RDI reports improved rent collections


RDI reports improved rent collections

Published Date: 2020-10-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

RDI reports improved rent collections

The real estate investment trust says negotiations with tenants and clients are ongoing.

RDI REIT's shares rose on Friday after it said rent collections at its properties continued to improve.

In an update, the real estate investment trust, formerly called Redefine International, said it collected about 81.5% of rents across its portfolio for either the September quarter, or the month of September where rents are billed monthly. That's up from 70.1% in June. However, it said the collection rate for June had since improved to 90.2%.

In the UK, excluding its hotels and London Serviced Offices portfolios, rent collections totalled 78.1% of rents due for the quarter, while 98.2% of rents due across the European portfolio, typically paid monthly in advance, came in.

It received no rent for its hotels managed by strategic partner RBH Hospitality Management for the second half of the financial year to end-August, while the first rental payment for its 2021 isn't due yet as they are received quarterly in arrears. Rent for the five hotels let on long leases to Travelodge were received in full based on the revised rents agreed under a recent company voluntary arrangement (CVA). Travelodge entered the CVA in June to help it restructure its leases due to the challenges it faced as a result of Covid-19.

RDI's results for the year to end-August are scheduled for release on 5 November. In July, it said it would make a decision on when to reinstate dividend payments with the release of its full-year results. It held back from paying an interim dividend in May due to the disruption caused by Covid-19 and the lack of visibility on future cash flows.

Its shares closed 4.8% higher at R19.80 on Friday.

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