Business
Inovalis REIT Provides Business Update Related to COVID-19 Pandemic
Inovalis REIT Provides Business Update Related to COVID-19 Pandemic Canada NewsWir...
About this update from Inovalis Reit
[{"type":"text","content":"\n\n\n\nInovalis REIT Provides Business Update Related to COVID-19 Pandemic\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, April 17, 2020\n\n\n\nNon-material impact of Covid-19 on REIT Portfolio to date; Liquidity position remains strong\n TORONTO, April 17, 2020 /CNW/ - Inovalis Real Estate Investment Trust (\"Inovalis\" or the \"REIT\") (TSX: INO.UN) today provided an update on the impact of COVID-19 on its operations and its current liquidity position.\nOPERATING UPDATE\nTenants\nAs of April 16, 2020, rental collections for the month of April and for the quarter ended June 30, 2020 have been in line with pre-COVID levels, with a few minor exceptions.  To date, the REIT has received more than 95% of the April monthly rents on its German portfolio, and 70% of the 2nd quarter rents on its French portfolio.  The REIT expects the collection of rents from  smaller tenants to continue such that the REIT expects to reach at least 90% of the 2nd quarter rents in France and 98% of the April rents in Germany.The REIT's portfolio consists only of office tenants and has no hospitality or retail exposure, which are industries particularly affected by COVID-19.  To date, the requests from tenants for rent assistance have been minimal but those that have requested assistance have either asked for  a deferral of payments for a period of 3-6 months or cancelation of their rent until the end of the confinement period (from March 15th). Management has been assessing such requests on a case by case basis based on their nature and economic legitimacy. The  impact to date of rent delays or cancelations represents approximately 10% of the REIT's quarterly NOI and approximately 3% of the REIT's annual NOI.As governments, businesses and communities are facing the short-term impacts of COVID-19 on economic growth, business activity and individual behavior, a rebound in the global economy is not expected before Q2 2020. The German and French governments have begun to suggest cautious re-entry plans, beginning on May 3...