Nursing homes lead COVID-19 recovery, rural retail’s resilience, Target-ing Apple stores, the demise of Fry’s, and apartment REITs that could offer shelter from the market storm.
In Today’s News
Nursing Homes, Once Hotspots, Far Outpace U.S. in COVID-19 Declines
Throughout the pandemic, there has been perhaps nowhere more dangerous than a nursing home. The New York Times reports that long-term care facilities accounted for more than a third of all virus deaths since late spring. But now, the Times says today, the threat to those facilities and their vulnerable residents and staff may be at a turning point.
The Millionacres takeway: Vaccinations are the reason for the sharp declines, of course, and this is nothing but good news for people with older relatives (or who plan to become older themselves). It’s also good news for the owners and operators of such properties, including a number of popular real estate investment trusts (REITs).
Previously Left for Dead, Rural Retail is Showing its Resilience
Bisnow reports today that far from the eyes of most commercial real estate investors, a different retail story is playing out. In the country's small, rural communities, brick-and-mortar retail is comparatively thriving.
The Millionacres takeway: This in-depth piece reports on the durability and promising future of single-occupant, triple net leased retail stores like Advance Auto Parts (NYSE: AAP), Krystal, and Family Dollar in places that aren’t exactly on a distant planet, y’all. Investors might want to check it out. (I live in South Carolina and can’t help but notice how well these sorts of enterprises are doing -- and popping up -- on the rare occasions I’ve been driving around the state in the past year.)
Target to Open Mini Apple Stores in 17 Locations, Expand Online Offerings
Target (NYSE: TGT) has announced plans to open small-scale Apple (NASDAQ: AAPL) shops inside 17 of its stores this month, with additional locations scheduled to open this fall. The company will also expand its online Apple product offerings over the coming weeks, REBusiness Online reports today.
The Millionacres takeway: If you can’t beat them, host them. The shopping experience being described here -- with dedicated space and staff -- sounds a lot like what Best Buy (NYSE: BBY) already does. Could be a smart move. See below.
Today on Millionacres
Another One Bites the Dust: Fry’s Electronics
Fry’s Electronics announced this week that it’s giving up the ghost, adding to a growing list of retailers who’ve called it quits during the pandemic.
The Millionacres takeway: Fry’s demise puts it on another list -- failed electronics retailers -- with the likes of Circuit City and Radio Shack. Survivors? The aforementioned Best Buy and Target stand out. Examine your retail REIT’s portfolio, or direct investments, too, for that matter, through that lens.
3 Apartment REITs to Buy Right Now
A move from urban city centers to suburban markets has shifted supply and demand in many markets, putting tremendous pressure on rents and landlords. This, coupled with extended eviction moratoriums and a record number of tenants unable to pay rent, makes it a tough time to be an apartment REIT. Or to invest in one.
The Millionacres takeway: Never fear. Millionacres is here with some suggestions from Liz Brumer on why Mid-America Apartment Communities (NYSE: MAA), AvalonBay Communities (NYSE: AVB), and Equity Residential (NYSE: EQR) are the top three apartment REITs to buy now.