Portfolio Update June 2026: Accumulating NTT DC, Daiwa Logistics REIT for Dividend Growth

I have made several purchases recently to strengthen my dividend income stream, along with one new position that is more of a vanity project than a pure investment.

Have sold my Frencken Position at $3.53-$3.54

NTT DC REIT – Major Accumulation

Data centre capacity remains in high demand globally. Among the listed data centre REITs available to me, I evaluated NTT DC REIT, Keppel DC REIT and Digital Core REIT.

My view is that Keppel DC REIT has the strongest portfolio, particularly given its significant exposure to Singapore, which is one of the tightest data center markets in the world. However, the market already recognizes this quality and has priced it accordingly, resulting in a rich valuation.

NTT DC REIT, in my opinion, offers the second-best portfolio mix while still trading at a comfortable dividend yield and a discount to book value. This provides a more attractive balance between quality, income and valuation. In particular, I like its exposure to Singapore as well as selected overseas markets where data centre demand remains robust.

As a result, I have made a substantial purchase of NTT DC REIT at a forward yield of approximately 7.8%. This position should materially enhance my dividend income beginning in 2027.

Daiwa House Logistics Trust

I have recently added to my income portfolio as part of a selective expansion into higher-yield industrial real estate with geographical diversification.

Daiwa House Logistics Trust is a Japan-focused logistics REIT with exposure to modern warehouse and distribution assets across key logistics hubs in Japan. Its properties are strategically positioned near major transport corridors and consumption hubs. Tenants typically include e-commerce distributors, and warehouse users such as Suntory and Mitsubishi Express, providing long lease structures and stable cash flow visibility.

Vanity Project – Japan Foods Holding

I have also continued accumulating shares in Japan Foods Holding, to the extent that I should now rank among the company's top 20 shareholders.

From a pure investment perspective, this is not my strongest idea. The company is currently loss-making and remains in the midst of a rationalization and turnaround process. However, I enjoy being a shareholder of a business whose products and outlets I regularly patronise, which is why I consider this a vanity project.

Should management successfully restore profitability, there is potential for dividends to resume from 2027 onwards. While the investment carries execution risk, I am prepared to be patient and see how the turnaround unfolds.

Dividend (Year to Date)

USD $13,060

HKD $9,068.61

SGD $9,068.20

Why I Am Investing in Two Singapore Listed REITs Delivering More Than 8% Dividend Yield

UI Boustead REIT and Daiwa House Logistics Trust offer distribution yields above 8%, meaningfully higher than most Singapore blue-chip REITs such as Keppel REIT and CapitaLand Ascendas REIT, as well as traditional fixed income instruments. This places them at a clear income premium while still being backed by real asset cash flows.

Beyond yield, both trusts are anchored in logistics and industrial properties supported by long-term structural drivers including e-commerce growth, advanced manufacturing, and global supply chain reconfiguration. These are demand themes that continue to underpin occupancy and rental resilience across cycles.

UI Boustead REIT has a diversified portfolio of industrial, business park, and logistics assets primarily located in Singapore (about 70%+), with the remainder in Japan. Its tenant base is anchored by multinational corporations across engineering, life sciences, aerospace, and technology sectors, including names such as Rolls-Royce, Jabil, GSK, and Razer. This creates relatively stable occupancy supported by mission-critical industrial usage.

Daiwa House Logistics Trust (DHLT) focuses on modern logistics facilities, with the majority of assets located in Japan and a smaller portion in Vietnam. Its properties are strategically positioned near major transport corridors and consumption hubs. Tenants typically include e-commerce distributors, and warehouse users such as Suntory and Mitsubishi Express, providing long lease structures and stable cash flow visibility.

Geographically, the two REITs complement each other well: UI Boustead provides exposure to Singapore’s high-spec industrial and business park office for HQs, while DHLT offers pure-play exposure to Japan’s logistics market, which benefits from Japan's e-commerce, food and beverage products and automation tailwinds.

Investment View

For income investors, the core attraction is the exceptionally high and sustainable cash yield. With both REITs offering 8%+ distributions, investors are effectively locking in a materially higher income stream compared to most blue-chip REITs, government bonds, and fixed deposits. Importantly, this yield is backed by real assets, long lease tenures, and institutional-grade tenants rather than speculative growth assumptions. Combined with moderate leverage levels and strong sponsor backing, the pair provides a compelling balance of income stability and geographic diversification in today’s higher-rate environment.

May 2025: New Addition UIBREIT

Dividend came in from Nanofilm, Frencken and Riverstone. Besides, I have bought UIB REIT. This diversifies my dividend sources and importantly, increases my dividend received.

With discovery of high yielding Singapore stocks and sustainable payout, I am now shifting my annual dividend target (for the better, unlike PAP-style goalpost shifting to smoke citizens.)

The dividend target I have set is $100,000. It is an increase from my previous goal of $60,000 because I have bested it due to NTT DC REIT, United Hampshire gains

Dividend (Year to Date)

USD $13,060

HKD $9,068.61

SGD $8,891.20

UHREIT Growing Dividend Every Year: One of the Highest Yield in Singapore

United Hampshire US REIT ("UHREIT") reported a strong 1Q 2026, with distributable income rising 10.0% year-on-year to US$6.9 million,

Taking it on an annual basis, once can expect about US$26.6 million in distributable income. The real distributable income should be about US$27 million, factoring reduced interest rates and acquistions.

At US$0.52 price per unit/market cap $313 million, this points to 8.5% dividend yield

Sustainable yield (below 100% payout ratio), high yield and consumer resilient tenants in supermarkets, this is turning out to be a good REIT. Based on my cost price, I am earning 10% annual yield on cost.

Prices have gone up, but I am still not selling because it gives 8.5% yield. There are rental escalations built in, this means dividend may keep growing annually.

A good REIT many fund managers have not started buying due to their investment mandate of requiring the REIT to be in tracking indexes. This is hindering fund managers. But as retailers, we are able to purchase it easily and earn 8.5% dividend yield. Eventually fund managers will be forced to buy the REIT when volume picks up

April 2026 Update: Strengthening My Portfolio’s Dividend Power

Over the past week, I have trimmed my position in Nanofilm to take partial profits following its recent share price strength. While I remain constructive on its longer-term prospects, the sharp rebound presented an opportunity to lock in gains and rebalance exposure. As per my previous update, I had sold Alibaba shares amid regulatory uncertainty and a muted consumer recovery in China.

Proceeds from these adjustments have been channelled into NTT DC REIT, primarily for its attractive dividend yield of approximately 7–8%. In the current environment, the ability to generate stable and recurring income is a key priority, and the REIT offers a compelling yield spread relative to other income instruments. This provides a strong foundation for portfolio cash flow while reducing overall volatility.

Beyond yield, NTT DC REIT offers direct exposure to the data centre sector, which is underpinned by powerful structural tailwinds such as cloud adoption, artificial intelligence workloads, and ongoing digitalisation. The quality of its assets, coupled with long-term leases signed with large software companies, supports visibility and resilience of its DPU.

As the year progresses, the portfolio is steadily evolving into a more robust income generator. Dividend contributions are increasing meaningfully, and the $60,000 annual dividend target now appears well within reach.

Dividend

There is no change in the total dividend income received.

Current Portfolio Value is $1,220,400

Dividend

USD:$13,060

HKD:$9,068.61

SGD:$6,507.80

I Took a Loss After 4.5 Years Investing in Alibaba

Today, I sold a partial stake of 1,800 Alibaba HK shares. It marks the end of a position I held for approximately four and a half years — and not in the way I had originally envisioned.

At an average cost of around HKD 142, it’s ironic that after such a long holding period, I still have a realised -1% loss.

What Made Me Decide to Sell

First, Alibaba’s earnings trajectory has largely gone sideways.

Revenue growth has slowed significantly from its earlier high-growth phase, transitioning from rapid expansion into a more mature, slower-growing profile. At the same time, earnings growth has not matched the revenue growth. Despite this, the stock continues to trade at around ~20x price-to-earnings, which is not particularly compelling given the lack of strong growth momentum.

Second, the opprotunity cost of holding Alibaba has been substantial. In Singapore, listed REITs have consistently delivered 5%–7% yields annually, with additional upside from capital appreciation over the past few years. Alibaba has not made much progress. On top of that, capital allocation has been conservative. Buybacks have slowed as the company prioritises AI investments inquiries with Alibaba IR the idea of leveraging low-cost debt to fund more aggressive buybacks while using capital for CAPEX has returned with no interest by the management. It is a signal that Alibaba Management does not feel its shares are too udervalued at current prices. 

Hence, I will be deploying capital to purchase REITs

April 2026 Portfolio Update: Dividend Growing

Since the last update, I have made 03 additional stock acquisitions:

1. Lendlease Global Commercial REIT
   The share price fell below its issue price, presenting an attractive entry point. I accumulated shares at an average price of 0.55, which translates to an approximate dividend yield of 6.4%. This represents a reasonable yield for a REIT of its profile.
2. NTT DC REIT
   I increased my holdings when the share price declined to 0.925. At this level, the stock offers an estimated yield of around 8%, which I consider a strong value proposition.
3. Yangzijiang Financial

I look forward to achieving higher dividend contributions going forward. From a dividend investment perspective, generating annual returns of 6–8% in Singapore is relatively attainable. By looking beyond the large-cap REITs and selectively investing in mid-cap names such as Lendlease Global Commercial REIT and NTT DC REIT, these levels of yield can be achieved.

In my view, such returns compare favourably against many other asset classes in Singapore, while remaining accessible to the average retail investor.

Dividend

There is no change in the total dividend income received.

Current Portfolio Value is $1,163,500

Dividend

USD:$13,060

HKD:$9,068.61

SGD:$6,507.80