Operation Seems Fine
The SFR as an asset class is showing resiliency and Front Yard Residential (RESI) is no exception. August 2020 operating data continue to show a high level of collection and a continuation of strong rent growth. The major driving factor seems to be the increased demand for isolated rental space in the midst of the COVID crisis for families.
Both rent growth on renewals and positive re-leasing spread contribute to the overall rent growth. The high level of collection is most likely helped by all the economic stimulus packages, but the degree of which is a wildcard. The management commented that they haven’t surveyed their tenants on their current job status, and the management doesn’t think it’s appropriate to ask their tenants directly about whether they are paying rent with cheques from the government on the Q2-2020 earnings call. However, on average about one-third of the properties