Which Mapletree REIT Had the Most Resilient Set of Q3 and 9M FY2022/23 Results?

Which Mapletree REIT Had the Most Resilient Set of Q3 and 9M FY2022/23 Results?

Mapletree Investments Pte Ltd have 3 REITs listed in the Singapore Exchange – Mapletree Industrial Trust (SGX:ME8U), Mapletree Logistics Trust (SGX:M44U), and Mapletree Pan Asia Commercial Trust (SGX:N2IU).

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

All the 3 REITs share the following similarities: (i) they are constituents of Singapore’s benchmark Straits Times Index (STI), (ii) the management declares a distribution (or dividend, but in REITs it is known as ‘distribution’) once every quarter, and (iii) they have their financial year ending every 31 March.

With all 3 of them already released their results for the third quarter, and for the first 9 months of the financial year ended 31 December 2022 (you can check out my review of Mapletree Logistics Trust’s result here, Mapletree Industrial Trust’s results here, and Mapletree Pan Asia Commercial Trust’s results here), what I’ll be doing is to put the statistics (its financial performance, portfolio occupancy and debt profile, as well as its distribution payout to unitholders) side-by-side to do a comparison. On top of that, I’ll also be putting the 3 REITs’ current valuations (based on their unit prices at the time of writing of this post) side-by-side to find out which is the ‘cheapest’, and which is the ‘most expensive’, and finally, a summary of the strengths and weaknesses of each Mapletree REIT.

Let’s begin:

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Elite Commercial REIT – Is 9% Yield Good Enough for Investors?

Elite Commercial REIT – Is 9% Yield Good Enough for Investors?

Elite Commercial Reit (SGX: MXNU) debuted its IPO at £0.68 back in February 2020 right before Covid struck.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has close to 2500 followers.

If you had held this REIT from IPO right until now, you would probably just sit slightly underwater as it has given out £0.15 from dividends so far. Not too bad if you ask me given how many tough the environment is for REITs in the past three years. In fact, most REITs are probably under-performing in the past 3 years, so it has been a common theme for everyone out there.

elite commercial reit's share price

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Congratulations To Societe Generale, For Winning the TOP STRUCTURED PRODUCT ISSUER Award

Congratulations To Societe Generale, For Winning the TOP STRUCTURED PRODUCT ISSUER Award

Congratulations to our partner, Societe Generale, for winning the TOP STRUCTURED PRODUCT ISSUER award at the 2023 SGX Awards Ceremony!

On behalf of Societe Generale and the InvestingNote team, thank you to all in our community that have supported the Daily Leverage Certificates (DLCs) and its role in building a more vibrant market on the SGX.

Here are some highlights from 2022:

  • Societe Generale’s Daily Leverage Certificates (DLC) turnover jumped 140% Y-o-Y to almost S$ 4.5 billion traded
  • Launched 5x/7x DLCs on S&P 500, Nasdaq-100 & Dow Jones, allowing investors to gain exposure to the US markets during Asian hours
  • Launched 2x/5x/7x DLCs on the FTSE Straits Times Index as the only leverage long/short listed securitized product offered on the index
  • New ‘Market’ tab on DLC website providing more insights on top underlying stock screeners, top DLC screeners & market funds flow
  • New Educational Videos (Practical Series) to show investors how to leverage the most out of our DLC website

….And not forgetting the DLC Kopi Money Challenge & Index Trading Challenge hosted in our community last year which helped boost investors’ knowledge and confidence trading the DLCs!

‌To find out more about Societe Generale’s DLCs, check out their website at DLC.socgen.com

#DLC #awards #sgx

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DBS’s Q4 & FY2022 Results Review

DBS’s Q4 & FY2022 Results Review

DBS Group Holdings Limited (SGX:D05), or DBS for short, needs no further introduction – all of us fellow Singaporeans should have a savings account with the bank. Apart from operations in Singapore, it also have offices in the following countries – Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Taiwan, Thailand, United Arab Emirates, United Kingdom, United States of America, as well as in Vietnam.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

This morning (13 February 2023), DBS was the first of the 3 Singapore-listed banks to release its results for the fourth quarter, as well as for the full year ended 31 December 2022 (i.e. FY2022) – with UOB releasing its results next Thursday (23 February) morning, and OCBC releasing its results next Friday (24 February) morning.

In this post, you’ll find my review of the Singapore bank’s latest results – in terms of its financial performance, financial ratios, and also its dividend payout to shareholders.

Let’s begin:

Financial Performance (Q4 FY2021 vs. Q4 FY2022, and FY2021 vs. FY2022)

In this section, let us take a look at the DBS’ financial performance first on a quartter-on-quarter (q-o-q) basis (i.e. Q4 FY2021 vs. Q4 FY2022), and then on a year-on-year (y-o-y) basis (i.e. FY2021 vs. FY2022):

Q4 FY2021 vs. Q4 FY2022:

 Q4 FY2021Q4 FY2022% Variance
– Net Interest
Income (S$’mil)
$2,140m$3,280m+53.3%
– Net Fee &
Commission Income
(S$’mil)
$815m$661m-18.9%
– Other Non-Interest
Income (S$’mil)
$296m$649m> 100.0%
Total Income
(S$’mil)
$3,251m$4,590m+41.2%
Total Expenses
(S$’mil)
$1,671m$1,963m+17.5%
Net Profit
(S$’mil)
$1,389m$2,341m+68.5%

My Observations: Its net profit of $2,341m in Q4 FY2022 is a record breaking one for the bank, contributed by a 41.2% jump in its total income – which is due huge improvements in its net interest income (due to a increase in net interest margin compared to Q4 FY2021, along with a rise in loan volume), along with its other non-interest income (as a result of growth in its trading income and investment gains from a low base in Q4 FY2021.)

The only slight negative in the bank’s results is a 18.9% decline in its net fee & commission income, as a result of lower wealth management and investment banking fees.

Total expenses went up by 17.5%, which included costs relating to non-recurring accelerated depreciation of fixed assets, a one-time special award to all staff, and some expenses for the integration of Citi Consumer Taiwan – excluding these expenses, the bank’s total expenses would have been up by 13%.

FY2021 vs. FY2022:

 FY2021FY2022% Variance
– Net Interest
Income (S$’mil)
$8,440m$10,941m+29.6%
– Net Fee &
Commission Income
(S$’mil)
$3,524m$3,091m-12.3%
– Other Non-Interest
Income (S$’mil)
$2,224m$2,470m+11.1%
Total Income
(S$’mil)
$14,188m$16,502m+16.3%
Total Expenses
(S$’mil)
$6,469m$7,090m+7.9%
Net Profit
(S$’mil)
$6,801m$8,193m+20.4%

My Observations: Just like in its quarterly results, its net profit for the full year, at $8,193m, is a record for the bank – which can be attributed by a 16.3% increase in its total income, contributed by a 29.6% rise in its net interest income to $16,502m – which is also a record, contributed by a higher net interest income (due to higher net interest margin), partially offset by a dip in its net fee and commission income (from lower wealth management and investment banking fee income.)

The 7.9% increase in total expenses was due to higher staff costs.

Financial Ratios (Q3 FY2022 vs. Q4 FY2022, and FY2021 vs. FY2022)

Moving on, let us take a look at the performances of some of the key financial ratios reported by the bank – I will be comparing the numbers reported for the current quarter under review (i.e. Q4 FY2022 ended 31 December 2022) against that reported in the previous quarter 3 months ago (i.e. Q4 FY2022 ended 30 September 2022), as well as the numbers reported on a full-year basis for the current financial year under review (i.e. FY2022) compared against the reported last year (i.e. FY2021) to find out if they have continued to remain resilient, or showing signs of weakness:

Q4 FY2021 vs. Q4 FY2022:

 Q3 FY2022Q4 FY2022Difference (in
Percentage Points – pp)
Net Interest
Margin (%)
1.90%2.05%+0.15pp
Return on
Assets (%)
1.18%1.23%+0.05pp
Return on
Equity (%)
16.3%17.2%+0.9pp
Non-Performing
Loans Ratio (%)
1.2%1.1%-0.1pp

My Observations: Compared to the previous quarter (i.e. Q3 FY2022), its key financial ratios have all recorded improvements – 2 things stood out to me: its return on equity, at 17.2%, is a record for the bank, along with a further drop in its non-performing loans ratio to 1.1% (especially in such an economic environment, to see its non-performing loans further dropping is very encouraging to note.)

FY2021 vs. FY2022:

 FY2021FY2022Difference (in
Percentage Points – pp)
Net Interest
Margin (%)
1.45%1.75%+0.3pp
Return on
Assets (%)
1.02%1.12%+0.1pp
Return on
Equity (%)
12.5%15.0%+2.5pp
Non-Performing
Loans Ratio (%)
1.3%1.1%-0.2pp

My Observations: On a full-year basis, DBS’ key financial ratios is also very impressive – the 0.3pp improvement in net interest margin is very much within my expectation, considering a series of interest rate hikes by the Federal Reserve for the whole of last year.

The Return on Equity, at 15.0%, is a record high for the bank. Also, it’s encouraging to note the drop in its non-performing loans ratio to 1.1% (compared to 1.3% last year.)

Dividend Payout to Shareholders

DBS Group Holdings Limited is the only Singapore-listed bank where its management declares a dividend payout to shareholders on a quarterly basis.

For the fourth quarter of FY2022, a dividend payout of 42.0 cents/share was declared. On top of that, the management have also declared a special dividend payout of 50.0 cents/share, given its strong capital base – this is a huge jump from the 36.0 cents/share declared in the same time period last year (i.e. Q4 FY2021.) However, if you exclude the special dividend payout, the increase would have been 16.7%.

On a full-year basis, its dividend payout amounts to a total of 200.0 cents/share (36.0 cents/share declared in the first 3 quarters, 42.0 cents/share in the fourth quarter, along with a special dividend payout of 50.0 cents/share). Compared to last year (which is 120.0 cents/share), its dividend payout have grown by 66.7%. If you strip out the special dividend, then its dividend payout have grown by 25.0%

If you are a shareholder of the Singapore-listed bank, do take note of the following dates regarding its dividend payout:

  • Ex-Date: 10 April 2023
  • Record Date: 11 April 2023
  • Payout Date: 21 April 2023

For FY2023 ahead, barring unforeseen circumstances, the annualised dividend will rise to 168.0 cents/share – meaning a payout of 42.0 cents/share every quarter.

CEO Piyush Gupta’s Comments & Outlook (from the Bank’s Press Release)

“The record return on equity of 17% for the fourth quarter and 15% for the full year reflect the benefit of higher interest rates as well as significant structural gains from our decade-long transformation initiatives. The Commercial book total income growth of 21% for the full year and 43% for the fourth quarter attest to the strength of our franchise.

Our business pipelines are healthy and asset quality robust. We expect confidence to return to markets in the coming year as interest rate increases ease and China reopens. The substantial increase in our ordinary dividend and the special dividend to a total of 92 cents per share reflect our robust earnings profile and the strength of our capital position. This brings the total payout for the financial full year to SGD 2.00 per share.”

Closing Thoughts

Wow, what a quarter and year it has been for Singapore’s largest bank, with many new records being set: a record high net profit of $4,590m in Q4 FY2022, along with a record total income of $16,502m, and net profit of $8,193m for the full-year. Its return on equity for Q4 (at 17.2%), and for the full year (at 15.0%) are also record highs.

The dividend hike in the final quarter (from 36.0 cents to 42.0 cents) was also a pleasant surprise for me, and I’m sure every one who is reading this article will be very happy with the special dividend payout of 50.0 cents being declared as well.

I’m sure all shareholders will rejoice to the news that quarterly dividend payouts in the coming quarters ahead will be hiked by another 16.7% to 42.0 cents/share.

All in all, as a shareholder, I’m very happy with the bank’s latest report card (and I’m sure you share the same opinion as me.) Looking ahead, I’m of the opinion that interest rates will continue to remain high at least over the next 2 years or so (which bodes well for the bank.) On the other hand, the challenging economic outlook in the near-term may see individuals and businesses be more cautious in taking up loans and as a result, loan volumes may see a decline. Another thing to look out for will be defaults by both individuals and businesses as a result of their inability to service their interest payments – we may see the bank’s non-performing loans increasing in the quarters ahead. But despite having said that, I have complete confident in the management’s ability to navigate through these headwinds.

With that, I have come to the end of my review of DBS’ latest fourth quarter, and full-year results. As always, I do hope you’ve found the contents above useful and at the same time, do note that all the opinions above are purely mine which I am sharing for educational purposes only. They do not represent any buy or sell calls for the bank’s shares. You’re strongly advised to do your own due diligence before you make any investment decisions.

Related Documents

Disclaimer: At the time of writing, I am a shareholder of DBS Group Holdings Limited.

$DBS(D05.SI)

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Amazon.com Inc.’s Q4 & FY2022 Results – A Quick Review & My Thoughts

Amazon.com Inc.’s Q4 & FY2022 Results – A Quick Review & My Thoughts

Amazon.com Inc. (NASDAQ:AMZN [$AMZN]) is one of the biggest big tech companies listed on the NASDAQ exchange, and one which I’m sure you are familiar with (for their namesake online shopping site.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

The company serves (and generates revenue) from the following: (i) Consumers – where they purchase the catalogue of millions of unique products across dozens of product categories through its online & physical stores; (ii) Sellers – where they sell their products in the company’s stores, as well as fulfilling orders made on the company’s website; (iii) Developers & Enterprises – where it serves developers and enterprises through AWS (Amazon Web Services); (iv) Content Creators – where authors, independent publishers, musicians, filmmakers, Twitch streamers, skill and app developers, and others to publish and sell content on its platform; (v) Advertisers – where the company provides advertising services to sellers, vendors, publishers, authors, and others, through sponsored ads, display, and video advertising. 

Last Thursday (02 Feb 2023), Amazon.com Inc. have made available its results for the fourth quarter, and for the full-year ended 31 December 2022. As a shareholder (with my average invested price at $103.03), I have reviewed its results and in this post, you’ll read about a review of its latest financial performance, debt profile, CEO Andy Jassy’s comments on the company’s latest results, outlook for Q1 FY023, and finally, whether the tech company is considered to be ‘cheap’ or ‘expensive’ at its current traded price… 

Financial Performance – FY2021 vs. FY2022:

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Alphabet Inc’s Q4 & FY2022 Results – A Quick Review

Alphabet Inc’s Q4 & FY2022 Results – A Quick Review

Alphabet Inc. (NASDAQ:GOOGL [$GOOGL] & NASDAQ:GOOG [$GOOG]), the company that owns the Google suite of products, Youtube, as well as the Android operating system, have made available its 4th quarter and full-year results ended 31 December 2022 (i.e. FY2022) last Thursday (02 Feb 2023). 

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

In this post, you’ll find a summary of the salient points to take note of regarding the tech company’s latest financial figures, debt profile, whether or not at its current traded price, it is considered to be ‘cheap’ or ‘expensive’, along with my thoughts as a shareholder (with my average invested price at US$120.00.) 

Let’s begin…

Financial Performance – FY2021 vs. FY2022:

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Our First Top Community Members’ Gathering Since COVID-19!

Our First Top Community Members’ Gathering Since COVID-19!

It’s been almost 3 years since the first COVID outbreak…that was also how long we’ve last had a meaningful get-together sessions with our top community members!

In this session, we announced the news of our recent merger with ShareInvestor Group, spoke about how we envision to help our community members grow and also caught up with old friends!

One of our top contributors and veteran community member, @ljunyuan – taking a wefie with our management team and friends!

It was a wonderful night of food, drinks and fun!

From day one, we’ve held true to our belief in giving back to our community. Ever since COVID first happened, we’ve not had such a big but cosy gathering – this time round, with additional new colleagues and new community members as well!

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Keppel Corp slumps 7% post results to $7.11 – Any trading opportunity ahead? (8 Feb 23)

Keppel Corp slumps 7% post results to $7.11 – Any trading opportunity ahead? (8 Feb 23)

Dear all,

This post was originally posted here. The writer, Ernest Lim is a veteran community member and blogger on InvestingNote, with a username known as @el15 and has close to 550 followers.

Kep Corp has fallen $0.54 or 7% from $7.65 on 2 Feb to close $7.11 yesterday.

In this write-up, I will elaborate on my take on what has happened and whether there is any trading opportunity.

Why did Kep Corp plummet 7%?

Kep Corp announced 4QFY22 results on 2 Feb after market. Based on CGS-CIMB report, Kep Corp’s FY22 net profit of S$927m slightly beat estimates, at 102% consensus estimates. So what has caused the sharp drop in share price post results?

My guess is that Kep Corp probably drops because

a) Kep Corp has appreciated 7.6% from its intraday low $7.11 on 16 Jan to close $7.65 on 2 Feb, before its results. Suffice to say that some anticipation may have been priced into this stock in anticipation of its results.

b) CLSA has a reduced call on Kep Corp citing a lack of price catalysts beyond the distribution in specie of Sembmarine shares post the sale of Kep Corp’s O&M business to Sembmarine. It is noteworthy that CLSA’s target price for Kep Corp was adjusted upwards from $7.65 to $7.85, post results.

Notwithstanding the above, I personally believe that Kep Corp looks interesting at this level.

Basis

a) Analysts are generally positive on Kep Corp with average analyst target price $9.25

Based on Chart 1 below, based on the analyst calls in Feb, there are 6 buy calls and 1 sell call. Assuming the consensus is right, there may be a potential capital upside of around 30% in the medium term. Coupled with the consensus’ 4.0% dividend estimate in FY23F, total potential return amounts to around 34%. Kep Corp ex dividend $0.18 / share on 27 Apr 23.

Chart 1: Average analyst target price $9.25; 30% potential capital upside

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CapitaLand Ascendas REIT’s 2H and FY2022 Results – What You Need to Know

CapitaLand Ascendas REIT’s 2H and FY2022 Results – What You Need to Know

Yesterday evening (01 February 2023), CapitaLand Ascendas REIT (SGX:A17U), formerly known as just Ascendas REIT, have made available its results for the second half, as well as for the full year ended 31 December 2022 (i.e. FY2022.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

For those of you who may be unfamiliar with the REIT, here’s a brief introduction – CapitaLand Ascendas REIT is Singapore’s first and largest listed business space and industrial REIT. While the REIT’s properties are mostly in Singapore, it also has a business presence in Australia, United States, as well as in the United Kingdom/Europe. At the time of writing, the REIT has a total of 227 properties (across 3 key segments, namely business space and life sciences, logistics, as well as industrial and data centres), an asset under management of approximately S$16.4bn, and more than 1,720 tenants. Finally, the REIT is also one of the constituents in Singapore’s benchmark Straits Times Index (STI.)

In the rest of this post, you’ll read about my review of the blue-chip business space and industrial REIT’s latest financial performance, portfolio occupancy and debt profile, as well as distribution payouts.

Let’s begin:

Financial Performance (2H FY2021 vs. 2H FY2022, and FY2021 vs. FY2022)

In this section, let us take a look at CapitaLand Ascendas REIT’s financial performance for the second half of the current financial year under review compared against the same time period last year (i.e. 2H FY2021 vs. 2H FY2022), and then on a its results for the whole of the current financial year compared against that recorded for the whole of last year (i.e. FY2021 vs. FY2022):

2H FY2021 vs. 2H FY2022:

 2H FY20212H FY2022% Variance
Gross Revenue
(S$’mil)
$640.5m$686.1m+7.1%
Property Operating
Expenses (S$’mil)
$165.3m$194.3m+17.5%
Net Property
Income (S$’mil)
$475.2m$491.8m+3.5%
Distributable Income
to Unitholders
(S$’mil)
$319.0m$333.2m+4.4%

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My Review of Keppel DC REIT’s Q4 & FY2022 Results

My Review of Keppel DC REIT’s Q4 & FY2022 Results

Shortly after market hours this evening (31 January 2023), Asia’s first pure-play data centre REIT in Keppel DC REIT (SGX:AJBU) released its results for the fourth quarter, as well as for the full year ended 31 December 2022 (i.e. FY2022.)

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has close to 2100 followers.

At the time of writing, the REIT’s portfolio comprises a total of 23 data centres in the following locations (with the number of data centres in each location in brackets): Singapore (6), Australia (2), China (3), Malaysia (1), Germany (2), Ireland (2), Italy (1), The Netherlands (3), and The United Kingdom (3.) Also, the REIT is a constituent of Singapore’s benchmark Straits Times Index (STI) since October 2020.

So, how did the REIT performed in terms of its financial results, portfolio occupancy and debt profile? Let us find out in the rest of this article, including the REIT’s distribution payout to unitholders:

Financial Results (FY2021 vs. FY2022, and Q4 FY2021 vs. Q4 FY2022)

In this section, you’ll find the data centre REIT’s financial results first on a year-on-year (y-o-y) basis (i.e. FY2021 vs. FY2022), followed by its results on a quarter-on-quarter (q-o-q) basis (i.e. Q4 FY2021 vs. Q4 FY2022) which I’ve computed based on its results in the previous quarters:

FY2021 vs. FY2022:

 FY2021FY2022% Variance
Gross Revenue
(S$’mil)
$271.1m$277.3m+2.3%
Property Operating
Expenses (S$’mil)
$22.9m$24.8m+8.1%
Net Property
Income (S$’mil)
$248.2m$252.5m+1.8%
Distributable Income
to Unitholders
(S$’mil)
$171.6m$184.9m+7.7%

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