DISTRESSED DAILY: REITs Face ‘Recovery Year’ After 2020 Pain

Real estate investment trusts, especially those tied to retail, faced a bruising 2020, but this year might mean recovery for the beleaguered sector, according to S&P Global Ratings.

S&P said in a report that it views 2021 as a “recovery year” for REITs that have seen deteriorating credit metrics stemming from reduced rent collection, deferral deals and lower leasing activity. Those best positioned to outperform are the sectors that had relatively strong 2020s, like industrial, data center and self-storage names, according to a report led by analyst Ana Lai.

Retail REITs, several of which went bankrupt last year, may ...