London. Picture: 123RF/LITTLE NY
London. Picture: 123RF/LITTLE NY

UK retail landlord New Frontier Properties (NFP) has deferred a decision on coronavurs-related writedowns of its property portfolio amid indications it may be undervalued.

The group, which has a market capitalisation of R23m, said on Wednesday that it is assessing the fallout from Covid-19, which saw all but essential shops closed in the UK during its third quarter to end-May.

The UK government introduced a moratorium preventing landlords from taking recovery action against retailers, which has hampered the collection of rent from tenants, the group said.

Many retailers are taking advantage of the moratorium to preserve their cash resources, NFP said, adding that in spite of this it had met its obligations to lenders during its third quarter.

NFP said it will undertake an assessment of the value of its property portfolio when reporting its results for its year to end-August, but that its portfolio could be at value or undervalued.

As of the end of May, the group had investment property assets worth £63m (R1.3bn).

In afternoon trade on Wednesday, NFP’s little-traded share was unchanged at 18c, having fallen 60% so far in 2020

gernetzkyk@businesslive.co.za

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