Your Daily Digest for Real Estate Investing, 09/18/2020


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

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