CIBC analyst Dean Wilkinson highlighted the domestic REITs best positioned for both continued economic reopening and the possibility of further lockdowns,
“If we have learned anything over the past year, it’s that a re-tightening of lockdown restrictions should never be ruled out (despite many politicians’ insistence to the contrary); in such a scenario, we would expect a resurgence in short-term pressure surrounding the “recovery trade,” which would likely favour continued strength in the “defensive” retail, apartment, and industrial REITs (our top picks in that scenario would be CRR [Crombie REIT], GRT [Granite REIT], BSR REIT, TCN [Tricon Capital Group Inc. , and KMP [Killam Apartment REIT]). With that said, in the event that the case count doesn’t materially increase (or if it does but it doesn’t hinder re-opening progress), this scenario would favor the more economically sensitive re-opening theme of a retail recovery, and eventually the “back to the office” trade (top picks include FCR [First Capital REIT], REI [RioCan REIT], SRU [Smartcentres REIT], AP [Allied Properties REIT] and D [Dream Office REIT]).”