One of our building's tenants vacated in December 2022, which caused a drop in vacancy. However, we are currently in advanced discussions with a potential new tenant, so the vacancy period is expected to last another two months.
Another factor affecting our DPU is the currency exchange rate. The Singapore dollar has been strong in recent years and appears to have bottomed out, barring any unforeseen events.
Our DPU has decreased by double digits in the latest quarterly comparison, primarily due to the factors mentioned above, as well as cash retention and management fees.
We have no loan renewal issues until 2026, and our effective loan rate is currently at an incredibly low 1.8%.
Overall, the current stock price already reflects most of these factors. However, with an annualized yield of 7.7% and the possibility of higher returns after the new tenant moves in, we may see another adjustment in the next quarter. Nonetheless, even with a worst-case scenario yield of 7%, the REIT remains an attractive investment option.
Cory
2023-02-25
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