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.