Is this REIT a value Buy at it's Current Price? - Conclusion

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions about stocks. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

Part 1 :  Link

Capitaland Retail China Trust has recently released it's quarterly result. I have highlighted the portion which I as a shareholder would be interested in. The headline may looks good that distributable income have risen by 10% but more Units could be issued which end up diluting our income. End of the day, growth of DPU matters most to income investors. Fortunately, DPU does improve y-o-y amid not exactly a stellar result. With that said, would CRCT still be a good buy?

Based on an annualised DPU of 10.59 cents and a closing price of $1.54, an annualised dividend yield would be 6.9%. Whether that's an acceptable yield would be up to individual. My recent purchase price was $1.49. Based on that purchase price, my dividend yield would be 7.11%. The total number of CRCT shares that I owned at the time of writing this post is 11422 shares. 

Latest Financial figures:
Occupancy - 97.4%
Gearing - 32.1%
2Q 2018 DPU - 2.64 cents , 0.8% increase y-o-y
NAV - $1.71 (discount to NAV)
Average Cost of Debt - 2.60%
Interest Coverage - 5.9%
Unencumbered Assets - 100%
80% of debt is hedged into fixed rates

Those interested in purchasing some retail REITs shares, could compare some of these  metrics with other retail REITs to decide which stock would make a better purchase at their current price and dividend yield. What I like about CRCT is the option to receive dividends in the form of Units. If the price continues to fall, I could elect to receive Units instead of Cash. The downside is ending up with odd lots. Since I plan to hold this stock for longterm, this issue doesn't matter to me.

My Stock Dividend Income For July 2018 - Crossing the 2k mark

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions about stocks. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

Stock Portfolio (Cash)

The following companies will be contributing to my July 2018 Dividend Income:

Contemplating selling 1 of the companies in the above table. 

Good news for Frasers Logistics & Industrial Trust shareholders who hold the company shares on 18th May. We will be receiving extra pocket money on 7th Aug. XD should be 19th May and not 16th May as shown above. I also bought more Frasers L&I Trust shares using CPF OA this month.

RHT Health Trust has also finally repaid the outstanding amounts for 9MFY2018 and 4QFY2018 due from Fortis. My dividend income in a single month has also finally crossed over 2K with this payment. This will probably be the highest amount I would ever see for 2018.

A dividend of a thousand dollars begins with a single step. Save. Invest. Repeat.

Is this REIT a value Buy at it's Current Price?

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions about stocks. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

Background

The company that I want to blog about today is none other than Capitaland Retail China Trust. This REIT may have slipped under the radar of many investors as I don't really hear many people talk about it and the transacted volume is not as high compared to it's big bro, Capitaland Mall Trust. Disclosure: I currently own some shares in this REIT .

I have read it's presentation slides for Citi ASEAN C-Suite Investor Conference 2018 held in June 2018. As usual, I will highlight some points in the slides that I find worth noting for this REIT.

The beginning of the slides already caught my attention. The dividend yield was reported at 7.1% based on annualised 1Q 2018 distribution per unit of 11.15 cents at closing price of $1.58 on 31 March 2018. That's a very attractive yield compared to most of the Retail REITs with malls located in Singapore. However, yield is not everything. Let's look at other financial figures to find out if CRCT is really attractive at current pricing. The share price is currently lower than $1.58 at the time of writing this blog post. This means the yield is even higher!

Above 7% dividend yield! Nice!!

The REIT Manager is capable of growing the assets and distributable income steadily over the last 10 years.

Gearing looks good at 32.5% . Cost of debt is only 2.51%. As a comparison, CMT's cost of debt is 3.2% and interest coverage is 4.8%. Since we are now in a rising interest rate environment, it is especially important that the REITs that we own has a low cost of debt and a high interest coverage. Similar to CMT, all CRCT's properties are 100% unencumbered. 

The Manager has completed a 51% stake acquisition of Rock Square Mall in Jan 2018 as a joint venture. Occupancy of this Mall has improved to 97.1% from previous 96.4% and the rental reversion rate has improved immensely by more than 20%. This demonstrates the capability of the REIT manager to improve occupancy and rental rate of it's malls.

The slide below shows the occupancy rate of it's various malls. 1 thing to note is there are currently 2 malls under stabilisation. We should expect the DPU to further grow after the stabilisation has completed. 

The slide below shows the rental reversion of the Malls. Most of the Malls have positive rental reversion. There are only 2 malls with negative reversion and the reasons are shown under Notes.

Current NAV is $1.67. Share price as at 18 July 2018 is trading at a discount to NAV.

To Be Continued ...

My Stock Dividend Income For June 2018/ I bought more shares of this REIT

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions about stocks. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

Stock Portfolio (Cash)

The following companies will be contributing to my June 2018 Dividend Income:

June is a typical low dividend period for my portfolio. I will be expecting another fat angbao from RHT Health Trust in Aug as they finally distribute the outstanding dividends owed by Fortis Healthcare.

July will be an exciting month as REITs start to report their quarterly results.  I picked up more Ascendas Hospitality Trust shares in June. I added after they acquire 3 Osaka hotels. Yes. After the earthquake. I siao? Keke. There's no damages to their properties and I believe they should have some insurance policies against such events. I see that as an opportunity to buy some more at discounted price against NAV and at an attractive yield. In fact, the share price was quite resilient after the quake. My recent purchase price was $0.77 which was higher than my initial purchase price of $0.71. I now have a total of 20000 AHT shares after the purchase. Looking forward to juicy dividends from them in Nov. DBS gave it a Buy Call. link

My First Month's Forex Trading Results Using The New Strategy

Background

This is an update to my earlier blog post regarding trading Forex. The post could be found: here. The trading was done using a demo account. When trading a new forex strategy, always use a demo account first. There are people who feels that trading a demo account is unlike the real thing as it doesn't take the human trading psychology into consideration. No real money is at stake here. However, think about it. If you are not successful trading a demo account, what's the chance of making money trading live? A demo account could actually boost your confidence in the trading strategy before going live. The difference between a demo account and live account is no real money is involved. Of course the broker may offer you $100k of play money to trade with. Always choose the amount that is closer to the amount you would trade with in real live. Take at least 100 demo trades following your trading plan before trading real money. Your trading plan should consist of your trading strategy and money management rules. You could also include stuff such as the time you would dedicate to trading per day/week, the currency pairs to trade etc. 


My Trading Results

My Forex Trading results for the month of June is as follows. My account was up by $415.69. That's an increase of 3.95% for the month of June. Of course, that's not a stellar performance compared to what some gurus would like to tell you. I could trade higher lot size to boost my account faster. However, that would also mean larger draw downs if several trades go against me consecutively. Traders will need to mentally deal with losing trades and the feeling is different when the amount involved differs. I was only risking 0.5 - 0.7% of my account per trade. 

I did a total of 25 closing trades during June. I have 2 open trades currently which should close next week. I trade 15 min charts and my trades are usually less than 1 day. I trade during US and London market opening hours. I do not stare at the charts whole day. When there's valid setup, I would place trades with stop loss and take profit price. If the entry price hasn't been reached, I would set price alert on my mobile to inform me when the price is hit. I may also set pending order. As could be seen from the screencap, not all my trades turn into winners. However, with the proper money management rules in place, my account still turn out to be profitable at the end of the month. I blogged about Money Management in an earlier post which could be found: here.

The table below is taken from Myfxbook which shows how risky is the way I trade. There is less than a 0.01% than my account size would take a 10% loss. It would take 24 consecutive losses to achieve that. I would continue to trade demo until 100 trades are reached. A sample size of 25 trades and 1 month's result is still insufficient to go live in my opinion.

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