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Wall Street reacts to Coronavirus

Coronavirus (Credit: California Gov)

As the spread of the coronavirus disrupts travel plans and hurts hotel owners, some corners of real estate are emerging as safer places for investors, WSJ reported.

  • Wall Street reacts: Investors have flocked to owners of self-storage, rental-housing and infrastructure properties that have lower tenant turnover, making them typically less vulnerable to economic disruptions.
  • Why it matters: A number of real-estate investment trusts tend to outperform the broader stock market during times of economic uncertainty because landlords with longer leases often can count on a more stable cash flow than manufacturers or financial companies. REITs are also more sensitive to interest rates than most companies because of the amount of debt they use to distribute income as dividends.

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