SRS Portfolio - 30 August 2020

Finally August is almost coming to an end and we have 4 more months to go before 2020 ends. It seems like the year has been wasted! 

In terms of market performance - the local market is nowhere compared to US markets in terms of depth and recovery. Sigh!

The timing of my purchases in the SRS portfolio could have been better but they have recovered from its low and I had benefited from the recovery from April to June, where I "rebalanced" my portfolio. 

Here are some of the news that affected the portfolio.

Lendlease - Q4 DPU misses IPO forecast due to CCB

Lendlease announced a poor set of Q4 results due to the effect of CCB 🤕😂 on 313 Somerset where rental waivers were granted. Q4 DPU is 0.48 Singapore cents for the quarter ending 30 June 2020. The REIT will also adopt a "half-yearly" reporting instead of "quarterly". 

For the period from listing to 30 June 2020, the DPU was 3.05 Singapore cents, 19.7% lower than the IPO forecast. A dividend of 1.29 cents was paid in March 2020 and the remaining dividend of 1.758 Singapore cents will be paid out on Sep 15. 

Based on my position in SRS, it translates into $1,758.

Starhill Global REIT - Pathetic DPU of 0.7 cents and grossly "undervalued"

Starhill paid out a dividend of 0.7 cents for the first half of 2020 on 28 August 2020. Based on my position, that translates into $700. Quite pathetic but not unexpected as the management opt to retain some cash for prudence. The NAV per unit stands at $0.81 and based on the closing price of $0.435, its price to book is around 53.7%. This means the stock is highly undervalued and under appreciated as all its assets are geared for "tourists". This stock will probably recover only when tourists return to the lion city.

Suntec REIT - DPU of 1.533 for 1 April 2020 to 30 June 2020

Suntec REIT paid out 1.533 cents for the last quarter and based on my SRS position, I received $537. The REIT also announced that 85 jobs were cut as Covid-19 takes it toll on the MICE industry.

United Overseas Bank - 1H dividend of 39 cents versus 55 cents one year ago

The moment I bought this counter, MAS imposed a "dividend cap" on banking counters - i.e. at 60% of prior year DPS and all banking stocks suffered a mini correction. 

UOB also announced its 2Q results and an interim dividend (or scrip if you prefer) of 39 cents. That would translate into a first half dividend of $975 for my position in UOB, to be paid out on 13 Oct 2020. I will decide whether to take "cash" or scrip when I receive the option form. 

Based on 60% cap of UOB 2019 dividend, it will translate into 60% x 130 cents (including special dividend) = 78 cents. At this DPS, the implied yield is around 3.96%, still better than fixed deposits anytime.

Dividends of $3,970 from SRS portfolio from August to October 2020

Based on the announcements so far, the SRS portfolio will receive $3,970 in total from now till end October. 

Given the "darkest" moment for REITs was during April to June, it is still nice to get some cash back during this period. 

Stay safe and healthy ! 

I sincerely hope Singapore recovers soon and all my readers stay safe, healthy and sane!