Net Lease REITs: Rents Paid, Dividends Raised

Published Fri, 04 Dec 2020 12:58:04 -0500 on Seeking Alpha

Seeking AlphaREITsNet Lease REITs: Rents Paid, Dividends RaisedDec. 4, 2020 12:58 PM ET|| Includes: ADC, AFIN, AFINP, AMC, AMT, AMZN, AWP, BBRE, BNL, COLD, CVS, DRV, EPR, EPR.PC, EPR.PE, EPR.PG, EPRT, FCPT, FREL, FRI, GLPI, GNL, GNL.PA, GNL.PB, GQRE, GTY, ICF, IGR, IIPR, IIPR.PA, ILPT, IYR, JRS, KBWY, LOW, NETL, NNN, NNN.PF, NRO, NTST, O, PFFR, PGZ, PINE, PLNT, PPTY, PSR, PSTL, RDOG, REET, REIT, RFI, RNP, ROOF, RQI, RWO, RWR, SCHH, SPY, SRC, SRC.PA, SRET, STOR, URE, USRT, VER, VER.PF, VICI, VNQ, VRAI, WBA, WMT, WPC, XLREby: Hoya Capital Real EstateHoya Capital Real Estate The REIT ForumThe #1 REIT Service Measured By Total ReturnsSummaryNet Lease REITs, which were punished during the worst of the economic lockdowns, have rebounded over the last several months as shutdown-sensitive tenants reopen their doors and rent collection normalizes.
Despite their heavy retail exposure, more net lease REITs have raised their dividends this year than any other property sector, but several COVID-sensitive REITs within the sector continue to struggle.
Rent collection has improved sequentially from a low of 65% in April to 96% by October as the majority of tenants have now reopened. Theaters and gyms remain significant soft-spots.
There were signs of stabilization - and even pockets of strength - in third-quarter earnings reports. Acquisition activity - which is critical to growth - picked-up after a sharp slowdown last quarter.
The bifurcation is likely to continue between the "haves" and "have nots" in the post-vaccine world. Investors that have been willing to "pay-up" for quality have been rewarded while bargain-seekers have been punished.
REIT Rankings: Net Lease

(Hoya Capital Real Estate, Co-Produced with Colorado Wealth Management)
Net Lease REIT Sector Overview
Net Lease REITs, which were punished during the worst of the economic lockdowns, have rebounded over the last several months as shutdown-sensitive tenants reopen... Read more