End of Year 2024 Update: Buying more Business Trust and REIT For Dividend

As said in my past posts, it is likely I would purchase more Asia Pay TV Trust (APTT). I did just that.

Other purchases were UnitedHampshire REIT and Yangzijiang Financial. They are strong convictions of mine that will provide good dividend and returns to investors. 

Alibaba is becoming a smaller and smaller proportion of my holdings because I do not think President Xi Jinping will be able to instil much confidence to the economy given his poor economic policies in the past and Trump US tariffs on China. 

Portfolio is Now a 5+% Dividend Generator

Starting from the end of next quarter, I will be logging the dividend I receive. I am confident the current portfolio is of a high dividend yielder and of stable calibre, in terms of yield it is better than Singapore property bets. Purely on UnitedHampshire US REIT dividend, it will beat any Singapore property (I am already up 5% in 2 months, if any property agent still wishes to challenge).

2025

An important event for 2025 will be if APTT successfully renews its debt for a margin of 2.0%-2.5% from Taiwan Interbank. As of now, its loans have a margin of about 2% from Taiwan's TAIBOR rate. I expect a slight widening which will affect casflow. Too high a margin for its debt will hurt dividend. But as long as APTT effective cost of interest remains at 3.8% or below (currently it is at 3.3%), the trust will continue to be a 13% dividend yielder.

The second event I look towards is PRIME US REIT resumption of dividend. The US Office submarkets have not recovered and vacancies are still increasing. I expect property devaluation to still happen.

This will push PRIME US REIT's leverage above the current ratio of 46%. I expect US commercial REITs to report about 5% decline in value. Not too shabby given China is faring worse. Nevertheless, this will affect PRIME US REIT in terms of leverage and if the submarkets are not recovering fast enough, the REIT will not be able backfill vacancies to increase income and give more dividends to unitholders. I am hoping for a quick improvement in vacancy rates in PRIME US REIT's submarkets so that more dividend are rewarded to Unitholders. Targetting for a 2 US cents annual dividend to be restored starting from 1H2025 results.