Month: October 2022

Categories
Ireit global Reits

Headwinds of Ireit Global

ReitIreit global@0.365 EUR or @0.49 SGD
If cost of debt increased by 3%limited impact (loan expiry only in 2026 and 2027)
Estimated DPU0.0282 EUR
DPU impact due to cost of debt increase by 3%current loan expired only on 2026 or 2027
DPU after interest rate Impact0.0282 EUR
Estimated Currency impact Jan 2022 vis a vis Oct 20221.53 vs 1.4 EUR
Estimated % of Currency Impact-8.5%
Estimated Overall impact-8.5%
Resultant Estimated Dividend Yield (In SGD)7.1%
NegativeEurope currency fluctuation. Ongoing energy crisis in Europe drives up the power bills which result in higher business cost.
PositiveLoan expiry is only in 2026 or 2027.
Disclaimer: I may own the above REIT and this post is not a recommendation to buy or sell. The above calculation is just an estimate (may be flawed or contain errors) and is based on my own hypothetical assumptions on a layman understanding without taking into consideration of factors such as hedging, some other macroeconomic factors and etc. Hence, the actual dividend yield may differ significantly from my calculations.
Categories
Elite Commercial Reit Reits

Headwinds of Elite Commercial Reit

ReitElite Commercial Reit@0.54 GBP
If cost of debt increased by3%
Estimated DPU0.0536 GBP
DPU Impact if cost of debt increased by 3%0.004824 GBP
DPU after 3% increase in cost of debt0.048776 GBP
Estimated Currency impact Jan 2022 vis a vis Oct 20221.82 vs 1.59 GBP
Estimated % of Currency Impact-13%
Estimated Overall impact-20%
Resultant Estimated Dividend Yield (In SGD)7.9%
NegativeUK currency fluctuation and significant impact from if cost of debt increases.
PositiveBuilt in Inflation-linked Rent uplift with a small proportion based on open market value.
Disclaimer: I may own the above REIT and this post is not a recommendation to buy or sell. The above calculation is just an estimate (may be flawed or contain errors) and is based on my own hypothetical assumptions on a layman understanding without taking into consideration of factors such as hedging, some other macroeconomic factors and etc. Hence, the actual dividend yield may differ significantly from my calculations.
Categories
Frasers Logistics & Commercial Trust Reits

Headwinds of Frasers Logistics & Commercial Trust (FLCT)

ReitFrasers Logistics & Commercial@1.21 SGD
If cost of debt rise by 3%
Estimated DPU0.077
Impact on DPU if cost of debt rise by 3%0.003
DPU after increase of cost of debt0.074
Estimated Currency impact Jan 2022 vis a vis Oct 20221.53 vs 1.4 Euro (~30% by book value*) 1.82 vs 1.59 GBP (~10% in UK by book value)
Estimated % of Currency Impact8.5% drop for EUR
12.5% drop for UK
Estimated Overall impact-7.7%
Resultant Estimated Dividend Yield (In SGD)5.86%
NegativeEurope and UK currency fluctuation. Ongoing energy crisis in Europe drives up the power bills which result in higher business cost.
PositiveBuild-in rental increments ensures stability of income growth. Being conservative, I have not included it in my estimation of resultant yield
Disclaimer: I may own the above REIT and this post is not a recommendation to buy or sell. The above calculation is just an estimate (may be flawed or contain errors) and is based on my own hypothetical assumptions on a layman understanding without taking into consideration of factors such as hedging, some other macroeconomic factors and etc. Hence, the actual dividend yield may differ significantly from my calculations.

*Using book value as I could not find break down of geographical assets based on income.

Categories
Keppel Pacific Oak Reit Reits

Headwinds in Keppel Pacific Oak Reit (KORE)

REITKeppel Pacific Oak Reit@ 0.56 USD
If cost of debt increased by3%
Estimated current Yearly DPU0.056 USD or 0.0756 SGD
DPU impact due to 3% rise in cost of debt0.00372 USD
(Derived from KORE’s Aug 2022 slides)
DPU after interest rate impact0.05228 USD or 0.070578 SGD
Estimated Currency impact Jan 2022 vis a vis Oct 20221.35 vs 1.43 USD
Estimated % of Currency Impact6%
Estimated above overall impact-1%
Resultant Estimated Dividend Yield (In SGD)9.9%
NegativeFocus on office space will be quality over size. Hence, requirement for office space will decrease due to hybrid work arrangement? Technology sector not doing as as well may continue to consolidate and cut back on office spending i.e Meta Platforms? Current all-in average cost of debt is not low at 2.88%.
PositiveUSD remain fairly strong and positive rental reversions of 1.6%.
Disclaimer: I may own the above REIT and this post is not a recommendation to buy or sell. The above calculation is just an estimate (may be flawed or contain errors) and is based on my own hypothetical assumptions on a layman understanding without taking into consideration of factors such as hedging, some other macroeconomic factors and etc. Hence, the actual dividend yield may differ significantly from my calculations.