Resource Real Estate Opportunity REIT Inc., Resource Real Estate Opportunity REIT II Inc., and Resource Apartment REIT III Inc., three non-traded real estate investment trusts sponsored by Resource Real Estate LLC, have suspend dividend payments as of April 1st.
The company indicated that the suspensions are temporary and were enacted in order to preserve cash at its properties and to offset any disruptions in rents that may occur as a result of the coronavirus pandemic.
“In order to accommodate the undoubted stress facing the residents in our 15,000 apartment units across the United States, Resource is employing an aggressive set of actions,” the company said in a statement. “Clubhouses, pools and fitness areas have been closed, and value-add rehabilitation projects will be deferred temporarily. Capital expenditures will be focused on providing clean, safe and leasable conditions for our current and prospective residents.”
The company added, “History has shown that conservative balance sheets, adequate cash liquidity, and proactive leadership and management are the best defenses to combat the type of difficult and unforeseen situation that we are all facing.”
Resource Real Estate is an asset management company that specializes in real estate investments. The REITs collectively own approximately $2.8 billion of multifamily properties across 16 states as of the fourth quarter of 2019. Resource is a wholly-owned subsidiary of C-III Capital Partners LLC, an asset management and commercial real estate services company.