Seeing a Different Picture: Closed Theaters Could Heighten Revenue Volatility

DBRS Morningstar identified some $3.03 billion in securitized commercial mortgages, $1.25 billion of which are in DBRS Morningstar-rated deals, potentially at elevated risk as the Coronavirus Disease (COVID-19) spreads, forcing movie theaters to temporarily shut down. It remains to be seen how long movie theater chains such as AMC Theatres and Regal Cinemas, which announced that they would be temporarily closing locations either because of state-mandated orders or because they chose to, will be able to continue to honor their lease obligations.