This REIT Paid 9.1% Dividend and Still Went Higher, Beating Singapore Condo Prices and Rental

One year ago, in December 2024, United Hampshire US REIT was trading at 45.5 US cents. At the time, Business Times wrote an article where the reporter too felt owning instruments such as Singapore listed REITs was better than owning a private property for investment " Why lock up millions in a Singapore condo for low single-digit returns when a boring, necessity-based REIT was paying you real cash? 

For simplicity, I offered a comparison against a REIT which I had a strong conviction in.

United Hampshire US REIT rents retail spaces across United States mainly to Grocery supermarkets, banks as their branch store front, F&B outlets. In a nutshell, the REIT is positioned as a stripe mall, the heartland mall style similar to Singapore's Fraser Centrepoint Trust.

A year later, the numbers have largely answered this question.

Capital Gains

United Hampshire US REIT closed at 50.5 US cents. That is an 11% capital gain. Now contrast this with Singapore private residential property, using official Urban Redevelopment Authority (URA) data. 

According to URA’s Private Residential Property Price Index, non-residential private home prices rose 5.7% on a Q3-to-Q3 comparison basis （Q3 2024 to Q3 2025). This URA index measures pure price movement only, excluding agent commission of 2% and property income taxes. 

Factoring a 50% leverage for a private property purchase and an interest expense cost of 2.6%, the private home leveraged return is 10.1% capital gain.

United Hampshire US REIT Wins

Dividend vs Rental Returns

United Hampshire US REIT paid 4.14 US cents, this gives 9.1% yield. Tax free, incurring no IRAS taxes

Private Home only gave 4% yield, and you have an incoming IRAS tax bill 

United Hampshire US REIT Wins

Capital Structure of the REIT

The REIT is in the stable US basic consumer segment and have signed long lease periods with its supermarket tenants

Its leverage ratio is 40%, much lower than many Singapore REITs and has no refinancing risk until 2029.

A year on, the lesson is clear: high-yielding, well-managed REITs can outperform traditional residential property on a total-return basis, especially when measured against official URA data. While property remains a stable, long-term store of wealth, this comparison reinforces a simple truth: in today’s environment, income-producing REITs can be the smarter to grow your wealth. Hopefully this lesson will ring true end 2029

United Hampshire REIT 3Q Update- Loan Refinancing and Higher Distributable Income with 33% upside

 UtdHampshire US REIT posted two updates in recent months. Below are a key summary:

• Refinanced A New Loan Facility which ensures no refinancing risk until 2029
• Distributable income for 3Q2025 was 15.5% higher than last year's 
• Acquisition of Dover Marketplace in Aug 2025 and 5,000 sq ft in Florida Blue Expansion will increase distributable income

DPU Set to Rise

In 1H2025, DPU was at 2.09 US cents. Factoring in the acquisition in August 2025, distributable income was US$7 million (1.17 US cents). If we put it on a half year basis, it is likely Utd Hampshire US REIT DPU will have 2.35 US cents.

The second positive is SOFR rate is now reducing for its tied to the US Fed interest rates which is reducing. This means the REIT will be reporting higher earnings and higher cashflow. However, my view the REIT manager will likely reduce its payout ratio from 96% down to 90%. Hence, DPU will remain at 2.35 US cents on a half yearly basis for a few financial 6-month period. This equates to 4.7 US cents in annual dividend

I personally expect Utd Hampshire US REIT to maintain dividend at this number even with declining US interest rates. On a 51 US cents share price, and annual dividend of 4.7 US cents, the share price is a 9.2% dividend yielder

This is rather generous, and it will not be unreasonable to expect a yield compression to 7% after market realizes the resilience of its dividend mainly because of its contractual 3+3+3 leases and tenants who are grocers and banks. Target price is 68 US cents

Refinancing Risk Deferred Until 2029

The REIT has secured a new loan facility which covers the refinancing of the future Upland Mortgage. The new loan deal is tied to SOFR rate again (current SOFR =3.92%). Based on the effective interest rate Utd Hampshire US REIT pays, previously Utd Hampshire US REIT's loan facility was on a SOFR + 1.5% margin. New loan deal should be the same. 

With a long way to go before the next refinancing, investors can be rest assured the REIT can continuously give out dividend and at 39% leverage ratio, this REIT is geared in a comfortable range. The REIT manager has an easy job. At such gearing, I feel no further acquisition should be done.

Portraying the REIT as a conservatively geared entity with 9% dividend yield should be the message it is drumming to the investing community. At 51 US cents, it is a good purchase with a much higher upside.

Finalized the Portfolio With Many Singapore Mid-Small Caps

Following on the idea to "revitalize the Singapore stock" market, I have finalized my portfolio with the purchase of more mid cap stocks in my portfolio.

Unlike active fund, it will be passive without much movement from now. Interestingly, one will observe I have totally sold off Olam and new additions are Frencken, YZJ Financial and Yanlord.

Why I have returned to YZJ Financial is so that I have some exposure to the financial sector + aligning myself in instance YZJFH is able to redeem its China debt investments successfully. For Frencken, I am vested for the financial effects it will reap when it completes the building of its larger production capacity factory in 2027.

It's a Dividend Portfolio

Based on forward dividend estimates, many Singapore stocks in the portfolio provide high dividend, with estimated yield of 4.5% on this portfolio. This is due to Alibaba （which can be bought via SDR） being a large component with little dividend. It is estimated United Hampshire and Asian Pay TV will provide about the same amount of dividend as 2025.

For PRIME US REIT, an increase in dividend will start from 2027 when new rentals start their rent collection phase.

As this continues, the expectation is that a $70,000 dividend level will be achieved in 2027

Current Portfolio Value is $1,215,000

From 2026, I will be recording the dividend received from the below portfolio composition.

Asian Pay TV Trust 3Q Results- Stable 10% Dividend Yield and Paring Down Debts

Asian Pay TV Trust (APTT) has released their 3Q results, the first full results after their refinancing of debt. Of which significant new information can be found. The summary of the results is as follows:

• Overall Revenue Still in Decline as no of TV subscribers in Traditional TV continues to fall
• 90% of Onshore Debt has been hedged at 1.54% Taiwan TAIBOR, indicating overall debt interest rate to 3.6-3.7%
• Management guided the additional interest cost of S$2 million to S$3 million for this year with interest expense to decline by $2 million next year
• 2025 Dividend Still Set for 1.05 SG cents

Cashflow and Dividend

Declining EBITDA margins leads to downstream less cash generated. Over the next 7 years, it is likely APTT will generate $100-$120 million annually.

With annual CAPEX needs of $28 million, taxation of $10 million, interest expense of $40 million (and declining）, there is sufficient headroom to maintain the 1.05 SG cents dividend which requires $19 million over the next 7 years.

Another Important thing is paying down the Debt.

Over the past 5 years, APTT has started to shrink its debt. However, one would notice "Net debt to EBITDA" ratio has increased. Thish indicates APTT EBITDA (Cashflow) is shrinking faster than it is shrinking its debt.

This is a ratio to keep watch; a ratio that is 10 or above indicates the cashflow has fallen too fast relative to the shrinking of debt. APTT's Taiwanese bankers would be worried. That said, APTT's current 8.1 ratio is still good and it has an interest coverage ratio of 3.8 times. 

For REITs, ICR of below 2 times is where it is dangerous; however, APTT is at 3.8 times which shows it is relatively safe.

As an investor, I am looking at how fast APTT pays down before the next tranche of refinancing in 2032. If APTT is able to reduce the debt from 1,163 million to 800 million by 2032; I believe dividend will maintain.

Baseline Expectations and Target Price

Much of APTT's future hinges on how well the Trust Manager deleverages while it encounters slowing cashflow and overall revenue. If executed properly, the baseline is that APTT will provide 1.05 SG cents of dividend annually to shareholders.

This is my baseline scenario. In addition, I believe for its business model, a 8% dividend demanded is fair. Hence my target price for APTT is 13.1 Sg cents (25% upside for owning APTT).

Nov 2025 Portfolio Update: Encashing LendLease REIT into a 10% Dividend Yielder Trust

With Lendlease REIT shareholder unfriendly action to dilute existing unitholders at approx. 13.5% discount to finance a purchase, I have pared down my stake

Thought of Lendlease REIT  

While Lendlease REIT is pivoting to be a full Singapore REIT, the way it has resolved to do it is to purchase more shopping malls from the parent. Looking back Fraser Centrepoint Trust has done the same thing, but its share placements have always been only done at 1 times book value; and unitholders were given the opportunity to partake in it. 

Lendlease REIT in its anxious state to grow big has severely diluted existing unitholders and not offer a chance to existing unitholders to join the discount. Further, its purchase was fully financed by share placement. What this means is leverage will lower; but existing unitholders are diluted. The placement price was not good too and the banks supporting it wanted to earn the easy money out by not placing it at $0.62（ex dividend); this could have been done, and it is likely Lendlease REIT would have achieved its fund-raising objective. Both the REIT manager and Singapore banks were doing a great disservice to Lendlease Minority Unitholders which shows how terrible Singapore stock market is and something "MAS" current poster boy Chee Hong Tat should aim for- which is to stop retail investors from being easily diluted with legislative measures put in place to punish controlling shareholders.

As of now, Lendlease REIT only owns 70% of PLQ with a definite future that 30% more will be purchased. I do not know if it will be another share placement or leverage up to 42%; but as unitholders, it seems the REIT manager does not care about the minority at all. As a result, despite 90% of its portfolio now in Singapore shopping mall, there is a discount ascribed to the company where it now trades at 0.9 times book value. There is about 5-6% discount due to potential shareholder unfriendly action. 

With 0.9 times book value and 5.7% dividend yield, Lendlease REIT is ALMOST FULLY VALUED. Unless the REIT manager changes its action and state it in words via SGX announcement documents or AGM minutes, it is unlikely it will go to 0.96 book value (which is the true fair value like Fraser Centrepoint Trust, office properties are now valued at 0.6 times book value); hence I have decided to pare down my stake to buy other shares with higher upside. They are:

1. Asian Pay TV Trust-10% Dividend Yielder who should be chugging along at this rate nicely for 5 years to come
2. NTT DC REIT- a 7% dividend yielder
3. Nanofilm- A component precision manufacturing company with exposure to China and;
4. United Hampshire US REIT- Sustainable 8% Dividend Yielder.

Dividend, Dividend, Dividend

The reshuffling of fund, moving from fair value to undervalued dividend gems, will enhance my dividend inflow.

My US REITs are a great value bargain starting to prove their worth with improvement in cash flow.

Malaysia Ringgit Strengthening to below 3 Ringgit to 1 Sing Dollar

With growing confidence in Malaysia's economy and political environment, there is a forecast that Malaysia Ringgit (MYR) will fall below 4 to 1 USD and 3 to 1 SGD rate.

How True It is?

Economics Fundamental- Malaysia has been economically strong under the current government. With the trade war between USA and China, there has been an increase in foreign direct investments in Malaysia; in fact Malaysia has seen a growth in FDI. This has helped by the confidence in global investors have for Anwar economic and political reforms

Lower Interest Rates for Sovereign Debts- Malaysia's sovereign debt are mainly borrowed in USD, with declining rates in US interest rates, the interest serviced by Malaysia will reduce in time to come; coupled with PM Anwar's good economic reform, targeted subsidy reform which has reduced government spending, Malaysia's fiscal position has improved positively.

If PM Anwar continues to remain in power for 1 more term, it is definite Malaysia will progress economically and if this trajectory continues; 7 years from now, MYR will be at a level of 2.0 Ringgit to 1 Sing Dollar level; however if PM Anwar's coalition does not win the GE, it is likely MYR will just worsen to 3.5 or even 4 to 1 Sing dollar.

How Would it Benefit Stocks?

With the good political governance and strong economy of Malaysia; coupled with appreciating Ringgit, I am now setting sights on buying Malaysia stocks.

For starters, Riverstone with industry moat + exposure to Malaysia is a stock to look at. Another is Starhill Global REIT, which has a few upscale malls in KL, the strengthening Ringgit will improve the middle-income wealth and Starhill REIT will benefit. In fact, I am hoping Starhill will sell off its entire Singapore mall asset, deleverage by paying off debts and be a Malaysia focused retail REIT; it is likely to experience a 25% upside in share prices.

Portfolio Update: Achieved a $1 Million Stock Portfolio

Thanks to the better prospects of my US REITs and higher dividends, I have seen a run up in prices.

Aided by my decision to take up the Dividend Reinvestment Plan (DRP) for United Hampshire and Lendlease REIT, I have comfortably exceeded the $1 million mark. Besides the DRP, I have bought more United Hampshire and LINK REIT from the few sales in NTT DC REIT which has returned to near its US$1 IPO pricing and Far East Hospitality Trust. 

$60,000 Annual Dividend To be Achieved in 2026

With expectations of further rate cuts in USA, both United Hampshire and KORE looks set to report higher distributable income. This means higher dividends. 

For Utd Hampshire, it looks set to dish out 4.5 US cents in 2026, while KORE should be a 2 US cents yielder. 

For PRIME, it is now definitely safe. The company had recently announced private placement to obtain the cash to execute tenancy improvements for new leases it will be signing on. PRIME has guided to give at least 50% in distribution from next year. I estimate this means annual 1.8 US cents dividend when the new leases start to generate cash rent.

All these adds to a $60,000 annual dividend portfolio.

Alibaba

Alibaba has gained in share price and this has greatly aided me in securing a $1 million stock portfolio. I am still holding to my Alibaba shares. 

Alibaba is not just an e commerce stock, but one which has data centres, a suite of AI services; similar to the value proposition Amazon holds to USA (an e commerce and software services provider).

For Amazon, its price earnings has been at 30-34 times. As Alibaba holds the same value proposition. A 30 times price earnings is possible. At HKD$171, Alibaba's current P/E is 20, hence, further upside of 50% is where I target Alibaba to be worth (Target price: $250)

United Hampshire US REIT

Returns wise, since my challenge to property agents, United Hampshire REIT has provided 4 US cents capital gain + 4.1 US cents in dividend. That is a 18.0% returns in less than a year. 

For next year, the REIT is likely to give 4.5 US cents dividend, which makes it a 9% dividend yield on current price. I am expecting 9 US cents (capital gains+ dividend) at end of 2026 

I would stop tracking the dividend for this year because of DRP and premature granting of dividend by PRIME. Re-counting will be done from 1 Jan 2026.

MM2 Asia: Not Worth At Current Share Price

By now, most in the local news would have read of the liqudation of Cathay Cinemas in Singapore. MM2 Asia is the parent company of Cathay via MMconnect. Share prices are lower post announcement of this news.

The current question begets is the company worth as an investment at 0.3 cents, having fallen 99%. 

My view is not yet and further fall in share prices may continue.

What Businesses Does MM2 Has?

Post liqudation of its Singapore Cinema business, the company has 03 unprofitable business and 01 profitable business:

(i) 39.2% stake in Unusual (market cap: $71.5 million, unprofitable)

(ii) 29.9% stake in Vividthree (market cap: $7.9 million, unprofitable)

(iii) Cathay Malaysia (also unprofitable)

(iv) Movie production/content (earns about $5 million excluding impairment losses)

Overall, MM2 has many segments that are loss making and not paying dividend. My view is that MM2 Asia should focus on selling off the unprofitable segments and focus on its roots and what it does best- making movies. The sale of its stakes will raise cash proceeds of $31 million and this amount will help a lot in its debt heavy balance sheet.

MM2 Asia Balance Sheet- Heavy in Debts

Latest balance sheet shows $217 million in debt and $9 million cash/$151 million in other current assets which are mainly movie project costs that MM2 accountants believe can be recovered at full cost. I highly doubt it will happen and likely a a 70% recovery rate is only achievable.

Hence net debt should be about $102 million. 

The weighted cost of debt is 7% interest and a large portion is a 6% bond given by Tan Boon Seng. 

Operating cashflow wise, MM2's is rather lumpy and it is quite hard to estimate the cashflow. However, given the profitability of the its movie production unit, I believe MM2 Asia can use the profits to repay its debt (likely a 20 years track to slowly repay debts until a manageable level) 

An intersting aspect of the $54 million bond structued with Tan Boon Seng is that MM2 Asia will start to repay him $10 million at the end of each year from 2027 to 2031. Given the operating status of MM2 Asia, all their cashflow will be focused on repaying Mr Tan until 2031. Current shareholders should not expect any dividend owning this stock until at least 2032.

What is in it for Shareholders

To be honest, nothing is left for shareholders in its current shape. All its cashflow and disposal will be used to repay its debts maturing each year. If the stakes of Vividthree and Unusual are not encashed, it is either the company will go bankrupt or more share placment/rights which will further dilute shareholders.

Where there is "claimed" equity of SGD$5.9 million (0.1 cents book value per share), I doubt the value of its assets in the balance sheet can be fully recovered because many are due to movie production costs and intangibles which MM2 accountants have overstated to an extent. The company is likely in net negative equity which means negative book value per share. Other current assets are likely only recoverable at 70% of $150 million, which to me suggests impairment of $45 million, putting MM2 Asia at negative equity of $40 million.

Don't have too much hope. 

It is likely existing shareholders will be diluted further because MM2 Asia needs cash placement/equity injection. My view is that $30 million in cash is needed for the company to survive in the next 2 years. The best solution is to sell its stake in 02 other listed companies, however given the stubborness of management to not hurt their sister companies and the slowness in restrucuturing, the sale won't happen in time and existing shareholders will be diluted further.

For existing shareholders, a 0.3 cents is a good opportunity to sell. 0.1 cents is where we will see the company being traded at. If the company does not sell its stake in other listed companies, things may get worse from now.

3 Singapore REITs with Overseas Properties that Give 8% Dividend or Higher

REITs offer investors a regular income stream and is a mainstay in income investors' portfolio.

Singapore is home to one of the largest cluster of REITs worldwide and hence it is no surprise among them, there are Singapore REITs with overseas properties. Surprisingly, due to tighter regulations in valuation approaches at overseas countries, the result is these Singapore REITs with overseas properties generate sustainable dividend in excess of 8%.

Here are a few Singapore REITs which gives 8% dividend or more for Singapore income investors:

Elite UK REIT

Elite UK is in the office space of the United Kingdom (UK). Most of its properties is leased to the UK government for office use, majority in the welfare segment. Its leverage ratio is at 40.7%, lower than the average S Office REITs which are at 41% and has above average occupancy rate of 97%.

Due to cap rates and valuation, it is paying 100% payout ratio and pays 2.8 pence per cents. At 34.5 UK cents, it is paying out 8.1% yield for investors who purchase it now. In recent times, its cost of debt has dropped from 4.9% to 4.8% now. DPU is expected to grow from 2.8 pence per share as cost of debt falls. Its dividend and leverage ratio are better than any Singapore office REITs including that of Keppel REIT

United Hampshire US REIT

Run by UOB, the REIT is in the strip mall segment of USA, catering to supermarkets and tenants in the essential services. Its leverage ratio is at 40.0%, lower than the average leverage ratio of Singapore REITs. Occupancy rate of the REIT is above 95%

Despite the sale of a few malls, these were positive sales because it improved the distributable income available to investors. Full year DPU is 4.06 US cents, an increase of 2%. Its payout ratio is less than 100%, as the REIT keeps a portion of its distributable income (5%) for CAPEX and payment of debt.

At 49.5 cents share price, it gives an 8.2% dividend yield. Its leases are on long term basis with annual in-built rental increases. Coupled with the lower interest (SOFR) environment in USA, the REIT is expected to increase its DPU above its 4.06 US cents. The REIT manager is currently taking fees in cash and if it elects to take units instead, DPU is set to rise further at an annual increase of 2% and investors will get yields of above 8.2%

Sasseur China REIT

It has 4 outlet malls in three Tier 2 China cities. The REIT is the lowest leveraged among Singapore REITs at 25.8% and yet it has one of the highest yields in Singapore. Full year annualized dividend is 6.1 Singapore cents at 70.5 cents which enables it give investors 8.5% dividend yield.

Surprisingly it is not paying out 100% of its distributable income and is keeping 9% for CAPEX and payment of debt. It is quite normal for China REITs to be so prudent compared to Singapore Asset managers. This results in China/HK REITs having a low leverage and payout ratio. Indeed, surprising to learn that Singapore companies have a higher risk appetite than China's. 

Year on year, Sasseur REIT's tenant has still seen increase in tenant sales which is good news and the REIT has occupancy rate at above 97%. The REIT too has recently refinanced its offshore debts to onshore China debts which are of lower interest rates (similar to what LINK REIT has done). This has reduced interest rates to 4.8% average.

Conclusion

The above 03 REITs are indeed unique. First, they give higher dividend than Singapore REITs with Singapore properties. Second, their leverage is lower than their Singapore peers and third, they are not paying in excess of their payout ratio like what Keppel Singapore does.

I will be keeping watch on these gems to see as and when there is opportunity to buy them.

<Author is vested in United Hampshire US REIT and keeping the other 2 in the watchlist due to their relatively low leverage ratio, sustainable payout and high dividend yield>

Portfolio Update: Buying A Dividend Stock I Once Knew, Creating a 6% Dividend Portfolio

This week saw further deployment of my capital earned from Yangzijiang Financial. I bought Keppel Pacific Oak REIT at 21 US cents. It was bought for its future dividend where from 2026, KORE will resume its distributions.

Portfolio Composition

40% of my portfolio are now in US REITs, listed in SGX. While they are not strong beneficary of the $5 billion MAS funds, my thoughts is investing in them for their potential high yield earned far exceeds the need. Owning this dividend stocks are much better than owning Singapore stocks or buying a property on leverage.

As a result for 2026, the inflow of dividend should be approximately $60,000, giving a 6% dividend. Current total Portfolio Value is close to a million sing dollar.

Returns wise, since my challenge to property agents, United Hampshire US REIT has provided 2.5 US cents capital gain + 4.1 US cents in dividend. That is a 14.5% returns in less than a year. It is likely the REIT will be giving 4.2 US cents in dividend in 2026, which makes it a 9% dividend yield on current price.

Dividend Received Year to Date

USD: $3,682

SGD: $13,414.50

HKD:$7,100

Effects of US Federal Reserve Starting To Lower Rates, Share Price Growth for SGX Listed US Based REITs

A few hours ago, Fed Chair Jerome Powell on Friday gave a tepid indication of possible interest rate cuts ahead. The US Fed interest rate cuts will lower the SOFR rate that US borrowers on.

In Singapore, it will not translate to interest savings for most SGX listed REITs. This is because most of the REITs are on debts tied to the SORA (Singapore) and Japan's. As a matter of fact, SORA (Singapore's rate) has fallen faster than USA's. While USA's SOFR has not decreased by a single decimal throughout the year, Singapore's SORA has fallen by 1.5%.

Only Beneficary

The main beneficary are the US listed REITs because almost all their loans are tied to US SOFR instead of SORA unlike the rest. In time to come, we can expect the decline in US Federal Reserve Rate to benefit them.

KORE is the most sensitive to movement of SOFR because it has 24% of loans pegged to SOFR and the tightest margin spread due to a perceived stronger property portfolio. The magnitude of the fall in SOFR will result in a good percentage in extra cashflow for unitholder. Next in line is PRIME where it has about 34% tied to SOFR floating rates.

Good Time to Own SGX Listed US Based REITs

Declining SOFR means lower interest expense and in turn higher distributable income for unitholders. These are facts and not analysis. So it is definite such unitholders are going to benefit to a greater magnitude than those owning Singapore SG REITs.

To add to that, the USD dollar is at its lowest against the Sing Dollar, it is a good time for Singapore investors to mass swap the Sing Dollar to buy these assets when we have a strong Sing Dollar before it starts to depreciate again.

Higher Dividends for US Office REITs (except Manulife US)

This post will cover KORE and PRIME REIT. In recent times, these 02 REITs have posted results which shows their property portfolio are turning around. KORE has shown a slight decline in occupancy from 90.0% to 88.2%. And PRIME has maintained its occupancy at 80%. 

With this, it will point to a stabilisation of their property valuation which means an unlikely scenario of breaching leverage ratio above 50%. So what remains is when will their distribution resume.

KORE Resumption will Start From FY2026 Result

As per the title; this has been confirmed by the REIT manager, what remains is the proportion of payout ratio. From the wordings, it will definitely not be 80%/90% of the distributable income because this is the end state where the REIT wants to be at.

For PRIME, while the manager has not indicated increasing its payout ratio; management call has alluded that PRIME too is looking to increase its payout ratio from its current 10%. So the question is what is the ratio.

The CAPEX Problem 

Unlike the Singapore market, in USA commercial most of the tenancy improvement's cost are borne by the landlord. Therefore for every new lease/renewal, there is quite a hefty cash outlay that has to be upfront borne by the landlord.

For last year and this year, both REITs are forecasting a high CAPEX requirement of 45-50million to secure tenants to long term contract.

Operating Cashflow from Rental Growing

And to add to that, most of the new leases comes with rent free period of 3-12 months. This is why at current moment, both KORE and PRIME have reported low operating cash inflows because they are only earning about 70% of rental cash inflow from their properties. 

For KORE, due to the execution of 24% of its leases in the past 18 months, it has about 11% more of its portfolio coming online for rental income, while PRIME based on presentation has 10.5% of its portfolio starting to bring rental cash in. These are important data points. For KORE, this means after most of its new leases start to bring in rent, it will have operating cash inflow of about $82 million, while PRIME is at $76 million.

Counting it Backwards (CAPEX will taper off from 2026)

Both REITs will be incurring upfront CAPEX during last year and this year due to the need to secure tenants and backfilling. However, from FY2026, the CAPEX needs should be lower. In my projection, KORE would incur about 20 million in maintenance CAPEX while PRIME should be about 15 million. This is due to the relative ages of their properties. 

Expansion CAPEX should be lower because both REITs have higher occupancy rates. However, due to PRIME needing to backfill a larger vacant space and in turn needing to pay tenancy improvement, it is likely PRIME will spend USD$5 million more than KORE.

Hence in total, I assume both REITs have CAPEX needs of US$35 million for FY26.

Interest Expense

In KORE's latest annual report, it was able to refinance its new loans at slightly better margin rates. However, this was a small loan refinanced of US$50 million. That said, an advantage of KORE is its ability to secure better loan rates than KORE. 

In its annual report, KORE has been paying at rates of SOFR + (1.43%-1.66%), while PRIME's is SOFR + above 2%. Both REITs have approximately the same amount of debt.

KORE has been able to Refinance Debt at Better Rates

As a result on a full year, KORE's interest expense is US$26 million, while PRIME's stands at US$36 million.

Dividend Resumption

Judging from the cashflow, KORE will have about US$20-30 million in free cashflow once most of its new leases come online + CAPEX tapers off. Hence I forecast investors can expect to see about 2 US cents (US$20 million) dividend from KORE.

For PRIME, free cashflow should remain zero or negative due to its continous higher interest expense and still high CAPEX cash outflow to backfill leases. 

KORE is in a stronger position. This is because it has secured a narrower interest margin + SOFR as compared to PRIME. And the other positive for KORE is that it is in stronger sub office markets as compared to PRIME. For investors of these 2 Office REITs, higher dividends can be seen soon. But the question is what % will each of these REITs give?

Mid August Portfolio Update: Complete Divestment of Yangzijiang Financial

I have compeleted divesting Yangzijiang Financial shares. With the realised gains and initial capital, I have bought other companies such as Starhub and further increase in my position of Lendlease REIT. 

Lendlease REIT Higher DPU for Next 3 Years

The sale of its JEM office is DPU accretive because the interest saved outweighs the office revenue the REIT would have earned even factoring the 13% rental escalation. Second, with a lower leverage ratio, the REIT can start to use its bank borrowings of 3% interest to redeem perpetuals as and when they reach maturity. I expect 4.0 cents total dividend for 2026 & 2027 and 4.3 SG cents in 2028. Debt ratio will be about 44% once all perpetuals are exchanged to bank borrowings. Buying Lendlease REIT at up to 60 SG cents is attractive given the future dividend of 4.3 cents (7% yield)

Another divestment is Yanlord, keeping only a small amount of shares and a Partial sale of Asian Pay TV .

Dividend Received

LINK REIT paid dividend. So Year to Date

USD: $3,682

SGD: $13,414.50

HKD:$7,100

Asian Pay TV, Olam, Nanofilm, Far East H trust and Lendlease will only pay its dividend in Sept, so there will be another round of dividend inflow. 

Portfolio Composition

Alibaba remains the largest component but has dwindled due to the purchase of other companies. As of now, United Hampshire US REIT is the second largest. However, the third and fourth largest are PRIME and Lendlease with expectation of increasing dividends in the next few years. 

Most of my holdings are in REITs due to the thoughts that interest rate/expenses are coming down. A lower interest expense means a higher net profit and in turn dividend. Dividend Yield compression may happen too which leads to higher share prices for REITs.

This will enable my porfolio to earn a larger amount of dividend over the next few years.

United Hampshire US REIT- Strong 1H Result, Higher Dividend and 8% Dividend Yielder

United Hampshire US REIT (UHREIT) has released its first half results. The top draw is the REIT has maintained dividend in the 8% yield range.

Here's a summary of the results:

(i) Revenue down due to divestments

(ii) Distributable income increased by 4% to 2.09 US cents for the last 6 months

(iii) DPU Yield of 8-9% at current share price

Business segments of Grocery and Self Storage

On virture it is a REIT focusing on tenants providing basic essential services, its revenue does not fluctuate much. Occupancy rate has been strong staying at above 95%. The REIT leases have in built annual escalation which allows an increase of NPI per property.

Interest Expense

This is the main item which will determine the directions of its dividend. As of 1H2025, debt weighted interest rate is 5.13%, a decrease from 6 months ago. UHREIT debt profile is all pegged to USA SOFR and its swaps expire in end 2026, I expect 4 rate cuts from now to then, which will put interest at 3%. Hence, I expect interest expense to start lowering from 2026. This leads to.......

DPU Growth

With annual rental escalations and forecasted lower interest expenses from 2026, UHREIT DPU should grow from its current annualised 4.1 cents. This puts it at a high 8 to 9% dividend yielder. The recent acquistion of Dover Marketplace should result in a higher DPU as well. 

At 47.5 US cents, this is a steal and a stock to include to boost your dividend returns. It is a definite buy and I have a target price of 70 US cents.

Lendlease REIT Full Year 2025 Results: 3.6 SG cents Dividend, Increase in DPU expected

 Lendlease Global Commercial REIT (LREIT) has released its full year results. Overall, it is an expected results with:

• 3.6 SG cent dividend
• Sale of its JEM Office Space
• Slower uptake of Milan Office Tower 3, improvements need to be done to raise it to 80% from current 31%

Expect Higher DPU Next Year

LREIT has divested JEM office space at 3.5% cap rate. This is good because if LREIT uses the equity portion of the sale to redeem its 4.25 and 4.75% interest perpetuals, there is a few million dollar increase in distributable income. Further, LREIT cost of debt is now declining, factoring all these I expect next year DPU to be 3.7 SG cents with special dividend of 0.5 SG cent post sale of Singapore office complex.

At 57 SG cents, this translate to a 6.5% dividend yield, which is good. I expect further yield compression to occur until the 5% mark because the risk free SORA rate is declining. Target price is 74 SG cents.

Is it possible for LREIT to reach a target price of 74 SG cents?

The answer is a restounding yes. I feel there are 02 ways- (i) yield compression with the falling Singapore interest rates or (ii) a sale of the Milan office building at current valuation.

If the sale of Milan office goes through, LREIT will become a 100% Singapore mall Trust. And on SGX, we have a 100% SG retail reit which is priced at 1 times P/B with dividend of 5%; it is fraser centrepoint trust.

So it is easy for LREIT to reach 74 SG cents. 

 

Caveat

The sale of LREIT's office assets is indeed a good way forward, however I will like to caveat to LREIT manager that it should not be buying any more properties from the sponsor. And if it does, it should only be Retail singapore properties like PLQ mall or Parkway at a capitlization rate of 4.75% or more because such a situation means the 4.75% interest perpetuals will not be redeemed. A too low cap rate will be DPU negative to unitholders.

And if it is not a retail property, the chances of fulfilling a one times price book will not be achieved.

August Portfolio Update: Reinvesting Sale Proceeds

Saw 02 of my holdings reach its fair value and hence I have encashed partial stakes. Yangzijiang Financial was a big winner with a $100,000 in profits

Following up from my last month's view, I have bought NTT DC, United Hampshire US Trust, Fraser Logistics Commercial Trust, Far East Hospitality Trust and Asian Pay TV.

Dividend Prospects

As mentioned, NTT DC REIT has a strong portfolio with rental escalations and of course there is a risk that it will revise down its payout ratio from 100% to 90%. Therefore, it is safe to assume, dividends will stay at 7 to 7.5 US cents per year. However, it is still worth at current prices.

For United Hampshire and Asian Pay TV, it needs no introduction for they are dividend titans in their own rights (>8% dividend yield)

Fraser Logistics Commercial Trust (FLCT) is currently plagued with poor occupancy rates especially in Singapore. Singapore's property outlook is in fact weak with low occupancy rates contrary to what many Singapore property agents talk about. The main reason is due to the mismatch in asking rent and what tenants want to pay, resulting in a low occupancy rate. However, I am banking on the REIT to lower their asking rates to fill up their occupancy. ItThe REIT would maintain at least a 6 cents annual dividend. (>6% dividend yield)

Far East Hospitality Trust owns a few 4 and 5 star hotels in Singapore, with a rather healthy cashflow and I am branching out to gain exposure to Singapore's tourism industry (~6% dividend yield)

With the purchase of these shares, it is definite I will be getting cash inflow equivalent to SGD$50,000 per year. If PRIME US REIT reinstates a 90% payout next year, dividend may rise to SGD$60,000 range.

To me the current portfolio has a right mix of dividend and capital gains (mainly Alibaba is the provider for this aspect), I would be happy earning a 6% dividend portfolio with part of it banking on capital gains from the Hong Kong side. Many Singapore REITs are now priced at high yields that outbeat condo purchases in both capital and rental appreciation. 

United Hampshire US REIT

A shout out to this REIT. Since my post in Dec 2024, it has produced 4 cents in returns (2.05 cents dividend and 1.5 cents in share price gain). This netts a remarkable 8% returns in close to a year from the cost base of 45.5 US cents. The recent purchase of a property should raise its DPU by 1%. Definitely not better than doing unit buybacks but as passive investors we cant influence much; UOB wants to make more money so they will increase AUM instead of doing the better corporate action.

NTT DC REIT IPO View and July Portfolio, Expenditure Update

July Update: Portfolio has grown admirably, in just a month, I have seen an increase of $50,000.

I have taken a small profit off Yangzijiang financial as it is reaching my target price. As a few of my stocks reach my own intrinsic value for them, I am now searching for new undervalued contenders, one of which is the recent IPO'd NCC DC REIT that I will talk more later.

Unitedhampshire US REIT has maintained its price at US$0.465.

Dividend Received

Year to Date (July received Alibaba Dividend)

USD: $3,760

SGD: $13,414.50

HKD: $28,000

Expenditure

I have stopped posting on my Maybank credit card expenditure because it has always been hitting the $800 mark  monthly, resulting in an achivement of 6-7% cash rebate.

NTT DC REIT Short Analysis

NTT DC REIT IPO at US$1 two days ago. Dividend wise, the REIT is guiding for 7.5 US cents.

Debuking the "Tesla" concentration in NTT- Investors have highlighted a concentration risk where 31% of the data centre's property is leased to one tenant, likely Tesla and is up for renewal in 2030. 

A few may be worried of the concentration risk, recalling what happened to Digital Core REIT largest tenant bankruptcy which slashed DPU by 2 cents; however this is different. Digital Core REIT's tenant was in the business of subleasing the space to others for data centre services. Tesla, on the other hand, is in the business of AI and automative segment and needs the data centre space for operational and expansion requirements. It is not speculative as Digital Core's. Hence in term at the stage of IPO, both REITs' risk profile is inherently different.

Possible Overcapacity of US Data Centre Space- This I acknowledge is a risk because too many data centres are now built worldwide. So let's see how this goes, but for now I am personally satsified with NTT DC REIT tenancy rate.

Sponsor- It is NTT, which to me, is as good as Keppel and Mapletree on the global stage so I have no worries. The only difference is most of NTT's REIT assets are in USA which is of lower valuation and occupancy rate compared to Singapore's. This is where Keppel DC REIT shines. This also explains why Keppel DC REIT's yield is at 4+% while NTT is now going at 7%.

With margin of safety, I am looking to buy it at US$1 or lower, because I want a 7.5% dividend on my capital invested. The IPO of this REIT is good in my view and anything US$1 and below is in the area of undervalued to me.

Currently the share price remains at US$1 due to negative sentiments surrounding US REIT + Singapore investors memory of Digital Core. In the foreseeable future as I sell off stakes in existing positions of my portfolio, funds will be channeled to NTT DC REIT. Part of diversification and my plan to increase dividends to $60,000. 

Portfolio Update June 2025: Add Lendlease, Sold Keppel REIT

Keppel REIT has been totally sold off, Lendlease REIT holding has doubled.

No dividend inflow. Dividend is on track to hit $50,000 this year, that's all to update. 

SG listed REITs are still Attractive

With local exposure REITs such as Lendlease going at 7% yield, it is a good value proposition. Low SORA rates are going to benefit due to lower interest expense, especially with liqudiity flushed in Singapore. 

I have never been a fan of condo investing when the yields are so low at 3-4% (before leverage) and investors are subjected to SORA + margin loans. Even operating on leverage, a condo investment now is less superior than that of owning REITs.

What's more, I am getting dividend inflow higher than what property investors get from rental income nett of Agent Commission, Singapore property tax and maintenance fee.

Comparision is simple, just use a $600,000 purchase of Lendlease REIT against a scenario of a $2 million condo which uses $1.4 million loan; mathematically, the dividend earn from Lendlease at $42,000 per year is higher than what condo investors get after netting off all the cost and government taxes.

So yes, I will continue to own REITs to earn a high annual dividend.

Dividend Received

Year to Date

USD: $3,682

SGD: $13,414.50

Portfolio Update end May 2025: Added UnitedHampshire and Lendlease REIT; $50,000 Annual Dividend

As per my thoughts, Lendlease REIT and Unitedhampshire US REIT are bargains. So I have used cash to purchase these shares. As a result, lendlease is a new addition in my portfolio. It is expected for full year 2025, my dividend received will exceed $50,000.

That is a restounding number and mainly thanks to the sell down in Singapore REITs despite the fact local REITs are facing declining interest expense. I am thankful for the market of offering the opportunity to accelerate my income accumulation.

I will continue to accumulate Lendlease REIT due to its 7% dividend yield in Singapore environment. 

Dividend Received

Year to Date

USD: $3,682

SGD: $13,414.50 (received from Yangzijiang Financial, Olam and Nanofilm)

Thinking Between Lendlease Commercial REIT vs UnitedHampshire US REIT

Following from my portfolio update, I am now stuck in a dilemma.

On one hand, while I am thinking to add UnitedHampshire US REIT (at 9% yield), I have come across a local REIT called Lend Lease Commercial REIT, it is a mid cap REIT which owns 02 Grade A buildings in Jem and 313@Somerset. Its occupancy in Singapore is a solid 99.9% with the Ministry of National Development being on a long term lease with rental escalations of about 2.5-2.6% annually. 

Lendlease Commercial REIT is currently at 51 cents with a dividend of 3.6 cents, giving it a 7% yield.

Why am I torn over it, Compared to my Current Holdings

Lendlease has a good 7% yield with very good assets in Singapore. In a way, barring recession, Lendlease is a dividend stock with growing dividends, its cost of debt is falling due to the falling Singapore SORA rate. I believe this stock will give 4 cents dividend in a few years time as interet rates keeps falling. (Lendlease cost of debt is 3.57%, while SORA is at 2.3%; likely lendlease cost of debt will fall to 3.2%). I expect lendlease DPU to be up 10% due to the falling SORA rates.

I am not bothered by the high gearing of Lendlease because the REIT is mostly backed by Singapore assets. As the saying goes, Singapore property prices will only go up or stay flat, the government does not dare to deflate property prices. 

On the other hand, United Hampshire US REIT has a lower occupancy rate but is in a totally income inelastic segment as opposed to Lendlease whose shop tenants are across the specturm (but of course not as many luxury tenants as seen in Paragon or Starhill Global REIT).

Strong Occupancy in Singapore and Improving Occupancy in Italy

Lendlease has a "building no 3" in Milan which it is trying to lease out after the return of the building by the main tenant. With improving occupancy, this will improve the net property income (NPI) of the Italy office complex.

Second, Lendlease has in built rental esclation for its Singapore Shopping malls and Office towers. This means higher NPI in time to come. This is why I foresee Lendlease will become a growing dividend REIT stock over time.

Extra Funds to Deploy for My portfolio

Right now, I am thinking between Lendlease REIT and Utd Hampshire US. The former has a strong tenancy and occupancy with a Singapore ministry being its largest tenant who will not default on its remaining 20 years lease. The REIT sports a 7% yield with a strong tenant base. On the other hand, if I take the latter, the tenancy profile is weaker and has exchange risk, the benefit is that I get a 9% yield.

The other thing I have to note is my portfolio concentration; with Utdhampshire being a large part of my portfolio, buying more of it puts me into a concentration risk.

Quite a weekend to think where to deploy my extra funds!

May Portfolio Update (2025): Little Movement, Changing Sing Dollar to USD to Earn $50,000 Annual Dividend

 Nothing much has changed in my portfolio except for the sale of a few shares in Olam and Alibaba.

With the weakening of US Dollar relative to Sing Dollar, I sense an opportuity to start accumulating more United Hampshire US REIT to grow my dividend.

Having researched the REIT thoroughly, I do feel it provides a significant amount of recurring dividend. In addition, as it is in the stripe mall and essentials goods area, tenant sales should not be adversely affecting with the looming price hike among US goods. I will be doubling my stake because a 9% dividend is something I will not miss and the cheap US dollar means my Sing Dollar is able to buy more of the same units.

With the accumulation, I may be creating a $50,000 SGD Annual Dividend Portfolio, something I would have found unachieveable, but thanks to the low prices REITs are going and the strong Sing Dollar, it has become real. With so many strong dividend stocks in both Hong Kong (Link REIT) and US (United Hampshire, possibly PRIME US), holding Sing Dollar and placing it in Singapore banks with low deposit rates is not a good value proposition anymore; its better to just change your money to Hong Kong or US Dollars to buy the dividend stocks avaliable in these countries. It will reap much more benefit than holding Sing Dollar.

Another stock I am evaluating is lend-lease REIT. It owns 02 Grade A buildings in Singapore with close to 100% occupancy and is of 7% dividend yield. Currently it's share price is at a low which makes it beneficial to own, of returns even surpassing what condo owners can own from renting out their property. Its largest tenant is Singapore's Ministry of National Development.

Dividend

Year to Date

USD: $3,682

SGD: $5,250

A Japan House Near Tokyo Costs Less than a Singapore HDB Flat of Same Travelling Distance, my Thoughts

I am not joking when I say this. Due to constant searches on housing in Japan, Facebook seems to be throwing its algo and think I am interested in a Japan property. So recently, they shared with me properties in Japan (Kawasaki City) going at USD$460,000 or about SGD$610,000 for properties of 50 mins travelling time to Tokyo Station and 50 mins to airport via train, of 1,100 square feet and a 2-3 years old house

If i were to extrapolate this to Singapore's context, it is akin to travelling from Woodlands or Sembawang area. While there is no data of 2-3 year old resale flat because Singapore law forbids the sale of such resale HDB, we do have data for 5 year old resale HDB flat of that floor area and in that area. 

A search on HDB resale transaction based on these parameters tells 5 year old HDB resales are going at SGD$680,000-$820,000. 

Fringe Properties in Tokyo Area are Much Cheaper than Singapore's and Why?

There are other areas of Tokyo too where like-for-like and travelling on public transport, their housing is cheaper than Singapore's. And unfortunately in Tokyo suburb areas, their property prices are not increasing much. 

For context, housing prices in Singapore has risen at a faster rate than Tokyo's. Why is this so? This is due to Japan's cultural reluctance to accept foreigners.

Due to this, the number of foreigners on long term pass and PR residing in Japan is extremely low at 3% vis-a-vis Singapore's 40%. While there are now foreign workers in Japan low-skill labour spectrum such as convincence stores or hotels; in proportion, it is still a small number. In short, the population trend of Japan has hampered Japan's housing prices.

Jap's population problem is so well documented and known that overall the population is declining. Adding of foreigners has not offset the local's attrition due to death. Far flung places of Japan have seen home prices going at a few hundred or thousand dollars because they are now abandoned.

Reversal of Singapore Populaiton Policy will Cause Property Prices to Crash and People Here to Suffer

Doing a "what if" Marvel like thinking, the question is what happens if Singapore becomes as inward as Japan and is not accepting of foreigners. The answer is simple: 25-30% fall in housing prices.

Japan has seen it and is trying to stem the residential housing price decline. If Singapore does it, the first order effect is there will be a wave of bad loans and DBS will have to massively impair its home loan portfolio.

I am not sure if MAS has stress test a 25% decline in HDB and condo prices, but based on current parameters, there will be a tremendous amount of equity top up required of home owners in Singapore. Consumption will fall and the second order effect is that those who had just received TOP for condo are likely required to pay 15% more via cash or CPF or risk themselves being declared bankrupt and lose the condo they had put their CPF in.

In short, Singapore can never turn back the clock because residential prices will collapse and many individuals who own two or more properties via leverage will be in a world of pain. 

<Not vested in Any Property But Just Thinking How our population policy cannot be reversed because It means the end of the Property Bubble here with Many Asset-Rich people becoming bankrupts>

China is now Very Much Worse Off with Trump Tariffs

 Contrary to what many market experts say, the "Trump Tariffs" is hurting China very badly. To combat the tariffs, China has devalued its currency to a near time low.

A currency devaluation means China's exports are now more competitive, however, it comes at a cost where China citizens have less purchasing power buying imports and travelling overseas is now more expensive. Sound anything similar? Yes, that is its another form of import tariffs. Hence for a tit for tat import tariff, China has imposed an addiitonal import tariff via currency devalulattion which is causing more pain for its citizens.

In a way, the USA started tariff war is now hurting both countries' citizens. It is likely China too is going to be in a world of a pain as opposed to what Xi jinping is painting.

What I am Doing

Unlike what a certain blogger is saying, the investment in China companies is painful, investing in alibaba or China tracker fund 2800,HK will be painful, Therefore, my view is we should not add in addiitonal stakes into China/HK HSI funds. Just stick to what you have and hold on.

Additional funds into them will hurt you. Do take "fin fluencers" advice with a pinch of salt due to their investments. Both China and USA will be going down the drain, not just one country.

<This post was penned down due to I noticing one online financial personality has been drumming up support for China which is beginning to be suspicious, Singapore government may not be doing anything but i feel it is contravening acts that Minister Alvin Tan may not have spotted.>