VEREIT® Provides Company and COVID-19 Update – Wire Real Estate

VEREIT® Provides Company and COVID-19 Update




Jun 29, 2020

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VEREIT, Inc. announced updated information on its real estate portfolio and balance sheet in response to the ongoing coronavirus (COVID-19) pandemic.

Real Estate Portfolio Update

As of June 16, 2020, VEREIT had received approximately 84% of April rent, 84% of May rent and 82% of June rent, which includes approximately 2% to be paid in arrears by a Government agency tenant. VEREIT is in ongoing discussions with tenants regarding unpaid rent. The property type breakdown is as follows:

Property Type      

April   

May    

June   

Total Retail      

86%

86%

86%

  Casual Dining      

27%

37%

29%

  Quick Service     

78%

77%

78%

Total Restaurant   

49%

54%

50%

Total Office         

98%

96%

96%

Total Industrial     

99%

99%

94%

Similar to prior months, VEREIT expects to collect additional rent through the end of June which may increase the total percentage collected for the month.

VEREIT continues to have one of the highest collection rates as compared to its peers and other retail segments driven by its property type diversification, industry breakdown, investment-grade tenancy, public versus private ownership, and geographic diversity. Our combined allocation in excess of 80% to single-tenant Office & Industrial, High Collection/Necessity based Retail and Quick- Service Restaurants has provided a good baseline for rental collection during this uncertain environment. We are also seeing some positive movement in certain categories as parts of the country reopen and are coordinating rental payments with some tenants.

Nareit Sector Comparison

   
     

Property Type

April     

May

Free-Standing Retail

71.4%

70.1%

Shopping Center

45.6%

47.7%

Office

93.3%

92.1%

Industrial

98.6%

95.7%

Note:  June data not available at this time

Rent relief requests have been received from tenants representing approximately 33% of rental income on an annualized basis as of June 16, 2020, including some tenants that paid April, May and/or June rent. These requests vary in time frame, but are concentrated within the two to four month range. The property type breakdown is as follows:

Property Type                      

 

Total Retail      

28%

  Casual Dining      

81%

  Quick Service      

52%

Total Restaurant    

69%

Total Office        

8%

Total Industrial     

28%

Further rent collection and relief request details can be found in VEREIT’s investor presentation filed today and available on VEREIT’s corporate website at http://ir.vereit.com/Presentations.

Balance Sheet Update
As of June 16, 2020, VEREIT had corporate liquidity of approximately $1.2 billion comprised of $101.0 million in cash and cash equivalents and $1.1 billion of availability under its credit facility.

Credit Rating Agency Update
VEREIT has investment-grade ratings from all three credit agencies as described below with Fitch completing a review in March 2020 with no changes, Moody’s in June 2020 with no changes and S&P maintaining its prior rating with no changes:

Rating Agency            

Rating          

Outlook        

   Fitch

BBB

Stable

   Moody’s

Baa3

Positive

   S&P

BBB-

Stable

About the Company
VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has total real estate investments of $14.8 billion including approximately 3,900 properties and 89.5 million square feet. VEREIT’s business model provides equity capital to creditworthy corporations in return for long-term leases on their properties. VEREIT is a publicly traded Maryland corporation listed on the New York Stock Exchange. VEREIT uses, and intends to continue to use, its Investor Relations website, which can be found at www.VEREIT.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Additional information about VEREIT can be found through social media platforms such as Twitter and LinkedIn.

About the Data
Rent collection percentages disclosed are based on contractual rent and recoveries paid by tenants to cover estimated tax, insurance and common area maintenance expenses, including the Company’s pro rata share of such amounts related to properties owned by unconsolidated joint ventures. Amounts exclude any tenants in bankruptcy.

Nareit Data
The comparison table shows the estimated REIT rent collections in April and May as a share of typical rent collections. The results are displayed by property sector and are weighted by respondent REIT equity market capitalization. Further details and research methodology can be found through Nareit’s REIT Industry May 2020 Rent Collections research.

See Campaign: http:// www.VEREIT.com
Contact Information:
 www.VEREIT.com

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