Ei sees significant drop in income from MRO pubs
Pubco Ei has estimated that it will see an 18% reduction in net income from each of the pubs that have taken the market-rent-only (MRO) option and gone free of tie.
In its latest financial results, the company, which was formerly known as Enterprise Inns, said that only four tenants had taken on free-of-tie agreements so far.
However, the company added that of the 61 MRO cases currently with the pubs code adjudicator, it thought that some of them would result in the pubco being required to issue new free-of-tie leases.
Ei revealed that 499 sites in its tenanted estate have had MRO trigger events since the pubs code became law in July 2016. Of those 499, 171 sites have had MRO offers issued, with 59 of these resulting in new tied agreements.
The Morning Advertiser asked Ei for comment but the pubco had not responded before publication.
