The month of August is ending and it is time to reflect on my monthly stock transactions. This month, I have divested Suntec REIT. With the proceeds, I have stick to my original plan and invested them into Frasers Logistics and Industrial Trust. As such, the percentage of Frasers Logistics and Industrial Trust increases from 11% to 13% in terms of total invested amount of my stock portfolio. You can read more here ( What To Invest Now? ) on how I came to the decision to invest in Frasers Logistics and Industrial Trust instead of other REITs in my stock portfolio. Read More
I do not know why but without much hesitation, I have sold off Suntec REIT today. Total profit was 54.3%. If I include the dividends collected over the years, total profit was 105%. I have sold off Suntec REIT not because of its slight decline in DPU in 2Q2018 but because it only makes up only 2% of my entire stock portfolio.
I invest in REITs mostly for their dividends and we all know that the more units we held, the more distribution we get every quarter from the REITs. Since the share price of Suntec REIT has appreciated much over the years since IPO, selling it seems to be the right decision. I can invest the money from the sale into other REITs. Yes, I am going to do that but I have yet to make up my mind which REIT to invest in using the capital gained from the sale.
Based on the historical distribution of 10.005 cents in FY17 and current price of S$1.92, the dividend yield is 5.21%. Personally, I felt the current dividend yield is low as compared to other REITs, so if you intend to invest into Suntec REIT, you should wait for the correct price to enter.
I have been holding on to the cash that I had from the delisting of AusNetServices from Singapore Stock Exchange (SGX). After a quick screening through my stock portfolio, I decided to increase my holdings of Frasers Logistics and Industrial Trust from 8% to 11%. The share price of Frasers Logistics and Industrial Trust hovers at S$1.04 to S$1.05 and may possibly go lower due to the weakening Aussie dollar against Singapore dollar. At the point of writing, S$1.00 translates to A$0.99. Given the current share price of S$1.05 and estimated dividend of 7.22 cents for FY18, this translates to a dividend yield of 6.88% which I deem to be pretty attractive. Read More