Segro (SGRO) has bucked the trend set by real estate groups by confirming that it will pay the final dividend of 14.4p a share on 1 May. The warehouse development group and landlord, which had a loan-to-value ratio of just 26 per cent, said rental income would have to fall by 80 per cent or asset values by 64 per cent before any debt covenants were breached.
However, the group said it was inevitable that there would be some short-term impact on earnings as some of its tenants suffered cash-flow problems. Around half of Segro’s rent is payable on UK quarterly payment days and 71 per cent of that rent due was collected on 25 March.
The group said it was working with tenants representing around a quarter of its total headline rent regarding appropriate relief, primarily through re-profiling the timing of rental payments.
