REITs Hit By 'Second Wave' Of Dividend Cuts

June 20, 2020 | Hoya Capital

REITs Hit By 'Second Wave' Of Dividend Cuts Weekly Recap Jun 20 Written By The "reopening rally" resumed for U.S. equity markets this week as concerns of a "second wave" of the coronavirus pandemic were offset by further evidence of an emerging economic rebound. Investors remain hesitant to wager against the "unstoppable force" of WWII-levels of fiscal stimulus and unprecedented levels of monetary support with renewed hints of a forthcoming round of additional stimulus.

The reopening rally has shown signs of fading for several equity sectors, however, including several "non-essential" segments of the commercial real estate market as equity REITs dipped 2.1%. A "second wave" of dividend cuts and suspensions hit the REIT sector during second-quarter dividend declaration season. Three more REITs cut their dividend this week, pushing the total to 57 equity REITs. Residential real estate - along with other "essential" sectors - remains largely immune from the weakness.

Mounting signs of a V-shaped recovery in the critical housing market has underlaid the broader equity rally. To continue reading, click here to visit Seeking Alpha! Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Stocks Gain | Rent Collection Updates | Dividends In Focus Next Next Stocks Mixed | REITs Decline | Another Dividend Cut