Rent Collections Have Been Better Than Anticipated

Since the onset of the pandemic in March, real estate investment company KIMC has pivoted to weather the economic dislocation and uncertainty to come by repositioning the debt on its portfolio. The firm was able to make the strategic move largely because rent collections have surpassed expectations. For multifamily, the bulk of KIMC’s assets, rent collections have averaged 95% nationwide and even higher in select markets.

“We got over $100 million in financing done at an average rate of 2.94% with 9 years of interest only and 11 years of maturity,” Jonathan Needell, president and chief investment officer at KIMC, tells GlobeSt.com. “We basically cleared the deck on most of our maturities for the year until July of next year. We were able to do that because collections have been good and better than expected. We were playing it by ear month-to-month—and we are still playing it by ear depending on what kind of fiscal stimulus comes at the end of July—but our collections have been 95% across our portfolio and generally higher than the NMHC. We have been happily surprised by collections.”