Mapletree Commercial Trust (MCT) is a Singapore-based real estate investment trust (REIT) that invests in income-producing real estate related to retail, office and industrial properties. Established in 2011, MCT is one of the first REITs in Singapore to be listed on the Singapore Exchange. MCT has established itself as a well-diversified REIT with a portfolio of quality assets located in Singapore, Hong Kong and Japan, with a total value of S$13.3 billion as of 2017.
The Benefits of Investing in MCT
Investing in MCT provides investors with a number of benefits. Firstly, MCT offers a high-yielding dividend yield of 6.7%. This dividend yield is significantly higher than the average dividend yield for REITs in Singapore. Secondly, MCT is well-diversified across several markets, with a portfolio of assets located in Singapore, Hong Kong and Japan. This diversification helps to reduce the risk associated with investing in a single market. Thirdly, MCT has a strong track record of delivering consistent and stable returns to investors. The trust has consistently outperformed the STI REIT Index and has maintained a high occupancy rate of more than 95%.
Risks of Investing in MCT
While investing in MCT offers investors a number of advantages, there are also certain risks that should be taken into consideration. Firstly, the trust is exposed to currency risk since a large portion of its income is derived from the foreign markets. Secondly, MCT is heavily exposed to the retail sector, which is currently facing headwinds due to the shift to online shopping. This may affect the trust’s income and dividend yield in the future. Finally, MCT’s portfolio is concentrated in Singapore and Hong Kong, which means that the trust is exposed to the economic conditions in these two markets.
Overall, Mapletree Commercial Trust is a smart investment for investors looking to diversify their portfolio and earn a high dividend yield. The trust has a strong track record of delivering consistent and stable returns and is well-diversified across several markets. However, investors should also be aware of the risks associated with investing in MCT, such as currency risk and exposure to the retail sector.