Workspace PLC (LON:WKP) has seen revenues tumble in the UK lockdown with only 50% of rents collected by the end of the March quarter.
The temp office group is keeping its sites open to support essential activities albeit with a significantly reduced service
Most tenants pay monthly, it added, and it is being asked for rent relief from many during the period of lockdown, which will affect cash inflows.
The slowdown came too late to affect the financial year that has just ended, which will be in line market forecasts, but it said enquiries and lettings turned down sharply at the end of the month.
Workspace added it will wait and see how things develop before making a decision on the final dividend.
Two new centre launches at Mare Street Studios, Hackney and Lock Studios, Bow have been postponed.
At the end of March, the temporary office space group had £70mln in cash, undrawn revolving credit facilities of £96mln and no material debt maturities until June 2022.
Workspace estimates it could withstand a reduction in net rental income of 61% or a fall in asset valuation of 63% before any debt covenants are breached.
Graham Clemett, chief executive said: “Our model of freehold ownership of our properties gives us the flexibility and control to respond quickly to developments in the current uncertain environment.
“Workspace is a strong and resilient business, with a leading market position in the London flexible office market.
“The swift actions we have taken will ensure that we are well-positioned for the eventual market recovery.”