Boston 10/6/2012 10:27:57 AM
News / Real Estate

Mall REITs could Grow in Popularity, claims AAA

Mall REITs are becoming an attractive choice for investors, claims Alternative Asset Analysis, following the publication of a report on the issue in Forbes this week.

Mall REITs are becoming an attractive choice for investors, claims Alternative Asset Analysis, following the publication of a report on the issue in Forbes this week.

Forbes real estate analyst Brad Thomas claimed that investing in Mall-based real estate investment trusts (REITs) can be a lucrative choice for a number of reasons. He suggested that the retail sector's growth will mean strong incomes for malls as well as the construction of new malls across the US. There is already 1,400 malls across the US and the demand for retail mall space is increasing. This is all good news for investors, according to Anthony Johnson, AAA's analysis partner.

Mr Thomas backs this view, explaining: "Excellent locations and moderate but steady growth in retail sales, reduces risk and provides for predictable and growing cash flows."

The median occupancy levels for regional malls in the US is an impressive 94.2 per cent - showing that malls that are built, do not suffer from problems attracting tenants, and this, making income.

REITs are a popular form of alternative investment at a time when all kinds of alternative asset classes are growing in popularity. AAA advocates all forms of alternative investments, with an emphasis on ethical investments, such as forestry projects and social impact investing.

These types of investment choices are proving attractive to people who want to make a difference with their cash investments and reflects the way the markets have changed since the economic crisis. "People are less interested in short term gains and are more likely to be in it for the long-haul when it comes to investments these days," explained Johnson.

He added, "Investing in a social fund that lends money to small businesses in a developing countries, for example, can be very rewarding and profitable. Investing in a sustainable plantation projects that helps reduce deforestation is also a lucrative and ethical choice."

About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.