What To Invest Now?

Previously, I wrote about re-investing the money I gotten from the sale of Suntec REIT. This puts me in a dilemma as I do not know which REIT in my stock portfolio should I increase my position. Thus, the best way to find out is to compare their current dividend yield for better decision making.

The minimum criteria for my next REIT selection is that the current dividend yield should be better than Suntec REIT which currently yields 5.21% based on the current price of S$1.92.

From the below table that I have tabulated, ParkwayLife REIT is definitely out of the game as it current gives a dividend yield of 4.93%. I have also eliminated CapitaMall Trust as its dividend yield is 5.26% which is very much close to Suntec REIT’s dividend yield of 5.21%.

I have also eliminated OUE Hospitality Trust due to its poor 2Q2018 financial results. (Read more: OUE Hospitality Trust 2Q2018 Financial Results – Still Awaiting The Jewel) Read More

Frasers Logistics and Industrial Trust Divests Lot 102 Coghlan Road In South Australia

Just when I thought it will be all quiet for Frasers Logistics and Industrial Trust after their recent divestment of 80 Hartley Street asset, Frasers Logistics and Industrial Trust announce another divestment today! Frasers Logistics and Industrial Trust is going to divest Lot 102 Coghlan Road in South Australia for A$8.75 million.

The consideration represents a 36.7% premium to the Property’s book value of A$6.4 million as at 30 June 2018 and a 26.8% premium to the original purchase price of A$6.9 million at Frasers Logistics and Industrial Trust’s initial public offering in 2016.

Upon completion of the proposed divestment, Frasers Logistics and Industrial Trust’s portfolio will comprise of 59 properties in Australia, 17 in Germany and 4 in the Netherlands. Read More

Frasers Logistics and Industrial Trust DPU Jumps 2.9%

Frasers Logistics and Industrial Trust announced its 3QFY18 results on 1st August 2018. Distribution Per Unit (“DPU”) increased by 2.9% in 3QFY18 as compared with 3QFY17. This is definitely a great piece of news for me as I have recently increased my allocation of Frasers Logistics and Industrial Trust in my stock portfolio from 8% to 11%. Increasing dividend yield is one of the factors I look for when investing in REITs.

If you didn’t notice from the presentation slides, the manager has elected to receive 82.9% (9MFY17: 100%) of management fees in the form of units. In my opinion, this means that the manager will work hard to grow the DPU as a falling DPU will affect their manager fees!

As you can see from the financial results below, gross revenue, net property income and distributable income have all increased in 3QFY18 as compared with 3QFY17 so there is nothing much to quibble about. Read More