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One Important Thing to Do When You Buy REITS

Email Alert

One of the blunder I made recently was that I did not subscribe for Mapletree Commercial Trust Preferential Offering. It was not intentional. I missed the announcement!

The Consequences

The consequence of missing out the offering was the dilution of Mapletree Commercial Trust in my stock portfolio. I conclude that the most important thing when you buy REITs is to subscribe to the investor alerts or mailing list. I realize i did not subscribe to any email alerts for the list of REITs in my stock portfolio. (more…)

Summary of REITs Financial Results in 1Q2016

Most or all of the REITs in my portfolio have completed announcing their 1Q2016 results. There are some hits and some misses. As shown in the table I summarized below, Distribution Per Unit (“DPU”) increases for 6 out of 11 REITS I am holding while DPU fell for the other 5.

DPU fell for those REITs that focuses on a single industry sector such as industrial, retail or office. REITs like Suntec REIT which has a combination of office and retail survived the economy downturn. Mapletree Commercial Trust did fairly well too as it has a combination of office and retail (Vivocity).

Those with overseas assets did well too. Frasers Commercial Trust has both Singapore and Australian properties. Lippo Malls Indonesia Retail Trust did well as its malls are in Indonesia.

Having said so much, I just want to highlight the importance of diversification of portfolio.

Stock Name

Date Of Release

Of

Financial Results

Dividend Per Unit (DPU)

Increase or Fall

Frasers Commercial Trust Wednesday, 20 January 2016 DPU Increase
CapitaMall Trust Friday, 15 April 2016 DPU Increase
Keppel Reit Thursday, 14 April 2016 DPU Fall
Soilbuild Business Reit Thursday, 14 April 2016 DPU Fall
Suntec REIT Thursday, 21 April 2016  DPU Increase
Mapletree Commercial Trust Tuesday, 26th April 2016   DPU Increase
Parkway Life Reit Tuesday, 26th April 2016   DPU Fall
Far East Hospitality Trust Wednesday, 27th April 2016   DPU Increase
Cambridge Industrial Trust Thursday, 28th April 2016   DPU Fall
Lippo Malls Indonesia Retail Trust Tuesday, 3rd May 2016   DPU Increase
OUE Hospitality Trust Friday, 6th May 2016 DPU Fall

Mapletree Commercial Trust DPU Rises for 4Q FY15/16

Mapletree Commercial Trust Logo

On 25th April 2016, Mapletree Commercial Trust announces its 4QFY15/16 results. 4QFY15/16 refers to 1st January 2016 to 31st March 2016. Gross revenue increases by 2.8% from S$71 million to S$73 million. Net Property Income (“NPI”) increases by 3.5% from S$53.2 million to S$55 million. Distribution Per Unit (“DPU”) increases 1% from 2 cents to 2.02 cents.

4Q FY15/16
(S$’000)
4Q FY14/15
(S$’000)
YoY(%)
Gross Revenue 72,991 70,980 2.8
Net Property Income 55,044 53,175 3.5
Distributable Amount 42,918 42,151 1.8
Distribution Per Unit (“DPU”) (cents) 2.02 2 1.0

Occupancy

Overall occupancy increase from 95.7% to 96.6%. VivoCity is the only retail mall in Mapletree Commercial Trust portfolio. Shopper traffic grew about 7% and tenant sales grew about 6% in 4Q FY15/16 on a year on-year basis.

As at 31 Mar 2015 As at 31 Mar 2016
VivoCity 97.5% 99.6%
Merrill Lynch Harbourfront (“MLHF”) 100.0% 100.0%
PSA Building 95.4% 92.8%
Mapletree Anson 87.5% 91.0%
MCT Portfolio 95.7% 96.6%

Lease Expiry Profile

Weight Average Lease Expiry (“WALE”) for its office assets is 2.8 years while retail is 2.0 years.

Mapletree Commercial Trust 4Q2015 Lease Expiry

With the positive renewal/restructuring of Bank of America Merrill Lynch’s lease at Merrill Lynch Harbourfront (“MLHF”) in Apr 2016, the office WALE is extended from 2.8 years to 3.5 years.

Mapletree Commercial Trust 4Q2015 Lease Expiry New

Debt

Gearing ratio is 35.1%. Weighted average debt expiry is 3.4 years. Investors need to take note of 29% debt due in FY19/20.

Mapletree Commercial Trust 4Q FY15/16 Debt

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