Sunday 1 May 2022

My Investment Portfolio - SG (End Apr 2022)


From StocksCafe

Transactions made:

- Added 2,600 units of Lendlease Reit at $0.72 from preferential offering

The remaining units that I got from the preferential offering was allotted to my wife's portfolio. I had also bought Keppel DC Reit in April at $2.08 and allotted them to my wife's portfolio. 

Many of us worry about rising interest rate (which leads to higher borrowing cost for reits) and electricity cost (which impacts data centre which uses quite a fair bit of electrcitiy). I think that we are overly worried. Interest rate and electricity cost affects all reits and all businesses. There are mitigation measures that can be taken. 

For increase borrowing cost (rising interest rate) businesses, including reits have operated in rising interest rate environment before. Keppel DC already has hedged 76% of loans, average cost of debt is 1.8% and weight average debt tenor is 3.8 years. A 100 bps change would have an approximately 1% impact to 1Q 2022’s DPU. 

For rising electricity cost, depending on type of contracts, the electricity cost are paid by the tenants. Today's announcement from Keppel DC: "Based on existing contracts in place, a further 10% increase in electricity tariffs from 1Q2022 would have an impact of approximately 0.009 cents per Unit to 1Q2022 DPU on a pro forma basis." It means 10% increase will decrease quarterly DPU by around 0.35%. 

With each new lease renewal, I am sure they will find ways to pass this cost to tenants or increase the rental amount. More importantly, when cost increases, businesses will just pass the cost down. End consumers are the ones who bear the cost. Consumers being squeezed by high inflation will cut down on items such as dining at restaurants, cab rides, cheaper laptop/ phones etc. But they are not going to cut down on surfing the internet, playing games, creating accounts, storing data etc. Data centres will still be in demand. Btw I do not time the market or do TA. But of cos if the management screw up on FA, I will cut this stock off.

Meanwhile the banks (DBS, OCBC and UOB) just realised their latest quarterly result. All 3 banks reported 10% decrease in net profit compared to Q1 last year. 

Dividends received* during the month: $414.76 (DBS and Lendlease Reit)

Total dividends received in 2022: $2,089.50

Average dividends per month^: $174.13

Total Portfolio Market Value: $323,026.54

* Dividends are recognised after payment date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 
Portfolio excludes Singapore Savings Bonds, Foreign Stocks, Crypto and Stashaway
Divided by 12 months regardless of month of the year.