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Wednesday, April 8, 2020

Why am I not interested in REITs and business trusts? - Part 2

https://sg.finance.yahoo.com/news/a-us-100-billion-reit-rout-pulverises-family-fortunes-across-asia-022303086.html

After we had highlighted the risky REITs and Business Trusts' businesses, Bloomberg published an article to inflict more pain on them.

http://sg-stock.blogspot.com/2020/04/why-am-i-not-interested-in-reits-and.html

REITs and Business Trusts have to defer rental payments to help out the tenants and this will cause them to terminate or reduce their dividend payouts as their cash flows are being affected.

If the tenants close their businesses, the vacancy rates will spike up and the banks will re-evaluate their credit risks which will ensue in loan recalls and top-ups.  Many retailers are defaulting on their rental payments illegally because of covid-19 outbreaks now.

https://www.bloomberg.com/news/articles/2020-04-04/coronavirus-landlords-in-peril-as-retailers-refuse-to-pay-rent

1 comment:

Eric Ho said...

https://sg.news.yahoo.com/commercial-real-estate-could-big-014630568.html