Equity Investors Feel the Pain from Missed Rents
We have already discussed the detrimental effects of the pandemic on the retail and hotel sectors. A recent report, published by MSCI Research, now shows the resulting effects on investor distributions. The report shows that NOI of retail and hotel assets from December to June, declined by 21.4% and 39.7%, respectively. Further, “as their cash flows were disrupted, many funds adjusted the shareholder distributions by slowing, suspending or deferring payouts. As a result, the spread between asset-level NOI yields and funds’ distribution yields has increased, suggesting that property-level rent collections may be lagging accruals.”
Amazon Spends $22M on Miami-Dade Land for Giant Distribution Facility
On September 14, after the south Miami-Dade County Commission approved the transaction, Amazon became the new owner of a vacant 77-acre site. Despite having an 800,000 SF distribution center at Carrie Meek International Business Park next to the Miami-Opa Locka Executive Airport and at the South Florida Logistics Center near Miami International Airport, Amazon is now planning to increase its Miami footprint by building an additional 1 million SF distribution center. The land acquisition closed at $22 million and presents another milestone in Amazon’s success and the e-commerce sector at large.