For Viva Industrial Trust (VIT), the FY2017 results are nothing short of stunning and vindicated my decision to pay a premium to purchase the units three months ago.
The glowing result is mainly contributed by the post-AEI Viva Business Park and the logistics property at 6 Chin Bee Avenue. UE BizHub East also shows marginal increase in revenue contribution.
The following slides show it all.
In a span of one year (2016 end - 2017 end), share price of VIT ran up from S$0.755 to S$0.94. An increase of nearly 20 cents. This is justifiable.
As an income investor, one of the criteria I look out for when adding a stock into my long term portfolio is the dividend payout. In this aspect VIT remains one of the best among the industrial REITs.
I do have a concern regarding the WALE of 2.6 years though I won't be losing sleep over this as VIT is doing quite well in terms of tenancy retention. However this shall be a point of monitoring for me.
Fundamentally, VIT remains solid. Outlook in my opinion, is looking good especially for both business parks.
Will I continue to keep VIT in my portfolio? Absolutely.
Will I add more? Yes.
Now comes the golden question. How do I see the possible merger of ESR and VIT?
I will answer this in the next post since the reply will not be a short one.