A stroll through the shopping mall sector

DUBLIN has its pubs, London has Trafalgar Square and New York, Times Square. In humid and rainy Singapore, however, the top hang-out spot of choice for food, shopping or leisure is probably the ubiquitous air-conditioned shopping centre.

There are more than 80 malls in Singapore, scattered over all parts of the island, usually located near an MRT station. What investors might not know is that they can invest in at least a quarter of these and collect dividends through the rental income mall landlords receive. They can also invest in malls in other markets too, such as Hong Kong, China, and Indonesia.

Today, we introduce the drivers of the industry behind the retail real estate investment trust (Reit) sector, which is arguably one of the more stable and defensive sectors in Singapore. This week's piece is focused more on a general look at the industry, its opportunities and challenges. A future piece will describe and evaluate individual retail Reits.