Shares in property firms Derwent London (DLN) and Land Securities (LAND) pushed up on the back of encouraging rent collection figures for the latest quarter.
Derwent shares added 1.4% to £34.68 after the firm reported it had collected 89% of rents due in June compared with 75% in the same period last year and 87% in the quarter to March.
Office rents received - which make up the majority of Derwent’s income - were up to 93%, with 3% still due to come in, 3% outstanding and 1% of leases rent-free. However, only 27% of retail rents for June had been received to date, with 31% still due, 36% outstanding and 6% of leases rent-free.
March rent receipts were up to 94% against 87% announced initially, while December receipts were 92% against 82% initially.
Derwent owns 83 properties, mostly in central London, with a market value of £5.4 billion. It typically buys cheaper properties with modest rents in up-and-coming locations and regeneration zones.
Shares in Land Securities gained 2.2% to 682p after it announced it had received 81% of rents due for the June quarter compared with 67% for the March quarter.
Office rent receipts - which also make up the bulk of the firm’s income - were up to 95% compared with 87% in the previous quarter, while central London retail and leisure receipts were 71% and regional retail and leisure receipts were 73%.
While this may sound disappointing, it’s a lot better than March when receipts for central London retail and leisure venues were just 29% and regional retail and leisure receipts were only 38% due to non-essential shops and other venues still being shut.
Land Securities also pleased investors with the announcement of its first quarterly dividend for the 2021/22 financial year, a payment of 7p per share due in October. Property stocks are popular with income investors for their normally-reliable dividend streams.