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Monday, May 11th, 2020

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Posted by: | Posted on: May 11, 2020

Rent Collectability Risk High, New Lease Rates Decelerate As Apartment REITs Grapple With Coronavirus Fallout

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Rent collections and new lease pricing decelerated in April and will likely continue to do so, according to a new research report on four of the seven apartment REIT’s early year earnings reports.

Rent collection has ranged from about 93%-98% in the first quarter of 2020, with delinquencies increasing in April, while new lease rates decelerated in April compared to Q1, according to a report by Mizuho Securities. Both issues are top of mind for the seven apartment REITS, which are bracing themselves for continued delinquency and new-lease risk into May, June and beyond as the U.S. economy faces historic unemployment.

“Rent collectability risk remains top of mind and a key risk into May and possibly June and beyond,” the survey said. “1Q20 earnings [were] generally in line … but uncertainty remains the storyline.”

Mizuho’s report researched earnings reports from four of the seven apartment REITs: AvalonBay

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