Day: March 26, 2020

REITs Coronavirus Responses Roundup

Park Hotels & Resorts (PK)

    • March 9 – Withdraws 2020 Outlook
    • March 16 – Business Update
      • Withdraw guidance
      • Suspend and scale down operations
      • Draw $350 million from revolving credit facility
      • Pay one consistent dividend ($0.45/share), suspend all other dividends until year-end
      • Cancel / defer $130 million of $200 million CapEx
    • March 26 – Additional Update
      • Draw $650 million revolving credit facility
      • Alternative sources of revenue from applicable government authorities and hospitals such as providing temporary lodging for first responders, other medical personnel, military personnel, displaced guests and residents of communities where Park’s hotels are located
    • 2019 Q4 Presentation

Starwood Property Trust (STWD)

    • March 13 – Update
      • withdrawn its full year 2020 outlook
    • March 20 – Actions to Mitigate Impact of COVID-19
      • Currently all of Apple Hospitality’s hotels remain open and operational; implemented cost elimination and efficiency initiatives at each of the Company’s hotels by reducing labor costs and tempering certain services and amenities.
      • Postpone all non-essential capital improvement projects planned for 2020; a reduction of approximately $50 million in capital improvements
      • Suspend monthly distributions
      • Has recently drawn on its credit facility and currently has approximately $300 million of cash on hand. Current availability on the Company’s revolving credit facility is $145 million. The Company has no scheduled debt maturities for the remainder of the year and approximately $34 million in scheduled maturities in 2021.
      • Executive pay cut
    • 2020 Feb Presentation

Apollo Commercial Real Estate Finance (ARI)

    • March 25 – Open letter to stockholders & Investor Presentation
      • Pay one consistent dividend ($0.4/share)
      • ARI has secured borrowing facilities with six counter-parties with remaining terms ranging from six months to over three years, assuming the exercise of our extension options
      • ARI holds only two positions in commercial real estate securities totaling $68 million, neither of which are financed
    • 2019 Q4 Presentation

TPG Real Estate Finance Trust (TRTX)

    • March 18 – Declare Cash Dividend and Company Update
      • Consistent dividend ($0.43/share)
      • More than half of liabilities are comprised of term financings, including CLO’s
      • Less exposure to hotel (13%) and retail (0.6%), less than the 22% average of mREIT peers
    • March 23 – Update
      • Postpone previously announced Q1 dividend for one quarter, payable on July 14, 2020 to stockholders of record as of June 15, 2020
      • CRE debt securities portfolio – as of March 22, 2020, has an aggregate face amount of approximately $960 million, pledged as collateral under daily mark-to-market secured revolving repurchase facilities in the amount of approximately $760 million. Fluctuations in the value of CRE debt securities portfolio, including as a result of changes in credit spreads, have resulted in the Company being required to post cash collateral with its lenders under such facilities
      • If the requirements to post additional cash collateral continue to be material, there is no certainty that the Company will be in a position to continue to fund such payments.
    • 2019 Q4 Presentation

KKR Real Estate Finance Trust (KREF)