If you are an income investor, there is good news this month.
With more companies announcing their results and declaring dividends, February should see some passive income flowing into your bank account.
Dividends not only represent cold, hard cash but also constitute a tangible return on your investment that is unaffected by share prices.
We feature three REITs and non-REIT companies that are slated to pay out a dividend this month.
Suntec REIT (SGX: T82U)
Suntec REIT is a retail and commercial REIT with a portfolio of commercial properties in Singapore, Australia, and the UK along with Suntec City, Singapore’s largest integrated commercial development.
Some of the commercial properties within Suntec REIT’s portfolio include stakes in Suntec Singapore Exhibition and Convention Centre, One Raffles Quay, and Marina Bay Financial Centre Towers 1 and 2.
The REIT reported a mixed set of results for 2023.
Gross revenue rose 8.3% year on year to S$462.7 million, contributed by higher rentals from the Suntec City office, Mall and Convention Centre.
This was offset by higher maintenance fund contributions and lower rental from the REIT’s Australian portfolio.
However, net property income (NPI) slipped by 0.8% year on year to S$313.2 million.
With higher finance expenses along with a weaker Australian dollar, distribution per unit (DPU) for 2023 tumbled by 19.7% year on year to S$0.07135.
For the fourth quarter of 2023, Suntec REIT’s DPU stood at S$0.01866 and will be paid on 28 February.
Suntec REIT’s committed occupancy stood healthy at 94.9% and 95.2% for its office and retail portfolios, respectively.
Aggregate leverage stood at 42.3% as of 31 December 2023 with all-in financing cost at 3.84%.
Around 61% of the REIT’s borrowings are hedged to fixed rates.
Jumbo Group Ltd (SGX: 42R)
Jumbo Group is a multi-concept food and beverage (F&B) operator well known for its signature chilli crabs.
The group has a portfolio of seven brands including Jumbo Signatures and Kok Kee Wonton Noodle and co-owns the Singapore Seafood Republic brand.
Jumbo announced an impressive set of earnings for its fiscal 2023 (FY2023) ending 30 September 2023 as crowds and tourists came surging back as the economy reopened.
Revenue jumped 54.7% year on year to S$178.8 million while gross profit climbed 56.1% year on year to S$117 million.
The seafood specialist generated a net profit of S$14.2 million for FY2023, reversing the small loss of S$336,000 a year ago.
A final dividend of S$0.01 was declared and will be paid out on 2 February 2024.
In the middle of last month, Jumbo Group announced the opening of two new F&B outlets – Ng Ah Sio Bak Kut Teh and Tsui Wah, both at Clarke Quay Central.
Both outlets are situated in the heart of Clarke Quay and should attract healthy footfall from both locals and tourists.
Management did caution, however, that sales in China have not recovered to pre-pandemic levels and that it is experiencing higher operational costs in Singapore due to inflation.
Fraser & Neave Ltd (SGX: F99)
Fraser & Neave, or F&N, is an established F&B company selling beverages such as milk and carbonated drinks.
The group also has a publishing and printing arm.
The F&B group released a commendable set of earnings for FY2023 with revenue rising 4.8% year on year to S$2.1 billion.
Trading profit improved by 18% year on year to S$151.9 million while net profit (excluding fair value adjustments and exceptional items) inched up 3% year on year to S$133.3 million.
F&N also generated a positive free cash flow of S$113.8 million for FY2023, reversing the negative free cash flow in the prior year.
To mark its 140th anniversary, the group declared a final dividend of S$0.04, bringing the FY2023 dividend to S$0.055, up from the previous year’s S$0.05.
This S$0.04 dividend will be paid out on 16 February 2024.
The group held a groundbreaking ceremony for its new integrated dairy farm in Negeri Sembilan, Malaysia recently.
This investment costs RM 1 billion and the farm can accommodate 20,000 milking cows with an expected annual production of 200 million litres of fresh milk.
Elsewhere, F&N secured the rights for Nestle’s (SWX: NESN) Bear brand sterilised milk in Cambodia.
The group will be the exclusive manufacturer and distributor of BEAR brand milk in the country.
Under this arrangement, F&N is responsible for manufacturing, distributing, and marketing BEAR brand products from 1 March 2023 till 2027.
For new products, a 100Plus PRO high protein drink was launched that promises to help with muscle recovery and support.
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Disclosure: Royston Yang owns shares of Suntec REIT.
