What I Learnt from EC World REIT's 2016 Annual Report - Part 1

EC World REIT is a very new Reit that was listed in SGX last year. Their IPO offer price was $0.81. The closing price as at 28 Apr was $0.76. Usually I would not look at a Reit without past few years' track record for reference. Also, I would not invest in a China company. However, as this Reit is riding on the booming of e-commerce, I decide to take a closer look. To be honest, I only just know recently EC refers to e-commerce. It was outside my radar during listing last year once I heard it was a China company. EC for Expensive China? 😀 

Screenshot using My SGX App.

According to their 2016 Annual Report's Financial Highlights, the annualised distribution yield beats forecast by 0.9%. However, the current price is down by 4 cents. Investors who invested during IPO haven't seen a gain yet. If buy at current price is still cheaper than during IPO's price. 

ECW currently owns 6 properties occupied by 35 tenants. The occupancy rate according to the report is 100%. Impressive. The gearing ratio is 27.6%, way below MAS's limit of 45%. There's definitely more acquisitions in the pipeline. It's supposed to be a World Reit, not just China Properties. 😁

Next is the part where I am confused. I don't understand how to derive the 7.5% distribution yield. If we use 2.454/0.76=3.23%. That's for 2 quarters of dividends. If annualised, shouldn't it be 3.23 x 2 = 6.46% instead of 7.5%? Hmm. My Maths got problem? 

FY2020 is a year to watch out for. The lease expiry for that year looks scary and 3 of their properties are master leased. 

To be Continued ...

What I learnt from Frasers Commercial Trust's latest 2QFY17 Result and Presentation Slides

Frasers Commercial Trust makes up close to 10% of my stock portfolio and is the second largest after M1. Here's a summary of their latest earnings report and what I have learned from their Presentation Slides.

Distributable income increases by 3.5% year-on-year. Sounds good? Generally, I would prefer to look at DPU as the shareholder pool may have increase over the 1 year period.

Fortunately, I am not disappointed. The DPU grew by 2.4% compared with a year ago. Good Job!
The improved results was due to better performance from Australian portfolio and stronger Australian dollar as shown below.

The properties of FCOT and occupancy rate are as shown below.

The Lease Expiry for FCOT's properties in FY17 is as shown below. It is not mentioned if HP would be renewing the 5.4% leasing that is going to expire. The uncertainty in HP leases expiry has been a concern for shareholders. HP has a built-to-suit facility with Mapletree at Telok Blangah Cluster that would be completed in second quarter of 2017. There has been speculations that HP would move to the new facility. Existing and potential investors should take note of this. The rent of $4.30 is low for Alexandra Technopark  as compared to the other 2 local properties.

The positive rental reversion looks good especially for Alexandra Technopark if FCOT could renew existing leases or find new tenants.

Lease expiry for FY18 is very high. Something to watch out for. 😓

Alexandra Technopark is undergoing AEI currently and the works should be completed around mid-2018. Further positive rental reversion after AEI completed?

HP. Look what you could be missing if you move out. 

As at 21/4/2017, FCOT's closing share price was $1.335. It is currently trading below it's NAV. 

FCOT won 2 prestigious awards at The Global Good Governance Awards 2017. Congrats!

My past transactions for this stock is as follows. As you can see, I have been averaging down. For the past 3 quarters, I have opted to receive units in place of cash for dividends. The current closing price is about my average purchase price. I may opt to receive cash this time round if the offer price is above my average purchase price. 

Screenshot from stocks.cafe. A very good site to keep track of your portfolio.

At current price of $1.335, the dividend yield is still very attractive among commercial Reits. My forecast yield for this year is 7.51%. The Management has done a good job so far in growing the DPU. Hopefully, they would continue to do so for the coming years and I would stay vested with this Reit that has good Governance. 😃

See how the DPU and yield has been growing over the years!

My Rights Issue Results for Ascott Reit

I blogged Ascott Reit Rights Issue in a few earlier Posts (link here). I was entitled to 2320 Units and I applied for 7680 excess Units. I managed to get 3900 Units in total.

Together with my existing Units, I now have 11900 Ascott Reit shares. Ascott Reit is still below 10% of my stock portfolio. I try to keep each company holding below 10%. As of now, only M1 exceeds at slightly above 11%. of my overall portfolio.

Ascott Reit's closing price was $1.09 as at 13 April 2017. My purchase price for the Rights Issue was $0.919. However it was trading at around $1.17 before the announcement of Rights Issue. My average price for Ascott Reit is now $1.02. My dividend yield should be within 7 - 8%.  The current yield should be lower than my previous forecast of 8.61% due to Units increase as a result of the Rights Issue.

Yield based on purchase price of $1.02

SREITs Summary 10.4.2017 - Sea of Red Day but Earning Season is back!

It's another sea of red day for Reits. There are 5 counters with positive result today. They are as follows:

Starhill Global Reit(+0.65%)
Mapletree GCC Trust (+0.49%)
Capitaland Commercial Trust (+0.32%)
Keppel Reit (+0.48%)
IReit Global (+1.36%)

On the bright side, earning season is back! SPH Reit announces it's second quarter result today. DPU is 1.40 cents which is the same as 2016's second quarter result. Not vested though.

Compared to last year's second quarter, I am missing the distribution from Sabana and Suntec Reit this year. For this year, I am looking forward to results from Starhill Global, Cache Logistic (20th April), Frasers Commercial Trust (21st April AM), Soilbuild Business Reit (12th April), Frasers Centrepoint Trust (25th April AM) and Mapletree GCCT (26th April). Hopefully results would be positive.😟 May the Huat be with us!