It is another sell transaction for me this month as I divested Keppel REIT from my stock portfolio. Total profit including dividends collected was 26.7%.

After Keppel REIT announced a set of disappointing results on 18th July 2017 due to softening office rents, the share price did not decline as badly. Distribution per Unit (“DPU”) fell 12.77% from 3.29 cents in 1H2016 to 2.87 cents in 1H2017.

Looking at the chart for Keppel REIT share price, it has been on an uptrend over the past 3 months. This proves that the stock market can be irrational.

Below are the reasons I sell off Keppel REIT

  1. Medicore Dividend Yield

Based on FY16 total distribution of 6.37 cents, the current dividend yield is 5.5%. If you have noticed from the historical distribution, the DPU is falling for each quarter.

I estimated the annual distribution to …