Will COVID-19 Business Crisis Be 'Over and Done With' In 6 Months?
New data provides a look into the leasing market for some retail and service companies.
Scottsdale-based Store Capital is a real estate investment trust focused on more than 2,500 single tenant properties across the country — think restaurants, health clubs and child care centers.
During a Monday call with investors, Chris Volk, Store Capital CEO and president, said 65% of Store’s tenants were open in April. Now, it’s 91%.
“I expect that’s going to be close to a 100% by the end of July because you’ll have the movie theaters open up in July,” he said.
Volk said a preliminary survey of tenants revealed optimism, “I’m going to say over 90% are of the view that the events that we’re going through is going to be basically over and done with in about six months.”
So far, he said June rent collection is at 76% compared to 64% in May. Store has 86 properties in Arizona. The company focuses on middle market tenants. According to its Q1 2020 operating report, it has 491 customers in 49 states with a median tenant revenue of $55 million per year.
As of Monday, Store (STOR) stock was trading around $25 with a 52-week low of $13 and high of $40.96.
The company announced Monday it will pay a regular quarterly cash dividend on its common stock of $0.35 peer share for the second quarter ending June 30, 2020.
