Two weeks ago, Dasin Retail Trust (SGX: CEDU) released its 2018 first quarter earnings update. As a quick introduction, Dasin Retail Trust, which listed on January 2017, is the only property trust listed in Singapore’s stock market that has a direct exposure and focus on retail malls in China’s Pearl River Delta region. The trust’s portfolio currently comprises four malls in Zhongshan City of China’s Guangdong province
Here are 10 things investors should know about Dasin Retail Trust’s latest results:
1. The gross revenue for 2018’s first quarter came in at S$18.5 million, 85% higher than 2017’s first quarter, and 6% better than the forecast given in the REIT’s IPO prospectus.
2. Similarly, the REIT’s net property income grew by 86% to S$14.9 million from a year ago. It was also 3% better than the IPO forecast.
3. The distribution per unit (DPU) of 1.83 cents for 2018’s first quarter was 23% higher than a year ago, and up 1% from the IPO forecast.
4. Based on Dasin Retail Trust’s annualised DPU of 7.32 cents, and its closing unit price of S$0.87 as of 22 May 2018, the REIT has an annualised distribution yield of 8.4%.
5. As of 31 March 2018, the trust’s gearing stood at 30.4%, which is a safe distance from the regulatory gearing ceiling of 45%.
6. The trust’s portfolio had a committed occupancy rate of 100% at the end of the reporting quarter.
7. The weighted average lease to expiry (by gross rental income) was at 4.01 years as of 31 March 2018. 51.2% of the trust’s leases (again, based on rental income) will expire on or before 2020, and the remaining 48.8% of the leases will expire from 2021 onwards.
8. There are 20 properties that Dasin Retail Trust has the rights of first refusal (ROFR) on. 12 of the 20 properties have been completed, while the rest are still under development.
9. The REIT acquired Shiqi Metro Mall for RMB1.22 billion on June 2017, which contributed towards the big year-on-year jump in the REIT’s gross revenue and net property income.
10. In its latest earnings update, Dasin Retail Trust gave some useful comments on the state of China’s economy and retail environment:
“According to the China’s National Bureau of Statistics, economy grew 6.8% in the first quarter of 2018 to RMB19.9 trillion. National retail sales increased 9.8% year-on-year to RMB9.0 trillion, while national urban disposable income and expenditure per capita grew 8.0% and 5.7% respectively.”
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.