A unique tailwindIn general, REITs are boring;
FFO per share can stay at 42 cents a quarter
for half a decade.
Going forward throughout 2021, as lockdowns end,
I see several dymamics in play;
1 Industrial REITs. There will be no news to speak of.
The segment will not be helped by the opening up of
offices, hotels or retail
Industrial REITs were boosted by covid and will remain
98% occupied with 99% rent collection with large rent
increases on the renewal of leases.
2 Retail. This segment will be boosted a lot especially
enclosed malls
3 Hotels. A huge boost
4 Offices. A return to the office will take place
Will returnees account for 95% of the 2019 workers?
Or will it be just 70%? Who knows.
5. Apartments. Downtown rentals in big cities will enjoy
a new boom (New York, Toronto, everywhere)
HR will be part of all this (except hotels) AND they will have
one additional tailwind.
There will be continuous news about the restructuring
of the current entity. News of the sale of the Industrial
REIT could bump the share price by $2 or $3 in just
one day, for example. There might be 3 or 4 big
headline news before the snow flies.
The key for investors is to hang in for the balance of the year.
mat