Cory Diary : MIT 3QFY21/22 Read

Mapletree Industrial Trust return has been consistent for many years. DPU Up and Up except when ... . Is not surprising that investors expect 3QFY21/22 to be Up as well. Glad there is no disappointment. See below table. Due to it's consistency, annualizing it's latest Q result DPU will gives a good projection for the year yield at minimum. Of-course there's always exception and therefore not guaranteed. Another reason I like this Reit is that it gives quarterly dividend.

At today closing price, yield is at 5.35% which looks sustainable. Further supported by resumption of distribution reinvestment plan to help fund progressive needs of development projects. Occupancy at 93.6%. Gearing at 39.9% which mean possibility of right issue will still be there.

It has respectable adjusted ICR of 5.9 times thanks to almost 50% of the Reits are in NA DCs and which has much longer WALE. Singapore Operation is stable and decent.

One thing to note is this "On 11 May 2021, MIT issued S$300.0 million of fixed rate perpetual securities. The perpetual securities, net of issuance costs, are classified and recognised as equity instruments." . Roughly 10% of the Reit borrowing IIRC and which the perpetual is included in the Adjusted ICR.

How good is this Reit to me ?

The Power of this Reit = EPU % + Yield % = 5.7% + 5.35% = 11.05%. An unorthodox way of benching up a reit ability. The Power is only meaningful if  the earning and dividends are sustainable in absolute using number of shares as denominator. A modification to Reit due to property valuation can be volatile is to use NPI. Therefore Reit Power = NPI % + Yield % = 13.1% + 5.35% = 18.45%. This is the first time we do this. Let see how other Reits perform against it in future articles.

This MIT Reit Rocks so far but it need not be forever considering how MCT is treated.

Please DYODD on all the information and thoughts.

Ok ! Back to House Chores again.

Cory

2022-0127

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Cory Diary : Ten Laps

Decided to do a "tweets".

Trade talk has just taken a surpise turn for the worst to my dismay. Is now more like two arrogant kids having a face off. It could get worst. One would think two sensible adults will come to a compromise but life is unpredictable.

This has hit my first level warning. Having 11% returns in 4 months period, is like swimming ahead by 10 laps. So for this phase I will do further profit taking. 

Sold half of my Ascendas-h Tr as I have more than 2 years of dividends. The future dividend loss will be felt.

Sold only the amount increased of Mapletree Ind Tr which I have increased before ex-dividend. It was average up previously in anticipation of better market environment and net net after dividends still have slightly more profits. This is more like de-risk levelling move.

Sold SIA. Just few lots. While is gain ytd. Counter level is slight loss. Is non core so is a counter less to manage. I also decided to release one of my US stock at market price with similar story as SIA.


thanks

Cory
20190506