Oct 25, 2023

Cory Diary : Mapletree Log Trust 2Q FY23 Report

Did a quick run through of Mapletree Log Tr reporting. The result is quite strong imo in current high rate environment. DPU Quality seems good. Increase Rev, npi and distribution on the back of higher units.

Cost of borrowing low at 2.5% which is quite interesting. With added upside when there is China recovery, this stock gives me a 180 degree turn in perspective from negative view of it.


Have sold 1/3 of my position just recently before the major sell down and today report. Looks like I will be holding the remainder for quite a while. Quite happy with the Reit performance so will Hold and monitor due to many transaction of their properties.

Below ref. on coming dividend.









Cory
2023-1025

CoryLogics Invest Chat - No Coin, No Porn, No Penny ( Limited to Invitation )

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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.




Oct 6, 2023

Cory Diary : Review of Current Reits Position in the Portfolio

There are 10 Reits in the portfolio of varying allocation which together take up about 50% allocation today. The current Top 3 Reits allocation are Ascendas, Aims Apac Reit and FCT. The Bottom 3 Reits allocation are Sabana, United HS and Elite Comms.

Ascendas Reit - Hold to manage size allocation
Aims Apac Reit - Hold to manage size allocation
FCT - Accumulation stage when opportunity arises
Mapletree Industrial Trust - Hold to manage risk allocation
Mapletree Log Trust - Allocation Trend will be lowered due to acquisition
iReit - Hold to manage risk and size allocation
Ascott Trust  - Allocation Trend will be lowered due to acquisition
Elite Comms GBP - Hold due to GB local issue. Monitor.
UtdHampshReit USD - Hold to manage tax and risk
Sabana Reit - Hold to manage risk. Monitor.


Predominantly Foreign Asset Reits

Foreign based SG Reits are iReit, Elite Comms, UtdHampshire. All three therefore has forex exposure and in recent times suffers from reduced income in SGD. On top of this, inflation is relatively much higher than SG and Interest Rates Cost have seen much higher impact on them. Business wise the basic fundamentals look ok though not perfect. They could be a lot worst if they are in US Based Office Reits as WFH in oversea countries likely can be a long drawn normalcy.

While most of the higher allocated Reit positions are well into positive territory YTD, the higher yield Reits are in deep losses. The only consolidation is their relatively smaller allocation in the Reit segment of the portfolio after suffering large capital losses last year as well. This is not surprising due to most of this are mainly foreign assets whom faces much higher cost in recent time.


Industrial/Business Park/Logistic Reits

Ascendas, Aims Apac, MIT, MLT and Sabana are all Industrial/Logistic Reits of varying degrees. They enjoy relatively good business in current environment. Strong Rental reversion in a number of them. Interestingly, the smaller Reits like Aims Apac and Sabana did very well in rental reversion. All of them has a good plan and control of their debts. DPU looks stable.


Retail and Hospitality Reits

FCT and Ascott are in Malls and Hospitality respectively. They also enjoy strong business. With FCT being a Core Reit in the Portfolio other than Ascendas. The strength of FCT is their suburb Malls on well located area. A key necessity meeting and transit points for most commuters and well positioned for daily necessities. Is a Reit that we expect to be able to weather all Emotional Storms from the Market. Recently they have managed to sell off some non-key assets which is quite a positive move in current higher cost interests impact.

Ascott Reit is more a recovery play from Post Covid whom suffered deep impact from lock down and lack of tourism businesses during Covid period. Recent rights issue has been disappointing as we are in current higher rate environment and therefore large asset acquisition do not benefits shareholders. This is reflected in recent poor share price performance.


Overall

Worst time of Reits maybe over for major part of it however there are hangover issues with fundamentally weakened reits that will drive them lower as time passes. For the past 2 years the banks have counter balances the weakness of Reits in high spike rate environment. This help to ride the Portfolio over this volatile period.

Is also time now that I plan to do re-balance my portfolio with the longer term view of their trend. As usual, i will put integrity of the reit managers and their alignment to minority shareholders as utmost importance even though is with the expectation that the sponsor will try to take some off the table for themselves.

And finally whenever opportunity arises, i will tap into some warchest. There are voices out there that the market may turn worst. I will probably adjust my pace slower when tapping new funding. The good thing about all this is that SSB and T-Bills which has grown sizeable for the past 2 years, help to retard my funding release.


Cory
2023-1006

CoryLogics Invest Chat - No Coin, No Porn, No Penny ( Limited to Invitation )

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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.