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08-03-2014, 09:37 AM
Property link among big dividend payers
Reits, developer ranked top five among mid-sized counters
Published on Mar 08, 2014
OUE’s Mandarin Orchard in Orchard Road (above) and The Signature, an office building owned by Mapletree Industrial Trust. PHOTO: DIOS VINCOY JR, BLOOMBERG
By Jonathan Kwok
PROPERTY developers and landlords dominate the list of high-yielding medium-sized stocks, according to data compiled by SGX My Gateway.
The top five dividend payers on the FTSE ST Mid Cap Index over the past year all had real estate links.
"Dividends are an important aspect of the index, with the current indicative yield at 4.5 per cent," said a report by SGX My Gateway, the bourse operator's investor education portal.
"The FTSE ST Mid Cap Index is made up of 50 securities, of which 48 maintain an indicative dividend yield."
The report indicated the 12-month gross dividend yield of the stocks.
This yield figure involves adding up all the dividends over the past 12 months and then dividing by the share price.
SGX My Gateway provided the yield as of Thursday's closing share prices.
The top yield stock was developer OUE, formerly known as Overseas Union Enterprise.
Cash dividends totalled 21 cents per share over the past 12 months, including a special payout of 20 cents, thanks to its recently listed OUE Hospitality Trust.
OUE also had a distribution in specie of OUE Hospitality Trust units. The cash value of these took its 12-month gross yield to 12.1 per cent at Thursday's close.
The other four stocks were essentially landlords: Three real estate investment trusts (Reits) and one stapled security - Far East Hospitality Trust.
Each Far East Hospitality Trust unit contains one unit of a Reit and one business trust unit.
The assets are under the Reit, with the business trust being dormant and only a master lessee of last resort. This means it can essentially be thought of as a Reit.
For Far East Hospitality Trust, 5.64 cents of payouts went ex-distribution over the past year.
Dividing 5.64 cents by Thursday's share price of 80 cents gives a historical yield of 7.1 per cent for Far East Hospitality Trust.
The trust's properties include Orchard Parade Hotel, Albert Court Village Hotel and Riverside Village Residences.
Mapletree Industrial Trust, a Reit with a portfolio of industrial real estate, offered a yield of 7.2 per cent at Thursday's price of $1.355.
"Mapletree Industrial Trust's third-quarter results continue to power on with gross revenues increasing by 9.3 per cent and net property income increasing by 12 per cent," said DBS Group Research in January.
"The stronger performance was largely (organically driven) with positive rental reversions achieved portfolio-wide... This more than offsets the slight dip in occupancies."
Mapletree Industrial Trust's financial year ends in March.
The Reit continues to enjoy "strong reversionary upside", said DBS, referring to its ability to raise rents.
"The demand environment continues to remain stable despite risks posed by an increasing supply. We believe risks are mitigated."
DBS has a "buy" call and target price of $1.44 on Mapletree Industrial Trust.
"We continue to like Mapletree Industrial Trust for its stable earnings growth profile underpinned by organic rental uplifts."
jonkwok@sph.com.sg
Reits, developer ranked top five among mid-sized counters
Published on Mar 08, 2014
OUE’s Mandarin Orchard in Orchard Road (above) and The Signature, an office building owned by Mapletree Industrial Trust. PHOTO: DIOS VINCOY JR, BLOOMBERG
By Jonathan Kwok
PROPERTY developers and landlords dominate the list of high-yielding medium-sized stocks, according to data compiled by SGX My Gateway.
The top five dividend payers on the FTSE ST Mid Cap Index over the past year all had real estate links.
"Dividends are an important aspect of the index, with the current indicative yield at 4.5 per cent," said a report by SGX My Gateway, the bourse operator's investor education portal.
"The FTSE ST Mid Cap Index is made up of 50 securities, of which 48 maintain an indicative dividend yield."
The report indicated the 12-month gross dividend yield of the stocks.
This yield figure involves adding up all the dividends over the past 12 months and then dividing by the share price.
SGX My Gateway provided the yield as of Thursday's closing share prices.
The top yield stock was developer OUE, formerly known as Overseas Union Enterprise.
Cash dividends totalled 21 cents per share over the past 12 months, including a special payout of 20 cents, thanks to its recently listed OUE Hospitality Trust.
OUE also had a distribution in specie of OUE Hospitality Trust units. The cash value of these took its 12-month gross yield to 12.1 per cent at Thursday's close.
The other four stocks were essentially landlords: Three real estate investment trusts (Reits) and one stapled security - Far East Hospitality Trust.
Each Far East Hospitality Trust unit contains one unit of a Reit and one business trust unit.
The assets are under the Reit, with the business trust being dormant and only a master lessee of last resort. This means it can essentially be thought of as a Reit.
For Far East Hospitality Trust, 5.64 cents of payouts went ex-distribution over the past year.
Dividing 5.64 cents by Thursday's share price of 80 cents gives a historical yield of 7.1 per cent for Far East Hospitality Trust.
The trust's properties include Orchard Parade Hotel, Albert Court Village Hotel and Riverside Village Residences.
Mapletree Industrial Trust, a Reit with a portfolio of industrial real estate, offered a yield of 7.2 per cent at Thursday's price of $1.355.
"Mapletree Industrial Trust's third-quarter results continue to power on with gross revenues increasing by 9.3 per cent and net property income increasing by 12 per cent," said DBS Group Research in January.
"The stronger performance was largely (organically driven) with positive rental reversions achieved portfolio-wide... This more than offsets the slight dip in occupancies."
Mapletree Industrial Trust's financial year ends in March.
The Reit continues to enjoy "strong reversionary upside", said DBS, referring to its ability to raise rents.
"The demand environment continues to remain stable despite risks posed by an increasing supply. We believe risks are mitigated."
DBS has a "buy" call and target price of $1.44 on Mapletree Industrial Trust.
"We continue to like Mapletree Industrial Trust for its stable earnings growth profile underpinned by organic rental uplifts."
jonkwok@sph.com.sg