More evidence that our switch to property is helping to maintain our income
Two of our real estate holdings have positive news for investors despite the economic damage caused by the coronavirus epidemic
OUR portfolio is now heavily exposed to property in one way or another, as certain types of real estate offer income certainty when few other assets do, and two of our property holdings have announced updates recently.
The first is Sirius Real
Estate, which owns commercial property in Germany. On Wednesday it said the collection of rent and service charges in June had been at 99.8pc of normal levels.
Sirius said: “The consistency of cash collection is reflective of the company’s breadth of tenant base, ability of its staff to engage with and manage its tenants and the decisive manner in which the company has been managing throughout the crisis, as well as the efficiency with which the German government has acted
to support businesses.”
It added that a “small number” of tenants that faced financial difficulties related to Covid-19 had requested deferral of rental and service charge payments. “These are being addressed on a case-bycase basis and have had very limited impact on cash flow at this point,” Sirius said.
It had good news too about inquiries from potential new tenants. “Following a previously reported brief reduction … inquiry levels have returned to normal levels of above 1,200 per month in April, May and June 2020,” it said. “The demand for space remains good, with an increase in the demand for storage.” Sirius’s conferencing activity has also resumed “successfully”.
Andrew Coombs, the company’s chief executive, said: “While the last few months have been a hugely challenging time for people both personally and economically, we have
weathered the first phase of this crisis with relative success.”