REITs report commercial rent payments holding steady

TORONTO — The amount of commercial rent payments for May look to be similar to April, several real estate investment trusts said while reporting quarterly earnings, in spite of concerns the picture would worsen amid extended business closures.

REITs such as SmartCentres, Crombie, First Capital Corp. and CT say levels were similar, despite the additional full month of COVID-19-related restrictions, though the trusts saw wide differences in overall payments.

“Everything seems to be almost identical” to the beginning of April, said Mitchell Goldhar, chairman of the board at SmartCentres on an earnings call, though he noted there are some exceptions.

For April, the trust collected 69 per cent of contracted rent, excluding two outlet centres.

First Capital Corp. CEO Adam Paul said on a conference call that while it takes some time to get a clear picture on payments, May rent collection was “shaping up to be very similar to April.”

The trust collected 74 per cent of gross rent payable for April, before adjusting for deferrals, but expects to ultimately collect a “significant portion” of the unpaid April rent.

Paul said they are working on deferrals with small business tenants that are strained. He said the firm will look into the federal government’s commercial rent program when they have more details.

Some real estate companies, however, declined to provide a picture for May.

RioCan CEO Edward Sonshine said that while the trust reported it had collected about 66 per cent of non-deferred April payments, it wouldn’t be disclosing details for May as it is focused more on the long term.

“Monthly rent figures are not an indicator of what will eventually be collected,” he said.