Loungers Kings Lynn/Torquay 0.3% KBeverage (t/a Starbucks) Nottingham 0.3% Mecca Bingo (sublet to Odeon Cinemas) Crewe 0.3% The Gym Group Carlisle 0.3% AGO Hotels Portishead 0.2% Las Iguanas Torquay 0.2% Le Bistrot Pierre Torquay 0.2% Tim Hortons Perth 0.2% McDonald's Plymouth 0.2% JD Wetherspoons Portishead 0.2% Scotco Eastern (t/a KFC) Perth 0.2% Ask Italian Restaurant Shrewsbury 0.2% Wedgmoor Crewe 0.2% The Universal Church of the Kingdom of God Stratford 0.1% Bright Horizons Chesham 0.1% Raven Valley Gateshead 0.1% Knutsford Day Nursery Knutsford 0.1% F1 Autocentres Crewe 0.1% Sam's Club (t/a House of the Rising Sun) Shrewsbury 0.1% Edmundson Electrical Crewe 0.1% Jurassic Coast (t/a Costa Coffee) Torquay 0.1% Other smaller tenants Various 0.1% VACANT 0.9% 16.3% Retail Superdrug Southsea/Weston-super-Mare/Worcester 1.3% Specsavers Cardiff 0.8% URBN UK Southampton 0.5% Sportswift Cardiff/Portsmouth 0.5% The Works Bury St Edmunds/Portsmouth 0.4% Reiss Guildford 0.4% Phase Eight Edinburgh 0.3% Poundland Portsmouth 0.3% Nationwide Shrewsbury 0.2% Portsmouth City Council Southsea 0.2% Foxtons Stratford 0.2% Wilko Retail Taunton 0.2% Signet Trading (t/a Ernest Jones) Chester 0.2% Tesco Stores Birmingham 0.2% Greggs Birmingham/Shrewsbury 0.2% Holland & Barrett Shrewsbury 0.2% Kruidvat Real Estate (t/a Savers) Colchester 0.2% Crepeaffaire St Albans 0.2% Lush Colchester 0.2% H Samuel Colchester 0.2% Der Touristik Chester 0.2% The White Company Nottingham 0.1% Savers Health & Beauty Bury St Edmunds 0.1% Your Phone Care Portsmouth 0.1% Feldale Retail (t/a Lakeland) Chester 0.1% Ciel (Concessions) (t/a Chesca) Chester 0.1% Aslan Jewellery Chester 0.1% Done Brothers (t/a Betfred) Cheltenham 0.1% Brook Taverner Cirencester 0.1% Leeds Building Society Colchester 0.1% The Danish Wardrobe (t/a Noa Noa) Cirencester 0.1% Coral Birmingham 0.1% Other smaller tenants Various 0.1% VACANT 1.4% 9.7% Retail Warehouse B&Q Banbury/Galashiels/Weymouth 3.2% Swindon/Ashton-under-Lyne/ Plymouth/Carlisle B&M 2.9% Wickes Winnersh/Burton upon Trent 1.8% Matalan Leicester 1.2% Magnet Gloucester/Leicester/Plymouth 1.1% Halfords Carlisle/Sheldon/Weymouth 0.8% Homebase Leighton Buzzard 0.8% Go Outdoors Swindon 0.8% Smyths Toys Gloucester 0.6% JB Global (t/a Oak Furniture Land) Plymouth 0.6% A Share & Sons (t/a SCS) Plymouth 0.5% M&S Evesham 0.5% Sainsbury's Torpoint 0.5% Pets at Home Winnersh 0.5% Boots Evesham 0.5% CDS Burton upon Trent 0.5% Argos Evesham 0.4% Next Evesham 0.4% Poundstretcher* Evesham/Grantham 0.4% Dreams Sheldon 0.4% TJ Morris (t/a HomeBargains) Portishead 0.3% Iceland Carlisle 0.3% Poundland Carlisle 0.2% Sports Direct Weymouth 0.2% Carpetright* Grantham 0.2% 1 Oak (t/a Starbucks) Burton upon Trent 0.1% Majestic Wine Warehouse Portishead 0.1% Other smaller tenants Various 0.1% VACANT 1.0% 20.9%
*Includes tenants in occupation paying GBPnil rent through CVAs where ERV has been used to calculate % portfolio income.
Principal risks and uncertainties
COVID-19 pandemic response
The impact of the COVID-19 pandemic has been pervasive across the globe, and has had a significant impact on rental receipts, tenant stability, property valuations, headroom against borrowing covenants and government legislation, and could cause further operational interruption to the Company for at least the financial year ending 31 March 2022. This expected impact has been reflected in the table below and is considered further in the Going concern and longer-term viability section of the Strategic report, although the Board believes uncertainty remains regarding the longer-term ramifications of the COVID-19 pandemic.
The business resilience and risk planning of the Company's key service providers has been tested during the year and in all cases has responded very well to the challenges presented by the COVID-19 pandemic disruption, with all key teams able to work from home and continue to offer high levels of service to the Company.
The Board met at least fortnightly via video-conference during the initial period of lockdown and has continued to receive regular updates on rent collection levels during the year to ensure the Company reacted promptly to the dynamic situation, including guiding and challenging the Investment Manager's response and approving decisions quickly when required.
Risk assessment
The Board has overall responsibility for reviewing the effectiveness of the system of risk management and internal control which is operated by the Investment Manager. The Company's risk management process is designed to identify, evaluate and mitigate the significant risks the Company faces. At least annually, the Board undertakes a risk review, with the assistance of the Audit and Risk Committee, to assess the effectiveness of the Investment Manager's risk management and internal control systems. During this review, no significant failings or weaknesses were identified in respect of risk management, internal control and related financial and business reporting.
(MORE TO FOLLOW) Dow Jones Newswires
June 16, 2021 02:16 ET (06:16 GMT)