The ASX 200 REITs haven't had a great start to 2020. Many of the biggest real estate owners and developers have seen their share prices crash lower this year.
Concerns over the coronavirus pandemic have shutdown the Aussie economy. Shopping centres, offices and other commercial buildings are standing empty.
We've also seen public stand-offs between commercial landlords and tenants over rental payments.
None of this is good news for ASX 200 REITs, which rely on income from these properties. But with some real estate shares rocketing higher in April, is it the perfect time to buy?
Why these ASX 200 REITs are up more than 30% in April
Vicinity Centres (ASX: VCX) shares are leading the way this month. As at Thursday's close, the Vicinity share price is up 36.89% in April.
Granted, it's still down a hefty 43.47% in 2020. But strong share price rebounds could be signalling a market bottom for the Aussie REITs.
Vicinity has big exposure to the Aussie retail sector with $6.9 billion in Aussie shopping centre assets.
It's a similar story for Westfield operator Scentre Group (ASX: SCG). Scentre shares have surged 32.48% higher since the start of April in a positive turnaround for shareholders.
But what's driving these ASX 200 REITs higher in the current bear market? After all, it has been a rollercoaster year for Aussie retail in 2020.
I think one positive has been the new mandatory code of conduct for commercial landlords and tenants. The deal was announced by Scott Morrison last Tuesday and provides some rules around evictions and rental agreements in the current environment.
This looks to have put investors' minds at ease for now. Many large retail tenants were headed towards a stand-off with the ASX 200 REITs as their landlords.
This new code of conduct provides some structure and certainty, which is at a premium right now.
The other thing that could come into play in 2020 is the purchase of tenants by the ASX 200 REITs.
It's no secret that Aussie retail has been under pressure this year. We've seen brands like Harris Scarfe, Kikki.K and Tigerlily (among many others) start insolvency proceedings in recent times.
In the US, we've seen some REITs start purchasing their tenants on the cheap. That could be an option on the cards for the ASX 200 REITs if they're struggling to expand in the wake of the pandemic.
Foolish takeaway
Despite these recent gains, I'm not sure if I'd be willing to buy ASX 200 REIT shares right now. I think we could be in a bear trap right now with markets set to fall further.