First Capital REIT has collected approximately 70 per cent of gross rents payable from tenants for the month of April, it has announced.
Tenants representing approximately 50 per cent of First Capital’s total gross monthly rents are currently classified as essential while the remaining tenants, representing approximately 50 per cent of total gross monthly rents, have been closed or have been operating at a reduced capacity due to the impact of the pandemic.
The REIT said it has been and will continue taking proactive measures to collect rents from national, regional and franchised tenants expected to have the financial resources to fulfill their lease obligations, while continuing to work with its independent, small business tenants to provide rent deferrals as part of its previously announced Small Business Support Program.
“In light of the unusual environment, it is of critical significance that First Capital’s portfolio is built on a solid foundation of grocery-anchored properties with curated retail that includes pharmacy, liquor, government and medical services, which are among the uses currently considered essential and remain open. These properties have been very resilient over long periods of time, with strong leasing demand consistently demonstrated through decades of economical cycles, immense technological advances and changing consumer habits, in addition to value creation through intensification and redevelopment. ”
Adam Paul, President and CEO of First Capital, said in a news release: “First and foremost, I’d like to express our deepest thanks and gratitude to the many frontline workers who are the true heroes of this pandemic and express our sympathy to those who have been victimized by COVID-19. I am also extremely proud of how the FCR team has stepped up and come together in dealing with this crisis. Our own frontline staff continue to ensure our properties are well maintained to service tenants who provide essential services to Canadians. The balance of our team is working very hard remotely to protect our assets and prepare for the new normal once the government commences the reopening of the economy.”
The REIT said 1,223 of its tenants, representing approximately $8.3 million of gross monthly rent, have applied to First Capital’s Small Business Support Program for an initial deferral of two months’ rent and 553 of the applications received have been approved by First Capital to date, representing approximately $3.5 million of gross monthly rent with the majority of the remaining applications expected to be approved once processed.
“Rent deferrals currently approved by First Capital in accordance with this non-national tenant program represent approximately 6.5 per cent of the REIT’s gross monthly rent. If all current applicants are approved, deferred rent would represent approximately 15.3 per cent of the REIT’s gross monthly rent. In addition to those submitted to date, FCR anticipates additional applications will be received from qualifying tenants over the next little while. For clarity, approved rent deferrals have not been included in the percentage of April rents collected noted above,” it said.
“While we are most focused today on supporting our stakeholders through this challenging time and dealing with the immediate issues brought about by the economic shutdown on our business, our attention has also turned to ensuring FCR emerges from this pandemic with strength. Our management team is more convinced than ever that our Super Urban strategy is the right approach and we are taking this opportunity to see how the learnings from this crisis can enhance our strategy,” said Paul. “We continue to have an exceptional portfolio of real estate in Canada’s most desirable neighbourhoods with tremendous long-term value creation opportunities – that has not changed.”.
