A Look Back at Q1
During the last quarter we took a prudent view for the next 90 days and placed a pause on the current planned acquisitions while we monitor economic and market developments due to COVID-19. As such, the seven properties we currently have under contract have been renegotiated. The sellers of these properties have agreed to extend the closing for the next 90 days which should provide enough time to re-evaluate the COVID-19 situation. With that said, we completed the closing of 7437 Ridge Road, a Government tenanted Veteran’s Affairs medical building in Port Richey.
We are excited to share the launch of DMCC Performance Fund 2, which will be available during June 2020. We would like to take the time to thank our loyal Investors and Strategic Partners for their contributions and look forward to bringing you more details about Performance Fund 2.
Key Highlights Include:
- As of March 31st, 2020, DMCC Performance 1 Fund continues its growth with five additional assets under a contract valued at over $12M.
- Contract negotiations for seven commercial properties have been extended for 90 days as we re-evaluate the COVID-19 pandemic.
- US Operations continue to extend and renegotiate lease rental increases with tenants, which include on-going negotiations on five and six-year lease extensions at our Medical buildings in Lake Mary and Jacksonville.
Performance & Progress
The portfolio continues to weather the current economic climate, largely because of our heavily medically biased portfolio providing for a strong anchor. Furthermore, we continue to keep dialogue open with all our tenants to ensure we are available to answer questions and provide support where needed.
It has been an unprecedented quarter for a lot of our investors as they come to grips with COVID-19 and the impact it has had on them and their families.
The Fund has weathered the initial changing environment through its proactiveness with tenants and operations and we have been cautious to lock into agreements with new purchases and have sought to extend existing contracts for new properties to allow time to weather the pandemic. Our team, through their diligence and proactiveness have been ensuring all services are maintained with our tenants; as such, our portfolio of properties, largely being medically based, has not been impacted by the pandemic. However, we remain cautious to ensure we see through the times ahead and protect our investors’ capital and continue to deliver returns to our investors.
I hope that investors and their families are staying safe at this time and together through understanding and cooperation we will rise through this pandemic and begin normality again.
The significant growth we continue to experience year over year wouldn’t be possible without the contributions of our Investors and Strategic Partners. Together, we made tremendous progress. We thank our team for their efforts, our partners for their trust, and you, our shareholders, for your continued support.