Divested Mapletree Logistic Trust recently and started a position in CapitaLand Retail China Trust in February, Far East Hospitality Trust in March and Keppel Data Centre Trust in April. So a total of 8 REITs in portfolio now.
With the exception of FEHT, all reported a growth in recurring DPU for the quarter. So am happy with their performance.
[average purchased price, position size]
Fraser Centrepoint Trust 2019 Q2 [$2.06, 6.9%]
Another quarter where DPU is up from releasing of retained amount from prior year. Not complaining with the record high DPU of 3.137 cents but am hoping for more organic grow. Portfolio occupancy and rental revision remains good compared to historical information.
With the completion of acquisition of 17.1312% stake in PGIM Real Estate AsiaRetail Fund (PGIM ARF) with bridging loan, looking forward to a small boost to its DPU in coming quarters.
Not feeling too excited by its near term prospect. So will just hold on to my current stake.
Parkwaylife REIT 2019 Q1 [$2.32, 5.8%]
Business as usual and DPU continues to grow by 3.5% to 3.28 cents. If it carries on with this growth rate, DPU would be around 13.3 cents for the full year.
Current price is a tad too expensive. Might look to add more if it dropped to $2.6+.
Mapletree Industrial Trust 2018/19 Q4 [$2.05, 5.2%]
Another good quarter with its distributable income up by 8% and DPU up by 4.4%. For the full year, DPU is up by 3.5% to 12.35 cents. That gives me a yield of about 5.9% based on my average purchased price.
It has stronger balance sheet with average debt tenor increases to 4.4 years (3.7 yrs), gearing dropped to 33.8% (34.7%), and interest coverage maintained at 6.5x. Occupancy continues to improve over the latest quarter and gross rental rate hits a high of $2.07 psf/mth in the latest quarter. Its venture into hi-tech buildings seems to be working out well as seen from the higher rental rate for its new leases.
Overall, I am happy with its latest quarter and have added more recently at $2.07 after divesting Mapletree Logistic Trust.
Mapletree North Asia Commercial Trust 2018/19 Q4 [$1.16, 3.4%]
Another steady quarter with DPU up by 2.7% for the quarter. Full year’s DPU is up by 2.8%. High portfolio occupancy and strong rental revision with the exception of Gateway Plaza which inched up by 2%.
The thing to look out for in the coming quarters are occupancy and rental revision of Gateway Plaza which management has guided that there might be some pressure. Will monitor that.
Assuming flat DPU for the next FY, my cost yield will be 6.6% and current yield at $1.34 will be 5.7%. Will just hold on to my current stake.
Mapletree Commercial Trust 2018/19 Q4 [$1.58, 3.3%]
As expected, MCT continues to grow its DPU. For the quarter DPU is up by 1.4% to 2.31 cents; for the full year DPU is up by 1.1% to 9.14 cents. My cost yield is 5.8% while current yield (at $1.84) is 4.9%.
Continue to have strong balance sheet and its NAV jumped by 7.4% to $1.60. Portfolio occupancy also improves to 98.5% and they achieved a rental revision of 5.4%.
Barring unforeseen circumstances, I expect MCT’s DPU to continue grow at around 1% to 2% for the upcoming year. Not my first choice to accumulate more at the current price.
CapitaLand Retail China Trust 2019 Q1 [$1.51, 3.2%]
Got a shock initially when I saw the reported DPU dropped by 5.8% year-on-year. A closer look at the report reveals that the drop is due to capital distribution. Exclude that DPU actually grew by 2.0% which is more in-line to its revenue and net profit growth. Strong portfolio occupancy with average 9.5% average rental revision!
Annualizing 2.49 cents (exclude capital distribution), it is currently giving a yield of about 6.5%. So am holding on to my current stake.
Far East Hospitality Trust 2019 Q1 [$0.66, 1.9%]
Gross revenue and net profit income increased by 8% and 9% respectively but income available for distribution dropped by 1.2% and DPU (0.91 c) dropped by 3.2% due to enlarged based. Management guided some volatility in the near-term given the subdued corporate demand due to global macroeconomic concerns, but is positive about the medium-term prospects of the industry.
Slightly disappointed as past few quarters have seen an increase in DPU. Assuming this continues to be the trend and 2019 DPU dropped by 5% to 3.8 c, that still gives me a credible 5.7% yield based on my average price. Will hod on to my current stake.
Keppel DC REIT 2019 Q1 [$1.50, 1.3%]
This has always been in my radar but I never get my hand onto it until last week when I took the plunge. A strong Q1 results with most metric up by at least 20% and DPU is up by 6.7% to 1.92 cents. Annualising the DPU, I am getting a 5.1% yield for my purchase price. Not fantastic but if it can continue to grow like the past 4 years where it has doubled its asset and AUM, then DPU should continue to increase. Looking forward to a long term relationship.
Might add more in due course.