Can this REIT finally deliver growth to Me?

Today, I will be looking at the latest results of Cache Logistics Trust. This is my top holding. Sad to say, I will still be suffering a loss if I liquidate this REIT after factoring in the dividends that I have collected over the years.

Yah. Right. I have been enduring my paper loss.

On the positive side, 9 Australian properties have been added to it's portfolio in Jan 2018. The acquisition is funded with a combination of a new S$110 million five year unsecured term loan facility and the remainder via proceeds from the recent issuance of Cache’s subordinated perpetual securities. The gearing will increase from 36.3% to 39.3% post acquisition.

The results that I am looking at today covers 4QFY17/FY17. Without further ado, let's get on with it.

There was a rights issue at $0.632 in Oct 2017. I blogged about it in a previous post. The rights issue has been very dilutive as could be seen from the screenshot below. This is due to the enlarged pool of units after this issue. Fortunately, I participated in that exercise or else my shares would also be diluted. Hopefully with the acquisition of the nine warehouses, DPU would improve y-o-y moving forward.

 

On the positive side, DPU grows by 3.6% q-o-q.

Full year results doesn't look good

As could be seen below, the NAV has dropped compared to previous quarter. Even without rights issue, it would still drop. 

Drop! Drop! Drop!

This screenshot is outdated as there are now 9 more Australian properties as shown below.

Freehold land tenure. Good! Total 16 Australia Properties.

Increase foothold in Australia. This slide is also outdated as it does not factor in the 9 new properties.

Lease dispute resolved

Divestment of 1 local Property

Local warehouse supply reducing next few years

To Be Continued ...

My Stock Dividend For March 2018

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions about stocks. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

Stock Portfolio (Cash)

These are the companies that will be contributing to my March 2018 Dividend Income:

Total amount: $330.80

Slow and Steady going UP!

Slight fall in dividend for Q1 2018 compared to 2017. 

For Q1 2018, I sold off OUE Hospitality Trust and added First REIT, Capitamall Retail Trust and Ellipsiz to my stock portfolio (cash). I also accumulated more Religare Health Trust shares. This is more of a speculative play due to potential buyout by sponsor. At current price, I don't find RHT's dividend yield attractive. RHT is a business trust and not a REIT. In my opinion, First REIT is more attractive as a healthcare dividend stock and I would be comfortable holding it longterm.

Can This REIT Finally Reach For The Stars? Conclusion

Part 1: link

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

In my previous blog post, I mentioned the positives and negatives stuff that I read in Starhill Global REIT's latest financial result presentation slides. In this post, I will examine the Technical and DPU aspects.

Technical

Price is currently heading down. Next support $0.70.

I actually doubled down when the price hit $0.74.  Both RSI and Stochastics indicated oversold when I bought.

Fundamental

My dividend yield forecast based on purchase price of $0.74 would be around 6.31%.

If we compare the dividend yield with other retail REITs, Starhill Global is more attractive at it's current price. However, the Management has to start proving their ability to unitholders that they have the means to grow the DPU and return value to investors.

Starhill Global's IPO price was $0.767 and it was first listed in 2005. Fast forward to 12-13 years later, the share price didn't make much progress. I hope the Management doesn't turn this REIT into an ah pek aka grandpa stock. Keep longterm until old just for dividend and no capital gain. I believe unitholders would prefer both capital and dividend gain even though this is a REIT.

My Likes:

Low gearing of 35.3% (<45%)
99% of borrowings hedged against interest rate hikes
Trading at discounted price from NAV
Own Overseas Properties (Diversification)
Land Lease of properties are either freehold or long leasehold. The shortest leasehold is a China Property which expires in 40 years!
DPU is currently above 6% (as at 4/3/2018)

My Dislikes:
Dropping DPU
Office Segment not doing well locally
High lease expiry profile for FY2018/19

Moving forward, these few years will be challenging for Starhill Global. So no, I don't think they can reach for the stars.

Can This REIT Finally Reach For The Stars? I Look at It's Presentation Slides.

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

It has been a while since I do a quick write-up on a REIT's financial results. Today I will be looking at Starhill Global REIT. This is a counter which I had previously purchased and my transactions are as shown below.

I actually read the presentation slides when it was released but I didn't get to do a blog post. Since the share price of REITs have come down, I will take this opportunity to review this REIT.

Jialat. DPU drops by 7.1% y-o-y!

                 The Good and Bad are my personal comment and not included in the actual slides

The Management has a proven track record of growing the DPU for unitholders even though there is a drop in recent years. 

Bad. Office sector is performing badly. China and Japan properties are not doing well too.

Majority of borrowings are hedged against interest rate hikes.

Current price as at 2-3-2018's closing was $0.73. Trading below NAV.

Lease expiry for FY18/19 is high. Hopefully, the Management could retain or secure tenants at positive rental escalation. Given that DPU has gone down in recent years, I am not so positive.

The slide looks rather bad. As could be seen, the office occupancy has been going down for the past few quarters. When the lease expiry arrives, will the Management be able to retain or secure new tenants? 

1 of their top tenant also pulled out their shops from Wisma Atria recently:

Cortina closes shops at Wisma Atria

So Did I Sell or Buy More? To Be Continued ...