Sunday, 24 May 2020

Portfolio Review - My REIT performance

So the long awaited black swan, in the form of the invisible coronavirus, has finally arrives...

The event this year is unprecedented.  How could we ever imagine such things as cross-border travel and businesses would come to almost a complete halt? 

I have been through the Lehman brothers' crash, although my portfolio was very much smaller at that time.  My REIT counters accounted for almost half of my portfolio this time, and it is time to do a review on their performace so far.

1. Industrial Reits
 Grade A: Keppel DC Reit, Ascendas Reit, Frasers L&C Tr.
- Strong performance, still above my average price.

Grade B: Aims APAC Reit.
- In green territory, still above my cost price (with dividends collected).

Grade C: Cromwell Reit, ARA LOGOS Log Tr.
- In red territory, even with dividends accounted for.

Comment: Performance varies depends on the type and brand names.  Cromwell Reit just does not have buffer from the dividend collected.

2. Healthcare Reit
Grade A: ParkwayLife Reit.

Comment: Least affected and as strong as ever.  ParkwayLife Reit has climbed to number 4 in my portfolio.
 
3. Commercial Reit
Grade A: Mapletree Comm Tr.

Grade B: Suntec Reit, Kep Pac Oak Reit.

Grade C: Prime US Reit.

Comments: Prime US Reit just does not have buffer from the dividend collected. Performance of Commercial Reits down the road remains uncertain as WFH concept may become common.

4. Retail Reit 
Grade B: CMT, FCT, Starhill Global Reit, Sasseur Reit, SPH Reit.

Grade C: Lendlease Reit.

Comment: Retail Reits badly affected and there is no Grade A performer here. And don't kid ourselves that everything will return to normal soon.

5. Hospitality Reit 
Grade C: CDLHT, FEHT, ARA HT.

Grade D: Eagle HT (Dead).

Comment: Worst hit type of Reits.  Though the Malaysian workers staying in Singapore offer minor relief to the hospitality sector.  No sight on recovery.

6. Business Trust
Grade A: Netlink NBN Tr.

Grade B: Keppel Infra Tr, Accordia Golf Tr.

Comment: Infrastructure Trusts seem not much affected as they provide essential services.  Impact on AGT uncertain but does not look good.

The prices on most of the Reits are very tempting, but I am not buying as I have quite a substantial exposure already.

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