Even if tenants don’t grow their profits, but inflation keeps going up, this Singapore REIT continues to collect growing rents from their tenants.
That’s why it’s hard to see why its impossible for rent to fall.
It’s guaranteed to give you rising dividends year after year.
What’s this Singapore REIT?
It’s a major healthcare landlord that rents out properties to hospitals and healthcare operators in Singapore.
According to research, Singapore’s sophisticated private healthcare industry have attracted many foreign patients.
And these patients come from as far as China and the Middle East. And also from neighbouring countries like Indonesia and Brunei.
According to International Trade Administration, Singapore’s healthcare market is expect to grow to US$49 billion by 2029.
And the government is going to spend US$36 billion by 2029.
While private healthcare spending is expected to be US$13.5 billion.
You’ll agree with me Singapore is the future medical hub of the region and offers Asia’s best healthcare system.
This is reflected by the country’s high life expectancies and lowest infant mortality in the world.
Yet, what’s crucial to know is Singapore faces a lack of medical expertise and facilities. Especially greater demand for specialized elderly care.
I don’t think there’s much of a competition here for this Singapore REIT.
If you think about it, this Singapore REIT is like gold in hyperinflation — with the potential for much higher returns.
Even better, it makes money from a tailwind of a growing private healthcare industry.
I’d say it’s…
The single, most profitable trade during an inflation crisis.
Even though it’s much smaller than the big blue-chip Singapore REITs, it still stands head and shoulders above the rest.
There is one more big point I like to say.
This Singapore REIT is not stopping anytime soon. In fact, it’s about to pump in another S$150 million of capital investment to upgrade its properties.
Company management has said that: “there will be a guaranteed rent step-up of 2-3% a year until 2025.”
In other words, rent will go up by another 39% over the next three years.
But what’s more important is, as the market improves from inflation and normalizes going forward,
Just over the last 12 months, it rewarded shareholders with over S$63 million of dividends. This is much higher than it was compared to a year ago.
And since it got listed on the Singapore Exchange in 2007, its distribution has been going up, uninterrupted, year after year.
Even during the COVID pandemic, it continued to go up.