Adding Keppel DC Reit, Frasers L&C Tr and Mapletree Logistics Trust to the Dividend Portfolio
Good day!
I would like to provide a quick update on my recent portfolio additions that I made.
New Stocks:
- Keppel DC Reit is a significant player in the data center sector, which forms an essential component of today’s technology infrastructure. I anticipate continued tailwinds for this sector as the consumption and proliferation of technology persist. Although there are ongoing issues with a China-based tenant, it’s worth noting that this tenant represents less than 10% of Keppel DC REIT’s portfolio, mitigating potential risks.
- Frasers L&C Trust exhibits a strong global presence, being diversified across five major developed countries – Australia, Germany, Singapore, the United Kingdom, and the Netherlands. This diversification marks my initial exposure to the logistics industry within the portfolio. Notably, the Trust boasts one of the lowest gearing ratios among S-REITs, affording it significant room for growth and investment opportunities.
- Mapletree Logistics Trust focuses on a diversified portfolio comprising quality, well-located, income-producing logistics real estate. Its investments span across several key markets, including Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea, and Vietnam. This broad diversification signifies my portfolio’s initial foray into the logistics industry. Despite some exposure to China and Hong Kong, which may currently face headwinds due to market sentiment, these regions continue to play a significant role in global trade. This ongoing relevance underpins sustained demand in the logistics sector.
My investments in both logistic REITs offer a balanced mix of diversification, effectively spanning both Eastern and Western regions. This strategy ensures a comprehensive global reach and mitigates regional market risks.
Increased Holdings:
- The recent price movement of Keppel DC REIT towards its low presents what I believe to be an opportune moment for acquiring additional units. Given that this REIT typically trades at a higher premium compared to its Net Asset Value (NAV), purchasing at this lower price could offer significant value. This approach aligns with a strategy of capitalizing on market adjustments to enhance my investment portfolio.
- The recent proposal of a private placement by Frasers Cpt Trust has led to a sell-off in its units. However, it’s important to note that the funds raised are earmarked for increasing its stake in Nex, a popular suburban retail mall that serves the needs of its surrounding neighborhood, resulting in high patronage. This strategic investment is poised to positively impact Frasers Centrepoint Trust’s future Distribution Per Unit (DPU), suggesting potential long-term benefits despite the initial market reaction. I see this as an opportunity to acquire more units at a discount.
So there you have it! My recent portfolio actions. Will it do well? Only time will tell!
