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VEREIT Updates on Collections, Receives 95% of September Rents
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VEREIT, Inc. is witnessing an improvement in its rent-collection tally. The company has received 95% of September rents, which includes roughly 2% to be paid in arrears by a government agency tenant.
The rental receipts for September increased from August’s 94% and July’s 92%. The company has also noted that as of Sep 22, it had received rent of around 87% for the second quarter compared with the 86% previously reported.
VEREIT’s rent collection update highlights the benefits from its portfolio’s geographic, property type and industry diversification, investment-grade tenancy and public versus private ownership.The company has a combined allocation of more than 80% to single-tenant office & industrial, high collection/necessity-based retail and quick-service restaurants. Some of these sectors have been lesser affected than others in the pandemic and so, rent collections are better despite the challenging environment.
Moreover, earlier this month, the company announced dispositions of $157.5 million in the third quarter for accretive funding of the previously-announced partial redemption of $150 million of its 6.70% Series F Cumulative Redeemable Preferred Stock. Notably, VEREIT is focused on growth through asset recycling into strategic buyouts, together with the reduction of preferred stock, as well as the refinancing of future debt at a comparatively lower cost. As such, since the beginning of the year through Sep 2, the company’s dispositions aggregated $356.7 million, including its share of dispositions contributed to the office partnership of $110 million.
Such measures add to the company’s flexibility. Moreover, as of the second-quarter end, VEREIT raised its corporate liquidity from $1.2 billion to $1.8 billion. This comprised $278.9 million in cash and cash equivalents, and the full $1.5 billion of availability under its credit facility.
However, amid the coronavirus pandemic there is a slump in demand for real estate. Also, tenants’ rent-paying capabilities have significantly suffered due to the macroeconomic uncertainties and job-market choppiness, as well as the pandemic’s adverse impact on business and consumer sentiment. Any significant turnaround in demand is unlikely for a number of asset classes in the near term, while rent relief and deferral requests are likely to linger.
Shares of this Zacks Rank #4 (Sell) company have appreciated 2.4%, quarter to date, as against its industry’s decline of 0.5%.
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (FFO) per share estimate for 2020 has been revised 2.6% upward to $1.18 over the past month. It currently carries a Zacks Rank of 2.
Prologis, Inc.’s (PLD - Free Report) FFO per share estimate for the ongoing year moved marginally north to $3.73 over the past week. The company currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for the current-year FFO per share moved up 2.8% to $1.49 over the past two months. The company currently holds a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
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VEREIT Updates on Collections, Receives 95% of September Rents
VEREIT, Inc. is witnessing an improvement in its rent-collection tally. The company has received 95% of September rents, which includes roughly 2% to be paid in arrears by a government agency tenant.
The rental receipts for September increased from August’s 94% and July’s 92%. The company has also noted that as of Sep 22, it had received rent of around 87% for the second quarter compared with the 86% previously reported.
VEREIT’s rent collection update highlights the benefits from its portfolio’s geographic, property type and industry diversification, investment-grade tenancy and public versus private ownership.The company has a combined allocation of more than 80% to single-tenant office & industrial, high collection/necessity-based retail and quick-service restaurants. Some of these sectors have been lesser affected than others in the pandemic and so, rent collections are better despite the challenging environment.
Moreover, earlier this month, the company announced dispositions of $157.5 million in the third quarter for accretive funding of the previously-announced partial redemption of $150 million of its 6.70% Series F Cumulative Redeemable Preferred Stock. Notably, VEREIT is focused on growth through asset recycling into strategic buyouts, together with the reduction of preferred stock, as well as the refinancing of future debt at a comparatively lower cost. As such, since the beginning of the year through Sep 2, the company’s dispositions aggregated $356.7 million, including its share of dispositions contributed to the office partnership of $110 million.
Such measures add to the company’s flexibility. Moreover, as of the second-quarter end, VEREIT raised its corporate liquidity from $1.2 billion to $1.8 billion. This comprised $278.9 million in cash and cash equivalents, and the full $1.5 billion of availability under its credit facility.
However, amid the coronavirus pandemic there is a slump in demand for real estate. Also, tenants’ rent-paying capabilities have significantly suffered due to the macroeconomic uncertainties and job-market choppiness, as well as the pandemic’s adverse impact on business and consumer sentiment. Any significant turnaround in demand is unlikely for a number of asset classes in the near term, while rent relief and deferral requests are likely to linger.
Shares of this Zacks Rank #4 (Sell) company have appreciated 2.4%, quarter to date, as against its industry’s decline of 0.5%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alpine Income Property Trust, Inc.’s (PINE - Free Report) funds from operations (FFO) per share estimate for 2020 has been revised 2.6% upward to $1.18 over the past month. It currently carries a Zacks Rank of 2.
Prologis, Inc.’s (PLD - Free Report) FFO per share estimate for the ongoing year moved marginally north to $3.73 over the past week. The company currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for the current-year FFO per share moved up 2.8% to $1.49 over the past two months. The company currently holds a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>