Retailer failures erode rental income by 1.6 per cent
In a trading update at its AGM British Land said the retail market “remains challenging.” The company said “the impact of long term structural change driven by the internet is being compounded by short term trading headwinds.”
Across BL’s retail portfolio portfolio, the combined impact of administrations and CVAs since 1 April 2017 is 1.6 per cent of total group contracted rent, up from 1 per cent in May. Retail occupancy now stands at 96.4 per cent.
The company told shareholders: “We are seeing increased polarisation but continue to believe that British Land assets are on the right side of this trend. Since the year end, we have let 128,000 sq ft of retail space and placed a further 97,000 sq ft under offer, overall 6.0 per cent ahead of ERV.”