Mapletree Greater China Commercial Trust (MGCCT) announced on the 26-April-2017, an available distribution per unit (DPU) of 1.959 Singapore cents for 4Q FY16/17, up 1.9 per cent year on year.

A total combined DPU (Q3 & Q4) of 3.731 cents will be distributed on the half-yearly basis. With the payout expected on 29-May.

My REIT portfolio consists of 35,000 shares in MGCCT, which will translate to a healthy dividend of SGD $1305.85. I look forward to receiving dividends from this counter!

More analysis to follow.

Mapletree Greater China Commercial Trust ("MGCCT") has just released their full year results for the FY15/16.

The main take away from the results is that there has been a record 10.8% DPU growth, resulting in the full Distribution per Unit (“DPU”) of 7.248 cents for FY15/16. This gives an approximate yield of 7.6% (Based on the closing price of $0.955 - on 31-MAR).

FY15/16 gross revenue grew 19.7% to S$336.6 million compared to FY14/15, while net property income (“NPI”) rose 21.0% to S$277.5 million compared to FY14/15. The year-on-year growth in revenue and NPI was mainly due to strong rental uplifts from both Festival Walk and Gateway Plaza, additional income contribution from Sandhill Plaza.

So here are the take-aways:

1. Steady growth in NPI and DPU

Mapletree Greater China Trust has grown its net property income (NPI) from $229.3 million in FY2014 to $277.5 million in FY2015. Distributions per unit (DPU) have grown in tandem over the same period from 6.543 cents to 7.248 cents.

Net Asset Value ("NAV") Per Unit as at 31-MAR-16 stands at $1.239, an increase of 3.4% Y-o-Y.

With the announcement of the results, MGCCT has declared a total of 3.771 cents:

(a) distribution out of tax-exempt income (the “tax-exempt income component”) of 3.096 cents (SGD); and

(b) distribution out of capital (the “capital component”) of 0.675 cents (SGD).

Unitholders will qualify for the distribution as long as they hope the share till 5PM, 5 May 2016. Distributions will then be paid on Friday, 27 May 2016.

My REIT portfolio consists of 35,000 shares in MGCCT, which will translate to a healthy dividend of SGD $1319.85. I look forward to receiving dividends from this counter!

Yours,

Dream Chaser

My REIT Holdings

Image Credit: MGCCT

Ever since i have started my investing journey, i have always been fascinated by the yield accretive returns of the Singapore Real Estate Investment Trusts (S-REITs). Despite the global market turmoils, ailing commodities and oil markets, the S-REITs continue to churn out decent and stable income streams. It is without a doubt that i would recommend to hold a good REIT (with a healthy debt ratio) in everyone's investment portfolio. 

Without considering other equities (with potentially higher risks), I decided to do a quick comparisons of yields from a variety of possible investment and fixed income products with respect to my own REIT holdings (MGCT REIT ).

Credits: Thomson Reuters S-REITs Median Yield



* MGCT 7.65% Yield (As at APR)

As you can see from the screenshot, S-REITs in general offer pretty high yields compared to other asset classes. It's returns also beat the CPF and SSB yields, although these fixed income products with a theoretical zero risk. 

The trade off for a bigger risk appetite is a reasonably high yield of 6-7%. A good 4.5% above the risk-free rate (CPF). So as it is, yields are highly attractive right now - Especially in a challenging business environment.

Summary

In my opinion, REITs offer an attractive, steady stream of passive income and if you’re planning to invest for dividends rather than growth, Perhaps now might be the time to start looking at some of the more well managed REITs in Singapore.

Yours,
Dream Chaser


MGCT
My holdings in the Mapletree Greater China Trust, has been consistently paying an average of 6-7% yield for the last 2-3 years. 

Mapletree Greater China Commercial Trust ("MGCCT") has just released their full year results.

The main take away from the results is that there has been a record 10.4% DPU growth, resulting in the total Distribution per Unit (“DPU”) of 6.543 cents for FY14/15. This gives an approximate yield of 6.11% (Based on the closing price of $1.070).

Much of the result is derived from contributions of healthy rental revisions and higher occupancy rates in both Gateway Plaza and Festival Walk. As of 31 March 2015, robust demand during the year resulted in 99% of FY14/15 expiring leases being committed. As a unit holder, this is great news - as it translates to higher committed occupancy rates, as well as signals robust demand for rental in MGCT's portfolio*.

* Festival Walk and Gateway Plaza make up 73% and 27% of the total gross revenue / portfolio respectively.

Unit holders should be aware that operating expenses for FY2014/2015 increased by 7.5%, S$3.6 million to S$51.8 million compared to FY2013/2014. The reason for the increase was attributed to increased spending from promotional activities, higher staff costs and management fees. Perhaps this is a figure the management would need to watch in the coming year.

Net Asset Value ("NAV") Per Unit as at 31-MAR-15 stands at $1.198.

With the announcement of the results, MGCT has declared a distribution of 3.398 cents (SGD) per unit for the period from 1 October 2014 to 31 March 2015. 

Unitholders will qualify for the distribution as long as they hope the share till 5PM, 4 May 2015. Distributions will then be paid on Monday, 25 May 2015.

My REIT portfolio consists of 17,000 shares in MGCT, which will translate to a healthy dividend of SGD $577.66. I look forward to receiving dividends from this counter!

Yours,

Dream Chaser