Main Street Complex plc - Business and Operational Update

On 17 February 2021, Main Street Complex plc published an announcement whereby it provided the market with an overview of key aspects of the business of the company which were experienced in 2020.

Main Street Complex noted that since March 2020, the company, together with the tenants operating within its complex, faced and continue to face novel challenges in their respective day-to-day operations and business activities. The company’s Board of Directors explained that its performance in 2020 was negatively impacted by COVID-19, the measures and resulting restrictions adopted in response to the pandemic which resulted in the temporary forced closure of the complex between 14 March 2020 and 3 May 2020, as well as the weak economic and market conditions.

Since re-opening the complex, the company has implemented a number of precautionary measures in accordance with the protocols and guidelines issued by the public health authorities over the course of the year. Meanwhile, the company also noted that key performance indicators show a modest recovery registered in the second half of 2020.

Footfall

Prior to the onset of the coronavirus, during the first two months of 2020, growth trends mirrored the growth recorded in 2019, with an average increase of 7% over the corresponding period in 2019. Following the imposition of a temporary partial lock-down and subsequent restrictive measures and prohibitions on social or non-essential activities, the remainder of 2020 was characterised by a complete absence of footfall during the forced closure period and an average footfall of 69% (when compared to the corresponding period in 2019) between the months of May and December 2020. Since re-opening the complex, footfall recovery peaked in December (77%) closely followed by September (76%).

Tenants and rental income

The company explained that it took the decision not to charge rent to its tenants during the period in which the complex was forced shut and applied substantial discounts for the remainder of 2020. The company believes that this decision has been vindicated by the fact that throughout 2020, all retail spaces within the complex remained occupied by sitting tenants, save for one retail space measuring circa 70 sqm, which was vacated by its tenant in May 2020 and has remained vacated ever since. Meanwhile, the entertainment outlet and bingo hall which are operated in the top floor of the complex continue to operate, albeit at a significantly reduced capacity. Moreover, the operation of the car park situated within the complex was taken over by CT Parks as of November 2020.

Concluding remarks

The company considers the results registered in 2020 to be an exception to the positive trends and growth experienced over the preceding years. The Board of Directors concluded by stating that as the situation remains in a state of flux and constant evolvement, it will continue to closely monitor the situation and keep the market informed of material developments.