Federal Realty on Thursday reported fourth-quarter earnings and maintained its dividend as rent collections continued improving. The shopping center REIT collected 89% of the rent it billed during the fourth quarter, up from 85% in the third quarter and 72% in the second quarter. However, management expects 2021 to be another tough year. About 85% of Federal's property operating income comes from markets with some of the most restrictive government-imposed COVID laws in the country, including California, New York, and New Jersey. This has continued to hurt non-essential retailers. As you can see, rent collection rates remain especially weak across restaurants (15% of Federal's rent), health and beauty firms (5%), gyms (4%), and experiential retailers (2%).

Sysco remains challenged by the pandemic as restaurants (more than 60% of revenue), schools, hotels, and other foodservice customers continue operating at relatively low capacity levels. The food distributor's revenue has gradually recovered following a 60% decline in late March last year, but sales were still off 23% last quarter. While the operating environment will remain difficult for the next quarter or two, the vaccine rollout is expected to significantly ease restaurant restrictions. This should deliver an immediate pop for Sysco's business as existing customers order more food and supplies. The company has already seen this play out in states such as Florida and Texas where dine-in restrictions are already limited.

Verizon closed out 2020 with solid financial results.  While sales contracted a modest 3% with minor pandemic related headwinds, earnings grew slightly thanks to margin improvements. Cash flows remained strong and investors were rewarded with Verizon’s 14th consecutive annual dividend increase. Overall, Verizon had a routine year despite the chaos found elsewhere as the world slogged through an economic downturn. But as the global economy continues to stabilize, telecom companies are entering this year with increased instability.

Magellan on Tuesday reported earnings, closing out a year which management described as having "the most challenging industry and economic conditions experienced in our 20-year history as a public company." Magellan's units slumped more than 4% on the update after management's guidance indicated that this year may not be much better. The firm's distributable cash flow (DCF) fell 20% in 2020, and Magellan's guidance called for DCF to decline another 2% this year. A gradual recovery in fuel demand and the recent completion of various expansion projects will help buoy cash flow, but these factors aren't expected to fully offset continued weakness in crude oil transportation and blending profits. Magellan's crude oil segment (34% of operating income) consists mostly of long-haul pipelines [...]