DW May 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	$3.33	4.3%	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 (2013)	S$5,362.43
Total Invested Capital	S$186,485
Projected Annual Yield (2013)	7%
Average Monthly Dividends (2013)	S$1,072.48
Available funds for investment	S$3k

Unrealized Paper Gain (S$)

S$75,060

For the month of May, I will receive a total of S$2, 255.78 in dividends and cash distributions from Starhub, SPH, CapitaMall Trust (CMT), Frasers CentrePoint Trust (FCT), Suntec REIT, CACHE, Sabana REIT and First REIT.

1. Starhub: S$1000 (3 May & 30 May)
2. SPH: S$350 
3. CMT: S$172.20
4. FCT: S$270
5. Suntec REIT: S$133.68
6. CACHE: S$11.30
7. Sabana REIT: S$144.60
8. First REIT: S$174

Due to the strong market rally recently, the unrealised paper gain of my portfolio has increased to around S$75k as of 10 May 2013. My monthly average dividend has also increased significantly to more than S$1k. Looks like my decision to plonk most of my savings and year-end bonus into CACHE, AIMS AMP and FCT back in January, was correct. My patience has been rewarded. I get to enjoy both capital appreciation and passive income! ^^ 

Rock on,

Dividend Warrior

DW 1Q2013 Industrial S-REITs Review:

*Check out the previous review here.

AIMS AMP Capital Industrial Trust: The Power of Organic Growth

Phase 3 should be constructed on the huge marshaling area (grey-coloured portion).

• Full rental contributions flowing in from 20 Gul Way Phase 1.
• 20 Gul Way Phase 2 is expected to receive TOP in June, six months ahead of schedule. Rental contributions should start flowing in 4Q2013.
• Management has applied for further maximising of plot ratio from the authorities and permission has been granted. This shows that the management is trying their best to 'milk' and 'squeeze' as much rental income as possible out of 20 Gul Way. Kudos to them. ^^
• This permit is only valid for 2 years. But just as well. Since Phase 2 is almost completed, Phase 3 can just proceed seamlessly as the construction equipment and machinery are already on-site. Perfect timing! The total rental income from 20 Gul Way is expected to increase by 5 times after Phase 3 comes online next year. The new facility will be a modern ramp-up warehouse.

• 103 Defu Lane redevelopment is scheduled to be completed next year too. Rental income is expected to double.
• Judging from the potential returns in the future, the recent private placement is justified. I support the management's drive towards organic growth rather than overpaying for acquisitions. 
• AIMS AMP still has many assets (50% of portfolio) with redevelopment potential. I hope they continue to unlock value for the unit-holders.
• DPU is expected to be on a strong uptrend.
• No refinancing needs this year. Gearing level is reasonable. Debt maturity profile is healthy. 

Sabana REIT: Beware of High Yield Trap

• Sabana REIT offers the highest yield among industrial S-REITs. However, the lease renewal issue is bugging me. Can the REIT sustain its high yield? 44.7% of leases are expiring this year. I was expecting management to at least mention some progress on this front. Any small mention will do. Unfortunately, there is not even a single mention in their latest report, unlike their peers. 
• Optimistic view: Management is actually actively negotiating lease renewals and they are on track to raise rental rates. All is well. But if the progress is truly well, why don't they share the news with the unit-holders?
• Pessimistic view: Nobody wants to renew leases with Sabana REIT and DPU crashes drastically. This might send a negative ripple to the other industrial REITs. 
• With only 6 lots, I choose to be optimistic. But I am definitely not adding more to my position. 

CACHE Logistics Trust: The Power of Triple Net Master Leases

The 5-storey Commodity Hub is the largest ramp-up warehouse in Singapore.

It has loading and unloading equipment at every floor.

The floor plates and support beams can withstand huge heavy loads.

Its ramps can accommodate the largest container trucks.

Most of the coffee supply in South East Asia pass through here.

The London Metal Exchange store metals here. (Source)

• The result is well within expectations. The brand-new property 'Precise Two' will come online in 3Q2013. This should give a boost to the DPU. Precise Two is a modern, fully ramp-up warehouse built to high specifications. 
• Management secured a new tenant at the DistriHub. 
• Occupancy level remains at 100%.
• In-built rental escalations in the Master Leases are taking effect.
• No refinancing need this year. Gearing level is lower.
• No lease expiry this year.
• Pipeline of quality assets from sponsor CWT, for potential future acquisitions. 

Rock on,

Dividend Warrior

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. 

*Click to enlarge image

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.

Photograph of West Gate under construction (Source)

(Note the Jurong East MRT station on the right)

• 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

*Click to enlarge images

• 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