Thursday, May 17, 2018

Quarterly Performance of my vested REITs & Passive Income Update (1H 2018)

REIT
DPU Performance y-o-y
Mapletree Logistics Trust 
+ 4.1%
ParkwayLife REIT
+ 3.6% (recurring operations)
Frasers Logistics & Industrial Trust
+ 3.4%
Keppel DC REIT 
+ 3.4% (Adjusted)
Mapletree Industrial Trust
+ 2.4%
Frasers Centrepoint Trust 
+ 2%
CapitaLandMall Trust 
+ 1.8%
Ascendas REIT 
+ 1.5%
Mapletree Commercial Trust 
+ 0.4%
Suntec REIT 
+ 0.3%
Mapletree Greater China Commercial Trust 
-2.8%


REIT
Change in NAV per unit
Mapletree Commercial Trust 
$1.38 to $1.49 (+6.5%)
Mapletree Logistics Trust 
$1.04 to $1.10 (+5.77%)
Mapletree Industrial Trust
$1.42 to $1.47 (+3.5%)
Mapletree Greater China Commercial Trust 
$1.301 to $1.338 (+2.84%)
CapitaLandMall Trust 
$1.92 to $1.93 (+0.52%)
Frasers Centrepoint Trust 
$2.02 to $2.03 (+0.5%)
Ascendas REIT 
$2.04 to $2.04 (no change)
ParkwayLife REIT
$1.76 to $1.75 (-0.57%)
Suntec REIT 
$2.119 to $2.104 (-0.7%)
Keppel DC REIT 
$0.97 to $0.96 (-1%)
Frasers Logistics & Industrial Trust
$0.94 to $0.91 (-3.2%)


My REITs portfolio delivered another firm quarter in terms of DPU growth year-on-year. Looking forward to the great overseas expansion! Some of my vested REITs are on an acquisition spree in foreign markets such as China, Japan, Germany and Holland. I was expecting rights issue to be used to fund these acquisitions. Unfortunately, only FLT requires me to inject fresh funds.  The rest went the private placement route. Due to a lack of opportunities to deploy my investable funds in the market, I applied for the June’s issue of Singapore Savings Bond (SSB). The SSB is a practical place to park some idle cash, especially over a 2-year period.



Progressing well towards my 2018 passive income target of S$22k.....

1Q 2018
Singtel
S$980
SPH REIT
S$134
ParkwayLife REIT
S$371.80
CMT
S$203
FCT
S$450
Suntec REIT
S$156.24
MCT
S$542.80
MLT
S$747.50
Keppel DC
S$628.20
MIT
S$189


2Q 2018
DBS
S$1092.30
OCBC
S$478.80
CMT
S$194.60
FCT
S$465
Suntec REIT
S$145.98
ParkwayLife REIT
S$348.70
MCT
S$535.72
MGCCT
S$452.04 + S$91.68 (Advance CD)
MLT
S$693.40
Ascendas REIT
S$1197.76
FLT
S$1624.50
MIT
S$295


Dividends Received & Will Be Receiving (1H 2018) = S$12, 018.02


Thursday, February 1, 2018

Jump On The Coat-tails Of Mapletree And Ride Their Wave!

Most of the 'big guns' in the S-REITs universe had reported their results this week. I rank all my 11 vested REITs according to their DPU growth y-o-y below.
REIT
DPU Performance y-o-y
Mapletree Greater China Commercial Trust 
+ 5.1%
Keppel DC REIT 
+ 4.3% (Adjusted)
Frasers Centrepoint Trust 
+ 3.8%
Frasers Logistics & Industrial Trust
+ 3.4%
ParkwayLife REIT
+ 3.3%
Mapletree Logistics Trust 
+ 2% (Adjusted)
Mapletree Industrial Trust
+ 1.8%
Mapletree Commercial Trust 
+ 0.9%
CapitaLandMall Trust 
+ 0.7%
Suntec REIT 
+ 0.3%
Ascendas REIT 
-0.6%

On the whole, still a healthy performance. An interesting observation is that all 4 REITs in the Mapletree 'family' have registered DPU growth year-on-year, with MGCCT being the highest and MCT the lowest. Do you think Mapletree is the overall best REIT manager in the Singapore market? Both FCT and ParkwayLife REIT are proven winners with amazing track records of success in growing their annual DPU as well as NAV too.




Data centres had registered the greatest  growth in December 2017 compared to other property sub-sectors. So, I am glad that Mapletree Industrial Trust (MIT) had expanded its mandate to include data centres in the USA, which is the largest data centre market in the world!





Last year, MIT has joined with Mapletree Investments to acquire 14 data centres in the US for US$750 million (S$1.02 billion). These data centres sit on freehold land with a portfolio occupancy of 97.4%. The space is leased to 15 tenants from a diverse range of industries such as telecommunications, information technology and financial services, with an average lease to expiry (by gross rental income) of about 6.7 years  This acquisition would provide sector as well as geographical diversification. Under the joint venture agreement, MIT will hold a 40% interest while Mapletree Investments will hold 60%.

Thursday, January 18, 2018

5 Ways To Prepare For The GST Hike (That Is Most Probably Coming)

Judging by recent chatter, a GST hike is on the cards. Consider making these 5 changes to soften the blow when the increase lands. While the date isn’t fixed yet, it looks like Singapore is in for a Goods and Services Tax (GST) increase. Whatever your views are on this, one thing’s for sure: the cost of living is about to go up again, and it’s time to prepare for the inevitable. Get started today with a few simple steps.
 
1. Rework Your Budget
We don’t know what the actual GST rate will be, but we can make a good guess. At present, Singapore’s GST rate is seven per cent. The GST rate was three per cent when it first started in 1994, and was raised to its current level in 2006. That’s a raise of four per cent in just over a decade. At the same time, we can see that GST in regional counties, such as Vietnam and Australia, is around 10 per cent. As such, it’s probably safe to plan for a GST rate of about 10 per cent, in your budget. While the GST hike probably won’t happen soon (it could be several years in the future), you might want to try to acting as if it’s already here – that will help you to prepare for it. Treat everything as if it’s 10 per cent GST in your budget, and set aside the monies you save this way. Note that the government is also considering applying the GST to online purchases (currently it only applies to purchases with a value of S$400 or more). Don’t count on e-commerce to help you bypass the tax for much longer.
 
2. Get Big Ticket Items Before the GST Hike Kicks In
If you’re planning for any major purchases that could incur GST, such as a new refrigerator or air-conditioning system, you may want to speed up the buying decision. You’ll want to get these items before the GST kicks in, as the savings will be substantial. An added three per cent GST on a S$5,000 air-conditioning system, for example, would be S$150. Again, you probably have a few years before the GST hikes comes, so there’s no need to rush out and do it tomorrow. But you may want to ramp up your savings, in case you need to hurry and buy it when the GST hike finally lands.
 
3. Review Your Long-term Financial Plans
The GST hike will cause a general rise in cost of living. Remember it’s not just your personal expenses that will be impacted – businesses have to pay GST as well, and some of them could pay more for costs like supplies and delivery. These are costs that they might pass down to you.
You should revise your desired income after retirement, as well as the amount you need to save for emergencies. Speak to a financial planner for more help on this. A quick and easy way, however, is to try and nudge up your intended post-retirement income (e.g. instead of aiming at S$2,000 a month after retirement, aim to get at least S$2,200 per month. You may also want to review any fixed income assets you possess, such as bonds. Remember that the fixed income (such as bond coupons) won’t change, even if the cost of living rises – they may now be worth less in your portfolio, in the face of climbing taxes. Ensure your financial planner reviews your asset allocation, in light of this.
 
4. Switch to Smaller “Mom & Pop” Shops
Businesses only have to be registered for GST once they have an annual revenue of S$1 million. This means that some small businesses, such as corner store eateries, won’t be affected by the hike in GST. This helps fledgling businesses to grow, and keeps small, family-operated type stores in business. There are many of these small shops in heartland areas, often scattered around HDB estates. By shopping at a small, family-owned provision store, instead of a chain supermarket, you can save money on GST. At the same time, you’re also helping to keep another Singaporean family afloat. Look around for these businesses, and try to get into the habit of using them for everyday essentials.
 
5. Check for Ongoing Costs that may be Affected
Take note of any ongoing costs, which may be affected if there’s a GST hike. For example, if you have a cable subscription and a gym subscription, regular payments may rise in accordance with an increased GST. Keep track of them, as automated payments are quite easily forgotten about. You may want to review your need for such services in future. If you’re really only watching a few programmes, or using the gym once or twice a month, consider cancelling your subscriptions in favour of other activities.


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