The Pasadena-based real estate investment firm ExchangeRight announced it had collected 100% of owed rent from net-leased tenants in 2020, despite the challenging economic environment created by the COVID-19 pandemic, the company announced Tuesday.
The company had collected roughly $129 million in rent from its more than $3 billion worth of net-leased assets in 39 states, ExchangeRight said in a written statement.
“Despite the historic pandemic and the economic recession it precipitated, ExchangeRight ensured that rent payments were collected in a timely manner and in full to protect investors’ income,” according to the statement. “The company credits this success to its strict acquisition process that focuses on long-term net leases to creditworthy tenants and to its asset management team’s proactive coordination with these tenants.”
ExchangeRight Managing Partner Joshua Underecht said the figure represented “an incredible accomplishment for ExchangeRight on behalf of investors, given the strong headwinds from last year.
“It is a testament to our acquisition focus, the strength of the relationship between our tenants and our asset management team, and the financial resilience of our tenants,” Underecht said. “We remain 100% leased and collected across over 725 net-leased properties, with over 93% of our tenants deemed essential businesses that have continued active operations throughout the pandemic.”
ExchangeRight’s rate exceeds the national average, which dropped as low as 62% during the first quarter of 2020, but had rebounded to about 90% by the end of the year, The Real Deal reported last month.
But the data used in the analysis only included companies with gross monthly rents of $250,000 or more, or lease 10 or more locations.
Smaller businesses have been far slower to rebound, according to a recent report from Restaurant Business. And the recovery has not been evenly distributed across sectors. Among the hardest hit were restaurants and movie theaters, which are still struggling.
More information on ExchangeRight is available on the company’s website at exchangeright.com.