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US REIT rent tracker: Recent reports show increased collections for retail REITs

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US REIT rent tracker: Recent reports show increased collections for retail REITs

Editor's note: S&P Global Market Intelligence compiled the data in this article on a best-efforts basis, sourced from real estate investment trust press releases, investor presentations and conference calls. Click here to download these charts in Excel format.

U.S. REIT earnings releases between Feb. 8 and Feb. 19 continued to show a further increase in rent collections for the 2020 fourth quarter.

All 10 shopping center REITs that filed within the two-week period reported an increase in rent collection, ranging between 89% and 95% for the fourth quarter. Kite Realty Group Trust collected approximately 95% of its base rent due in the fourth quarter, the highest of the group. Retail Properties of America Inc. collected 94.1% of its billed fourth-quarter rent, and SITE Centers Corp. collected 94%. Federal Realty Investment Trust collected the least of the group at 89%.

Outlet center REIT Tanger Factory Outlet Centers Inc. fared similarly, collecting 95% of its fourth-quarter rents, while regional mall REIT Macerich Co. collected 92%.

While regional mall giant Simon Property Group Inc. did not break out its fourth-quarter rent collections, it collected 90% of its rent due in the second, third and fourth quarters, combined.

The single-tenant retail sector performed even stronger in regards to fourth-quarter rent collections. Alpine Income Property Trust Inc. collected 100% of its rent due in the fourth quarter, followed by Four Corners Property Trust and Agree Realty Corp. at 99.6% and 99%, respectively. Spirit Realty Capital Inc., meanwhile, reported rent collection of 94% for the fourth quarter, and National Retail Properties Inc. reported 95.7% rent collection.

All three casino REITs — Gaming & Leisure Properties Inc., MGM Growth Properties LLC and VICI Properties Inc. — collected 100% of their rent due in the fourth quarter.

The industrial REITs continued to collect the vast majority of their billed rent. Rexford Industrial Realty Inc. collected 97.7% of its rent, while Industrial Logistics Properties Trust collected 98%, First Industrial Realty Trust Inc. collected 99%, and EastGroup Properties Inc. reported rent collection of 99.5%.

Office REITs collected the vast majority of their rents from office tenants during the fourth quarter, however total rent collections for some were brought down by their retail segments.

Paramount Group Inc. reported portfolio-wide rent collections of 96.7% in the fourth quarter, including 98.0% from office tenants, but 60.3% from the rest of its portfolio.

Empire State Realty Trust Inc. and Vornado Realty Trust both reported a similar trend. Empire State collected 96% of its billed rent from its office tenants and 87% from its retail tenants, representing total portfolio collection of 95%. Meanwhile Vornado reported total rent collection of 95% for the quarter, representing 97% from office tenants and 88% from retail tenants.

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