Cohen and Steers issued a report this week detailing the firm’s outlook for real assets in light of the coronavirus and its impact on the economy.

The virus is likely to cause significant disruptions to travel, trade, manufacturing, and confidence according to the report with a potentially dramatic impact on asset pricing.

Cohen and Steers

Cohen and Steers analysts see three possible scenarios, from a relatively benign with a modest hit to global GDP and a quick recovery to a sustained spread of the virus and a global recession. They assessing the highest probability to the middle path with the virus affecting society and the economy into May causing a recession similar to the one in the early 2000s but nowhere near as bad as 2008.

The firm says that hotel and casino REITs are the most vulnerable to a global slowdown as conferences are canceled and travel is dramatically reduced. Rental housing, self-storage, health care, and net lease should fare much better as they are less dependent on global economic conditions.

Secular themes like cell towers, data centers, and logistics should also hold up as well as they have strong tailwinds form 5G and the continued, if not accelerated trend towards e-commerce.

The firm also expects to see continued volatility in energy pricing that could impact energy-related Master Limited Partnerships.

You can download a copy of the report here.