark contrast to some other more prominent property companies in recent days.
What’s more, after upward rent reviews at one of its Tesco superstore and a Morrisons supermarket since the start of the year, the total rent from the portfolio was increased to £28.4mln from £28.03mln, it added in a statement.
Taking heart from the solidity of its portfolio, the REIT confirmed that it would not change the timetable for its intended third-quarter interim dividend, which is due to be announced on April 8.
After the payment of the third-quarter dividend, the company expects to have cash balances of £32mln, with a net loan-to-value ratio standing at 37.5%, well within the 60% required in its banking covenants, and interest cover will be 6.8 versus a covenanted 2.0.
“While it is too early to fully understand the long-term implications of the ongoing health crisis, the company has a robust balance sheet and is in a strong position to continue operating as usual despite the wider uncertainty,” it said in the statement.