Decided to divest from industrial REIT in 2015 as I do not quite have a sense of the industrial space business. Unlike retail REIT where I can have rough sense of mall’s occupancy and traffic by visiting the malls, I do not visit the business spaces.
So why did I purchase a small stake of AReit in the last week of December? The yield of about 7% for a blue-chip industrial REIT was just too tempting. In a way, I bought impulsively without even looking at its performance for current year. I am lucky that it turned out well thus far with a positive performance this year.
Revenue grew 7.6% and net property income grew 9.0%. DPU grew by 1.2% to 3.993 cents despite increase in units. NAV of $2.08 and gearing at 31.8%.
After browsing thought its presentation slides, I think AReit DPU should stay fairly stable. Will continue to hold on to my small stake.
Full presentation by company here.