It had been a busy month at work, so I only took a glimpse at the the REITs quarterly results. With National Day round the corner, finally found some time to digest the results. Once again, I am pleased with the results of the 6 REITs (after divesting Mapletree North Asia Commercial Trust and Far East Hospitality Trust last month) that I hold. I am likely to reallocate some of the sales proceed and continue to hold on to these 6 REITs for income.
Fraser Centrepoint Trust 2019 Q3 [7.6%@$2.10]
I was initially slightly disappointed with the lower DPU of 3.0 cents as compared to last year’s 3.053 cents. However, the disappointment was soon overcame when I realized that the management decided to retain part of the income available for distribution. If they have chose to distribute 100% of the income which they did in 2018 Q3, the DPU would be 37% higher. Also, portfolio occupancy is highest over the past 5 years and the quarter sees a rental revision of 3.1%.
YTD DPU at 9.157 cents compared to 9.153 cents for 2018. I am expecting another 3.0 cents distribution for Q4 and that will translate to a DPU growth of about 2.7% over 2018 for the full year.
Looking forward to further growth in DPU after the recent acquisition of 18.8% stake in PGIM Real Estate AsiaRetail Fund Limited and one third of Waterway Point.
As it already occupied 7.6% of my portfolio and having just participated in its preferential offering, I will just hold on to my current stake.
Parkwaylife REIT 2019 Q2 [5.6%@$2.32]
Business as usual and DPU grows by 2.6% to 3.27 cents. For the half, DPU grew by 3.0% to 6.55 cents. Assuming the same growth rate for second half, total dividend for the financial year will be 13.25 cents.
Based on presentation, there is no indication of any new acquisition, so near term growth is down to rental revision.
Similar to Frasers Centrepoint Trust, I am likely to just hold on to my current stake.
Mapletree Industrial Trust 2019/20 Q1 [5.0%@$2.05]
A good start to the year with its distributable income up by 11.1% and DPU up by 3.3% y-o-y. Its strategy to go into Hi-Tech Buildings is bearing fruit as it improves overall occupancy and rental rate for Singapore portfolio.
With the completion of upgrading of 7 Tai Seng Drive into a data centre, it should provide a boost to distributable income and DPU in the coming quarters. MINT also announced the redevelopment of Kolam Ayer 2 Cluster from flatted factories to New Hi-Tech buildings from 2H2020 to 2H2022. There will probably be some disruption in the distributable income then but I believe the management will be able to minimise it.
I am glad that I have decided in January 2018 to make my maiden purchase of the share at $2.11. The price dropped to $1.8+ along the year and I had taken the opportunity to average down my price. Seeing how the management is able to transform this REIT, I am likely to add more in the near future.
Mapletree Commercial Trust 2019/20 Q1 [3.2%@$1.58]
1Q FY19/20 distributable income up 4.1% year-on-year and DPU grew 3.6% year-on-year to 2.31 Singapore cents. Quite a performance, considering the transitory impact on VivoCity’s shopper traffic and tenant sales due to changeover of hypermarket.
The operation of new/expanding tenants since May and the soft launch of NTUC in July should provide a boost to its DPU.
Annualizing its 1Q DPU, current yield is around 4.6%. While not as attractive as when I first purchased it in 2017 July, I am won over by management’s ability to grow its distributable income and DPU over the year. As such, I am likely to add more in the near future.
CapitaLand Retail China Trust 2019 Q2 [3.1%@$1.51]
Excluding last year’s capital re-distribution due to the divestment of CapitaMall Anzhen, DPU grew by 2.0% fo the quarter to 2.54 cents and for the half 5.03 cents. Average occupancy is healthy at 97% and average rental revision for the half is 7.5%.
Recent years’ acquisitions Xinnan in 2016 and Rock Square in 2017/18 have a positive impact on its portfolio. Upcoming changes include the swap of CapitaMall Saihan for Yuquan Mall and the acquisition of CapitaMall Xuefu, CapitaMall Aidemengdun and CapitaMall Yuhuating,
CRCT just announced the preferential offering of 87 for 1000 shares at $1.42 -$1.44 to raise fund for its acquisition. I will take up the offer and apply for excess for a total of 2000 shares. Hopefully I can get what I apply for. If not, I will buy more later directly from the market.
Keppel DC REIT 2019 Q2 [1.9%@$1.53]
Another strong quarter with DPU up by 6% to 1.93 cents. Added some in June at $1.57 and on hindsight should have just buy more. This will be the first distribution that I will receive from this new comer in my portfolio and hopefully there will be many more rounds to come.
Based on its track record, I think it has potential for further growth in years to come. So while the current yield is only about 4.5%, I might add more in the near future.