% of Portfolio
AIMS AIMP REIT
Frasers Centrepoint Trust
CACHE Logistics Trust
Mapletree Logistics Trust
Mapletree Industrial Trust
For the month of May, I will be collecting a total of S$2,167.34 in dividends and cash distributions from SPH, ST Engineering, Neratel, CapitaMall Trust, Frasers Centrepoint Trust, Suntec REIT, CACHE Logistics Trust, First REIT and Mapletree Logistics Trust.
- SPH: S$350
- ST Engineering: S$120
- Starhub: S$500
- Neratel: S$120
- CapitaMall Trust: S$179.90
- Frasers Centrepoint Trust: S$288
- Suntec REIT: S$7.44
- CACHE Logistics Trust: S$214
- First REIT: S$199
- Mapletree Logistics Trust: S$189
"Do you know the only thing that gives me pleasure? It's to see my dividends coming in.”
John D Rockefeller (1839-1937)
I know exactly how he felt back in those days. Strangely enough, some things never change. Today, the sheer joy of collecting dividends is still strong.
Most of the REITs that I am vested in have already announced their results. I am satisfied with the performances. I also realised that I forgot to post two pieces of rather important news about Mapletree Industrial Trust, CACHE Logistics Trust and Frasers Centrepoint Trust. My apologies.
Mapletree Industrial Trust will develop a S$250 million build-to-suit facility (BTS Facility) at its existing Telok Blangah Cluster for Hewlett-Packard Singapore (Private) Limited. The redevelopment will unlock value for MIT’s portfolio by repositioning the Property as a high-tech industrial cluster and maximising available plot ratio. The long-term lease commitment from a good quality tenant will lengthen the portfolio’s weighted average lease to expiry and provide income stability. This project will be MIT’s largest build-to-suit development to date, underscoring their focus on the development of more customised facilities which meet their tenants’ operational and expansion needs. The land has a lease tenure of 60 years commencing from 1 July 2008. Located within the Telok Blangah Industrial Estate, the Property is in close proximity to business and lifestyle precincts at Alexandra and HarbourFront as well as the Central Business District. It is well-served by major expressways such as Ayer Rajah Expressway and Central Expressway as well as the Labrador Park Mass Rapid Transit Station. The purpose-built development will include facilities for manufacturing, product and software development as well as an office, occupying a total GFA of approximately 824,500 sq ft. Hewlett Packard is a global provider of products, technologies, software, solutions and services in over 170 countries around the world, has committed to fully lease the BTS Facility for an initial period of 10.5 years. The property, which will be redeveloped over two phases, is expected to be completed in the first half of 2017.
CACHE has embarked on a huge built-to-suit project (BTS) for DHL Singapore. Construction of this ramp-up warehouse facility is expected to start in the middle of 2014 and would be completed in phases from 2H15. CACHE would fund this acquisition with debt and expect gearing to settle at 36% upon completion (vs 29% currently). I believe this new project will be a key earnings driver in 2016. However, looking ahead, with 34% of leases due to expire in FY15, there is a risk that some of these upcoming leases may not be renewed by the sponsor.
FCT said that it planned to finance the purchase of Changi City Point with a combination of equity and debt financing. This will ensure that the acquisition is DPU-accretive to FCT unitholders, while maintaining an optimum level of gearing. Equity financing may be in the form of a private placement of new FCT units. Details of the financing structure will be set out in a circular to be sent out to all unitholders in due course. The proposed acquisition of Changi City Point - a three-storey retail mall in Changi Business Park, located opposite the Singapore Expo MRT station - will take the total number of suburban retail malls in FCT's portfolio to six. It will also increase FCT's total assets by about 14 per cent to $2.4 billion.
Some of you might be fearful of the "Sell in May and Go Away" effect. But my advice is still the same.
John D Rockefeller is my new idol!!!