Results Release of Keppel Green and Ascendas REIT

Both Keppel Green and Ascendas REIT announced results today, with Keppel Green being FY2011 results while it is Q3 FY11/12 for Ascendas REIT. Both stock counters performed very well, with increased turnover, profits and dividend increases. I love dividend growers as it is way to grow my Passive Income without requiring additional capital.

 

Ascendas REIT – Blue chip industrial REIT, for further understanding of REITs, refer to

Understanding Singapore REITs Part One – REIT Categories

Key Results:

Q3 FY11/12 Turnover Increased 15.7% Yoy to $127.3 mil

Net Property Income (NPI) Increased 11.6% Yoy to $93.9 mil

Distribution per unit (DPU) grew 5.8% y-o-y to 3.48 cents despite a 11.2% increase in unit base

DPU grew 3% at 3.48 cents as compared to Q2 FY 11/12 3.38 cents

Positive rental reversion of between 5.7% and 28.4% achieved across all segments of the portfolio

Occupancy remains high at 92.4% (MTB properties) and 95.9% (portfolio)

Other than the outstanding current performance, there is future potential to arise from 3 acquisitions (2 in Singapore, 1 in china). A REIT is also involved in multiple development projects, including the FedEx Regional Hub, Unilever Business Park and Fusionopolis. Continued asset enhancements at Senoko, Toh Guan and Changi will drive income yields up further.

 

Keppel Green – Business Trust focusing on Infrastructure ‘Green’ Assets

I wrote about K Green in My Singapore Stock Portfolio End August 2011

Key Results:

Revenue FY 2011 increased 37.6% Yoy to $90.6 mil

After Tax Profit FY2011 increased 16% Yoy to $16.7 mil

Revenue of $90.6 million was 17.9% more than the projection of $76.8 million

Distribution per unit (DPU) for 2H 2011 increased 8.8% yoy to 4.69 cents

K Green owns three assets, all of which have long-term concession agreements with Singapore statutory bodies (namely NEA and PUB). Senoko Trust and Tuas DBOO Trust derive most of their income from capacity payments, which offer a stable source of income with little correlation to economic or demographic fluctuations. Waste Management still account for 80% of the K Green’s revenue and profits, so it helps to keep the total income stable and defensive regardless of the economy. Ulu Pandan Trust’s income is derived in equal parts from availability payments and from NEWater output payments.

K Green currently has no leverage, I hope to see the Trust leverage up a bit and acquire accretive assets to as to increase the yield. That’s especially since K Green has Rights of First Refusal to some of Keppel Corp’s ‘green’ projects.

 

For further reading, you may be interested in:

My Singapore Stock Portfolio End December 2011

My Singapore Stock Portfolio End August 2011

Understanding Singapore REITs Part One – REIT Categories

Comments on Recent Business Times Article – The REIT Myth Busted

How to Pick A Top Dividend Company for Dividend Income Part 1