Signature Bank “pleasantly surprised” by multifamily rent collections

Apartment rent collections top 80%; portfolio-wide deferrals total $9.4B

New York /
Jul.July 21, 2020 01:25 PM
Signature Bank CEO Joseph DePaolo (Getty, iStock)

Signature Bank CEO Joseph DePaolo (Getty, iStock)

Signature Bank, one of New York City’s most active multifamily lenders, was “pleasantly surprised” by rent collections during the last quarter.

Its $15 billion multifamily portfolio, which accounts for 30 percent of its total holdings, saw rent collections top 80 percent during the second quarter, the bank reported during an earnings call Tuesday.

Still, $9.4 billion of the loans in Signature Bank’s $50 billion portfolio remain in deferral. That’s down from $10.9 billion at the height of the coronavirus pandemic. By July 15, $2.2 billion of those loan deferral agreements were scheduled to expire, and $1.3 billion of those, or 60 percent, began paying again, Joseph DePaolo, president and CEO of Signature Bank, said the earnings call.

Most of the loan forbearance agreements provided to borrowers expire between August and September. The bank will consider giving borrowers additional time on a case-by-case basis.

Community banks, including Signature Bank, are the primary lenders for the roughly 1 million rent-stabilized apartments in New York City. Signature Bank’s rent-stabilized portfolio — which accounts for roughly half of its multifamily loans — took a beating during the first quarter of 2020, with rent collections falling 50 percent.

Despite the increased rent collections over the last three months, Signature Bank reported second quarter income of $117.2 million, a small increase from $99.6 million the first quarter but down from $147.3 million during the same period in 2019.

Office rent collections for the quarter ranged from 65 to 80 percent, and retail rent collections ranged between 35 and 65 percent of normal levels, DePaolo said.


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Here’s what the $10M-$30M NYC investment sales market looked like last week
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

New NYC rent law “beginning to shut down investment”
Numbers were down across the board (Credit: iStock)

New York’s multifamily market had its slowest first half of the year since 2011

New York’s multifamily market had its slowest first half of the year since 2011
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)

Adam America secures $63M in financing for Upper West Side project

Adam America secures $63M in financing for Upper West Side project
(Simone Golob/Getty)

Workers in prime earning years are struggling to pay rent: Survey

Workers in prime earning years are struggling to pay rent: Survey
Follow the renter: Multifamily investors pour capital into unexpected markets

Follow the renter: Multifamily investors pour capital into unexpected markets

Follow the renter: Multifamily investors pour capital into unexpected markets
Bain Capital's Kavindi Wickremage and Magnolia Capital's Maxwell Peek (Photos via Bain; Magnolia)

Bain, Magnolia target fixer-uppers with $900M joint venture

Bain, Magnolia target fixer-uppers with $900M joint venture
TriArch Real Estate Group Chris DeAngelis and Pebb Capital James Jago (Photos via TriArch; Pebb Capital; iStock)

Dorms no more: Student housing turns into high-end apartments

Dorms no more: Student housing turns into high-end apartments
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...