Scott O'Neill

There was some markets where there was no rent abatements given, but

My prediction is it's probably just going to keep that trend of coming out of that model because a lot of tenants now they have to show your financials to prove the landlord that they're suffering a more than 30% loss.

A lot of tenants don't want to show their landlord their financials.

Very little of them do because it

It's sort of a leverage that the landlord's always going to have over them and that's cut out a lot of it.

Now, look, if you've got a tenant that is actually struggling, then that's going to continually happen.

But one of the things when we do due diligence on a property is we can ask for tenant ledgers to see how the tenant's performed over the last two years.

And if you can see your tenant's been struggling, it's probably not a deal you'd want to take on.

But if you can see your tenant got through COVID without a rent discount asked, then

They're the types of ones you want to target.

So the way I look at it, I'll put a positive spin on it that you can use the last two years as something to do a bit better due diligence on.

We haven't had that luxury in previous years where we've seen how businesses have gone in tough times.

And yeah, I guess the message is you just target the businesses that have been going strongly.

And if you see they're sort of a little bit weak, then maybe that deal is better for another investor.

Yeah.

And like you said, it's just a way that we've, I guess you could sift the good tenants from the bad tenants at the moment.

And I shouldn't use that word, but it's more tenants that have performed resiliently through this process.

And a lot of these industrial properties, they didn't have forced closures.

Particularly if you're in markets like Queensland and WA, they barely had a proper lockdown in these areas.

So in the meantime, these businesses, which might be trade-related, online logistics-related or cold food storage-related, they shouldn't have really had a hiccup throughout this whole time.