Haha, I was so convinced by my own article Bought back Mapletree Pan Asia Commercial Trust (MPACT) sold last August, that I decided to buy more of it today!
I have also wanted to buy more MLT but the price ran up quite a bit over the last few trading sessions. So I decided only to buy after it went XD today.
To fund the above purchases, I decided to switch out from Daiwa House Logistics Trust (DHLT). While DHLT offers a higher yield at the moment, I reckon the opportunity to lock in above 6% yield from these two blue chip REITS is more worthwhile.
I also think that when the REITs segment eventually recovers, there will be more upside for MLT and MPACT.
There is also more uncertainty in terms of forex impact for DHLT. Unlike Parkwaylife REIT (PLife) which hedges their JPY income till 1Q2029 and MLT which hedges it for 8 years, DHLT’s distributable income is hedged on a one-year forward rolling basis.
Not saying that hedging for a longer period is a better strategy, as it is uncertain how the exchange rate will move. However, hedging provides certainty which I appreciate for income counters that have overseas exposure.
You can refer to why I wanted to buy MPACT in my last post.
As for MLT, I like their transparency and active management of the portfolio. Hence, despite the headwind that they highlighted in their earning call, I do think the current price is a good offer.
Even with a 10% drop in DPU, which is unlikely, yield will still be 5.9% at current price.
Of course, the market might not agree with me and price might continue to trend lower in the coming weeks and months. But for me, getting a 6% yield for MLT is good enough.
Oh, just in case you are not aware, there is a REITS Symposium organised by AlphaInvest this Saturday, 11 May at Suntec Convention Center.
Click on this link or the image below to find out more.
Ticket is only priced at $10 per person and $14 for buddy tickets ($7 each).
Log in to InvestingNote to get a Promo Code for cheaper price, though I do not know if the codes are still valid.