As mentioned in the previous post, I have sold Starhill Global REIT as it continues to disappoint with its quarterly result due to its weak office occupancy. Together with this divestment, I am tweaking my REIT holdings so as to participate in the upcoming rights issue of Frasers Logistic Trust (FLT) and keep my REIT allocation to around 30% of my portfolio.

I have just divested Capital Mall Trust (CMT) at $2.11 last week for a small gain of 3.8%. Nothing wrong with CMT which has reported a slight increment in its Q1 DPU despite Funan redevelopment. It just a strategic decision on my side to take the small gain and deploy the money on other REITs.

So what have I bought and intending to buy?

In the past two weeks, I have re-entered Mapletree Greater China Commercial Trust (MGCCT) at $1.16 before its XD and added to Mapletree Industrial Trust (MINT) at $2.00 which brings my average price to $2.08. And just this morning, I have just took a small bite at Frasers Hospitality Trust (FHT) at $0.725. While it has a disappointing Q2 results, prospect seems to look better in the next few years. So decided to take this opportunity to initiate a position.

Going forward, I will probably add on to my current REIT holdings.

The table below shows my current REIT holding performance for the past quarter.

Screen Shot 2018-05-07 at 10.10.15 PM

As seen from the table, with the exception of MGCCT, all have grown their revenue and hence DPU over the previous year. For MGCCT, it was due to a reversal of VAT in the previous year. So overall I am pleased with their performances.

A bit more narrative for my bigger holdings.

Frasers Centrepoint Trust
As per expectation, with the completion of Northpoint City AEI, FCT continues to show strong growth in both revenue and DPU.  Assuming 12.4 cents DPU for the year, its yield will be about 5.5% at $2.24. It has the lowest gearing of 29.2%, meaning lots of room for injection of new properties into the trust. Biggest concern will be its shortest debt maturity period of 2.5 years which means its average interest is likely to go up from the current average of 2.4% in the next few years. However, with an interest cover of 6.6x, the balance sheet should be strong enough for the increase.

Will continue to hold on to my current stake with no intention of adding more at the moment.

Parkwaylife REIT
Parkwaylife REIT continues to do well and 3.6% increase for y-o-y recurring DPU. The price has remained resilient and did not drop much with the lower DPU due to the absence of distribution of divestment gain. So it looks likes the earlier drop in the year from $3 has already accounted for that.

Current yield is 4.5% with PB at a premium of 1.6x. Do not feel compel to add more at the moment. Will just hold on to my current stake and consider again when price drops to $2.6+.

First REIT (CPF)
First REIT is my longest holding with Metro Holdings. As long as both are providing me with higher return than 2.5%, I will probably just hold on to them. First REIT continues to produce to a stable performance. If it maintains this performance, current yield is around 6.3%, well above CPF-O rate. Including dividend, it has returned CAGR of about 15% over the past 10 years. And while I do not expect such a return in the next 10 years, I feel it should be able to continue to return 5% to 8% CAGR.

So will continue to hold on to it and participate in DRIP whenever it is available.