What would be the impact of covid-19 on REITS? Is it a good time to buy REITS now? - Seedly
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Anonymous

Asked on 01 Mar 2020

What would be the impact of covid-19 on REITS? Is it a good time to buy REITS now?

With the performance of the REIT affected leading to lower dividend payouts, would the stock prices drop further after the dividend payouts compared to now with only the outbreak?

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I see immediate pressure on retail retails, and you can expect distributions to take a hit. Especially those with properties in China. You can expect some downward pressure on the price, with supports being seriously tested this time round.

However, as Frankie has mentioned, long term we should do fine, unless COVID-19 mutates and wipes out 10% or more of the world's population and plunges the world economy into chaos.

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Davin
Davin
Level 7. Grand Master
Answered on 01 Mar 2020

With the retail investor start to panic sell, it's time to get ready to go in. U can do DCA as we do not know when is the bottom will be hit. Long term REITS will rebound for sure.

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Pat
Pat

02 Mar 2020

@Takingstock could you elaborate on why you think so?
Takingstock @
Takingstock @

03 Mar 2020

Retail investors would seek to preserve every cent, even when realizing a loss. But when you see prices drip at a few % down, that is the big boys (aka smart funds) dumping stocks. It is possible that their underlying push may come from retail investors doing a huge pull out, but within a few days, I don't think that would be the case.
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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Sep)

Level 10. Unicorn
Answered on 01 Mar 2020

There can (like Sasseur in China) be immediate pressure on shopping malls, maybe 2020 earnings generall will be less than expected.

however I don't expect longterm problems, within 4 months Corona will mostly be gone

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