COVID-19 Response

Creating Value Through Active Operations
Description: Numerous businesses and retailers were forced to close or restrict business operations in March 2020 due to Covid-19 and associated government-mandated orders. This resulted in 45 out of 144 tenants in a commercial portfolio submitting inquiries for rent relief (11.11%), primarily in the retail sector (19.40%). The exposure to income, if the interruption continued for three months, was predicted then to be $1.35M. 

Solution
Indigo worked strategically with its industry partners to minimize the financial impact of the Covid-19 pandemic and pre-pandemic monetary bankruptcies on the portfolio. Indigo swiftly implemented a response plan and system to combat the Covid-19 disruptions. We worked closely with 3rd party management teams to deliver a consistent and fair process for tenant relief requests. Loan covenants were reviewed, monitored for compliance, and factored into decision-making. Regular briefings were held with ownership to inform them of the impacts to the portfolio as time went on. Cashflow was evaluated regularly to safeguard against changes to partnership distributions. A rigid review process of tenant financial relief/deferral packages was conducted each week. We engaged and directed property management and legal for documentation of any approved relief given. Leasing teams were also included where lease extensions were possible. We directed our 3rd party Management teams to design, review and implement business closure, property operations continuity and safe re-opening procedures. We also collaborated on the implementation of a social media and digital campaign to promote retailers and restaurants to combat the Covid-19 closure-effect.

“Though at the beginning of the pandemic the estimated rent exposure was $1.35M, Indigo’s strategy implementation for the portfolio had an astounding affect.”

Though at the beginning of the pandemic the estimated rent exposure was $1.35M, Indigo’s strategy implementation for the portfolio had an astounding affect. All Covid-related AR, rent deferments, and/or payment plans had been collected by February 2021. The portfolio met budgeted income projections for 2020. Leasing activity remained steady in the commercial and retail assets which included a 20% increase in renewals that year.