In an interim management statement for the 42 weeks to 16 July it said a 'trend of stablisation' had continued with third quarter income per pub in line with last year.
Year-to-date, 'despite challenging conditions across the pub sector', the group said average income per pub for the entire estate was down by 2 per cent.
Substantative leases
Pubs let on substantive leases continued to perform well, said ETI, with like-for-like income per pub down by less than 2 per cent on the same period last year.
It added that 86 per cent of its pubs, contributing 93 per cent of its net income, were now let on substantive agreements, leading the group to anticipate the percentage to 'increase in the run up to the year end.'
The percentage of pubs closed or let on short-term agreements has remained broadly constant but it said it only had 55 pubs operating under Temporary Management Agreements (TMAs). This is expected to reduce to zero by the year-end, it said.
Pub disposal
The group, led by chief executive Ted Tuppen, has disposed of 402 pubs this year – raising £124m - and it said a further 102 pubs had exchanged contracts or were in the hands of the solicitors, which were due to raise an extra £29m before the year end.
ETI said: “These sales continue to achieve proceeds significantly ahead of book value.”
The company, which has raised £110m from the sale and leaseback of 69 London pubs, with an average yield of 6.4 per cent, said it had no further auctions planned before the end of the year, however, it added: “We are in direct negotiation with a number of parties and expect to complete a few more sale and leaseback transactions before the year end.
“As we continually seek to improve the overall quality of the pub estate, whilst at the same time reducing bank borrowings, we would expect to continue with both the disposal of unviable pubs and the sale and leaseback programme at a similar level during the next financial year.”
The group is also in the process of launching its new suite of agreements and said its code of practice had received full accreditation by the BII.
Martyn Leek is news editor of BigHospitality's sister publication, M&C Report.