Wednesday, October 3, 2018

Geographical Diversification & Top Tenant Mix Of My Vested REITs

After taking a quick look at my portfolio (heavily weighted in S-REITs), my friend gave me this feedback based on his first impressions.

"That is extreme if you're so heavily over-weighting real estate in Singapore (and/or in the region). Why would that specific sector (real estate) and that specific geography both necessarily outperform the other parts of the investable world? What's wrong with the pharmaceutical industry, the renewable energy industry, the Web/mobile industry, the entertainment industry, the heavy construction equipment industry, the financial services industry, the food and beverage industry, or any of the other sectors that are not real estate?"  

I love constructive criticisms as I am always looking to improve the quality of my portfolio. His feedback got me thinking. Am I really too over-weighted in Singapore real estate? So I decided to collate the information on the geographical diversification and tenant trade sector mix of all my vested REITs. In the end, I found out that my portfolio is rather over-weighted on the Australia, Europe & China markets instead. The top tenants are sufficiently diverse too.

REITs
Geographical Diversification (Asset Value)
% of my overall portfolio
FLT
      1.    Australia: 67%
      2.    Europe (Germany & Holland): 33%
12.42%
AREIT
      1.    Singapore: 78%
      2.    Australia: 14%
      3.    UK: 8%
12.07%
MLT
      1.    China & Hong Kong: 42.8%
      2.    Singapore: 25.2%
      3.    Japan: 13.8%
      4.    Australia: 8%
      5.    South Korea: 6.1%
      6.    Malaysia: 3.3%
      7.    Vietnam: 0.8%
10.3%
MINT
      1.    Singapore: 90.1%
      2.    USA: 9.9%
9.29%
MCT
      1.    Singapore: 100%
8.87%
PLife
      1.    Singapore: 59.5%
      2.    Japan: 40.1%
      3.    Malaysia: 0.04%
8.74%
FCT
      1.    Singapore: 100%
      (*31.5% stake in Hektar REIT, listed in Malaysia)
7.87%
KDC
      1.    Singapore: 50.2%
      2.    Australia: 14.9%
      3.    Ireland: 9.5%
      4.    Holland: 7.2%
      5.    Germany: 7.1%
      6.    UK: 6.6%
      7.    Italy: 2.9%
      8.    Malaysia: 1.6%
5.72%
CMT
      1.    Singapore: 100%
      (*12.7% stake in CRCT with its entire shopping mall             portfolio in China)
3.53%
MNACT
      1.    China & Hong Kong: 94.9%
      2.    Japan: 5.1%
3.18%
Suntec
      1.    Singapore: 87%
      2.    Australia: 13%
2.63%


REITs
Gross Rental Income By Trade Sector
% of my overall portfolio
FLT
      1.    Logistics: 37.8%
      2.    Consumer: 33.4%%
      3.    Manufacturing: 15%
      4.    Automotive: 12.5%
12.42%
AREIT
      1.    Transport & Storage: 46.7%
      2.    Others: 20.8%
      3.    Electronics: 8.4%
      4.    Biomedical: 8.2%
12.07%
MLT
      1.    F&B: 21%
      2.    Electronics & IT: 15%
      3.    Consumer durables: 14%
      4.    Fashion, Apparel & Cosmetics: 6%
      5.    Materials, Construction & Engineering: 6%
10.3%
MINT
      1.    Precision Engineering, Machinery &                  Transportation products: 22.43%
      2.    Telecommunications: 11.74%
      3.    Printing, Recorded Media, Apparel: 8.67%
      4.    General wholesale trade: 7.22%
      5.    Computers & Electronics: 5.95%
9.29%
MCT
      1.    F&B: 16%
      2.    Banking & Financial services: 13.3%
      3.    Fashion: 10.2%
      4.    Government related: 6.4%
      5.    Shipping transport: 5.6%
      6.    IT services & consultancy: 5.1%
8.87%
PLife
      1.    Hospital services: 59.5%
      2.    Nursing homes, rehabilitation centres & pharmaceutical storage: 40.1%
8.74%
FCT
     1.    Food & Restaurants: 38.2%
     2.    Fashion: 18%
     3.    Services/Education: 8.2%
     4.    Household products: 7.6%
     5.    Beauty, hair, cosmetics, personal care: 7.5%
     6.    Supermarket/Hypermarket: 4.8%
7.87%
KDC
      1.    Internet enterprise: 45.3%
      2.    IT services: 24.7%
      3.    Telecoms: 20.1%
      4.    Financial services: 8%
      5.    Corporate: 1.9%
5.72%
CMT
      1.    F&B: 31%
      2.    Fashion: 12.4%
      3.    Beauty & Health: 11.4%
      4.    Department stores: 6.3%
3.53%
MNACT
      1.    Fashion & accessories: 20%
      2.    Financial, insurance, banking: 11.2%
      3.    F&B: 10.5%
      4.    Automobile: 8.8%
      5.    Leisure & entertainment: 6.9%
3.18%
Suntec
Office Portfolio
      1.    Banking, Insurance & Financial: 40.1%
      2.    Technology, Media & Telecom: 22.4%
      3.    Property services: 7.2%
      4.    Consultancy: 6.8%
      5.    Energy & natural resources: 4.9%
2.63%

      Retail Portfolio
      1.    F&B: 37.9%
      2.    Fashion & Accessories: 16.7%
      3.    Services: 10.2%
      4.    Hair, Beauty & Wellness: 6.8%
      5.    Leisure, Fitness & Entertainment: 6%


2 comments:

Unknown said...

Hi DW, there's an announcement on MLT that 1st Nov, there'll an advance payment of dividend for those unit holders that hold stocks from the period of July to Sept.

I am not sure if my understanding is correct?

Hope you can enlighten me on this.

Many thanks!

AT

Dividend Warrior said...

Hi AT,

Yes, there is an advance distribution to be paid on 1 Nov. I already received mine.

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