Retail and leisure companies are struggling to recover from weeks of enforced closure. That stress is being passed on to landlords, pushing many closer towards debt covenant limits and diminishing the prospect of shareholder returns even further.
With retail landlords across the UK collecting less than half of rent due in the second and third quarters, according to data from property management platform Re-Leased, further pain is expected on the final quarterly payment day at the end of this month.
Some landlords and tenants have managed to agree rent deferrals, holidays or a switch to monthly payments, in exchange for an extension on the lease or the occupier surrendering the break in the tenancy agreement. But a growing number of landlords are pursuing debt claims against tenants they believe have the ability to pay rent.