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Own cash-generative, monopoly-like assets |
Frasers
Centrepoint Trust (FCT) has proposed to acquire 5 new shopping malls.
The merger between CapitaLand Mall Trust (CMT) and CapitaLand Commercial
Trust (CCT) would create the largest REIT in Singapore, CapitaLand
Integrated Commercial Trust (CICT) by the end of 2020. Besides these 2
mega REITs, if one is also vested in Mapletree Commercial Trust (MCT),
he/she would be well-positioned for the post-COVID recovery once the
HarbourFront precinct is fully redeveloped. In fact, shoppers and diners
have begun streaming back to the malls, especially on weekends. After
witnessing the crowds, I am starting to question if the current
recession is as bad as originally reported. The malls owned by FCT, CMT
and MCT are conveniently located near MRT stations and large population
catchment areas, thus ensuring high human footfall. They enjoy a
monopolistic grip over strategically-located retail spaces in Singapore.
As long as there is no second Circuit Breaker (fingers-crossed!), these
3 retail & commercial REITs are solid long-term recovery plays in my opinion. Huge dose of patience required. Collecting rental income from forty properties. FORTY!!!
"Landlords grow rich in their sleep"
~ John Stuart Mill~
http://dividendsrichwarrior.blogspot.com/2020/09/post-covid-19-recovery-play-giant.html