"REIT balance sheets are in the best position they have ever been"

"REIT balance sheets are in the best position they have ever been"

REIT financial indicators advanced by CBRE in its latest report "Covid-19 Impact on Commercial Real Estate" revealed: «Net Debt to EBITDA of a ~5/5.5x, Debt to GAV of ~30-35% and limited near term maturities».

Despite the current situation, «the broad market is down about 28%, and REITs are down about 32%», CBRE believes that « REIT dividends are more secure today than they were before the Global Financial Crisis» of 2008.

On the short-term a low number of deals are expected, a raise in attempts at repricing and a «weakening» of the segments most impacted by the closure of establishments, such as hotels and retail. The segments with better performance are connected to the digital economy, such as Data Centres and The Towers, which will still feel its effect. Nevertheless, Self-Storage is also doing better than the rest.

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