Citycon reports additional details on April rent collection
In the extraordinary circumstances followed by the outbreak of Covid-19 pandemic Citycon considers it beneficial to provide additional details on the rent collection level in April 2020. As stated in the company’s Q1 interim report published on 23 April 2020, Citycon’s rental income for Q1 remained stable. In April these conditions have subsisted and Citycon has collected and/or accrued as government assistance guarantees approximately 75% of its billed rent for the month.
Many of the countries which the company operates within, have publicly announced government programs to assist tenants through the COVID-19 crisis. The company has collected approximately 65% in cash from its tenants and has accrued approximately 10% of its billed rent which has been deferred until the tenants are able to collect the monies from the government program to offset their fixed costs. The company reports that over 90% of tenants are now open for business.
“This is further validation of our strategy which focuses on owning the best supermarket-anchored urban hubs with a focus on necessity goods such as groceries and medications. Our centres serve also as mass transit hubs located in the most dense, largest cities in the Nordics and operate in countries that have placed a priority on maintaining the economic viability of the country as well as attend to the health of their citizens. These countries largely took a holistic approach to dealing with the crisis and never shut down completely, which makes the resumption of business that much easier. I am also pleased to see footfall numbers continuing to improve each week while we have simultaneously upgraded our COVID-19 safety measures. These were already some of the most attractive markets to operate within, and on a relative basis, should outshine their peers around the globe”, stated Citycon’s CEO, F. Scott Ball
The company expects to publish more detailed information on its trading and result as well as the impact of COVID-19 in its Q2 report in July.
Espoo, 12 May 2020