What I learned From CRCT 2016 Annual Report (Part 2 Conclusion)

Part 1

Next, let's take a look at the occupancy rate of CRCT's properties.

I have highlighted the parts which looks good to me. The DPU is likely to increase with contributions from the 2 properties.

There's also an overall 3.9% positive rental reversions for new leases and renewals. CapitaMall Wuhu is undergoing tenancy adjustments so there's a huge negative rental reversion for this property.

Current NAV according to the annual report is 1.65. In 2015, it was 1.77. DPU in 2016 also fell from previous year of 10.60 to 10.05 cents. Gearing is 35.3%.

With the acquisition of CapitaMall Xinnan and improved vacancy of CapitaMall Minzhongleyuan, hopefully shareholders like me can receive huge paychecks in the bank this year. Oh wait. I may opt for more units again. :)

I finally sold my Sunny Stock :(

I finally made up my mind and sold this stock today. My average purchase price was $1.268 (inclusive of commisions). The current price of $1.79 is already very close to 52 week high of $1.82.

Suntec Reit makes up the second largest proportion of my portfolio. By selling at $1.79, I am saying goodbye to a very generous yield as shown below. Based on my purchase price, my yield for 2017 should be above 8%.

However, at current price of $1.79, my yield forecast for 2017 is only around 5.81%. 

Although it's Goodbye for now, I will definitely buyback when the yield becomes more attractive to me. The Management has done a good job growing the distributions for the last couple of years. I am sure they will continue to do so for the coming years. In the meantime, I will just take money off the table. :) Hmm...Which stocks to buy next? The hunt for yield continues....

Is CACHE going to ask for more Cash?

CACHE Logistics just made an announcement today. 

Rights Issue. Alamak or YAY!

I just applied for Ascott Rights. Now need to come up with more cash for CACHE? At a high gearing of 43.1%, it's just a matter of time before they ask for more money. I am currently vested at a high average purchase price of $1.124. Their annual report is out. Another homework for me.

Steady Performance? I losing money leh. Show me the money and not the other round leh.

Ascott Reit Rights Issue an Issue? (Part 3 Conclusion)

Part 2

Below shows the yield based on the rights offer price of $0.919.

Based on the past few years' results, I hope the yield can still remain above 8%. My 2017 forecast did not take into account of the Rights Issue so it is likely to be lower now.

Now, let's take a look at who's been buying Ascott Reit in recent months.

Temasek bought 2.1M shares at $1.1458 last Oct. My previous purchase price was $1.07. Yeah!

Directors accepting their rights? Hmm...odd lots?

My final verdict was to accept my fate and BUY! And also apply for access units. :)

At a purchase price of $0.919, the PB Ratio would work out to be 0.74 based on the post acquisition NAV of 1.24. Today's closing price is $1.08. I am buying at a discount and locking in a decent dividend yield. :) 

Ascott Commercial. After buying can be happy like the Ang Mo?

Ascott Reit Rights Issue an Issue? (Part 2)

Part 1

The Manager intends to use the gross proceeds of approximately S$442.7M from the Rights Issue in the following manner: approximately S$381.6M will be used to part finance the remaining purchase price for Ascott Orchard Singapore. S$56M will be used to fund 2 properties acquisitions in Germany (subjected to Unitholders' approval).

The chart above compares the asset value and market cap between the different hospitality trusts listed in Singapore. Ascott Reit looks pretty impressive compared to the others.

Here's the part which I am not so impress about.

Both the DPU and NAV actually falls after the rights issue and acquisitions. ;( 

Decrease in Gearing is good though. Maybe the Management would not issue any rights or private placement for next 2 years.

So what's my verdict?

To be continued ...

Ascott Reit Rights Issue an Issue? (Part 1)

Ascott Residence Trust earlier this month announces a Rights Issue to raise gross proceeds of approximately $442.7M. Pursuant to the Rights Issue, 481,688,010 new units in Ascott REIT (“Rights Units”) will be offered at the rights ratio (“Rights Ratio”) of 29 Rights Unit for every 100 existing units in Ascott REIT. The last time that Ascott issued rights was in 2013. The offer price was $1.00, on the basis of 1 unit for every 5 existing units owned.

See. I have proof. Now cheaper. Shiok?

The previous offer price was approximately approximately 22.5% discount to the closing price of S$1.29 per unit on 4 November 2013. The current offer price is approximately 21.5% discount to the closing price of S$1.17 per unit in on 6 March 2017. Oops. It is actually 1% more expensive. Ggrrrrr.

In March 2016, guess what happen? Ascott announces a private placement exercise at an issue price of $1.055 per new unit.

The share price is going down and the offer price for new Units is getting cheaper. I purchased 8000 shares during this time. My purchase price was $1.07. At my purchase price of $1.07, the yields I would be getting are as shown in the diagram.

Of course I could not receive the past dividends before my purchase date. It just shows the yield I could possibly receive in the past based on my purchase price. It's above 7% for the past few years. A yield I am happy with and so I bought. However, there are a few things that I am unhappy with the current Rights Issue. So did I accept and apply for excess rights? 

To be continued ...

Part 2

Recent purchases for Feb and March 2017

My recent purchases for Feb and March are Religare Health Trust and Starhill Global Reit. The forecast yield for both companies based on my purchase price is >8% for RHT and 6.9% for StarHill Global. 

Religare Health Trust is my first healthcare stock. I bought it as I would like to have exposure to this sector as dividend income. RHT's dividend policy is to distribute at least 90% of its distributable income. The Trustee-Manager has distributed 100% of distibutable income since IPO. For the period ending March 2017, the Trustee-Manager intends to reduce this income to 95%. Even so, the yield would be more attractive compared to First Reit and Parkway Life. As at 31 March 2016, 64% of RHT's borrowings and loans are exposed to interest rate risk. This is a risk which investors need to take note of. 

The averaging down of StarHill Global would increase my existing holdings from 6000 to 9000 shares. My previous purchase price was $0.81. What I like about StarHill Global is the Management's ability to grow the DPU for the last couple of years. In order to protect the Group’s earnings from interest rate volatility and provide stability to Unitholders’ returns, Starhill Global REIT hedges substantially its interest rate exposure within the short to medium term by using fixed rate debt and interest rate derivatives including interest rate swaps and caps. Gearing is 35% and NAV is 0.92. It is currently trading below NAV and presents good buying opportunity at decent yield. Gearing is also healthy. My personal opinion is BUY at $0.73. But do your own due diligence before making any trade decision. 

Should I buy Apple now?

Apple just announced a Red colour version of iPhone 7 and iPhone 7+ last week. I just found out it is available in Singapore this morning. So is this a good time to buy now?  I mean iPhone. :P Not Apple shares. 

I am currently eligible for re-contract. Time to make some money from Apple. :)

The table below shows how much I could make with my M1 subscription plan. The amount is correct as of today but the buyback price can change anytime. The highest amount I can earn is $360 with iPhone 7+ 128 GB model. I have a $50 handset voucher so I could make $410 in total. But after 1st June, I would get an additional $50 voucher. The only concern is the buyback price would probably drop further by that time.

There's opportunity to make some money from Apple whenever we recontract our handsets. Thank you Apple! If we wish to get a Samsung phone when we recontract, we should still buy an iPhone from the telco and sell it to a handphone shop if the buyback price is good.

Let's assume I wish to get a Samsung A7. M1 is selling it for $348 based on my subscription plan.

If I buy it from outside handphone shop such as Mobilesquare, I could get it for $515 without contract.

If  I had bought an iPhone 7+ to sell, I made $360 with the above example. In the end, I paid just $155 (515-360) if I had bought the Samsung A7 from an outside shop. Not bad for a few hours work. Here's the blueprint to how to profit from Apple:

Step 1: Check which iPhone model could fetch the highest price.

Step 2:Get the iPhone from Telco (Hopefully there is stock). Request for it not to be unwrapped. If not, there could be a $10 deduction off the buyback price.

Step 3: Sell it off straightaway. If not, the price might change. Can also get a new phone from the shop at the same time.

Step 4: Profit!

Maybe I should wait longer and make more money from iPhone 8? :P

Reits Summary 28.3.2017

Wow. Today's the first time I witness only 2 companies with negative result. S-Reits handed in a very good report card today.  Well done! So which is the other company under retail sector that has a negative result?

The poor performers today are Fortune Reit followed by Croesus Retail Trust. :(

Just received a new homework in the mailbox today. I still have 2 unfinished assignments. :P

 

Reits Summary 27.3.2017

Best performing sector - Healthcare. Best Performer - Religare Health Trust.

Let's take a closer look at Healthcare sector. RHT registers a 3.45% increase in share price today. What causes the huge jump in comparison to the other 2 healthcare Reits?

The reason is due to possible buyout by Fortis Healthcare. RHT shareholders rejoice (or not)!   Bloomberg source Trading was halted early  in the morning after being queried by SGX. Response from RHT (pdf format). Will trading resume tomorrow? :)

I bought 3000 shares last month and my purchase price was $0.85. I haven't collect my first round of dividends yet. :(

At my purchase price of $0.85, I expect to receive above 8% of dividend yield based on past few years result. If my golden goose is going to get slaughtered, I hope it at least fetch a good price. Above $1.50 please. :)

What I learned From CRCT 2016 Annual Report (Part 1)

The following Post is a brief write-up on what I learnt from CRCT 2016 Annual Report.

Page 6 of the Annual Report shows the Financial Highlights. Compared to 2015, 2016 results have fallen slightly.

Page 8 shows Message from Chairman and CEO to Unitholders. CRCT is already 10 years old this year. It has grown from initial portfolio of 7 properties to the current 11 properties. This results in fourfold increase in Asset Value. Tony Tan has been working very hard.

It was also mentioned in the Message that NPI has been affected by higher tax provision for the Beijing Malls that took effect on 1 July 2016. Strengthening of SGD against RMB further impacted CRCT's distributable income.

7.3% distribution yield based on closing price of $1.37. Impressive. But what if we had bought CRCT at beginning of 2016 at a $1.50? The yield still works out at 7%. I am confident the returns from CRCT can far outperform the Singapore 10-year Government bond at the end of the 10 year period. The 10-year bond is however suitable for those with lower risk appetite. Why not compare performance with other China Reits instead?

Wow. Mall visits for investors. Include free air ticket and lodging? Where can I sign up?

To be continued . . .

Reinvestment Plan for Capitaland Retail China Trust

For the month of March 2017, I opted to receive dividends through Units instead of Cash for CRCT. Total Units received was 212.  The issue price of the new Units to be issued under the DRP in respect of the Distribution was S$1.383 per Unit which was a discount of 2%.

212 additional units. See, I not bluffing.

My forecast yield for CRCT is as shown below. Interest price is based on my reinvestment price of $1.383. My forecast yield for CRCT in 2017 will be lower than 7% . Based on Fri's closing price of $1.43, the yield is 6.62%. Would I buy CRCT now? No. I opted for Units due to the discount and I can save on commissions. Also, the Management team was able to grow the DPU for the past couple of years. CRCT is in my opinion the equivalent of Capitamall in Singapore.

Wow. I just recall I had received CRCT Annual Report CD last week. Going to do some reading later. Perhaps I will create another post on CRCT for entertainment purpose. :)

Migrating to Blogger

When I started this blog, I have created a WordPress.com blog at the same time. I have decided to use Blogger instead of WordPress due to customization limitations and the domain name assigned to me. For blogger, at least I have a choice. :)

I have manually migrated all the posts over at WordPress.

Goodbye, WordPress. :(
Hello, Blogger. :)

P.S I will miss the smiley characters and building photo at WordPress.