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.
