Continuity of operations

Through the COVID-19 crisis, the Group has demonstrated resilience, with continued momentum on leasing activities across its European portfolio.

Rent collection for the second quarter of 2020

The COVID-19 crisis has impacted economies across Europe in different ways, with considerable disruption across certain sectors. Nonetheless, the Group’s business has demonstrated its resilience, supported by its wide geographic spread and highly diversified tenant base, and the continued strong demand for logistics properties. The Group’s active asset management approach has ensured that its teams around Europe are in frequent contact with customers as they navigate the uncertainty caused by the pandemic. This active engagement allows the Group to work constructively to support those customers who need assistance.

As of 19 June 2020, the Group’s cash collection for second quarter 2020 rents was 90%, including amounts expected to be collected shortly, reflecting the typically different timings for invoicing and cash collection across Europe.

In addition, relief in various forms amounting to 6% of rents for the second quarter of 2020 has been agreed to help certain customers who have been severely and directly impacted. Of this, almost all have been re-profiled via agreed deferred payments to either later in 2020 or 2021.

Strong balance sheet

At the start of the year, the Group concluded the refinancing of its historic secured debt, which has resulted in a predominantly unsecured, fixed-rate debt structure.

The Group is well-placed in terms of liquidity through a combination of available cash and the undrawn balance from its revolving credit facility providing over €700 million of available funds as at the end of May 2020.

Continued strong demand for logistics property

Restrictions on travel and government-enforced lockdowns in response to the COVID-19 pandemic have accelerated the adoption of online retail, and highlighted the importance of resilient supply chains and high-quality, well-located warehouse space. Consequently, despite recent uncertainty, the long-term structural trends that have been driving the Group’s assets throughout Europe remain favourable.

As a result, in the five months ended 31 May 2020, the Group experienced continued strong demand for logistics properties. During this period, the Group leased over one million sqm of space, which was in line with the leasing velocity for the same period in 2019. This robust leasing performance was supported by customer retention rates in line with that of 2019.

The Group’s development programme has continued in the year to date at a similar pace to that of 2019, with five new developments commenced, all of which are fully pre-leased. Whilst the COVID-19 crisis has led to some temporary disruption to certain ongoing developments, anticipated timing and costs of delivery have not been materially affected.

Management update

Mo Barzegar, who has been serving as Chairman since May 2019, has stepped down from the role and will not be replaced. Michael Slattery, who has acted as Interim CEO since June 2019, will be appointed permanent Chief Executive Officer of the Group in July 2020.