The Globe and Mail reports in its Saturday edition that the next time you decide to work from home, think about how your selfish, thoughtless actions are affecting office REITs. The Globe's John Heinzl writes that before the pandemic, offices were one of the most stable real estate classes, offering a combination of steady returns and attractive yields that appealed to risk-averse investors. Then COVID ruined everything. When COVID-19 came along, you did not want to get really sick or possibly even die, so you stayed home and worked remotely, never giving a second thought to the hardship you were inflicting on others. Consider Slate Office Real Estate Investment Trust. With its vacancies and borrowing costs both rising, Slate's unit price has plunged more than 80 per cent from its prepandemic levels. Adding to investors' misery, in November the REIT suspended its distribution and announced plans to divest about 40 per cent of its assets. Other office landlords also saw their unit prices tumble and suspended distributions, including Inovalis REIT and True North Commercial REIT. Guilt-tripping Heinzl says think about that the next time you enjoy a leisurely breakfast while still wearing your pyjamas at 10 a.m.
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