Sunday, 11 December 2016

Dividend Knight Income Portfolio Update (Dec 2016) - Targetting Passive Income Longevity

No.
Company
No. of Shares
1.
AIMS AMP Capital REIT
30, 000
2.
DBS
2, 073
3.
Mapletree Logistics Trust
32, 498
4.
Singtel
8, 000
5.
Frasers Centrepoint Trust
15, 000
6.
OCBC
3, 040
7.
Raffles Medical Group
15, 094
8.
SATS
4, 000
9.
ParkwayLife REIT
8, 000
10.
Ascendas REIT
7, 000
11.
Keppel DC REIT
12, 800
12.
CapitaLand Mall Trust
7, 000
13.
Frasers Logistics & Industrial Trust
13, 000
14.
MGCCT
12, 000
15.
Suntec REIT
6, 000
16.
Sheng Siong
7, 000
17.
Mapletree Commercial Trust
4, 000

Dividends received in December 2016: S$1, 537.40


Total dividends received since Jan 2016: S$15, 492.63
 
Average dividends per month: S$1, 291.05
 
Average dividends per day: S$42.45
 
Total portfolio market value: S$351, 428
 
Unrealised Profits: S$40, 690


For the month of December, I will be collecting a total of S$ 1, 537.40  in dividends and distributions from my income portfolio.
  • SATS: S$240
  • AIMS AMP: S$825
  • MLT: S$472.40
DSO National Laboratories Building (Source: Ascendas REIT)

Having performed a bottom-up approach analysis on PLife REIT in my previous portfolio update, I decided to share the one I did on a blue-chip industrial REIT which I am vested in recent months. Ascendas REIT continues to build on its market leadership position in the business parks/science parks space with the latest acquisition of 3 properties in Singapore. The manager has proven to be rather resourceful in pursuing both organic and inorganic growth. Even though the yield-accretion is very marginal, the acquisition has a few positives.....
  • Long weighted averaged lease expiry (16.5 years) from quality tenants (DSO & DNV GL Singapore)
  • Annual rental escalation of 2-2.5%
  • Long land lease tenure of 65.7 years (way above the average industrial land tenure in Singapore)
  • Offers exposure to the growing R&D sector in Singapore as we move away from low-end manufacturing towards a knowledge-based economy
  • Close proximity to the new Kent-Ridge MRT station


Ascendas REIT has prepared its balance sheet well in a climate of rising interest rates.
  • Well-staggered debt maturity profile of 3.8 years, meaning it will not face any major re-financing needs in any one particular year.
  • 78% of total debts is hedged into fixed rates
  • Reasonable all-in debt costs of 3%
  • Well-diversified asset portfolio among warehouse, logistics, business parks, science parks, data centres, high-spec industrial and manufacturing compared to other industrial S-REITs
  • The only S-REIT to enjoy 'A' credit rating besides CMT

This month's portfolio update came earlier than usual because I want to post this before flying off for a much-deserved vacation. I shall be back after Christmas to share my 2016 portfolio review plus investment strategies for 2017. Stay tuned! :)



To Sustain Longevity, You Have To Evolve
DK

(All comments made in this blog are purely my own views and analysis, they may be wrong and readers are wiser to do their own due diligence. I am not held responsible for any losses incurred, at the end of the day its your own money your own decisions.)

6 comments:

  1. Great work Knight! Keep it up! Let's finish the year strong,

    ReplyDelete
    Replies
    1. Thanks! Yup, start strong and finish stronger! Cheers!:)

      DK

      Delete
  2. Hi DK,
    Have u considered shifting all from Aims to Areit, since the latter is larger and overlaps. Whats the reason for holding both? Thanks.

    ReplyDelete
    Replies
    1. Hi,

      There are always companies which have overlaps in business. Example: DBS and OCBC. However, that is not a good reason to shift wholesale from one company to another. I will consider reducing a position if fundamentals have worsen permanently. Example: I divested Cache logistics after the management did a poor job of maintaining the occupancy rate.

      Delete
  3. I suppose AIMS AMP Capital REIT is your highest holding. Price has been quite suppressed recently, do you foresee any heightened risk for this?

    ReplyDelete
    Replies
    1. Hi,

      According to its last quarter's financial report, it has around 30% of leases up for renewal in 2017. Market is expecting lower rental rates for these renewed leases. The worst case scenario is the failure of securing new leases or renewals.

      Delete