NTST - Net Lease REITs: Rents Paid Dividends Raised

• Net Lease REITs, which were punished during the worst of the economic lockdowns, have rebounded over the last several months as shutdown-sensitive tenants reopen their doors and rent collection normalizes.
• Despite their heavy retail exposure, more net lease REITs have raised their dividends this year than any other property sector, but several COVID-sensitive REITs within the sector continue to struggle.
• Rent collection has improved sequentially from a low of 65% in April to 96% by October as the majority of tenants have now reopened. Theaters and gyms remain significant soft-spots.
• There were signs of stabilization - and even pockets of strength - in third-quarter earnings reports. Acquisition activity - which is critical to growth - picked-up after a sharp slowdown last quarter.
• The bifurcation is likely to continue between the "haves" and "have nots" in the post-vaccine world. Investors that have been willing to "pay-up" for quality have been rewarded while bargain-seekers have been punished.

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