It’s the income season again and it’s a happy sight for the quarter.
As seen from the above table, most of my REIT counters continue to announce increasing DPU over the previous year! The Mapletree family of REITs which I bought less than a year ago continues to impress me with its active management of their properties that results in an increase in higher dividend payout. MCT’s flat distribution is primarily due to AEI of VivoCity. Coming quarters should be interesting with the opening of basement one extension in June 2018 and the addition of public library in second half of the financial year.
Now to my larger holdings.
Frasers Centrepoint Trust continues to benefit from the Northpoint AEI, resulting in an increase of DPU by 1.8%. The upside from Northpoint AEI should continue for a quarter or two and then it should stabilise after that. Assuming a 12.2 cents DPU, current price of $2.2+ provides a yield of about 5.5%. Satisfying but not a compelling buy. I will hold on to my current stake and wait patiently for it to announce its next big move.
Parkwaylife REIT’s lower DPU this year was due to the absence of distribution of divestment gain. I am pretty impressed by the increase in the recurring DPU by 2.9%. In Q1, the increase was 3.6%. Assuming DPU to continue to increase by about 3%, projected DPU for the year will be around 12.8 cents. At current price of $2.7+, the yield is about 4.6%. A tad too low to add more. I was considering to add when it dropped to $2.6+ last month but considered too long and missed the chance. A solid REIT but would wait for appropriate juncture before considering adding more.
My largest holding in CPF First REIT continues to provide a stable return. The rate of DPU increase has slowed down since last year which coincides with the change in CEO. Could be purely coincidental but with the added concern about some liquidity problem from its sponsor Lippo Karawaci, I will be keeping a closer look of its results for the next few quarters. I do hope it is just a phase and the REIT can resume its growth from 2019 onwards. Current yield of about 6.6% is still way higher than CPF-OA 2.5% interest. So will continue to hold on to current stake and participate in DRIP whenever it is available.
Towards Financial Independence 