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Sun Residential REIT dodges COVID-19

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TSXV:SRES
28 May 2020 13:53 (EDT)

Sun Residential Real Estate Investment Trust (TSXV:SRES) has reported that the company’s operations are positive, despite COVID-19.

While the pandemic’s full impact is currently unclear, the company has noted that some real estate types are faring better than others. 

In particular, Sun Residential’s multi-family residential properties seem less severely affected by COVID-19. This includes the company’s Evergreen at Southwood property.

The REIT has also experienced encouraging numbers that are in line with previous months. For May 2020, the company’s occupancy rate has been 93 per cent, with a collection rate of 98.8 per cent.

Furthermore, Sun Residential’s net rental income for May 2020 has also been consistent with income levels of preceding months.

Sun Residential REIT’s CEO, Gordon Wiebe, commented on the company’s position amid the pandemic.

“We are very pleased with the performance of our property to date, which reflects its high quality and excellent demographics. Multi-family residential continues to perform as one of the best asset classes, even during the current pandemic. 

“There is evidence that the solid performance of multi-family residential real estate during the pandemic may lead the resumption of capital markets activity, which will play an important role in funding Sun’s acquisition program,” he said.

The company has approximately C$4.8 million in cash and cash equivalents, as of April 30, 2020. Sun Residential plans to continue its acquisition program, and is assessing opportunities to resume its expansion.

The REIT also expects to release its quarterly and half-year results for the period ending June 30 on August 5, 2020.

Sun Residential REIT (SRES) remains unmoved since May 5 and is trading at C$0.09 per share.

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