Tenant performance begins a muted recovery in a battling economy. The percentage of total tenants that were recorded as being in good standing with their landlords improved mildly in the 3rd quarter of 2020, following the sharp 2nd quarter lockdown-related weakening. From 73.5% of tenants being in good standing in the 2nd quarter, the percentage increased slightly to 74.57% in the 3rd quarter. The muted recovery to date can be largely explained by an economy battling to recover, translating into a still weak employment situation. In the 3rd quarter, total employment was still sharply down by -10.3% year-on-year, only marginally less weak than the -13.3% year-on-year drop in the 2nd quarter. This remains a severe situation, and impacts on a portion of the tenant population’s incomes.
