S-REIT Investment Blog

Analysis of Far East Hospitality Trust - Running away

2020-01-16T08:30:00.000+08:00

Current Price on 15th Jan 2020 = $0.78

Yield = 4.67%
Price-to-book Ratio = 0.896
Assets per unit = $1.417
Debt per unit = $0.546 (including current liabilities, perpetual securities and non-controlling interest)
Gearing = 38.5%
Secured NAV = $0.871 (111% of trading price)

I sold Far East Hospitality Trust sometime last year and I have to say that I regret it a lot because ever since I sold it, it has been heading north. Here are the statistics.

With current yield of 4.67%, it is much lower than most REITs in the market. However, one attractive factor is that their secured NAV is at 111% of their trading price. It means that if they are selling off their properties today, we will be getting $0.871 per share which is fantastic. Moreover, this secured NAV is not tied to any loans which makes it even safer.

I forgot why I sell off much earlier last year already. Probably I was looking at other counters when I did it. But I failed to see the value of secured NAV then which would be much higher. Well, it is too late.

Their yield is very low as of now, trading closer to a bond offering which shows how secure their income is, considering that there is a lack of supply and demand is increasing in the hospitality sector.

Nevertheless, I am now vested with OUE Commercial Trust which has a hospitality component so will be looking at that first before any decision is to be taken. Having said that, Far East Hospitality Trust has moved too far and I am not going to chase it.

Analysis of LMIR - Divestment. What do they do with the cash?

2020-01-06T08:30:00.000+08:00

Current Price on 31st Dec 2019 = $0.225

Estimated Data after Divestment

Yield = 8.96%
Price-to-book Ratio = 0.721
Assets per unit = $0.725
Debt per unit = $0.413 (including current liabilities, perpetual securities and non-controlling interest)
Gearing = 57% (Classifying perpetual securities as debts)
Secured NAV = $0.312 (137% of trading price)

LMIR has recently announced that they plan to sell two of their malls at a discount to their NAV. Both their NAV and their Yield fell which is quite natural actually because of their assumption of placing the $120 million in fixed deposits which definitely will lower the yield. Above is the estimate of how it will look like after the sale.

I think the key is how they are going to use this cash of S$120 million to enhance the portfolio. In my opinion, they should focus on paring down debt of swapping some of their debts with cheaper loans. They have quite a lot of debts where their debt interest is very high at around 5% to 7%. Even margin accounts have lower interest rates. I guess the reason why they still take the loans is because their property yield is even higher at around 9%. I think they will use some of the proceeds to pay off a $75 million debt which is due in June 2020 (at 4.1%) but that is a relatively cheaper loan.

However, there is also another acquisition that is upcoming which requires cash. The property yield of that is 9.4% which is very high. Thus, if they deploy this cash to invest might still be a good idea. The only issue is that their gearing would still be very high.

This is a high risk REIT with high property yield and high debt interests as well. I am vested with 180,000 shares at about $40,000. As long as they can maintain their property, as much as possible pare down their debts to reduce their gearing, it is still worth to consider investing.

It has been a while... Thanks for being patient with me.

2019-12-31T09:58:00.001+08:00

Hi everyone,

It has been a long while since I blog about my investments. It has really been a busy year and somehow blogging about my investments took a back seat. However, I am still monitoring my investments but not as frequent as I should. There are missed opportunities which I am just thankful that I did not lose money.

2019 has been a good year because apart from the passive income that I am getting, I have also some capital gains which I am really thankful for. Here are the details.

Overall Capital: $423,000 (An increase of about $43,000)
Passive Income: $48,000 (About $4,000 per month)

It somehow cushion the great disappointment that I have in 2018 where I have to endure large capital losses. I also have to endure large drops from HPH Trust, Eagle Hospitality Trust and SoilBuild REIT which I am still holding on. I am just thankful that there are other counters like Accordia Golf Trust, Dasin Retail Trust, Sasseur REIT, Cromwell REIT, OUE Commercial REIT, Global Investment Trust which puts me back in the black.

Moving on to 2020, I am looking forward to about $50,000 worth of passive income which helps to pay my housing installment, car installment, and my utilities bills, telco bills. I am not expecting any capital appreciation as per normal in my budget calculations so that any capital gains are a bonus to me. I just hope that I don't endure anymore capital losses which is overwhelming.

Happy and Blessed 2020. I hope to blog more in the year ahead to keep up and do more detailed analysis as much as I can so that I am manage my portfolio better.

INVEST FAIR 2019 from 17th Aug to 18th Aug.

2019-07-22T17:00:00.000+08:00

This is just to let everyone know that there is another investment fair which is coming up on 17th Aug to 18th Aug. It is call INVESTFAIR 2019. Well, it would be great to invest your time in yourself through this fair to gain knowledge and wisdom. And It's Free! Moreover, if you pre-register (before 15th August), you get a free investment ebook. Here are the details

INVESTFAIR 2019

Date: 17th Aug 2019 - 18th Aug 2019

Venue: Suntec Singapore.

Registration website: http://sg2019.invest-fair.com/register

It could just be the greatest investment that you can make. So do sign up if you are interested.

Analysis of Keppel REIT - Big and Steady but...

2019-07-16T08:30:00.000+08:00

Current Price on 15th July 2019 = $1.26

Yield = 4.41%
Price-to-book Ratio = 0.962
Assets per unit = $2.223
Debt per unit = $0.914 (including current liabilities, perpetual securities and non-controlling interest)
Gearing = 41.1%
Secured NAV = $1.309 (103% of trading price)

It has been a while since I research on Keppel REIT. I remember it was one of my anchor investments a few years back. But I have sold it long time ago and never look back. They are a big REIT in terms of assets and market capitalization. Now I just want to take a look and see how far it has come.

With a yield of 4.41%, their yield is actually lower than some of the bonds that is offered in the market. It is probably one of the lowest yielding REIT currently. However, its price-to-book ratio is 0.962 which means we are still buying at a small discount to NAV. Moreover, all their debts are unsecured which means their Secured NAV is at 103% of their trading price. Thus, it provided quite a strong margin of safety.

I like its secured NAV because it shows how secure my investments will be and it is actually higher than the current trading price. Just that the yield is way too low to be attractive. If you want a more secure, stable big REIT, like a blue chip, this is a good one. But upside will probably be minimal unless they are able to improve their DPU in a substantial way. For me, I prefer to give this a miss as it is way below my criteria for yield.

Analysis of Mapletree Logistics Trust - Is it worth the price?

2019-06-24T08:30:00.000+08:00

Current Price on 15th June 2019 = $1.58

Yield = 5.12%
Price-to-book Ratio = 1.35
Assets per unit = $2.23
Debt per unit = $1.06 (including current liabilities and perpetual securities)
Gearing = 47.5%
Secured NAV = $1.17 (74% of trading price)

One of my friends messaged me saying that he has bought into Mapletree Logistics Trust and it prompts me to just take a look at it. MLT's share price shot up by a lot recently from $1.23 at the start of the year to its current price at $1.58. I took time to look at the statistics of this REIT.

Their yield is now at 5.12% which is quite low, probably the lowest among the industrial REITs. Their price-to-book ratio also seems to be very high at 1.35 which means we are buying at a premium of 35%. Their gearing is also quite high considering perpetual securities and non-controlling interest at 47.5%. The only saving grace is that they do have secured NAV of $1.17 which is 74% of its current trading price.

I wonder what prompt my friend to buy into this counter at this price where there are other suitable ones. Even if you are looking for a very strong sponsor, there is still Ascendas REIT and Fraser Logistics and Industrial Trust or even Mapletree Industrial Trust which all have better statistics. The only thing that would keep this counter at this price is the Fed Rate cut which benefit all REIT counters. I am not optimistic and think that this price is not sustainable.

Analysis of OUE Hospitality Trust & OUE Commercial Trust

2019-06-17T08:30:00.000+08:00

Current Price of OUE Hospitality Trust on 15th June 2019 = $0.705

Yield = 6.70%
Price-to-book Ratio = 0.94
Assets per unit = $1.233
Debt per unit = $0.483 (including current liabilities and perpetual securities)
Gearing = 39.2%

It has been a while since they have announced their merger with OUE Commerical Trust. It seems that the market does not really like the deal so the price of both REITs went down. I have made a calculation on the statistics about what happens after the merger and here it is.

Firstly, every 1,000 shares (which cost $705) will give you 1,358 shares of OUE Commercial Trust and $40.75 of cash payout. Therefore, I took $705 - $40.75 = $664.25. And use $664.25 / 1,358 shares and it gives me a conversion price of $0.489 of OUE Commercial Trust shares. So here is the statistics after conversion.

Conversion Price to OUE Commercial Trust on 15th June 2019 = $0.489

Yield = 7.36%
Price-to-book Ratio = 0.786
Assets per unit = $1.286
Debt per unit = $0.645 (including current liabilities and perpetual securities)
Gearing = 50.9%

And we compare it to OUE Commercial Trust before merger.

Current Price of OUE Commercial Trust on 15th June 2019 = $0.505

Yield = 7.13%
Price-to-book Ratio = 0.739
Assets per unit = $1.581
Debt per unit = $0.898 (including current liabilities and perpetual securities)
Gearing = 56.8%

From the statistics, it looks like a good deal for OUE H-Trust shareholders with increased yield, and better price-to-book ratio. For OUE Commercial Trust shareholders, its price to book ratio went up which sort of diluted their NAV although their yield is still quite comparable. Therefore it looks like a bad deal for OUE Commercial Trust shareholders and I do agree.

However, I do notice that gearing of OUE C-Trust went down from 56.8% to 50.9%. Do note that OUE C-Trust has substantial perpetual securities which is expensive. Although it is treated as equity in SGX, it is treated as debts in my point of view which is why their gearing is so high and different from their published gearing. I suspect that OUE C-Trust is facing issues which require their gearing to be brought down and this is probably one good way to bring it down substantially. In other words, OUE H-Trust is used to rescue OUE C-Trust.

Nevertheless, when a rescue is conducted, it is usually at favourable terms to the rescuer. Thus, OUE H-Trust shareholders will still benefit more (with increased yield and price-to-book ratio) while OUE C-Trust paid the price to achieve lower gearing and therefore more stability in its balance sheet.

I took the opportunity to enter 50,000 shares of OUE H-Trust at $0.68 earlier last month as I could not figure out why the drop is so substantial. I saw it more as an opportunity. And I guess if you want to earn based on the cheaper conversion price (of $0.489 compared to current price of $0.505), the opportunity is still there.

Analysis of LippoMalls Retail Trust - Is the worst over?

2019-06-06T08:30:00.000+08:00

Current Price on 30th May 2019 = $0.215

Yield = 10.23%
Price-to-book Ratio = 0.718
Assets per unit = $0.712
Debt per unit = $0.412 (including current liabilities and perpetual securities)
Gearing = 57.9%

LMIR is an Indonesian REIT which has a lot of bad news because of its parent trying to raise cash, which leads to LMIR acquiring property from Lippo Group. Details of the funding are still not out yet. But let's take a look at the statistics currently.

With a yield of 10.23%, it is the highest yielding REIT on SGX and it is very difficult to have acquisition can be yield accretive. I guess they need to use more debt which I doubt so because their gearing is already at 57.9% (including perpetual securities) Its price-to-book ratio is 0.718 which means we are buying at 28% discount which is also attractive. However, the problem is that the gearing is very high at 57.9% including perpetual securities. It will be great if it could reduce its gearing but equity is very expensive for LMIR.

For LMIR, the rupiah is finally relatively stable and I am not expecting rupiah to drop further. Therefore, its DPU should now be stable. For now, the key is managing debt rather than acquisition. If they are able to reduce their gearing or reduce their interest expenses, it will be very helpful to DPU.

I have just bought another 150,000 shares at $0.21, increasing my shareholdings to 180,000, giving me a potential return of $330 per month. Will be increasing my holdings soon once they start their rights issue.

Analysis of Eagle Hospitality Trust - A rare opportunity after price drop.

2019-05-30T14:06:00.003+08:00

Current Price on 30th May 2019 = US$0.70

Yield = 9.13%
Price-to-book Ratio = 0.795
Assets per unit = $1.541
Debt per unit = $0.66 (including current liabilities)
Gearing = 42.3%

Eagle Hospitality Trust has just been listed at a price of $0.78. It is under-subscribed which means there is very little demand and it is natural that the price dropped to US$0.70. However, now at this price is it very attractive? Let's take a look at the statistics.

The current yield is at 9.13% which is extremely high. Only LMIR has a higher yield but it is based in Indonesia while Eagle Hospitality Trust is at the United States. Moreover, its price-to-book ratio is at 0.795 which means we are buying at a 20% discount which is also attractive. Gearing is at 42.3% which is quite high actually.

I subscribed 5,000 shares through IPO which I regretted because I did not really look at the news relating to this IPO. However, after the price drop, I thought that it is attractive enough so I bought another 30,000 shares at $0.705. It is still at this price but I am a long-term investor so, with this price which I thought was fair, I will be enjoying the dividends that they are giving out.

* REITs Symposium Advert*

2019-04-13T14:50:00.002+08:00

***This is a sponsored post. And this is probably the first time you see such a post here :-)***

I would like to share an upcoming REITs Symposium where we can get to learn and know more about REITs directly from the people in the industry.

Date:18th May 2019, Saturday

Time: 9am to 6pm

Venue: Sands Expo and Convention Centre, Level 4, Roselle Simpor Ballroom

Price: As below.

Just some more info for you to know what to expect.

- Guest of Honor will be Mr Loh Boon Chye, CEO of SGX

- More than 75% SREITs will be present

- Face time with the REITs managers

- Panel discussions where attendees can post their questions online

- A feature which focused on REITs 101 – educating beginner investors to kick start investing in this asset class such as how to evaluate the metrics of a REIT.

BONUS: When you key in my promo-code "sreitinvestmentblog", you will receive a mystery gift from them. And it is only for the first 30 sign-ups.

So here is the link and the price.

$15 option – http://www.shareinvestor.com//sg/events/signup?id=1393

$24 option with Carpark Coupon – http://www.shareinvestor.com//sg/events/signup?id=1394

Enjoy.

Analysis of Dasin Retail Trust - Almost unchanged, Just collect dividends

2019-04-11T08:30:00.000+08:00

Current Price on 7th Apr 2019 = $0.865

Yield = 8.46%
Price-to-book Ratio = 0.554
Assets per unit = $3.005
Debt per unit = $1.443 (including current liabilities)
Gearing = 48.0%

Three months have passed since I look at Dasin Retail Trust and here we see it again.

The price has not changed much but I have collected a dividend of $4,600 which is very good for me. With the current yield of 8.46%, I am expecting to collect another $4,200 in August/September period which is fantastic for me. It's price-to-book ratio also suggest that we are buying at a big discount. Gearing is at a high of 48% so need to watch out.

With the current Hyflux problems, I have come to realize that the valuation can be misleading and unreal since Hyflux gives such a big writedown in their assets. I am wondering how valuation companies do their valuation and whether it is reliable. So far, I have relied on them to make my investment decisions but I am starting to question.

Nevertheless, I am still holding on to 120,000 shares which I am thankful for as I got it at a relatively cheap price. Will continue to hold on.

Before you go, I would like to share an upcoming REITs Symposium where we can get to learn and know more about REITs directly from the people in the industry.

Date:18th May 2019, Saturday

Time: 9am to 6pm

Venue: Sands Expo and Convention Centre, Level 4, Roselle Simpor Ballroom

Price: As below.

BONUS: When you key in my promo-code "sreitinvestmentblog", you will receive a mystery gift from them. And it is only for the first 30 sign-ups.

So here is the link and the price.

$15 option – http://www.shareinvestor.com//sg/events/signup?id=1393

$24 option with Carpark Coupon – http://www.shareinvestor.com//sg/events/signup?id=1394

Analysis of Far East Hospitality Trust - Is the price too high?

2019-04-04T08:30:00.000+08:00

Current Price on 26th March 2019 = $0.675

Yield = 5.93%
Price-to-book Ratio = 0.775
Assets per unit = $1.417
Debt per unit = $0.546 (including current liabilities and perp securities)
Gearing = 38.5%
Secured NAV = $0.871 (129% of trading price)

Far East Hospitality Trust has risen by quite a bit this year at $0.675. I am vested with about 104,000 shares (I took scrip dividend) worth about $70,000. Let's take a look at the statistics.

With a yield of 5.93%, it seems very low now compared even to its peers like CDL H-Trust, OUE Hospitality Trust, Fraser Hospitality Trust etc. But its price-to-book ratio is at 0.775 which means we are buying at a 23% discount to its valuation. It is ranked the best among its peers. Gearing is at 38.5% and because all its debts are unsecured, we have a secured NAV of $0.871 which is 129% of its trading price.

I do find it very strange because it is the lowest yielding hospitality REIT and yet its price is moving up. Frankly speaking, it no longers fits into my criteria of at least 8% yield by a large margin and I have been pondering for a while whether to sell it off. What is holding me back is its price-to-book ratio and its secured NAV. Its secured NAV is the highest among the REITs in SGX.

There are a lot of reports which upgrade its target price to 70 cents and 75 cents which is very high. Probably its stability contributes to its current trading yield but I am not so sure. Looking around to see whether there are better REITs which offer higher yield with similar metrics.

Analysis of Sasseur REIT - Recent Buy brought dividends

2019-03-28T08:30:00.000+08:00

Current Price on 20th March 2019 = $0.72

Yield = 9.84%
Price-to-book Ratio = 0.797
Assets per unit = $1.488
Debt per unit = $0.584 (including current liabilities and perp securities)
Gearing = 39.3%

Sasseur REIT is my latest buy (which I have posted earlier.) During that time, I figured out that it is worth a buy and I have to admit not buying my usual amount of shares. Nevertheless, still grateful for the increase in price and the dividends collected. Let's take a look at the statistics.

With 9.84%, it is the one with the highest yield currently. With its price-to-book ratio at 0.797, we are buying at about 20% discount to their valuation which is also attractive. Gearing is at a safe close to 40% but need to watch this.

REITs with China properties are giving high yield with discounts to NAV for us to invest and Sasseur REIT has really performed well since this year. I am holding on to 60,000 shares but will be holding on long term as long as they are able to provide me with a steady stream of income.

Analysis of Global Investment Limited

2019-03-21T08:30:00.000+08:00

Current Price on 20th March 2019 = $0.128

Yield = 7.81%
Price-to-book Ratio = 0.658
Assets per unit = $0.196
Debt per unit = $0.001 (including current liabilities and perp securities)
Gearing = 0.4%
Secured NAV = $0.196 (104% of trading price)

Global Investment Limited has been trading quite steadily at around $0.128. I am vested with over 500,000 shares so naturally I will watch it closely. Let's take a look at the statistics.

Yield is currently at 7.81% which is decent actually although there are REITs which gives higher yield. This is of course pales from the earlier days where it gives 11% yield. It's price-to-book ratio is 0.658 which means we are getting at 35% discount to its net asset value. Because it has no debt, all their assets are considered secured.

I have read public reports that says that China debts are defaulting by quite a lot so their exposure to China domestic debt is quite a concern even though it is rated at AAA. They have $55 million invested in it which is about 15% of their NAV. Therefore if it is wiped out, its NAV will reduce by 15% only.

They have also commence share buy back which shows that the management thinks that their shares are very much undervalued that buying back shares is considered a good investment. This is good for shareholders because our holdings will increase because the denominator aka total number of shares are decreasing.

Overall, I think it is quite stable and fairly valued. I will be just holding it to collect dividends which they would generate every half a year.

Portfolio Updates - A good start to the year (consoling for me)

2019-02-04T08:30:00.000+08:00

2019 started off very well as my portfolio recovered partially. Not in all but it has consoled my heart. Here are some of the updates.

Asian Pay Television Trust

I have a residual portfolio of 32,000 shares which I sold it earlier this year at $0.127. I know that it has recovered but I was looking at the statistics and I don't think there is any reason for it to go up. Thus, I sold it off and look for other opportunities.

Sasseur REIT

Looking at the statistics of Sasseur REIT and the recent drop in price, it has become attractive that I actually bought 60,000 shares at $0.64. Thus it is worth about $38,000. The reason is that it is trading at an attractive rate of 9.6% yield and it is also trading at the discount to its NAV. Currently, it is the highest yielding REIT which is still trading below NAV, especially most of other REITs have rallied and thus it is less attractive.

Overall Portfolio

With that, my current portfolio is giving me about $3,800 dividends every month on average. It seems that I have an additional person working and contributing to the family and it helps to pay off a lot of my bills. I have included my car loan and my renovation loan into the calculations which isn't necessary as it is not part of the investment portfolio. Just to include and see how it works out for me.

Lastly, have a blessed new year to all readers.

Analysis of Soilbuild REIT - A pleasant surprise

2019-01-22T08:30:00.000+08:00

Current Price on 21st Jan 2019 = $0.605

Yield = 9.59%
Price-to-book Ratio = 0.961
Assets per unit = $1.176
Debt per unit = $0.547 (including current liabilities and perp securities)
Gearing = 46.5%
Secured NAV = $0.629 (104% of trading price)

Soilbuild REIT has published their results which has given me pleasant surprises. Let's take a look at the statistics.

The yield has increased to 9.59% which is very high, probably the highest in the market right now. Moreover, their price to book ratio is at 0.961 which means we are still buying at a discount although it is a small one. Gearing is at a high of 46.5% only because I have placed perpetual securities under debts instead of equity. It is still high so the risk is there.

It is a pleasant surprise because it is not easy to get such a yield now with reasonable margin of safety aka trading at discount to NAV. I am already holding on to 100,000 shares here, getting myself $1,450 as dividends in this cycle. I think it is great and I am considering adding more into my current portfolio.

Analysis of Sabana REIT - It has to get better

2019-01-14T08:30:00.000+08:00

Current Price on 13th Jan 2019 = $0.405

Yield = 9.38%
Price-to-book Ratio = 0.689
Assets per unit = $0.962
Debt per unit = $0.374 (including current liabilities)
Gearing = 38.9%
Secured NAV = $0.255 (68% of trading price

Sabana REIT is one of my key investments despite all the negative media reports which they attract. It helps to push the price down and lowered my entry price which I thought was good. Here is the analysis.

With a yield of 9.38%, it is one of the highest yielding REIT in SGX. Probably Sasseur REIT has a higher yield. LippoMalls Indonesia REIT's yield has dropped with the recent rally back to their previous price and is now lower than Sabana REIT. Their price-to-book ratio is 0.689 which means we are buying at more than 30% discount to NAV. Gearing is at a pretty healthy state of 38.9%.

With the recent change in CEO and him addressing the media, getting the lease in so that our revenue improves, I just thought that it could only get better. With higher yield, their price should go up to a level for small REITs which is around 8.5%.

I am holding on to about 160,000 shares, giving me a good yield of about $500 per month (aka $1500 per quarter). Not bad. It is substantial enough to pay some of my bills. With the recent outlook, there is room to hold on to these shares.

Analysis of Dasin Retail Trust - Quietly secure

2019-01-08T08:30:00.000+08:00

Current Price on 28th Dec 2018 = $0.85

Yield = 8.61%
Price-to-book Ratio = 0.544
Assets per unit = $3.005
Debt per unit = $1.443 (including current liabilities)
Gearing = 48.0%

Dasin Retail Trust is one of my anchor investments in my portfolio and it is probably the only one which has managed to maintain their price level despite the broad-base drop in the market. Let's take a look at the statistics.

The statistics has not changed much with a 8.61% yield, one of the higher ones in the market. And its price to book ratio is 0.544 which means we can buy at a 46% discount to NAV, also one of the most attractive. Gearing is at a high of 48%. Their yield and discount to NAV is probably one of the most attractive ones in the market.

I already has 120,000 shares earning me $732 per month. Just looking to enjoy the dividends since I already hold so many shares.

Analysis of Hutchison Port Holdings Trust - Would it be the same as APTT?

2019-01-04T08:30:00.000+08:00

Current Price on 28th Dec 2018 = S$0.335

Yield = 8.77%
Price-to-book Ratio = 0.434
Assets per unit = $2.138
Debt per unit = $1.366 (including current liabilities and non-controlling interest)
Gearing = 63.9%

While reading and refamiliarising myself with HPH Trust, I realize that there is a substantial non-controlling interest appearing as equity in the balance sheet which unitholders don't own. Thus, it affected the price-to-book ratio which I have always been using to calculate so now I am including it as liabilities for ease of comparison for people like us. Here are the statistics.

With 8.77%, it is yielding high although I think it is not high enough considering that it is a port trust rather than a real estate investment trust. Its price-to-book ratio is rerated to be 0.434 which means wer are buying at less than half the price even after re-rating. Including all other equities as liabilities in the balance sheet, we see a gearing of 63.9% which is extremely high. This is probably the reason why it is trading at a depressed price.

With the crash of APTT (which wiped out my earnings), many people are saying that HPH Trust is next. I won't say so. The reason is that Port assets are still valuable, visible and more stable compared to pay tv business where it face fierce competition and probably will die down. Of course, I realize it too late and got burnt earlier. But I don't think it is the case here. Port business is still relatively stable with high requirements. I think the problem is earnings margin which is very low. A small change in percentage of business is likely to have a large impact of its earnings. This one, we need to watch out.

I am holding on to 200,000 shares which gives me a yield of $500 per month. However, unless there is an upturn in the business, I don't think there are any room for upside. Nevertheless, the yield is high enough for me to hold on for long term.

Analysis of ESR REIT - Transiting into the league of big boys.

2019-01-02T08:30:00.000+08:00

Current Price on 28th Dec 2018 = $0.505

Yield = 8.37%
Price-to-book Ratio = 0.985
Assets per unit = $0.956
Debt per unit = $0.443 (including current liabilities)
Gearing = 46.4%
Secured NAV = $0.513 (101% of trading price)

ESR-REIT is currently my biggest holdings with about 329,000 shares worth about $166,000. It is earning me a monthly dividend of $1,100 which helps to pay a lot of my bills. This is because of the merger earlier with Viva Industrial Trust where most of my holdings in Viva Industrial Trust is converted to ESR REIT (and coupled with my original holdings). It looks a lot so may pare down but let's take a look at the statistics first.

With a yield of 8.37%, it is quite attractive. In fact, REITs with similar size (Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics Trust) are yielding at a range of 6-7%. Moreover, they are trading at a slight discount while its peers are trading at a premium of 20% on average. Thus, looks like when the synergies are completed, the market will realize its value of being among the big boys and its price should move upwards. A comparative price level should be about 60 cents which gives an upside of about 20%.

I am more concerned whether there are downsides which I still can't find any as of now so I am holding on to my shares at the moment. They are giving a nice dividend so no complaints about it. Maybe after the price increase then we look at offloading. Do note that it will take some time and I believe it is about a year for it to go up to 60 cents.

Analysis of Global Investment Trust

2018-12-27T09:46:00.004+08:00

Current Price on 28th Dec 2018 = $0.106

Yield = 9.43%
Price-to-book Ratio = 0.526
Assets per unit = $0.204
Debt per unit = $0.003 (including current liabilities)
Gearing = 1.3%
Secured NAV = $0.201 (189% of trading price)

It has been a while since I blogged so I am trying to do catch up now. Here is an analysis of Global Investment Trust, one of my key investments (about 600,000 shares)

Global Investment Limited is yielding 9.43% which is high despite them cutting dividend to one cent per year. This is probably due to the recent drop in price which makes it attractive. Moreover, its price-to-book ratio is 0.526 which is almost about half price compared to their NAV. They have no debts so their assets are fully secured.

I have been looking at trying to see why their price dropped. And it is probably due to their investments in China Domestic Bonds this year which the market view negatively. They are rated AAA by their domestic rating agencies which means it is highly unlikely that it will default. The problem is reputation which the market questioned.

I have about 600,000 shares in this, giving me a decent yield and with such statistics which we have not seen in the recent years, there is a chance that I sell some of my other holdings to buy into this.

It has been a while... My portfolio after the broad-based drop and a whammy from Asian Pay Television Trust.

2018-12-15T06:58:00.000+08:00

It has been a while since I write a blog here and I must admit that I am too busy with my own things to continue to analyze and keep up with my investments. Thus, I was very late in realizing that the market and therefore my portfolio has fallen by quite a lot which emotionally I was very sad.

Moreover, I was hard hit by the sudden drop of Asian Pay Television Trust which has hit me really hard. Together with the broad-based correction of the market, the hard work that I have painstakingly built up, dividends and the profits were all returned back to the market. To think back, there were tell tale signs in the beginning but I have foolishly ignored them. Anyway, I have sold them, believing that it will not recover back to the previous levels based on current metrics.

One thing that I have learnt is that investing can't be passive as what I have always believed. When I am doing well is because of close monitoring, able to pick up signals early and act on them. It may not be a full-time job, but it is never passive. Thus, my lesson is that I need to be a lot more active, alert even in the midst of busyness, continue to update this blog which tracks how closely I am monitoring. (That's is how I check myself).

Anyway, this is my portfolio as of now. Not nice and pleasant to see if you compare it with my previous postings. But just thankful that not all is gone. Starting all over again, with a bit of caution, and a bit of fear.

Analysis of Dasin Retail Trust - An Anchor investment for me

2018-07-18T08:30:00.000+08:00

Current Price on 17th Jul 2018 = $0.865

Yield = 8.46%
Price-to-book Ratio = 0.554
Assets per unit = $3.005
Debt per unit = $1.443 (including current liabilities)
Gearing = 48.0%

Dasin Retail Trust is one of my closely-watched counter. It is also one of my anchor investments which I have gained much from it. I have recently purchased another 40,000 shares at $0.865 sometime last month. Let's take a look at the staitistics.

With the current yield of 8.64%, it is one of the highest yielding REIT in SGX. However, LippoMalls Retail Trust and Sasseur REIT are trading at a higher yield. What is attractive is that concurrently it is trading at price-to-book value of 0.554 which means we are buying at 45% discount to its valuation. This provides some form of margin of safety for investors. Gearing is also at a high of 48.0%.

With the recent purchase, I am vested with 120,000 shares, enjoying an annual dividend of $8,700 which probably can pay for my car instalment. :-) I am still holding on to it and enjoying it.

Analysis of Far East Hospitality Trust - Recent drop makes it attractive

2018-07-11T08:30:00.000+08:00

Price on 10th July 2018 = $0.625

Yield = 6.02%
Price-to-book Ratio = 0.718
Assets per unit = $1.417
Debt per unit = $0.546 (including current liabilities and perpetual securities)
Gearing = 38.5%

Far East Hospitality Trust has dropped quite a lot recently. To be frank, I was queueing to sell at $0.655 last month but did not make it. Wasn't reactive enough to sell it quicker at a lower price so I am still holding on to about 103,000 shares. Before I make the next move, let's take a look at the statistics.

With a 6.02% yield, it is not attractive at all. This is probably my lowest yielding investments in my portfolio currently. What makes it attractive is its price-to-book ratio which is at 0.718. It means we are buying at almost a 30% discount. This is quite rare considering that all their properties are based in Singapore. Gearing is at a healthy 38.5%.

It has fallen from a high of $0.775 in the beginning of the year and I really regret not selling earlier. I was persuaded by the project that they are embarking on, the recent acquisition that they had which led me to believe that their distributions will be on the increase. However, I don't think I am right in this sense and the wait is longer than I expected.

Having said that, $0.625 pricing is already quite low and its price-to-book ratio is already very low as well. I am continuing to hold on to this, and hold on to my previous belief as well, until a better opportunity arrives.