Saturday, April 6, 2019

It’s That Season Again

SPH REIT had just declared their 2Q2019 results and dividends. For REIT investors, SPH REIT’s announcement marks the beginning of the so-called REIT CD (cum dividend) season, where in the next few weeks, we will see most of the S-REITs publish their finances and distributions for their quarter.

For dividend investors like myself, this period is “full-of-win” as you will know how much you are getting from your REIT portfolio. If you are carrying out the Bedokian Portfolio investment approach, the distributions received will be parked at the cash portion, ready for deployment into whichever asset class in the next rebalancing moment.

At the same time however, you will also need to review the REITs’ results for the quarter and comparing them with past performances. 

The numbers that you used months or years ago in selecting a REIT to invest may have changed today, such as the net asset value (NAV), weighted average lease expiry, gearing, etc. For SPH REIT’s case1, between 31 Aug 2018 and 28 Feb 2019, the NAV had changed from SGD 0.95 to SGD 0.94, and the gearing had increased from 26.3% to 30.1%.

Then again, numbers do not form the whole picture, and a holistic approach is required when conducting fundamental analysis. If you are vested in this REIT and if time permits, you can have a relook and then decide if you want to hold, sell or add more of it.

In the meantime, keep calm and collect dividends.


1 – SPH REIT. Financial Statements And Related Announcement: Half Yearly Results. 5 Apr 2019. http://sphreit.listedcompany.com/news.html/id/711266 (accessed 6 Apr 2019).

No comments:

Post a Comment