Added: Lendlease REIT (Jul 2023)

 

Added 11,000 shares of Lendlease at $0.65 on 10 Jul.

In total, I own 86,600 Lendlease shares (Including the DRP of 1600 shares in 30 Mar)

Reason for buying:  

1) Dividend Yield 7.5%

Semi annual payout. Next XD will be in Aug 2023

2) PB 0.83

3) Acquire 10% stake in Parkway Parade

Although I would prefer they acquire Paya Lebar Quarter (PLQ) instead of Parkway Parade. Nevertheless, it is a good start to have 1 new asset in the portfolio as long as it is DPU accretion. With direct linkway to upcoming Marine Parade MRT station (TEL) next year, this will drive more shopper traffic to Parkway Parade.

4) Upcoming Grange Road carpark (behind 313 Somerset)  

There is not much update on this, but it should be completed in 2025 (Link)

Related post

1) Added: Lendlease REIT (Jan 2023)

2) SOLD: AIMS APAC REIT & ADDED: Lendlease REIT (Mar 2023)

Added: Link REIT

 

Added 3,000 shares of Link Reit on 9 Jun at HKD47.40

Reason for buying:

1) Near to 5 years low (Even lower than during Covid)

Link Reit is the largest REIT in Asia by market capitalisation

Image from Proposed Merger of MCT and MNACT (Apr 2022)

I believe one of the main reason for this giant to trade at such low price now is mainly due to Rights Issue in Feb 2023 at 29.6% discount to last trading price (Link). This resulted in lower dividend % due to enlarged share numbers. Nevertheless, the Rights Issue is 240% subscribed (Link).

2) Dividend 5.69%

This time round, there is a scrip option for dividend where we can get discounted shares :)

3) PB 0.64

We are looking at 14% upside for PB if it can hit the average 0.88

4) Hong Kong Retail +7.1% rental reversion

Hong Kong Retail is 52.4% of Link Reit portfolio. As long as the rental reversion is positive, Link Reit should be good.

 

5) Hong Kong Car Parks Income

For some reason, I am very attracted to Link Reit Car Parks related business income (18.8% of Link Reit portfolio) given that they are able to increase their income in all their car parks segment. 

6) Capitaland Investment (SGX: 9CI) alternative

Related post:

1) Added: Fortune REIT (HK 778) - Power of Neighbourhood malls

2) SOLD: Fortune REIT (HK778)

SOLD: Digital Core Reit

 

Sold 32,000 shares of Digital Core Reit on 7 Jun at US$0.46

Total profit is SGD 1186.29 (6.4%) for around 2.5months.

Reason for selling:

1) News of Cyxtera Technologies filed for Chapter 11 (Bankruptcy)

On 4 Jun, Cyxtera Technologies (22.4% of Digital Core REIT’s annualised rental revenue) filed for Chapter 11 (Bankruptcy). 

Mr Market seem to welcome this long awaiting news which cause Digital Core Reit shares price went up instead. 

Since majority of US sponsor who listed in SGX market do not have good history outcome, thus, any profit is consider a good profit.

2) Attractive price  

There are many other more stable stocks with very attractive price mainly due to their recent PP/PO/interest rate hike and etc. 

As such, rotating DCReit out of my portfolio to add in a better player.

To be honest, there are many options to choose which is quite headache too (Will blog on my purchase soon).

Related post:

1) SOLD: ComfortDelGro & ADDED: Digital Core Reit