Given the tough macro conditions, the REITs in my portfolio have shown resilient and done well. With the relent increase in interest rate over the past year, cost of debt has definitely impacted the performance. If you have a rental property with mortgage, you would have felt the same impact on your debt and probably thinking how to get more rent to mitigate the increase in debt cost. So for REITs that have maintained or just have a slight dip in their DPU, it is a commendable performance.
The data above are what I obtained from the groups’ presentation slides. Not everything is doom and gloom, there are pockets of positives such as increase in occupancy and positive rental reversion which help to mitigate the negative impact. For those of you who like to scrutinise the data, do go through the respective REITs website to check out their slides. You can also visit the following blogs where the authors do a very much more in depth analysis of REITs results.
Thanks to thosai from InvestingNote, I also got to know that Frasers Centrepoint Trust and Mapletree family of REITs shared their webcast of their presentations! You can access them in the following links.
- Frasers Centrepoint Trust FY20231H
- Mapletree Industrial Trust FY2022Q4
- Mapletree Logistics Trust FY2022Q4
- Mapletree Pan Asia Commercial Trust FY2022Q4
As I am writing this post, I just finished hearing FCT webcast and am listening in to MIT webcast. They are definitely more useful than just browsing through the presentation slides, especially when there is a Q&A session. If you are a holder of the above REITs, I strongly encourage you to listen to the webcast.
Going forward, it won’t get easier and I am expecting a continued dip in DPU for this financial year. Beyond this year, thing should look brighter with interest rate expected to have peaked. In general, I am satisfied with how the various managements are handling the tough environment. More specifically, on the two ends of the spectrum is happy with PLife and “I told you so feeling” with MPACT!
REITs occupy about 31% of my portfolio now, within my targetted range of 25% to 35%. Hence, I will continue to hold on to my current holdings, collecting the diminishing dividend for the coming year and hoping for a better return in 2 to 3 years time.