Today, I received a message from my broker asking whether I am interested in subscribing for the Lion Phillip SREIT ETF. The IPO price is at S$1.00 and no balloting is required which means a full allocation will be given if I subscribe for it.
It is the first REIT ETF that is purely based on Singapore REITs. Capitaland Mall Trust, being my favorite REIT in my stock portfolio makes up the major component in this ETF.
A glance at this Lion Phillip SREIT ETF gives me the impression that this ETF is overweight on Retail REITs and Industrial REITs which means it is suppose to be high yielding. Retail and Industrial REITs are highly cylindrical as compared to Healthcare REITs.
Disappointingly, Lion Phillip SREIT ETF is expected to provide only a 5.75% yield.
Previously, I have added more of Capitaland Mall Trust in November 2016. Based on an estimated price of S$1.94 at that point of time and an annualized distribution of 11.13 cents in FY16, this translate to a dividend yield of 5.74%. This is a pretty close match to to Lion Phillip SREIT ETF.
If you have read my previous post on Starhill Global REIT, the REIT provides a dividend yield of 6.65%.
Thus, I am giving Lion Phillip SREIT ETF a miss. Are you vested?
| No | Index Security | Weighting (%) |
| 1 | CapitaLand Mall Trust | 10.76 |
| 2 | CapitaLand Commercial Trust | 10.25 |
| 3 | Suntec REIT | 9.89 |
| 4 | Mapletree Commercial Trust | 8.98 |
| 5 | Keppel REIT | 8.54 |
| 6 | Ascendas REIT | 8.02 |
| 7 | Mapletree Industrial Trust | 7.64 |
| 8 | Mapletree Logistics Trust | 5.52 |
| 9 | Ascott Residence Trust | 4.54 |
| 10 | Mapletree Greater China Commercial Trust | 3.55 |
| 11 | CDL Hospitality Trusts | 3.50 |
| 12 | Starhill Global REIT | 3.44 |
| 13 | Frasers Commercial Trust | 2.35 |
| 14 | Parkway Life REIT | 2.34 |
| 15 | Frasers Centrepoint Trust | 1.97 |
| 16 | Keppel DC REIT | 1.71 |
| 17 | OUE Hospitality Trust | 1.42 |
| 18 | CapitaLand Retail China Trust | 1.26 |
| 19 | Lippo Malls Indonesia Retail Trust | 1.12 |
| 20 | Frasers Logistics & Industrial Trust | 0.88 |
| 21 | First REIT | 0.86 |
| 22 | Far East Hospitality Trust | 0.76 |
| 23 | Frasers Hospitality Trust | 0.70 |
The dividend yield of the ETF is around 4.8% because there will be a corporate tax of 17%. I have written a similar piece – http://kpo-and-czm.blogspot.com/2017/09/3rd-reit-etf-lion-phillip-s-reit-etf.html
Hi KPO,
Thanks for sharing!
Nice summary about Lion Phillip SREIT ETF there you’ve got! I’m giving it a miss too :p
Picking a good apple from the basket is nice. I’ll wait for the opportunity to add onto SGR