After skimming through the latest quarterly earnings, I fined-tuned my portfolio.
Given the expected persistence from various overseas properties, and unfavourable exchange rates faced by both Mapletree Logistics Trust (SGX: M44U) (MLT) and Mapletree Pan Asia Commercial Trust (SGX: N2IU) (MPACT), I decided to reduce a quarter of my holdings.
Basically, I sold the stake that I bought a year ago, booking a loss of around 20% and 10% for MLT and MPACT respectively, excluding dividends received. What had seemed like fleeting glimmers of hope throughout the year now appear obscured by the looming shadow of ongoing trade tensions.
That said, I am not totally pessimistic about REITs sector Over a longer term period, I still think that it plays a relevant part in my portfolio by generating consistent cash flow.
That is one reason why I decided to invest more in NikkoAM-StraitsTrading Asia ex Japan REIT ETF (SGX : CFA) with my CPF. While MLT and MPACT are both in its top 10 holdings, the exposure is still very much reduced.
Moreover, I get exposure to other larger market-cap REITs that I do not hold, and the self-adjusting allocation of the ETF means I do not need to overly bother about individual REIT’s performance.
Notably, Keppel DC REIT (SGX:AJBU) and Suntec REIT (SGX: T82U) made a come back to the top 10 holdings, after falling out last year.
Finally, based on its recent dividend payouts and a current price of around S$0.76, CFA is offering an attractive trailing dividend yield of above 6%. This is about 3.5% higher than the current 2.5% interest offered by CPF-OA, which I find to be a sufficient risk premium for me to invest.
Beyond the adjustment in my REITs allocation, I also added more Venture Corporation (SGX: V03) and HRnetGroup Ltd (SGX: CHZ) last Friday.
While Venture’s 1Q 2025 revenue and net profit declined by about 7% year-on-year, this is largely attributed to the Lifestyle Consumer technology domain. If not, revenue would have increased, and to me, that is an indication that the bottom of the cycle is near for the company.
Given its robust balance sheet and with their ability to generate strong cash flow, Venture is likely to be able to maintain its S$0.75 dividend per share, which translates to an appealing yield of 6.6% at my purchase price of S$11.32.
Regarding HRnetGroup, while I missed their AGM due to personal reasons and the company doesn’t offer quarterly updates, the AGM deck, with its accompanying slide comments, served as a valuable resource.
This, combined with my insights from the February earnings calls, leads me to believe that HRnetGroup has performed creditably despite the challenging environment.
I appreciate their decision to maintain the dividend per share despite lower profits, a testament to their robust financial position.
Looking ahead, barring further deterioration in the economic climate, I am optimistic about their ability to sustain the S$0.04 dividend per share, offering an attractive yield of 5.8% at the current price of S$0.685.
In a nutshell, while the losses in MLT and MPACT were disappointing, they prompted a pivot towards broader diversification within REITs through CFA. Moreover, as this ETF is invested with my CPF, the switch freed up my cash, providing flexibility for strategic investments in other companies, or simply as an additional buffer.
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