Corporate residential landlords are busy, Yelp reports restaurant carnage, affordable vs. public housing in rent performance, why department stores may survive, hotel REITs worth buying now.
In Today’s News
House-Rich But Cash-Poor: Wall Street Landlords Ready to Pounce
This article today in The Wall Street Journal [subscription required] lays out how, even if foreclosures don’t skyrocket as much as some predict, hardships caused by the coronavirus pandemic are likely to force a lot of sales and create new renters.
Why it matters: Large corporate landlords are buying up homes and doing a land-office business renting out the ones they already have, and since some of the biggest are publicly held, there’s opportunity for stock investors to jump in, too.
Yelp Says 61% of Restaurants Closed by Pandemic Won’t Reopen
The crowdsource review giant says a majority of restaurants and cafes that closed their doors in response to the COVID-19 pandemic have indicated online that they have shut down for good.
Why it matters: This is one Yelp (NYSE: YELP) review that hurts for everyone: business owners, their landlords, and consumers who loved to patronize those places. It’s just sad.
Affordable Housing Rent Collections a Fourth Down From a Year Ago
MRI Software says rent collection in affordable housing in August 2020 reached only 77% of 2019 levels but remained relatively strong in public housing, at 94% of August 2019 levels.
Why it matters: The proptech firm says the difference here is the high level of direct government subsidy for public housing tenants. Proponents of new pandemic aid for hard-hit households of all kinds can point this out to members of Congress as relief bill negotiations grind to a halt.
Today on Millionacres
3 Reasons Why Department Stores Aren’t Dying Just Yet
The news is undeniably grim. Iconic retailers such as Macy’s (NYSE: M) and J.C. Penney (OTC: JCPNQ) are shutting hundreds of stores, and some, like Lord & Taylor, are flat out shutting down completely. But reports of the death of the department store may be premature.
Why it matters: Millionacres’ Maurie Backman points out three factors that should give some hope to investors looking for a rebound for the survivors: what they sell, who they sell it to, and how they’re adapting.
3 Hotel REITs to Buy Right Now
Millionacres’ Kevin Vandenboss highlights a diverse trio of operators poised to rebound when the pandemic’s grip on leisure and business travel loosens.
Why it matters: This is one segment that has been hit particularly hard by the coronavirus. Each of these real estate investment trusts (REITs) has a different story, but the moral is the same: Now’s the time to buy.
Read More: Your Daily Digest for Real Estate Investing, 09/18/2020