The Impact of the Coronavirus Disease (COVID-19) on REITs and CRE Companies in Canada and the U.S.

We expect the coronavirus pandemic to affect properties differently depending on the subsector. For example, hotels, recreational properties, and certain retail properties will—at least, in the near term—experience significant stress. On the other hand, retailers of consumer necessities, e-commerce warehouses, and long-term-care (LTC) properties are highly sensitive to the coronavirus but should emerge relatively unscathed. Most companies rated by us are large and well-diversified investment-grade issuers with good access to capital; although the occasional rating downgrade may occur, we do not anticipate a meaningful decline in the credit quality of the sector as a whole.