PRAEDIUM GROUP – COVID-19 Update
We hope this note finds you healthy and safe during these challenging times.
As we monitor the ongoing spread of the coronavirus, the health and safety of our on-site personnel and our residents is of the utmost importance to us. In light of the current situation, we wanted to provide you with an update on several of the operational changes that we are implementing at our properties. Please note we are continually re-evaluating our protocols as conditions on the ground evolve.
As of today, the stabilized properties in our Fund IX portfolio are well occupied. Our eighteen stabilized properties, on average, are occupied at 94.3%. There is another deal in lease up, which to date has a positive occupancy trend over the next 60 days. Further, the additional good news is that we are not aware of any notable impact or spread of the virus at any property (aside from the general disruption to daily life that people are experiencing).
We are currently working with each of our on-site property managers to assess the circumstances at each property and to coordinate the implementation of certain operational protocols to protect tenants and on-site staff. We are communicating with on-site personnel so that they take necessary precautions when accessing tenant and common spaces to avoid the spread or contraction of coronavirus. We are working on a daily basis to ensure that we retain and secure tenancy and that operations are continuing as smoothly as possible. We are currently working to cancel or delay non-essential amenities and services, including:
- Fitness Center & Yoga Studio
- Clubhouse Lounges
- Pool & Outdoor Amenity Areas
- Social Gatherings & Resident Events
- Business Centers & Conference Rooms
We are also pausing unit renovations. In addition to these measures, we are taking steps to increase our cleaning and disinfectant procedures throughout the properties.
In terms of the effect on our portfolio, we expect prospective tenant traffic to slow. As such, we are working hard to keep the retention rate as high as reasonably possible. Further, we expect increases in rental rates to be limited during this period of disruption.
Consistent with Praedium’s Business Continuity Plan, all of our employees are currently working remotely, accessing our internal systems and network drives in a secure manner via Citrix. Over the last few days, this has been working well.
Please don’t hesitate to reach out with any questions, and we expect to continue to write with updates as they occur.
Shelly, PRAEDIUM GROUP