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Retail real estate suffering

Bankruptcies and store closures are one story – rent collection is another. Retail investors can’t catch a break and are having a difficult time collecting rent:

  • J. Crew Group has reopened 95 percent of its stores after landlords provided the bankrupt company with $130 million in rent concessions over the next two years. J. Crew’s parent company, Chinos Holdings, filed for bankruptcy in May with $1.7 billion in debt, the first major retailer to do so during the pandemic. At the time of the filing, Chinos had approximately 500 unexpired leases across its J. Crew and Madewell brands, including J. Crew Factory stores, with $23 million in lease obligations each month. The concessions offered will save J. Crew around $70 million in 2020 and $60 million in 2021. (RetailDive+CO
  • Simon Property collected 51 percent of its rent from tenants in April and May, and 69 percent in June. The company also released July numbers, which were up: It collected 73 percent of rent owed last month. Those figures do not include rent abatements that the company granted. (TRD)
  • Macerich collected 40 percent of rent from tenants in April and May, a vast improvement over the company’s initial reporting that it had collected just 26 percent of April rent. June rent collection rose to 58 percent, as malls began reopening throughout the country, then ticked up again to 66 percent in July. (TRD)

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