老查理的投資札記

In the past week, I've added more units in Capitaland Retail China Trust (CRCT) at S$1.44, given the attractive yield at the current price. The REIT is generating 7% yield p.a. CRCT is catergorized as neighborhood malls, attracting traffic from nearby communities. It is less impacted by the business cycle and ecommerce as people need to eat and entertain all the time and is not affected by the external factors such as the China-US trade war. The only negative factor is currency as CRCT receives RMB in China and RMB is on the depreciating trend. However, strong rental revisions offer great comfort. 

The five core SREITs are integral parts of building the passive income for the future.

FIRST REIT is a healthcare REIT. Triple-net lease with escalating rental revison clauses. The primary exposure is Indonesia and the key concerns at this moment are (i) the liquidity issue of the sponsor, Lippo Karawaci, who is the sole counterpart to FIRST REIT; (ii) depreciating rupiah is a concern despite the rentals in the leases are SGD-denominated. The unit-holders of FIRST REIT do not bear the currency risk. The pressure is on the sponsor. As the healthcare sector is not subject to business cycle, FIRST REIT is a good defensive play in nature.

Ascendas REIT (AREIT) is an industrial REIT with a good management team and proven execution track record.  AREIT's predominant expsoure is Singapore and increasingly to Australia and UK. AREIT continues to proactively manage its portfolio to generate higher DPUs. 

Frasers Logistic and Indistrial Trust (FLT) is a logsitic REIT with exposure to Australia and Europe. Its management team has executed a number of yield-accretive acquisitions since its listing.

EC World REIT is a speicialized REIT in ports and logisitcs in China with less known sponsor and a less proven management team. I invested becasue I like the sector, benefiting from e-commerce in China. However, the performance is below my expectation despite the underlying performance remains solid. The lease expiry is not indeal with a significant portion expiring in 2019/20.

CRCT is relatively new to the portfolio and is finally surpasing EC World REIT to be my fourth largest position.