Keeping Track of 1st Quarter 2016 Financial Results

Golden-Egg-255x300

Below are the REITS I currently hold in my portfolio. Most of them will be announcing their 1st Quarter 2016 financial results. To keep track of the date of release of the 1st quarter 2016 financial results, I have decided to track them using the table below.

So far, only CapitaMall Trust have reported an increase in DPU. Keppel Reit and Soilbuild Business Reit have reported a fall in DPU.

Stock Name

Date Of Release

Of

1st Quarter 2016 Financial Results

Dividend Per Unit (DPU)

Increase or Fall

Frasers Commercial TrustWednesday, 20 January 2016DPU Increase
CapitaMall TrustFriday, 15 April 2016DPU Increase
Keppel ReitThursday, 14 April 2016DPU Fall
Soilbuild Business ReitThursday, 14 April 2016DPU Fall
Suntec REITThursday, 21 April 2016 Pending
Mapletree Commercial TrustTuesday, 26 April 2016  Pending
Parkway Life ReitTuesday, 26 April 2016  Pending
Far East Hospitality TrustWednesday, 27 April 2016  Pending
Cambridge Industrial TrustThursday, 28 April 2016  Pending
Lippo Malls Indonesia Retail TrustTuesday, 3 May 2016  Pending

 

Keppel REIT DPU Fall for 1QFY2016

Keppel REIT Logo

Keppel REIT announces its unaudited financial results for 1QFY2016 on 14th April 2016. Distributable income increased slightly by 0.8% despite the divestment of 77 King Street in Sydney in January 2016. DPU fell by 1.2% from 1.70 cents in 1QFY2015 to 1.68 cents in 1QFY2016.

1QFY2016
(S$’000)
1QFY2015
(S$ ‘000)
YoY(%)
Property Income 41,167 42,405 (3.0)
Net Property Income 32,910 34,587 (5.1)
Distributable Amount 54,438 54,009 0.8
Distribution Per Unit (“DPU”) (cents) 1.68 1.70( 1.2)

Weighted Average Debt Maturity

Keppel REIT has completed 100% of refinancing requirements in 2016. The weighted average term to maturity to 3.6 years. There is no refinancing requirements until the second half of 2017.

Weighted Average Lease Expiry

Keppel REIT achieved a significant reduction of expiring leases to only a minimal 3% for the rest of 2016, with a 99% tenant retention rate. Long WALE of approximately 8 years (till year 2024) and 6 Years (till year 2022) for the top 10 tenants and overall portfolio respectively.

Keppel REIT Weighted Average Debt Expiry 1Q2016

Occupancy

Occupancy is 99.4% and an average positive rent reversion of 7% was achieved for all leases executed in 1QFY2016.

Keppel REIT Occupancy

85% of total leases is not due for renewal till 2018 and beyond. Approximately 80% of total leases is
not due for renewal till 2019 and beyond, when limited new office supply is expected.

Rental

Average Grade A rent for Singapore’s core Central Business District is at approximately $9.90 psf in 1Q 2016. Keppel REIT is able to keep it at approximate S$10.90.

Keppel REIT Rent 1Q2016

I have previously added more of Keppel REIT to my portfolio. (Read more at Summary of January 2016 Transactions)

Keppel REIT Annualised DPU Fall for 2015

Keppel REIT Logo

Keppel REIT announces its results for 4Q2015 on 18th January 2016. Although 4th quarter Distribution Per Unit (DPU) increased 11.26% to 1.68 cents as compared to 1.51 cents for the same period last year, the annualised DPU fell 5.85% to 6.8 cents as compared to 7.23 cents a year ago.

If we take the market closing price of S$0.93 on 31st December 2015, the yield for Keppel REIT will be 7.3%. This is pretty decent to me. At the point of writing this post, the closing price is S$0.89.

4Q2015
(S$’000)
4Q2014
(S$ ‘000)
YoY(%)
Property Income42,79543,337(1.25)
Net Property Income34,77134,2531.51
Distributable Amount54,03145,84817.85
Distribution Per Unit (“DPU”) (cents)1.681.5111.26
Annualised DPU (cents)6.87.23(5.85)

Debt Maturity Profile

Keppel REIT completed almost 100% of refinancing requirements in 2016. It continues to maintain a well-staggered debt maturity profile with weighted average term to expiry at a healthy 3.7 years.

Weighted Average Lease Expiry

The top 10 tenants accounted for 43% of portfolio whereby the tenants have a long WALE of approximately 8 years and 6 years.

Keppel REIT Top 10 Tenants

Things to Note

Netflix

Netflix is one of its new tenant.

Government of Western Australia

Government of Western Australia commenced its 25-year lease in November 2015. The effective return is 7.15%. It has a fixed annual rental escalation throughout lease term, with options for another 25 years.

Limited Office Supply After 2018

We are expecting limited office supply after 2018. Thus, we should be investing in Keppel REIT based on long term rather than short term.