The Suburbs Are Hot Again; How American Homes 4 Rent Is Taking Advantage
The COVID-19 crisis has been tough on financial stocks, especially banks and real estate investment trusts (REITs). The banks have been clobbered on market fears that nonperforming loans are about to increase, especially those for small business and consumer debt like credit cards and installment loans. The real estate investment trusts have been under pressure as well. Mortgage REITs have been annihilated, and mall REITs are struggling.
That said, it looks like the financial metrics for residential REITs have been better than feared. In fact, the implications of the coronavirus pandemic may in fact benefit one particular REIT in that it nudges some trends that have already been put in motion.
Image source: Getty Images.
Source Fool.com