Q3FY18 dividend is a surprise for me as the manager manage to increase the dividend compare to the previous quarter despite declining occupancy rate, negative rental reversion. The main culprit seem to be the earning from property in Australia which also due to Australian dollar.
The REIT has experience negative rental reversion as shown in the table below, the drop in the revenue will be cushion by
- 8 Tuas Avenue 20 which has increase the occupancy rate from 43.4% to 83.7%
- 51 Marsiling Road which will start to bring revenue of $3.5 million per year from Q1FY19 on-ward
For the rest of FY18 to FY19, i guess the DPU will fluctuate depending on the REIT manager on securing the tenant and retaining the tenant as there is no much catalyst to boost the DPU plus the challenge situation of the industrial property with the declining rental.
The bright side is the occupancy rate stood at 88% which mean there is room for upside
FY18 Q1,Q2 and Q3 Data
| 1Q | 2Q | 3Q | |
|---|---|---|---|
| Rental Reversion | -4.30% | -21.10% | -15.10% |
| Gross Revenue (Q) | 30,503 | 29,514 | 28,867 |
| Dividend Payout (Q) | 15,999 | 16,320 | 17,076 |
| DPU | 0.025 | 0.0255 | 0.0262 |
| Total Managers Fees | 2163 | 1860 | 1881 |
| Manager Fees paid in unit | 911 | 930 | 941 |
| % Manager Fee Paid in Unit | 42.12% | 50.00% | 50.03% |
| NAV | 1.39 | 1.36 | 1.35 |
| Debt $ | 532,652 | 546,743 | 497,161 |
| Gearing | 36.30% | 37.30% | 33.80% |
| Cost of Debt % | 3.60% | 3.60% | 3.60% |
| Interest Coverage Ratio | 4.9 | 4.6 | 4.6 |
| WALE | 2.48 | 2.43 | 2.46 |
| Occupancy Rate | 91.00% | 88.80% | 88.40% |
| No of Shares | 639,980 | 640,632 | 683,452 |
| Payout Ratio | 94.40% | 99.00% | 94.50% |
| Cash | 7,435 | 10,277 | 9,702 |
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