Most real estate investment trusts are still getting their rent, except in the retail sector
May 19, 2020 | Diana Olick | cnbc.com
The economic effects of the coronavirus outbreak continue to roil real estate markets, but properties owned by real estate investment trusts are still getting most of their rent. The glaring exception is retail.
The level of rent collection by U.S. REITs was about the same in May as it was in April, according to a survey just released by Nareit, an industry trade group. The survey covered six commercial real estate property sectors and compared the rents collected in May with those of a typical month before the pandemic.
“The survey results suggest that, while REIT tenants in some hard-hit sectors continue to struggle, their ability to pay May rent didn’t appreciably worsen, despite the widespread business closings in April,” said John Worth, executive vice president of research at Nareit.
