In April, we discussed how the COVID-19 pandemic caused a drop in demand for non-emergency procedures, increasing financial pressure on MPW's hospital tenants. With many hospitals struggling to earn a profit, it was unclear if MPW's tenants would be able and willing to pay their full rent and keep all of their facilities open. So far, rent collection has not been a problem for MPW. On June 22, the REIT reported that it received 96% of June rent, consistent with April and May.

After cautioning in early May that "by no means is the dividend untouchable," National Retail Properties (NNN) appears to feel more confident that its payout will remain secure as lockdown measures continue easing. In April, NNN's 52% rent collection rate was among the weakest of any retail REIT. But at an investor conference on June 8, management said they "feel very good about the trajectory of rent for May and for the rest of the second quarter." When asked if NNN would extend its 30-year dividend growth streak in mid-July (when NNN historically announces its annual increases), management expressed much greater optimism:

On June 15, STORE Capital (STOR) provided a business update and opted to maintain its dividend for the second quarter. Management was encouraged by an increase in rent collection, giving the team more confidence that cash flow coverage will improve in subsequent months to preserve STORE's financial strength. STORE said it had received 76% of June rent to date. That's up from 67% in May and 70% in April. The increase was led by health clubs, full-service restaurants, and family entertainment centers. Only one new rent deferral request was received in June, too. "STORE is maintaining our $0.35 dividend and we'll pay it as scheduled on July 15. The announcement reflects our Board's desire to maintain our dividend, together with [...]

McDonald's (MCD) provided a business update yesterday which showed continued improvement in sales trends from late March through May. In the U.S. (36% of total revenue), comparable sales were down only 5.1% in May, a meaningful improvement compared to a 19.2% decline in April.  Overall, comparable sales worldwide fell about 21% in May, improving from a 39% drop in April. As lockdowns continue lifting, additional stores reopening will hopefully drive a continuation of these trends.  As of June 15, approximately 95% of McDonald's 38,000-plus locations were open. That's up from 75% at the end of April. Franchisees are requiring less financial assistance from McDonald's as a result.  In March, when a lot of markets were immediately shut down, McDonald's felt greater urgency [...]