STORE Capital’s July Rent Collections Increase to 85%
April, May, June Collections Also Higher from Last Reports
Company to Report Second Quarter 2020 Financial Results on August 5, 2020
SCOTTSDALE, Ariz., July 20, 2020 -- STORE Capital Corporation (NYSE: STOR), an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, today announced an update on July rent collections.
As of July 17, STORE Capital has received rent payments representing 85% of contractual base rent and interest on active contracts for the month of July. Deferral arrangements have been reached with the majority of the remaining tenants, with all but 2% of July contractual base rent and interest now resolved. The increase in collections was principally driven by higher rent collected from tenants in the restaurant, furniture, and education sectors. Based on recent payments, the Company has now received 71%, 68%, and 78% of April, May, and June base rent and interest, respectively, representing an aggregate second quarter cash rent collection of just over 72%.
“We are proud of our team who have been working closely with tenants throughout the pandemic and encouraged by the uptrend in collections in both June and July,” said Christopher Volk, Chief Executive Officer of STORE Capital. “During July, no new tenants received lease deferrals, and elevated rent collections occurred in concert with continued business re-openings. Based upon a tenant survey we conducted over the past week, we estimate that 92% of our locations are currently open for business, including the most recently mandated business closures, which is slightly ahead of where we were in June. However, the mix of open businesses has altered, with some sectors, such as education, demonstrating promising trends, and with a few sectors facing renewed closure mandates in certain markets.”
Volk continued, “We estimate that nearly 90% of our contractual base rent and interest is from tenants located in markets exhibiting low COVID case levels. In areas of the country with higher COVID penetration, we generally have low exposure to the industry sectors that have been subject to renewed closure mandates. This limited sensitivity is a reflection of our tenant, geographic, and sector diversity which is the hallmark of our investment strategy.”
