Market Commentary

The percentage of mortgages held in commercial mortgage-backed securities (CMBS) that were 30+ days delinquent jumped from 2.29% in April to 7.15% in May.

The gradual reopening of the economy in the weeks and months ahead will restart the cash flows for many businesses small and large.

The FTSE Nareit All Equity REITs index posted a total return of 6.9%, the strongest weekly return in six weeks and outpacing the 3.5% total return on the Russell 1000.

The REIT sector overall entered this crisis period from a stronger position than in previous market downturns in terms of operational performance, balance sheet strength and sources of liquidity available for the potentially lean months ahead.

REIT earnings were impacted by the COVID-19 crisis in the first quarter, with funds from operation (FFO) declining 9.0% from the prior quarter, to $15.0 billion, according to the Nareit T-Tracker®.

The FTSE Nareit All Equity REITs index closed down 8.2% for the week ended May 15^th, the first weekly decline for the month of May.

The most recent rent survey results show that on average for REITs, the share of typical rent collected in May was largely unchanged from April.

There's a $2 trillion stimulus fund you haven't heard about, and it’s growing bigger every day.

Most sectors were up, including a 10.3% total return for timber REITs, a 6.9% total return for specialty REITs and 6.7% total return for commercial financing mREITs.

The two largest risks to the economy from recent layoffs are that job losses spread from the front-line sectors into the broader economy, and that temporary layoffs translate into permanent job losses.

Putting the pieces of connected commerce together in the COVID-19 era.