Shares in the property company Hammerson, which owns several shopping centres, have plunged by a fifth in the past few days. The group was paid only about a third of the quarterly rent it was due last week “as cash-strapped retailers struggled to survive” the crisis, says Julia Kollewe in The Guardian. It has been “deluged with requests for rent deferrals, cuts or waivers”: most retailers have been forced to close. Hammerson has scrapped its dividend to conserve cash.
No wonder, says Miles Costello in The Times. The lockdown is “deepening” what has already been a “prolonged crisis” for many commercial landlords, who are “battling” to respond to the downturn in trading at bricks and mortar stores. They are “facing a squeeze” from both sides. Tenants are “baying for rent reductions and waivers while they are unable to trade”. At the same time lenders are still “demanding repayments on their loans”. While Hammerson isn’t as highly leveraged as rivals, its £2.4bn of net debts are equivalent to a “very high” 8.9 times earnings.
Both British Land and Intu Properties are also having to take emergency measures, says Ben Chapman in The Independent. British Land has suspended its dividend and is supporting its retail tenants by granting rent relief and delays. Intu is perhaps doing worst of all, receiving only 29% of rent due in the first quarter of 2020. So it is in talks with its lenders to “relax the rules” on its own multibillion-pound debts. It is also in an “ongoing dialogue” with the government about further loans from its £330bn bailout package.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Water companies blocked from using customer money to pay “undeserved” bonusesThe regulator has blocked three water companies from using billpayer money to pay £1.5 million in exec bonuses
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
-
Halifax: House price slump continues as prices slide for the sixth consecutive monthUK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
-
Pension savers turn to gold investmentsInvestors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
-
Where to find the best returns from student accommodationStudent accommodation can be a lucrative investment if you know where to look.
-
Best investing appsLooking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go? We round up the best investing apps
-
The world’s best bargain stocksSearching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
-
Revealed: the cheapest cities to own a home in BritainNew research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
-
UK recession: How to protect your portfolioAs the UK recession is confirmed, we look at ways to protect your wealth.
