Mapletree Logistics Acquisition of China and Vietnam Properties - Effect of Income Support

I think it is important for people to take note of income support for reits and things may not look as rosy as it seems based on the headline figures.

For example in 2018, it was reported that  Keppel reduced its rental support for Keppel Reit and its DPU fell.

Source.

The recent headlines about Mapletree Logistics Trust acquiring 13 China properties and 3 Vietnam properties through issuing rights must have gotten little attention due to many new Reits having IPOs lately, Daiwa House Logistics and Digital Realty.

Headline figures for the China and Vietnam properties paint a very rosy picture of a forecasted rise in DPU, post acquisition of 1.2% .

Sounds good right?

But take note that this includes rental support for 1 year post acquisition by the sponsor.

Stripping out the rental support, the DPU remains unchanged.

Not all rental supports are bad and in theory, the reason for such a practice is to stabilize  the rental income of new properties before they reach their "potential" .

But one can see the potential for exploitation. 

This "potential" may never materialize but only serve to inflate the acquisition price, causing shareholder value destruction.

Only time will tell. 

Investing is having faith too.

A Shocking October Electricity Bill for SP Wholesale Customers

" My October electricity bill was 3 times the August one! I'm getting out of it!"

There were many feedback among friends and people in forums who were under the SP Wholesale plan that they were facing astronomical bills and a rush to get out of the wholesale plan. 

This feedback was timely as my Geneco plan is expiring on Feb/March 2022 next year and i have been penning down my thoughts as a way to reflect on the decision on whether to join the 1% of consumers on the wholesale plan.

SP Wholesale Plan - Going for it! - 10 November

Which electricity plan to choose - 31 October

I would have to probably reconsider switching to the SP Wholesale Plan given how the prices played out in October.

I have been tracking the average SP wholesale electricity plan against both the SP regulated tariff and electricity retailer since Jan 2020 on this page.

October 2021 is indeed the ONLY month where the SP electricity plan exceeded the SP regulated tariffs and not only by a small margin but more than twice!

October 2021

Looking at the charts in October 2021, on an average basis, only if one used electricity from 1 am to 6 am in October will one have an  electricity rate lower than the Wholesale electricity rate.

Hopefully, the situation will be clearer near contract expiry!