3 Stocks to Watch If the Market Crashes
The world is in a tenuous place today, with stock markets running hot despite the coronavirus pandemic still wreaking global havoc.One of the hardest-hit areas of the economy when the illness first emerged was retail, putting pressure on retail landlords along the way. Many real estate investment trusts that own retail properties have come back strongly in 2021 as the world learns to deal with the coronavirus, but they will likely sell off anew if the broader market tanks. Still, the pandemic was an important testing ground for the retail REIT names that have what it takes to succeed no matter what gets thrown at them. Here are three retail REITs that you should consider picking up if, more likely when, the market crashes.
STORE Capital (NYSE: STOR) IPOed in late 2014, long after the 2007 to 2009 financial crisis. Until 2020 it had basically only operated during good times, so it was impossible to use history as a guide to what might happen during the pandemic. At first it looked pretty bad, with rent collections falling to less than 70% at one point early on. However, that quickly reversed, and by the end of the year was up to 90% and largely in line with bellwether names in the net lease sector. (Net lease REITs own single-tenant properties, but their lessees are responsible for most of the costs of the assets they occupy.)
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Source Fool.com
