Why REITs Aren't Immune to the Market Crash

Commercial real estate owners are about to go through one of the most uncertain times in history over the next six months, and investors are starting to take notice. Some seemingly safe real estate investment trusts (REITs) have seen their stock plunge 50% or more as the market realizes that thousands of businesses will close up shop and stop paying rent because of the COVID-19 pandemic. 

We've seen mall REITs like Simon Property Group (NYSE: SPG) and Brookfield Property REIT (NASDAQ: BPYU) plunge 61% and 50.9%, respectively, so far in 2020. Hotel REITs like Host Hotels & Resorts (NYSE: HST) and Apple Hospitality REIT (NYSE: APLE) are down 39.2% and 44.3%, respectively. REITs were supposed to be a safe place to put your money, even in an economic downturn, so what happened? 

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Source Fool.com