The SA REIT Association (SAREIT) has released a report unpacking the extent of the Covid-19 rental relief initiatives provided by REITs to their tenants during the pandemic. The rental relief was mainly in the form of discounts or deferrals, of which 80% relates to unrecoverable discounts, intended to sustain tenants’ cashflows and curb business failures.
The report was the first produced by the association’s recently formed Research Committee. This is the initial of two reports which SAREIT plans to publish on the support provided by its members, each covering the latest available periods disclosed by its membership base.
“In addition to support the measures put in place by the government in response to the pandemic, it was important for SAREIT to quantify its members’ contribution towards the sustainability of tenants, many of which are SMMEs playing an important part in economic growth, innovation and job creation. The report provides comprehensive insights on the sector’s prompt reaction to the crisis as demonstrated by the total R3bn contribution made from April to December 2020, which 69% was provided by August 2020,” said Amelia Beattie, chairperson of the Research Committee.
Download SAREIT’s first Covid-19 Rental Relief Report here.