Retail landlords benefit from having "essential" shops in portfolios

Retail landlords NewRiver and Capital & Regional on Tuesday showed they were benefiting from their focus on “essential” shops such as chemists and grocers that remain open under the Covid-19 lockdown.

The pair lease less space than some rivals to chains in sectors such as fashion which have proved vulnerable to weak consumer confidence. Instead they host more opticians, supermarkets and other vital suppliers to communities.

As a result, Capital & Regional, behind malls in Wood Green and Walthamstow, and NewRiver still have a number of essential shops open.

NewRiver received 60% of its quarterly rents due by last week, Capital & Regional around 50%.

Of retailers and restaurant owners that have had to close due to Government orders, a number have warned various landlords they can’t afford to pay property costs while they have no trade.

Capital & Regional said it is too early to quantify the overall impact of Covid 19 on the group's operations.

NewRiver is suspending all previous guidance on forecasts that it has provided.