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Anonymous

25 Mar 2020

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General Investing

How will the Coivd-19 Entertainment ban affect REITs? Do you foresee the prices dropping?

Will REITs drop when the entertainment venue ban starts this Friday? Especially for CapitaLand and Fraser who owned multiple shopping centres!?

Discussion (1)

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It'a pretty obvious malls and shopping centres are already significantly less crowded since the early days of COVID-19 and for that reason, REITs as a whole have already been badly affected.

The entertainment venue ban includes karaoke outlets, cinemas, tuition and enrichment centres and certain open atrium sales events. That would mean even less traffic in the malls and shopping centres.

In my opinion, whether REITs prices will continue to fall may largely depend on whether it is necessary for the government to impose even stricter measures to combat COVID-19 (worse case scenario, the L word), and of course, how long it takes for such measures to be lifted (bye bye COVID-19).

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