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Federal Realty (FRT) Announces Collection of 54% of May Rent

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Federal Realty Investment Trust (FRT - Free Report) recently announced that the company has collected roughly 54% of total May 2020 billed recurring rents, as of May 29. The company also noted that this is ahead of the pace for April’s rent collections at the end of the month.

In addition, approximately 57% of its total April billed recurring rents have been collected so far. Further, based on annualized base rent, roughly 54% of its commercial tenants are open and operating. Nevertheless, with many of its markets beginning and continuing phased re-openings in June, openings are anticipated to carry on for the next few weeks.

Retail REITs, including Federal Realty, Simon Property Group (SPG - Free Report) , Macerich (MAC - Free Report) , Kimco Realty (KIM - Free Report) and several others, which have already been battling store closures and bankruptcy issues, are feeling the brunt.

This is because the coronavirus pandemic has forced most retailers to close stores, in order to contain the spread of the virus. Some retailers have also reduced store hours, while many others are keeping their e-retail operations running, as consumers are now avoiding social gatherings and increasingly opting for online purchases.

The situation is curtailing demand for retail space. Moreover, rent collections have become pressing concerns for retail landlords amid the macroeconomic uncertainties and financial stress on retailers.  

Nevertheless, the company noted that construction activity has resumed at Santana West and Assembly Row, as well as in other smaller redevelopments. Though construction activities continue at Pike & Rose, CocoWalk & Darien, the pace is slower amid observations of COVID-19 safety protocols at all sites.

Currently, Federal Realty carries a Zacks Rank #3 (Hold). Shares of this retail REIT have depreciated 31.4%, so far in the year, wider than the 27% decline recorded by the industry.



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