The decrease in seniors moving into elderly homes because of thenovel coronavirus could result in higher leverage expectations overthe next 12 to 24 months and rating downgrades in the REIT sector,according to Fitch Ratings.
REITs with senior housing portfolios may experience monthlyoccupancy declines in the 200 basis point to 400 basis pointrange. That number is higher than the 300 basis pointsthat Fitch initially anticipated from declines.
"The development of a vaccine or a highly effective therapy maybe the inflection point that sets the stage for a meaningfulrecovery, given an aging demographic and likelihood of slowergrowth in industry supply," the ratings agency said in itsreport.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Dan Clark
Dan covers cyber security, legal operations and intellectual property for Corporate Counsel. Follow him on Twitter @Danclarkalm.
