Who Paid The Rent? Earnings Halftime Report

Summary

  • We're at the halfway point of the most newsworthy and consequential REIT earnings season in a decade. Rent collection and dividend plans have been the primary focus of investors.
  • We've now tracked 33 equity REITs in our universe of 165 names to announce a cut or suspension of their dividends in addition to the majority of mortgage REITs.
  • What rent strikes? Rent collection has been largely a non-issue for residential REITs, who collected over 95% of April rents. Industrial, office, and healthcare rent collection have been similarly strong.
  • For retailers, if you're not essential, you're not probably paying the rent. Shopping center and net lease REITs have collected only half of April rents, ranging from 15% to 97%.
  • Not many fireworks so far. Real estate earnings results thus far have generally been better-than-expected. We break down rent collection statistics for every REIT that has reported thus far.
  • This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. Get started today »

Real Estate Earnings Halftime Report

Did the rent get paid? We just passed the halfway point of what has shaped up to be the most newsworthy and consequential REIT earnings season in at least a decade. While it hasn't yet fully lived up to the "hype" that some critics were forecasting - which has generally been good news for REIT investors - earnings season has indeed provided pivotal information on rent collection and future dividend plans. In this Real Estate Earnings Halftime Report, we break down rent collection statistics for every REIT that has reported thus far.

REIT earnings halftime report

(Hoya Capital Real Estate, Co-Produced with Brad Thomas)

Real estate earnings results thus far have generally been better-than-expected with rent collection proving to be largely a non-issue for essentially every property sector outside of retail REITs. Residential REITs have reported particularly strong results with apartments, single-family rental, and manufactured housing REITs combining to collect more than 95% of April rents. Industrial, self-storage, office, and healthcare rent collection have been similarly strong with rent collection coming in above 90% for these sectors so far. The same can't be said for retail REITs, however, as a shopping center and net lease REITs have collected only half of April rents while mall REITs begin reporting later this week. Results so far have been generally consistent with NAREIT's two published surveys in mid-April and early May.

real estate earnings calendar

We should note, however, that larger "blue-chip" REITs tend to report earlier in the earnings season, so the back-half of earnings season could indeed bring more fireworks as many of the smaller and more highly-levered names report over the next two weeks including the full slate of mall and hotel REITs. As anticipated, whether it's called a pause, a temporary suspension, or an outright cut, dividend reductions has been

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