SRS Portfolio - 9 May 2026

Portfolio Changes Since Last Update

Two transactions have been executed since the last update:

UMS Integration (558) — Partial Divestment I sold 35,000 shares of UMS Integration, reducing my holding from 75,000 to 40,000 shares. At the prevailing price of S$2.33, this crystallised sale proceeds of approximately S$77,213, locking in a significant portion of the unrealised gain that had accumulated in this position. The residual 40,000-share stake keeps meaningful exposure to UMS's continued semiconductor upcycle, while reducing single-stock concentration risk materially.

UOB (U11) — Dividend Received UOB paid its final dividend for FY2025 (S$0.71 per share, ex-date 24 April 2026, payment date 8 May 2026), adding S$710 in cash distributions from my 1,000-share holding.

Both transactions are already reflected in the current portfolio snapshot above, with the cash balance of S$135,808.10 incorporating both the sale proceeds and the dividend receipt. The cash buffer stands at 23% of total SRS assets. With the UMS partial divestment proceeds already banked, this position provides meaningful dry powder for redeployment into higher-conviction opportunities as they arise.

Corporate News & Announcements (Since 24 April 2026) as written by Claude

AIMS APAC REIT (O5RU) ✅ Positive

AIMS APAC REIT delivered its strongest net property income growth in five years for FY2026 ended 31 March 2026. NPI climbed 5.7% year-on-year to S$141.3 million, outpacing gross revenue growth of 2.2% to S$190.7 million — a sign of improving cost efficiency across the 28-property portfolio. Full-year DPU rose 2.6% to 9.850 cents, with the Q4 distribution of 2.600 cents declared.

Portfolio occupancy held steady at 93.6% (96.8% on a committed basis), comfortably above the JTC national average of 88.9%. The REIT executed 98 leases in FY2026 achieving rental reversions of 7.7%, and NAV per unit rose to S$1.28 from S$1.23. Gearing remains exceptionally low at 26.8%, with blended debt cost declining to 4.1%.

The standout strategic development: the NSW Government endorsed AA REIT's two Australian assets in Macquarie Park and Bella Vista as approved data centre development sites — selected from A$92.6 billion worth of proposals reviewed. This creates a credible pathway to repurpose or redevelop these assets into digital infrastructure, which could meaningfully enhance long-term asset values beyond their current industrial classification.

Maybank Research reiterated BUY with a raised target price of S$1.68 (from S$1.65), guided by low-to-mid single-digit rental reversions in FY27 and full-year contribution from recent acquisitions.

Daiwa House Logistics Trust (DHLU) ⚠️ Watch

DHLU released its Q1 FY2026 business update on 8 May 2026, though detailed results were not yet publicly synthesised at the time of this update. The unit price has drifted to around S$0.495–0.500, near the lower end of its 52-week range of S$0.485–S$0.590. This position remains the portfolio's largest unrealised loss at -39.7%, and the recovery thesis continues to rest on vacancy backfilling across the Japan logistics portfolio and any distribution rerating as interest rates ease.

The Q1 2026 business update should be reviewed closely for occupancy and leasing progress — these are the key leading indicators for any DPU stabilisation. Position remains under active review.

Frasers Centrepoint Trust (J69U) ✅ Positive

FCT released its 1HFY26 results on 24 April 2026. DPU rose 1.4% year-on-year to 6.136 cents, supported by full contribution from the acquired Northpoint City South Wing and strong same-store performance. Portfolio occupancy (excluding Hougang Mall under AEI) stands at a near-full 99.8%, with positive rental reversions of 6.6% and tenant sales growth of 3.2% year-on-year.

On capital management, FCT has substantially extended its weighted average debt maturity, effectively eliminating refinancing pressure through FY2027. Gearing is stable at 40.0%, with cost of debt declining to 3.2%.

The Hougang Mall AEI is progressing ahead of schedule — Phase 1 was completed in November 2025, over 88% of AEI space is already committed, and Phase 2 remains on track for completion by September 2026 with a targeted 7% ROI on S$51 million capex. Looking ahead, a major AEI at NEX is being launched with Phase 1 commencing this month (May 2026), with over 40% pre-committed and another 28% in advanced negotiations, introducing new clusters focused on kids and education, home and living, and fashion and lifestyle. The sequential completion of these AEIs should provide a meaningful earnings step-up into FY2027 and FY2028.

Maybank Research maintains BUY with a target price of S$2.72, representing approximately 16% upside to the current price of S$2.34.

Frasers Logistics & Commercial Trust (BUOU) ✅ Positive

FLCT released 1HFY26 results on 5 May 2026. Total DPU of 2.95 cents was declared for the half, broadly in line with the prior period. More meaningfully, the underlying core DPU (before capital distribution) grew 11.9% year-on-year — a genuine earnings improvement driven by positive rental reversions of 9.8% on a face rent basis and 26.2% on an average-to-average basis across the portfolio.

Portfolio occupancy stands at 96.1%, with the logistics and industrial segment at a near-perfect 99.8%. Aggregate leverage improved to 33.7%, giving S$727 million of debt headroom to the 40% regulatory cap — positioning FLCT well for accretive acquisitions from its sponsor's S$5 billion-plus ROFR pipeline. The ex-Google space at Alexandra Technopark is now over 83% re-leased, with all committed leases commencing by 3Q FY2026, progressively restoring income from that asset.

DBS Research maintains BUY with a target price of S$1.05.

Lendlease Global REIT (JYEU) ✅ Positive

The defining corporate development at LREIT — announced in February 2026 and now completed — is the full acquisition of PLQ Mall. LREIT acquired the remaining 30% stake from sponsor Lendlease Corporation for S$116 million (valuing PLQ Mall at S$885 million), funded via a S$196.6 million rights issue priced at S$0.558 per unit. Total assets now stand at S$4.2 billion with approximately 90% of portfolio value in Singapore.

Full ownership removes co-ownership governance complexity, enables full refinancing of in-place borrowings (generating meaningful annual interest savings), and is estimated to accrete DPU by 2.1% on a combined basis. Retail metrics remain strong — portfolio retail occupancy at 99.5% and rental reversions of 10.4% in the most recent half-year. The REIT's Q3 FY26 results are projected for release on 11 May 2026, which will be the first quarter showing a fuller contribution from PLQ Mall.

DBS and UOB Kay Hian both maintain BUY with target prices of S$0.75 and S$0.78 respectively, against the current price of approximately S$0.57, implying a forward FY26 yield of around 7%.

Suntec REIT (T82U) ✅ Strong Positive

Suntec REIT delivered a standout Q1 2026 result released on 23 April 2026. Distributable income surged 24.8% year-on-year to S$57.3 million, while DPU jumped 23.9% to 1.936 cents. Key distribution dates: ex-date 30 April 2026, record date 4 May 2026, payout date 29 May 2026.

The growth was driven by improved Singapore office and retail portfolio performance, lower financing costs, and a reduced provision for Australian withholding tax following the trust's retention of Managed Investment Trust status. The Singapore CBD office outlook remains constructive — limited new core supply and expected rent reversion of approximately 5% should sustain the portfolio's momentum. The manager, now rebranded as Suntec Trust Management Limited following the sponsor transition to Tang Organization, is guiding for stable convention performance through 2026.

The key watch item remains the UK portfolio — The Minster Building in London faces vacancy headwinds from a significant tenant lease expiry in June 2025 — and Australian office markets in Melbourne and Adelaide remain competitive with incentive levels in the high 40–50% range. These are known headwinds and appear priced in given the strength of the overall Q1 result.

UMS Integration (558) ✅ Partial Exit Rationale Confirmed

UMS Integration's Q1 FY2026 results were released on 8 May 2026. The stock has been the portfolio's standout performer — its 52-week range spans S$0.832 to S$2.280, and the partial divestment at S$2.33 was executed at or near the top of that range, capturing gains on 35,000 shares while retaining 40,000 shares at a cost basis of S$0.92 per share.

The semiconductor upcycle thesis remains intact. The global semiconductor market is forecast to grow 32.6% in 2026 according to Gartner, and UMS continues to benefit as a precision components supplier to semiconductor equipment manufacturers, with growing aerospace exposure providing further diversification. The January 2026 4-for-5 bonus issue has expanded the share base accordingly.

A notable corporate action: UMS Integration announced the acquisition of Starke as a wholly-owned subsidiary in early 2026, expanding its manufacturing footprint — management confirmed the acquisition is not expected to have a material impact on FY2026 EPS. A dividend of S$0.02 per share went ex on 7 May 2026 with payment on 22 May 2026; the residual 40,000-share holding will receive S$800 from this distribution.

DBS Research maintains BUY with a target price of S$2.92.

UOB (U11) ✅ Stable

UOB released Q1 2026 results on 7 May 2026. Net profit of S$1.44 billion was 4% lower year-on-year but 2% higher quarter-on-quarter — a reasonable outcome in a lower interest rate environment. Net interest margin narrowed 2 basis points to 1.82%, with full-year guidance maintained at 1.75%–1.80%. Asset quality was stable with the NPL ratio unchanged at 1.5%, and the CET1 capital ratio strengthened to 15.3%. The cost-to-income ratio improved to 44.5%, reflecting ongoing cost discipline.

The S$0.71 final FY2025 dividend has been received — our S$710 cash inflow. Looking forward, consensus forecasts a full-year FY2026 dividend of approximately S$1.42, implying a forward yield of around 3.9% at current prices. UOB's ongoing S$2 billion share buyback programme (35% executed as of Q1 2026) continues, with renewed market commentary around further capital return plans worth monitoring. Consensus target price sits at S$38.19, representing approximately 4.4% upside to the current price of S$36.56.

Portfolio Observations

The REIT book is broadly performing as intended. FCT and AA REIT are delivering steady DPU growth with visible AEI-driven upside ahead; FLCT is demonstrating genuine underlying earnings improvement with a clean balance sheet; Suntec's Q1 2026 result was the positive surprise of the period; and LREIT's full consolidation of PLQ Mall sets up a cleaner, simpler income story going into FY2027.

The partial UMS divestment was well-timed. Selling 35,000 shares near the top of the 12-month range at S$2.33, while retaining 40,000 shares at a cost basis of S$0.92, maintains meaningful participation in the semiconductor upcycle without over concentrating in a single non-REIT name. The proceeds, combined with the UOB dividend, have strengthened the cash buffer to S$135,808 — available for deployment when the right opportunities present themselves.

DHLT remains the portfolio's weakest link and the position that warrants the most scrutiny. The Q1 FY2026 business update should be reviewed for any signs of occupancy recovery in Japan before deciding whether to hold, add, or reduce.

Performance Since Inception

The SRS portfolio has generated a decent return for my retirement portfolio. It is currently tracking at an IRR of 7.5%. Given that I am sitting on $135,000 of cash, I have yet to make my 2026 contribution for tax reduction. WIll probably do it in the second half of the year.

Happy SRSing