KBRA Credit Profile (KCP), a division of KBRA Analytics, releases a special report on CMBS exposure to arts and crafts retailer JOANN Inc. The company reported net income of $20.3 million for the six months ended July 31, 2021, which represented an 84% decline from the figure reported for the six months ended August 1, 2020. While the company benefited from an increase in product demand in 2020, including face masks and other personal protective equipment, performance gains were short-lived as net sales declined in 1H 2021 and operating costs increased due to pandemic-driven supply chain disruptions.
KCP examined our $725 billion coverage universe of over 1,100 CMBS transactions and identified 168 properties collateralizing 160 loans—$4.31 billion by allocated loan amount—across 153 CMBS transactions with exposure to a JOANN retail location. The company plans to relocate 20% of existing stores over the next seven to 10 years as leases expire, which is cause for concern as 78 CMBS properties ($1.6 billion) have exposure to a JOANN lease scheduled to expire through 2026.
Click here to view the report.
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KBRA Analytics, LLC (KBRA Analytics) is our premier product platform for high quality data and advanced analytics. Our seasoned teams of industry specialists across each product provide unparalleled insight creating a foundation of deeper analysis and rapid discovery for users. KBRA Analytics is an affiliate of Kroll Bond Rating Agency, LLC (KBRA). KBRA is a full-service credit rating agency registered in the U.S., designated to provide structured finance ratings in Canada, and with credit rating affiliates registered in the EU and UK.
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