Thursday, April 25, 2013

DW 1Q2013 Retail S-REITs Review: The Twin Pillars of Retail REITs in Singapore

In my view, CapitaMall Trust (CMT) and Frasers CentrePoint Trust (FCT) are the twin pillars of retail REITs in Singapore. I am not reviewing Suntec REIT until next year because everyone knows Suntec City is undergoing extensive AEI works right now. Nothing new to review on.

You can check out my previous review here. 

Together with the hotly-debated 'White Paper', the Singapore government had recently outlined the future development plans in various parts of the island. These changes should be taking place over the next two decades. Basically, I called this phenomenon 'Rise of the Regional Hubs'. ^^



CapitaMall Trust - Riding on the Jewel of the West


The URA plans to develop the Jurong Lake District into a bustling hub.

If you believe in the Jurong Panorama story, you may want to position yourself to reap long-term benefits from the URA future plans. Jurong is going to become the CBD of the West.
  • West Gate Mall is scheduled to be fully-operational by December 2013, to capture the year-end shopping crowd. Rental contributions should start flowing in 4Q2013.
  • IMM AEI is scheduled to be completed by mid-2013. Rental contributions should start flowing in 3Q2013.
  • Bugis Junction's medium-scale AEI to start in 2Q2013 and is scheduled to be completed by 3Q2014. Rental contributions should drop gradually over the next 3 to 4 quarters going forward. Fortunately, this drop should be well-mitigated by the income boost from West Gate and IMM. DPU should remain stable. The rental rates at Bugis Junction will probably increase after the AEI is completed in 2014.
  • The various successful AEIs at Raffles City, Plaza Singapura, Atrium@Orchard and Bugis+ Mall have showcased the management's experience and strong execution. With a solid track record under their belt, they simply do not mess around. They have been delivering their promises to the unit-holders. ^^
  • No refinancing needs this year. Debt maturity profile is healthy. Gearing level is lowered slightly. Still has the best credit-rating among its peers. 
  • Achieved positive rental reversion of 6%.
  • Occupancy rates and shoppers traffic remain high.


Frasers CentrePoint Trust - Growing Together With Woodlands Regional Centre


Occupancy rates at both Causeway Point and North Point are at 100%. It is now full-steam ahead for Causeway Point after the AEI is completed. 
  • Achieved positive rental reversions of 10%. 
  • DPU on a strong uptrend. 
  • No refinancing needs this year. 
  • Looking to acquire Changi City Point by 2014, before its new rental cycle starts.  To be funded by both debt and equity. 

Let your portfolio ride on these two Regional Hubs! ^^


Rock on,
Dividend Warrior

Monday, April 8, 2013

DW April 2013 Singapore Dividend Portfolio Update

No.
Stock
Lots
Average Price
Yield on cost
% of Portfolio
1
AIMS AIMP REIT
25
$1.236
8.1%
16.55%
2
Starhub
10
$2.467
8.1%
13.22%
3
Singtel
7
$2.983
5.3%
11.19%
4
SPH
5
$3.756
6.4%
10.06%
5
Frasers CentrePoint Trust
10
$1.70
6.4%
9.11%
6
M1
7
$2.413
6%
9.05%
7
CapitaMall Trust
7
$1.689
5.7%
6.33%
8
CACHE Logistics Trust
10
$1.115
7.7%
5.97%
9
PLife REIT
4
$1.99
5.2%
4.26%
10
Suntec REIT
6
$1.26
7.5%
4.05%
11
First REIT
10
$0.736
9.1%
3.94%
12
Sabana REIT
6
$1.07
8.7%
3.44%
13
HPH Trust
3
$1.02
7.9%
1.66%
14
K- Green Trust
2
$1.08
7.2%
1.16%

































Total dividends collected in 2013
S$3,106.65
Total Invested Capital
S$186,485
Projected Annual Yield (2013)
7%
Average Monthly Dividends (2013)
S$776.66
Available funds for investment

S$2, 000
Unrealized Paper Gain (S$)

S$59,288




For the month of April, I received a total of S$772 in dividends from M1 and CACHE Logistics Trust (CLT). I just love getting paid to invest. ^^

  1. M1: S$560
  2. CLT: S$212 (advance distribution)
*Click to enlarge picture

Over the next few weeks, various S-REITs will be releasing their quarter results. I started reviewing the S-REITs in my portfolio since the previous quarter. I shall continue to do so. Generally, I am expecting a good quarter. So, stay tuned. 

Even after a record rally in 2012, the prices of S-REITs continue to rise. If you want to enter the REITs world now, I am afraid you are very late to the party. Careful selection is paramount now. Do tread with caution. Choose REITs that have future catalysts. For example, Suntec REIT still has room to grow after its AEI is completed in 2015. Starhill Global is collecting more back-dated rental from Toshin.  


Push On,
Dividend Warrior

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