REIT executives say theaters might be caught up on deferred rent by EOY.
Realty Income Corp. had 99% of their movie theater rent collected in July, a sign that the hard-hit cinema owners are recovering. This number is up from 51% in June.
“We believe the increased rent collections reflect significant momentum in the theater industry,” Chief Financial Officer Christie Kelly told analysts Tuesday. “One after another, the latest blockbusters continue to demonstrate a return to normalcy for the theater industry.”
According to Realty Income, movie theaters represent a small portion of their portfolio. Movie theater companies are just 5% of the total rent collection with 600 tenants nationwide.
Movie theaters and their proximity to neighboring businesses is a critical component of theater success. Theaters are not only key generators of foot traffic for other establishments in the area, but they also impact how well these properties do financially as a whole.
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