Gravity Pulled My Top Holding Back To Earth Today! I Look at FCOT's Latest Financial Result (4QFY2017). Conclusion.

Part 2 link here.

Portfolio Review

Frasers Commercial Trust's properties are located in Singapore and Australia.

Singapore's occupancy rate is 77.8%. Wah. So bad? Let's look deeper.

The lower occupancy rate is actually due to planned construction works for Hotel and Commercial Project at China Square Central. China Square Central is the largest contributor in FCOT's portfolio. However, the next slide does look worrying. Over 30% of portfolio lease expiry by gross rental income in 2018. It is already known news that HP Enterprise Singapore will not be renewing their lease at Alexandra Technopark. It does looks like a challenger year for FCOT in 2018.

 Let's delve deeper into their lease expiry profile. Alexandra Technopark's lease expiry seems to be of greatest concern here. According to a Straits Times article published on Oct 20, FCOT was still in talks with HPS on the lease expiry. Wasn't that a bit too late? According to this article, HPS contributed 11.1% of FCOT's gross rental income. Link to article here.

Let's look at FCOT's rental reversion. Overall, it's positive for FY2017. China Square Central's negative rental reversion is caused by their construction works.

37% of FCOT's leases have step up rents in 2018.

Alexandra Technopark's current AEI is due to complete in mid 2018. Hopefully, the rental yield could increase further after that.

Construction works at China Square Central is due to be completed by mid 2019. Wow. A long wait.

My Thoughts

There's 1 thing I like about FCOT is they have a distribution reinvestment plan. When their share price drops, I can opt to receive dividend in the form of Units. This helps me to save me on commission fees.The downside is I ended up having odd lots. However, I plan to keep this REIT for longterm so this is not much of an issue to me. However, for those interested in investing in this REIT, do take note of their lease expiry profile in 2018. 

Other Stuff that I Like:

Gearing: 34.7% (Healthy)

NAV: 1.58 (Trading below NAV. Current Price as at 24th Nov's Closing: 1.43.)

Steady Growing Dividend. Dividend Yield based 24th Nov's Closing Price: 9.82/1.43 = 6.87%

(I am getting more based on my purchase price)

Screenshot from Stocks.Cafe. Management has the capability to grow the DPU.

This concludes my blog post on FCOT's 4QFY17 Financial Results. The link to the actual report could be found at the link here if you are interested.

Stay Tune for this Upcoming Post: Is the Soil Still Fertile For This REIT?

Thank You!

Gravity Pulled My Top Holding Back To Earth Today! I Look at It's Latest Financial Result (4QFY2017).

Yesterday, I blogged about Frasers Commercial Trust's sudden rise in share price. Today, the price dropped by 2.04%. Most REITs' share price went down btw. At least for the 1s that I owned. 😭

Technical

RSI and Stochastic indicate overbought price. Divergence spotted. Hopefully, the support line at $1.43 can hold.

Screenshot from Chartnexus

Fundamental

As promised, I shall give a quick review on it's latest financial results which was released on 20 Oct 2017. Even though I already own FCOT's shares, I will try to be as unbias as possible. If I feel it's bad, I will say it straight. But that is strictly my personal opinion. I may feel it's bad but you may have a different opinion.  Disclaimer: I am just sharing my thoughts and interpretation of information that I have gathered so far. This Post is solely for information/education purpose only and should not constitute any buy or sell decision. As usual, dyodd before making any trade decision. Without any further ado, let's dive into it's results.

Alamak! First page of 4QFY17 Financial highlights doesn't look good. Nothing good on this page. "BAD" is added by me. That is not indicated on the actual report. Heehee.

Overall, the DPU for FY17 is stable at 9.82 cents. This may sound good or bad and depends on individual. If you have high expectations of this REIT, you may expect the DPU to increase.

Jialat lar. So many "BAD"

Portfolio valuations of Australia Properties Up. Nice!

As United States is likely to increase Interest Rate at the end of the year, it is better for REITs' borrowings to be on fixed rate.

Stay Tuned As We "Visit" Their Properties Next. To be continued...

My Top Holding Stock Just Went Up by 3.52% Today!

For those that have been following my blog, you will probably know Frasers Commercial Trust is currently my largest holding. Today, the price suddenly shot up by 3.52%. The rise in price happened during the late afternoon. So what news triggered this price rise?

Screenshot from Chartnexus. Look at that Long Candlestick! Breaking out from it's range with a huge Spike!

Screenshot from My SGX App

I checked the Spiking app and could not find any news related to BB buying. A check in SGX website did not return any positive news. With this price surge, FCOT is currently trading at it's 52-week high price. So is it a good time to reduce my position? My average purchase price is $1.333. My current dividend yield based on my purchase price works out to be 0.0982/1.333 x 100 = 7.37%. In my opinion, this is a very attractive yield. However, we would also need to examine their latest financial results to determine if this is a counter worth holding. 

Screenshot from Stocks.Cafe

To be Continued...

I Bought Back This Stock...

The stock which I bought back after selling it in August is none other than Religare Health Trust. I bought this Trust back in Feb which I also blogged about the purchase in an earlier Post. To read my RHT Post, simply type "RHT" in the Search bar at the right if you are using a tablet or desktop PC. I have recently changed the background photograph to reflect the market which I am investing in. Please also click on the Q-chance link so I can earn some affiliate commission if you are a Qoo10 shopper. 😀

Revenue and Beds Increase.

Potential additional bed capacity for the coming years

Beds...beds...

And More Beds...

Financials

Based on Unit Price of $0.855, the dividend yield is 5.5%

DPU drop y-o-y

The dividend yield is not exactly attractive in my opinion. The reason for the purchase is mainly due to the potential acquisition by Fortis Healthcare.

Analysts' Target Price

Things To Take Note Before Buying

CFO sold off his shares. Does that mean the buyout price is lower than his sell price?

Fixed interest rate is rather low and could be affected by rising interest rate

RHT distribution policy is at least 90% of distributable income which is currently at 95%. Net Asset Value is $0.835 and Gearing Ratio still remains low at 23.1%.

In the event that the buyout fails to go through, I will just have to stay calm and keep collecting dividends. Their annual report is also the nicest I ever seen so far. 😛

Multiply Your Money The Easy Way

Good news for DBS Multiplier Account holders! DBS has recently revised their interest rate for Multiplier Account and it is now even easier to earn higher interest rate the hassle free way! We will need to have at least 2 eligible transactions per month in order to earn the higher interests. 1 of the criteria needs to be Salary Credit. The other criteria could be credit card, home loan, insurance, or investments with the bank.

Take an example of someone who has $3000 salary credited into his bank acount every month. Assume he receives $50 dividend from shares and spend $10 on his DBS credit card every month, he would receive 2% interest per year! Previously, the criteria to earn 2% interest pa is way much higher. There is no lockin period for funds inside the Multiplier Account and we will receive interests the following month. I like the passive and hassle free way to earning higher interests as I do not need to have a minimum spending on my credit card or minimum investment amount in order to fulfil their crietria. I am using the POSB Everyday Card for my daily commute, receiving dividends in my bank account and also buying shares with DBS Vickers. 

The downside is only the first 50k in Multiplier Account will enjoy the higher interest rate. For those interested, can check out the link here.

However, depending on individuals, ocbc360 could be a better choice for higher interest rate if you could fulfil their conditions.

Disclaimer: I am not given any monetary incentive by DBS to promote their services. This is purely a public service announcement. Cheers!

My Dividend Income for Oct 2017

Once again, it's time to review my dividend income results for Oct 2017.

Stock Portfolio (Cash)

Similarly to Sep, my dividends for Oct is also experiencing a slight drop compared to previous year. This is mainly due to the absence of dividends from Suntec Reit and Soilbuild Business Space REIT. I sold their company shares this year.

Screencap from Stocks.Cafe

These are the companies that will be distributing dividends to me.

Frasers Centrepoint Trust - $89.10

Cache Logistics Trust - $318.987

Frasers Commercial Trust - $305.4965

Duty Free International Ltd - $75

Total - $788.58

Cache Logistics Trust is currently my largest holding. My top 3 holdings are as shown below.

A piece of  good news for Cache shareholders, Cache has settled their lease dispute amicably with Schenker Spore. Finally, my Cache position has chance to turn positive.

More dividend on the way for Cache unitholders

Bond Portfolio (Cash Inv, Unit Trust)

My Unit Trust bond portfolio sees an increase in dividend compared to previous month. In Oct 2017, I received $983.61 in the form of units compared to $966.17 in Sep. The increase was a result of my monthly purchase of UOBAM United Asian High Yield Bond Fund.

Total dividend income for Oct 2017 = $788.58 + $983.61 = $1722.19

Total dividend income for Sep 2017 = $144.66 + $966.17 = $1110.83

Options Trading Result

I also have an Options contract expire in Oct which netted me USD$525 in profits.

Oct 2017 Options Trading Result = USD$525 - $48.44 (comm + fees) = USD476.56

October 2017 has been a fruitful month compared to Sep. I am expecting a drop in dividend income for Nov and Dec. I will be on the lookout for companies and opportunities to buy more shares in the meantime. Stay tune!