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.
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