Its Not Fair, I Deserve The Promotion

Our performance appraisal is around the corner. The appraisal outcome also determines our fate whether we are getting the job promotion and the performance bonus that we deserve.

How many times have you felt this way at work when you saw someone else got promoted at work but not you? At my current workplace, I often heard of my colleagues grumble about how hard they have worked for many years but not gotten the promotion that they deserved. Most of them had quit the company to pursue a position elsewhere. One colleague left my current company recently for the same reason.

I have been pondering how do we get that job promotion at work? I happen to bump into the below video from Xandria Ooi which I wanted to share with those that felt they are not getting the job promotion they should be getting and I hope you get better after watching it.

Here is the excellent video by Xandria Ooi.

In summary, when we worked, the goal is not to be recognized or to be rewarded, the goal is to be VALUABLE. Because when you are valuable, the recognition and rewards will come naturally!

Mapletree Commercial Trust Declares DPU of 2.31 cents for 4QFY18/19

I consider this as one gem I have in my stock portfolio. Mapletree Commercial Trust currently makes up 10% of my stock portfolio. On 23rd April 2019, Mapletree Commercial Trust announced their 4QFY18/19 financial results. 4Q FY18/19 gross revenue and Net Property Income (NPI) grew 3.7% and 3.9% respectively. Income available for distribution was up 3.1%.

Here are the 4QFY18/19 financial results compared with 4QFY17/18.

4QFY18/19
(S$’000)
4QFY17/18
(S$’000)
Change
Gross Revenue 112,899 108,880 3.7%
Net Property Income 87,560 84,285 3.9%
Distributable Income 66,861 64,839 3.1%
Distribution Per Unit (“DPU”) (cents) 2.31 2.27 1.8%

All financial results are positive!

Here are the full year FY18/19 financial results compared with FY17/18.

FY18/19
(S$’000)
FY17/18
(S$’000)
Change
Gross Revenue 443,893 433,525 2.4%
Net Property Income 347,627 338,845 2.6%
Distributable Income 264,027 260,359 1.4%
Distribution Per Unit (“DPU”) (cents) 9.14 9.04 1.1%

Debt

As of 31st March 2019, the gearing ratio stood at 33.1%. The average term to maturity of debt is 3.6 years.

Occupancy

Overall portfolio committed occupancy stood at 98.5%.

Dividend Yield

Based on the dividend payout of 9.14 cents and current stock price of $1.92, this translates to a dividend yield of 4.76%. This means Mapletree Commercial Trust is considered expensive right now as most retail REITs should offer a dividend yield above 5%.

Catalyst

Giant at the basement has been replaced by FairPrice. FairPrice has started fit-out works for an integrated space of estimated 91,000 square feet while the remaining estimated 24,000 square feet of recovered anchor space on Level 1 and Basement 2 has been fully committed. The enhancement work is scheduled for completion by 2Q FY19/20, the entire changeover will deliver estimated 40% Return On Investment (ROI) in addition to positive rental uplift.

Frasers Logistics and Industrial Trust Declares DPU of 1.76 cents for 2QFY19

Frasers Logistics and Industrial Trust currently makes up 14% of my stock portfolio and 20% of my wife’s stock portfolio.

On 26th April 2019, Frasers Logistics and Industrial Trust announced their 2QFY19 financial results. The manager has declared a Distribution Per Unit (“DPU”) of 1.76 cents. This was a 2.8% decline as compared to 1.80 cents in 2QFY18. If we looked at the Distribution Per Unit (“DPU”) in Australian cents, the Distribution Per Unit (“DPU”) was 1.82 cents as compared to 1.70 cents in 2QFY18 which was 7.1% higher.

The reason for lower Distribution Per Unit (“DPU”) in Singapore cents was because of the softening of AUD and EUR against the SGD. The exchange rate was A$1.00: S$0.9666 (2QFY18: A$1.00:
S$1.0647). Foreign exchange risk is one key risk when investing in Frasers Logistics and Industrial Trust and I am fully aware of this risk prior to investing.

Occupancy

Frasers Logistics and Industrial Trust’s portfolio remained at near full occupancy of 99.6%, with a weighted average lease expiry (“WALE”) by gross rental income (“GRI”) of 6.71 years. I liked the annual average rent increment baked into its Australia assets.

As of 31 March 2019 Australia Europe Total
Number of properties 60 22 82
WALE 6.43 years 7.08 years 6.61 years
Occupancy Rate 99.4% 100% 99.6%
Annual Average Rent Increment 3.1% CPI-linked/ Fixed N.A

Debt

As of 31st March 2019, Frasers Logistics and Industrial Trust’s aggregate leverage was 35.1%. This was 0.5% down from 35.6% as compared to 1QFY19. The average weighted debt maturity is 2.4 years.

2QFY19 Financial Results

2QFY19
(A$’000)
2QFY18
(A$’000)
Change
Gross Revenue 59,666 43,575 36.9%
Net Property Income 47,866 33,414 43.3%
Distributable Income 36,909 25,866 42.7%
Distribution Per Unit (“DPU”) (Australian cents) 1.82 1.70 7.1%
Distribution Per Unit (“DPU”) (Singapore cents) 1.76 1.81 (2.8)%

Last but not least, it was interesting to know from the presentation slides that E-commerce can be a driver of global logistics market.

  • E-commerce is a key driver behind the development of the global logistics market, which is boosting demand for Logistics and Industrial properties and encouraging new project developments
  • Online retail sales (as percentage of total retail sales) is expected to grow exponentially in the years to come
  • Very strong demand growth has cut the availability of large-scale modern warehouse space, producing capacity constraints in several major logistics hubs globally
  • Growing customer expectations for same-day and same-hour delivery are forcing an increasing number of courier, express and parcel service providers to seek new centres for last mile city distribution.