2020 Q1 Brief on REITs

Another good quarter from the above REITs. With the exception of CRCT, all reported higher DPU y-o-y.

Counter (average price, cost position size): increase in DPU
FCT ($2.81, 7.1%): up 1.3%
Plife ($3.32, 5.2%): up 2.0%
MINT ($2.60, 4.9%): up 2.9%
MCT ($2.39, 4.5%): up 5.6%
CRCT ($1.61, 2.0%): flat (excluding capital distribution in previous year)
KDC ($2.08, 2.6%): up 4.3%

With the exception of CRCT which is affected by the Novel coronavirus, the rest should continue to do well in the coming quarters with increasing DPU. Due to the uncertainty of the impact on its DPU, I decided to divest about half of my CRCT holdings at $1.54 today and took a loss of 4.9%.

As mentioned in the last post, I have just initiated a small position of AREIT at $3.12 one day before it announced its result. Not realising the special situation of its latest rights issue, I was caught by surprise when it announced a 12.3% drop in its DPU due to the enlarged share base. Nonetheless, I was prepared to add more if the price drops below $3.00 but that never happens.  In fact, its price has appreciated to $3.21 even after XD today! So looks like everyone is thinking forward and valuing it with its projected DPU of 16.136 cents.

The REITs currently occupy about 28% of my portfolio now. Given the jittery market sentiment recently, I will be on the look out to add on more to my holdings when the opportunity presents itself.