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Property investor NewRiver REIT said community pub business Hawthorn Leisure had closed all its sites in line with strict social distancing rules imposed by the UK government.
The company said it had improved its financial position further at the end of last week to £75m of unrestricted cash and £45m of committed undrawn credit facilities, providing £120m of available liquidity.
'The company has already undertaken extensive scenario testing, factoring in the loss of income from its pub portfolio, which confirms that NewRiver has significant covenant headroom and a capital structure that is well placed to absorb a prolonged period of uncertainty,' it added.
One scenario imagined that the company did not receive any pub income for the next six months, and a reduced income beyond that, whilst the pub business rebuilds.
It also assumed a significant reduction in the company's retail portfolio income for the next 12 months.
In that scenario, the NewRiver REIT said its analysis showed it would have in excess of £50m of cash and £45m of undrawn credit facilities after 12 months.
'Based on this analysis, the company is confident that it will remain compliant with its financial covenants for the next 12 months,' it said, adding that it had no bank or refinancing events until August 2023.
At 8:45am: (LON:NRR) Newriver Reit PLC share price was -8.05p at 61.45p