“Why go to a shopping mall when you can shop online, right?”

Analysts and market commentators in Singapore and around the world have been painting a doom-and-gloom picture for retail Real Estate Investment Trusts (REITs) over the last couple of years ever since e-commerce became popular, citing declining shopper traffic and tenant sales.

However, we think that malls are here to stay. Think about it – when was the last time you stepped into a mall? My guess is probably sometime this week.

The point is, we still like to visit stores like Uniqlo at the mall, and secondary school kids will continue to enjoy hanging out at its movie theatres while patronizing McDonalds afterward!

Of course, those concerns aren’t unwarranted.

Investors would be wise to buy into REITs which are financially stable, backed by a cash-rich sponsor, and whose management is working to constantly innovate its outfits to attract