Higher Rent Collections For Scottsdale-Based Real Estate Company
A Scottsdale-based real estate investment trust said more tenants are open for business but not as many as it predicted two months ago.
Store Capital buys, manages and invests in single-tenant real estate, like restaurants, retail, movie theaters, early education centers and private schools.
In mid-June, Store’s CEO said he expected occupancy would be close to 100% by the end of July. During a second quarter earnings call on Wednesday, Chris Volk said about 92% of their tenants are open for business.
“One of the hardest hit sectors has been education. It's just so hard for people to open up and, in the case of early childhood education, you’re having spacing rules, occupancy limitations, sometimes it’s state by state for the multi-unit operators ” he said. “But, yet, education is a fundamental need and it will be there and we are very confident in our tenants and in the portfolio, so I see this personally up trending through the rest of the year and that’s why our board was confident to not only pay the dividend but they’re confident in our ability to maintain that for the rest of the year, given what we're seeing.”
Store announced a regular quarterly cash dividend of $0.35 per common share for the second quarter ending June 30, 2020.
The company reported aggregate rent collections for the second quarter —the months of April, May and June — were just over 72%. July rent collections increased to 85%.
As of June 30, 2020, Store's portfolio showed 2,554 investment properties in 49 states, including 86 in Arizona. More than 500 customers represented 113 industries.