UD+P News: April 2021
REPORTING UPDATE
During the month of April, we’ve been busy preparing 2020 annual fund reports and Q1 2021 quarterly reports. Please look out for an email notification from ir@udplp.com regarding publication of these reports, which will be available for review and download on the investor portal on or before Monday, May 3, 2021.
RENT COLLECTIONS UPDATE
The table below summarizes rent charged versus rent collected by tenant type from Q1 2020 through April 2021 (as of 4/29/21). Monthly rent collection data is provided for April and March. Quarterly rent collection data is provided for prior quarters.
In April, we collected 100% of charges (rent and pass-through expenses) assessed to office tenants, continuing a positive trend that began in March. Retail rent collections held steady at 84%. Residential rent collections improved—93% in April compared to 91% in March and 90% for Q1 2021.
In Q1, we submitted applications to Business Oregon’s Commercial Rent Relief Program on behalf of UD+P tenants that have experienced financial hardship due to the COVID-19 pandemic. The Program targets landlords with tenant businesses with 100 or fewer employees who are behind on lease payments or any forgiven base rent amounts that have been negotiated due to COVID-19. Participation from both the business tenant and property owner is required. The program includes additional protections for tenants, such as non-eviction clauses, and a waiver of penalties and interest. Awards are granted based on a random lottery system. We are excited to announce that three UD+P tenants were awarded a combined $153,000 in rent assistance during the first round of funding.
As we previously reported, our Operations teams applied for residential rent assistance through Oregon’s Landlord Compensation Fund in February. We are still awaiting a final response and will provide an update of the status of this application next month.
RESIDENTIAL LEASING UPDATE
The table below shows average monthly residential lease and occupancy rates for individual properties, as well as portfolio-wide averages across all stabilized properties. In April, both the portfolio-wide average occupancy rate (84%) and lease rate (86%) declined, attributed largely to increased turnover at Àlmr and Fairmount. In contrast, average occupancy and lease rates increased at Slate and Flanders.
As the weather improves, we are experiencing the customary seasonal uptick in leasing activity, including an influx of move-ins and move-outs across our residential portfolio. As more for-sale homes come on the market, some residents are taking advantage of historically low interest rates and purchasing homes. As we have observed throughout the Covid-19 pandemic, others are relocating to the suburbs or out of the Portland metro area. During the second half of April, our leasing team has conducted 20+ weekly property tours and screened 15 to 20 applications per week. We signed XX new leases in the last week of April and have good momentum heading into May.
To attract new residents and retain existing residents, we continue to offer concessions at most of our properties. The table below summarizes current concessions for new leases. Rent concessions may be taken upfront or amortized over the lease-term, an option that has proven popular among many applicants.
In addition to the concessions described above, we continue to offer a zero deposit at move-in policy for all new leases. To encourage existing renters to renew their lease, during April and May, we are offering a concession of one month free rent on all lease renewals at Àlmr and Slate, and $500 free rent at Fairmount Apartments.
We continue to make steady progress on the lease-up of sister properties Lyra and Cassi in Northeast Portland. As of April 29, Lyra is 72% leased and Cassi is 62% leased.