Recently a few REITs in our portfolio had reported their earnings and not all are having good news. To name a few headlines:
Paragon Reit posts 1.9% lower H2 DPU of S$0.0261
Lendlease Global Commercial Reit H1 DPU down 14.5% to S$0.0212
Aims Apac Reit’s 9M DPU down 4.1% to S$0.0699 on enlarged unit base3
Words such as “down” and “lower” do sound queasy, but if we read the news articles in detail, these were mentioned:
“Paragon Reit’s manager on Monday (Feb 5) attributed the lower overall DPU to rising interest cost.1”
(Lendlease Global Commercial Reit) “The lower DPU was primarily driven by higher borrowing costs amid the higher interest rates as compared to a year ago.2”
(Aims Apac Reit) “This was due to an enlarged unit base resulting from an equity fundraising in July 2023 to strengthen the…(Reit) balance sheet and support asset enhancement initiatives and future growth opportunities.3”...
