Robust trading, rent receipt and occupation

Raven’s positive trading update was reassuringly robust, despite ongoing uncertainty regarding the long-term impact of Covid-19 on the Russian market.

It has tempered its own leasing expectations for the next 18 months and assumes some sectors will delay planned investment/expansion. But sees potential and indeed some evidence that the crisis will accelerate moves to create e-commerce supply chains.

The Group derives its competitive positioning from a 1.9m sqm portfolio of logistics warehouses. These play a crucial role in Moscow’s logistics networks and supply chains, allowing local supermarkets, their suppliers and e-commerce arms to continue to operate during lockdown.

Rent collection reflects a tenant profile which has largely continued to operate during lockdown restrictions. Raven’s warehouse portfolio is currently 93% leased and it has collected on average over 96% of rent due in each month since March.

Underlying portfolio resilience was confirmed by an independent appraisal carried out by JLL as at 31 May 2020, which recorded no material movement in Rouble values vs 31 December 2019.

We believe that kind of performance deserves more attention, and hope to reinstate detailed forecasts post the General Meeting on 31 July (re a simplified capital structure) and the interim results.