Agree Realty Corporation (ADC - Free Report) provided an update on its initial rent collections for the current month as well as April and May rental receipts.
As of Jun 22, 2020, the company collected rental receipts from 88% of its portfolio for June. Notably, it entered deferral agreements with tenants, comprising 5% of June rents.
Rent collections for April and May amounted to 91% and 88% of the total portfolio, respectively.
Retail REITs, including Agree Realty, Simon Property Group (SPG - Free Report) , Macerich (MAC - Free Report) and Kimco Realty (KIM - Free Report) , have already been battling store closures and bankruptcy issues. The coronavirus pandemic has further aggravated these woes as the real estate landlords now have to cope with uncertain rent collections and dwindling footfall among other problems.
In fact, 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 the retail space. Moreover, rent collections have become pressing concerns for retail landlords amid the macroeconomic uncertainties and financial stress on retailers.
Shares of this Zacks Rank #3 (Hold) company have appreciated 2.8% so far this year against the 22.9% decline recorded by the industry.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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