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COVID-19 rental collection and operational update
STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP JSE share code: STP
ISIN: GG00BFWMR296
(“Stenprop” or the “Company”)
COVID-19 RENTAL COLLECTION AND OPERATIONAL UPDATE
21 April 2020
Following the update announced on 26 March 2020, Stenprop, the UK multi-let industrial (MLI) property company, today
provides a further business update in light of the COVID-19 pandemic.
Rent collection
At close of business on 15 April 2020, we had received 73% of the total rent invoiced and due for the aggregate of the
quarter commencing 25 March 2020 and the month commencing 1 April 2020, broken down as follows:
- 79% of all rent invoiced was for the quarter commencing 25 March and ending 24 June 2020, of which 77% was paid
by 15 April 2020; and
- 21% of all rent invoiced was for the month of April 2020, of which 56% was paid by 15 April 2020.
Operational matters
We are engaging actively with our tenants on an individual basis, particularly those who are experiencing cash flow
difficulties as a result of the lockdown measures across Europe. This necessarily involves a detailed understanding of the
financial and operating impact of the current crisis on each customer’s business and what measures they will be able to
take (including accessing Government financial support) to ensure they can manage through the lockdown period and
continue to operate successfully thereafter. It is too early to provide any meaningful conclusions on this while the lockdown
continues and uncertainty over the timing of a return to normality remains.
Despite the current difficulties, we continue to receive letting enquiries for our UK MLI portfolio through our online digital
marketing platform, albeit at a much reduced level. However, the enquiries we do receive are typically focused and urgent
requirements with a higher rate of conversion into lettings. Since all Stenprop staff moved to working from home on
16 March 2020, we have completed 16 new UK MLI leases, aggregating to £474,000 per annum of new headline rent over
112,500 sq ft of space, a number of which have been executed entirely digitally through our existing online leasing process.
Our experience in having already completed 18 leases using this digital platform prior to 16 March 2020, combined with our
digital-first leasing strategy across our Industrials platform, highlights that the initiatives we have been implementing are
proving effective and are likely to lead to higher levels of demand in the long term. We continue to invest in the digital
platform during this period and will provide more information on this in our Annual Report for the year ended 31 March
2020.
To date, we have not made any redundancies or put any staff on furlough and our entire workforce remains productive and
fully engaged, meeting the challenges that we face during the current crisis, aided by our existing cloud-based IT
infrastructure and existing operating procedures. Our team remains vigilant and is ready to support businesses or
organisations contributing to the efforts in the UK or Germany to fight the COVID-19 pandemic. We have supplied to the
NHS a list of all available units in our portfolio should they need space to store or distribute equipment and we have
recently completed a short-term, rent-free letting to a food bank charity in Cardiff which has been supplying meals to NHS
staff in the city.
Outlook
We remain confident that we are well placed to respond to the challenges of COVID-19. As explained in our previous
announcement, our overall loan-to-value ratio (LTV) stands at approximately 40.7% based on the most recent property
valuations as at 30 September 2019 and adjusted for subsequent acquisitions and disposals. When unrestricted cash of
£60 million is deducted from loans, the LTV falls to 29.6%, which combines with significant headroom in our banking
covenants.
While the duration of the crisis remains uncertain, its financial impact upon the business remains difficult to predict.
However, Stenprop remains a financially sound business with a capital structure and operating platform which is well
placed to deal with a prolonged period of uncertainty and ultimately address, resolve and move on from the current
challenges when the time comes.
For further information:
Stenprop Limited
Paul Arenson +44(0)20 3918 6600
Julian Carey
James Beaumont
Numis Securities Limited (Financial Adviser) +44(0)20 7260 1000
Hugh Jonathan
Vicki Paine
Tavistock (PR Adviser) +44(0)20 7920 3150
James Whitmore
James Verstringhe
JSE Sponsor +27(0)11 722 3050
Java Capital Trustees and Sponsors Proprietary Limited
About Stenprop
Stenprop is a Guernsey-registered UK REIT. The objective of the Company is to deliver sustainable growing income to its
investors. Stenprop’s investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties with
the strategic goal of becoming the leading MLI business in the UK. For further information, go to www.stenprop.com.
Date: 21-04-2020 08:00:00
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