My Personal Analysis of CapitaLand Commercial Trust

CapitaLand Commercial Trust catches my eye when I was researching on REITs that own car parks in their portfolio. If you didn’t know, Golden Shoe Car Park is one of the assets in CapitaLand Commercial Trust portfolio. But in general, CapitaLand Commercial Trust is similar to Keppel REIT which consists of mainly Grade A office assets.

Golden Shoe Car Park is undergoing a redevelopment which is due to complete in 1H2021. The car park will be redevelop into a commercial development in Raffles Place. Read More

Starhill Global REIT High Dividend Yield Can Buy?

Starhill Global REIT Logo

In the year 2016, I wrote about Starhill Global REIT ( My Dividend Yield of Starhill Global REIT ) giving a dividend yield of 6.56% at the stock price of $0.79. Recently, the share price of Starhill Global REIT has fallen to $0.74. Recently, Starhill Global REIT has announced its 4Q FY16/17 results. Distribution Per Unit has fallen by 8.5% to 1.18 cents compared to a year ago of 1.29 cents.

The annualized distribution per unit for 12  months ended FY16/17 is 4.92 cents compared to 5.18 cents a year ago. Below shows the current share price of Starhill Global REIT. At $0.74 cents, the current dividend yield will be (0.0492/0.74) x 100 = 6.65%. Read More

Soilbuild Business Space REIT High Yield but Declining DPU

Soilbuild REIT Logo

For 2 consecutive quarters, the distribution per unit has declined for Soilbuild Business Space REIT. Based on the closing price of $0.72 on 30th June 2017, the annualised distribution yield is 8.2%. I have previously wrote about the investment risks of Soilbuild Business Space REIT here, thus I shall be repeating it again in this post.

I am writing this post just to re-validate my decision to sell Soilbuild Business Space REIT when opportunity arises. The REIT currently makes up 5% of my stock portfolio.

The following are my observations based on its current financials

Declining Distribution Per Unit quarter on quarter (q-o-q)

Distribution Per Unit has been declining. It has proven that we should not solely purchase a REIT based on its high dividend yield.

2nd Quarter 1st Quarter
Distribution Per Unit (“DPU”) (cents) FY2016 1.565 1.557
Distribution Per Unit (“DPU”) (cents) FY2017 1.514 1.539
Variance (6.3%) (1.2%)

Flat Net Asset Value

Flat or stagnant Net Asset Value at $0.72 for the last two quarters. By right after acquisition of Bukit Batok Connection, distribution or property yield should increase but it didn’t.

The Cursed 72 Loyang Way

72 Loyang Way still plagues Soilbuild Business Space REIT. The challenge remains to lease the entire space at 72 Loyang Way due to the subdued marine offshore and oil and gas sector.

Occupancy

Occupancy still at 92.6% which is slightly above the industrial average of 89.4%.