NEW YORK (Reuters) – Some top-performing U.S. fund managers see opportunities in one of the sectors hardest hit by the coronavirus pandemic, cautiously increasing stakes in niches of the real estate market like cell phone towers and warehouses, which they see benefiting from an eventual economic recovery.
FILE PHOTO: Amazon.com trucks are seen at an Amazon warehouse on Staten Island in New York City, New York, U.S., March 30, 2020. REUTERS/Mike Segar/File Photo
While real estate is typically considered a defensive sector, real estate investment trust (REIT) values have been slammed by the lockdown of the U.S. economy to slow the spread of COVID-19. Many retailers and restaurants are unable to serve customers in person, leaving them unable to pay rent.
Overall, the Dow Jones Select REIT Index is down nearly approximately 28% for the year to date, almost double the 17% decline in the broad S&P 500 index.
“You’re seeing that the market is pricing in something approaching the…