Post-COVID 19 Recovery Play - Giant Retail & Office LandLords

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~

MapleTree Commercial Trust IPO Preview (2011)

Sometimes I wonder why I do not have MapleTree Industrial Trust (MIT) and MapleTree Logistics Trust (MLT).  Both of them have a strong sponsor, "MapleTree Investments", which in turn is owned by Temasek Holdings, which in turn is owned by the Singapore government. The yield is decent.  The stock price is affordable. So, what am I waiting for? 

Honestly, I have no idea too. MIT and MLT just do not seem appealing to me. I prefer retail, office and healthcare REITs. I just feel that the demand for retail space, office space and healthcare facilities will always be strong. But "industrial" and "logistics". Ermmm...... I am not sure.

Now, MapleTree is listing a commercial/retail trust called "MapleTree Commercial Trust" (MCT). Some tentative information:

• Yield: 5.47% - 5.92% (FY11) and 5.96% - 6.46% (FY12)
• Price: $0.84 - $0.91
• Properties:  Vivo City, Bank of America Merrill Lynch Harbour Front and PSA Building 

My Thoughts:
Finally! I can own a microscopic tiny part of VivoCity. VivoCity is one of my favourite retail mall because it is so spacious and bright, with a huge variety of stores (I like the Sushi Tei here^^). The scenery looks great from the rooftop garden!

Vivo City's façade

Interior of Vivo City

Rooftop garden at Vivo City

Sushi Tei at Vivo City "Slurp"

The Sentosa Boardwalk links Vivo City to the Resorts World Sentosa.

The monorail also links Vivo City to Sentosa. 

I am probably gonna pick up some. How about you?

Peace Out,
Dividends Warrior