Warehousing landlord LondonMetric sees occupiers return to quarterly rents

LondonMetric has seen a rising number of occupiers return to quarterly rent payments, the warehousing firm said as it updated on payment collections.

The FTSE 250 logistics property firm, which counts Amazon, DfS and Primark as tenants, allowed some firms to move to monthly rents following the coronavirus outbreak in order to help occupiers with their cash flow.

LondonMetric today said: “We are witnessing an increasing trend of occupiers shifting away from monthly payment concessions back to paying quarterly under the terms of their lease.”

Andrew Jones, chief executive of LondonMetric, said some companies had seen their businesses stabilise. He added that a number of tenants that have switched back to quarterly rents are in the homeware sector which has seen good demand during the lockdown, with many people doing DIY and making home improvements.

Jones has previously said he predicts demand by retailers and other businesses for storage and distribution space to cope with online orders will continue after the Covid-19 lockdown eases.

Of the rents due for the September rent quarter day, 94% has been collected, and a further 3% is expected to be collected imminently.

There is 2% being deferred as part of previously agreed payment plans, and some 1% is outstanding.