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)