The measures to limit the spread of the Covid-19 virus had an important impact on the global economy, and consequently on our company.
As practically all shops of our retail tenants have in the meantime reopened, we have a clearer view on the impact up until now.
Diversified real estate portfolio, different markets
The assets in
GRAND DUCHY OF LUXEMBOURG
The impact on our Luxembourg real estate portfolio is mainly situated in the retail segment, of which food (incl. food for pets) and DIY however represent over 30%. As it was the case in
The real estate portfolio in
Impact on the rental turnover
Leasinvest already announced that different tenants, mainly in the retail segment, asked for a compensation to bridge the difficult lockdown period. Leasinvest always had a constructive approach and entered into consultations with tenants that requested rent reductions for solid reasons. The negotiations have been finalized for a large part of the tenants, but are still ongoing for another part. In total, the negative impact on the rental income of the second quarter of 2020 is estimated at ca. € 4 million. This amount is expected to slightly increase in the third quarter, as a limited number of sectors (e.g. catering) are clearly more heavily hit than others.
Valuation of 10%-participation in the public
It has become clear that retail parks have proven their strength during the corona crisis. On the one hand, because of the feeling of security, and on the other hand, because of their particular range of products and the speed of shopping, specific to retail parks.
The participation of Leasinvest in Retail Estates is valued at the closing price of each quarter, which led to a depreciation of € 49.3 million recorded on this participation in the first quarter of 2020. This valuation was based on a closing price of € 47.40, while the price of the Retail Estates-share has recovered over the last couple of weeks to a level of € 59.90, allowing the company to reverse on
Impact on the debt ratio
Traditionally, the debt ratio is the highest on 30 June throughout the financial year, because of the dividend payment in May, which causes a temporary increase in debt ratio by ca. 2.5 per cent points. The debt ratio remains below the 60%-threshold because of the recovery of the price of the Retail Estates-share (cf. supra) and the fact that no major changes in value on the real estate portfolio are expected.
The half-year financial report 2020 will be published on
For more information, contact Chief Executive Officer T: +32 3 238 98 77 E: michel.van.geyte@leasinvest.be |
On On 31/03/2020, the total fair value of the directly held real estate portfolio of Leasinvest amounts to € 1.11 billion, spread across the Grand Duchy of Luxembourg (53%), Moreover, Leasinvest is one of the most important real estate investors in Luxembourg. The public BE-REIT is listed on Euronext Brussels and has a market capitalization of € 542 million (value on |
Attachment
- 2020 07 02 LRE_Update Covid-19_2_ENG_Final
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