SRS Portfolio - 15 May 2022

The global markets continue to gyrate and drop further since my last update on 30 April 2022 and interestingly enough, 5E resources managed to debut relatively flat vis-a-vis its IPO price of 26 cents on 12 May 2022. I would say it is a "great outcome".

There had been a few results announcements concerning my portfolio, let me just briefly summarise them.

AIMS APAC REIT - announced on 27 April 2022

AIMS APAC REIT announced its 2nd half financial results for the year ended 31 March 2022.

Despite the year on year increase in gross revenue and net property income in 2H FY2022, the DPU decreased. That is largely due to distributions related to the S$250m perps issued on 1 Sep 2021 for the acquisition of Woolworths HQ. On a more positive note, the full year rental revision is positive at 14.7%. 

Based on the announcement, my SRS portfolio (30,000 units) will receive a distribution of 30,000 x 2.36 cents = $708 on 24 June 2022. 

Looking through the results presentation, I would say the highlights for me are as follows:

• 2nd half revenue and net property income showing strong year-on-year momentum
• Positive rental reversion of +14.7% and portfolio anchored by high quality tenants with built in rental escalation of 2.75% to 3.25%
• Leverage went up to 37.5% but the blended debt funding cost dropped from 3% to 2.7%
• Using the actual DPU of 9.46 cents and the current market price of 136 Singapore cents, the implied yield of 6.95% is not too bad
• Overall, AIMS seemed to be tracking well with a resilient portfolio, diversified tenant base and high occupancy rate

Daiwa House Logistics Trust - announced on 12 May 2022

DHLT announced its Q1 results and the key takeaways:

• Occupancy rate improved to 98.6% and WALE was 6.8 years
• Refund of consumption tax of JPY 5.6b has been received and loan repaid
• Projections in line with forecasts made in prospectus. DPU for the period since listing is 1.80 Singapore cents
• Outlook - robust demand for logistics facilities in Japan at this juncture but large supply is expected in 2022 and 2023

Assuming DPU of 2Q is similar at 1.31 cents, then the DPU from listing to 30 June 2022 will be 1.80 + 1.31 cents = 3.11 cents. The distribution based on my 50,000 units will be $1,555. I believe the manager has hedged the rate at listing but I am not sure for how long. 

The NAV per share has also fallen from 92 cents to 86 cents in line with the fall in JPY but it is still trading below book value per share. Assuming a stable DPU of 1.30 cents x 4 = Singapore 5.2 cents per year. The implied yield is around 5.2 divided by 79 = 6.58%. 

The weakening JPY (while I am waiting impatiently for the borders to open for tourism) and increased supply is a concern for me, so I will be watching this counter closely! 

Frasers Centrepoint Trust - announced on 27 April 2022

These are the following takeaways:

• FCT reports DPU 6.136 Singapore cents for 1H 2022
• Leverage stands at 33.3%
• Occupancy improved to 97.8%

The DPU improved by 2.3% to 6.136 cents and based on my holdings of 30,000 units, I will receive $1,840 on 30 May 2022. The increased occupancy rate is a good sign with the re-opening up in Singapore.

Suntec REIT - announced on 26 April 2022

Suntec REIT announced a 18.2% increase in distribution income for 1Q 2022, which was 18.2% higher than 1Q 2021. 

Based on the 50,000 units in my SRS portfolio, the distribution in May will be $1,196. The Suntec position is a nice one, generating around $4,782 if the DPU stays the same for the next 12 months.

UMS Holdings - announced on 10 May 2022

UMS reported a record $19.4 m profit for 1Q FY 2022 and earnings per share hit a high of 2.91 cents. A tax dividend of 1 cent was announced to reward shareholders, payable in July 2022. Based on my holdings of 35,000 shares, the dividend of $350.

The key takeaways from the press release:

• Record quarterly profit surpassing S$20m for the first time
• Growth trajectory is strong and a beneficiary of accelerating capex demand from global wafer fabs
• UMS key customer announced a very positive outlook for 2022 and beyond
• New factory in Penang is scheduled for completion by end of this year and will increase it production capacity
• Diversification into JEP will ride the gradual recovery in the aviation sector

UMS will also be paying out 2 cents per share for FY 2021, and SRS portfolio will receive $700 in May. will be paid in July. 

Assuming a 5 cents DPU per year, the yield is around 5c divided by 116c = 4.3% but I would expect the dividends to be higher than 5c if the Company continues with its record breaking revenue and earnings. Will look to add on to this counter if it corrects further.

Overall the portfolio is pretty resilient (except OTS Holdings!!) and May will see some nice dividends coming into the SRS bank account (can see cannot touch though).

Happy SRSing