Portfolio Update - 02 Jun 2018

Commentary

The positions in oil exposed counters are doing well. I would continue to add my positions for these counters. 

Positions Added/Reduced

I added positions in AIMSAMP, capitaland, ascott reit, TSM, Royal Dutch, VDE, Exxon Mobil, Schlumberger

I reduced my positions for Raffles Medical 

Cash is 14 % of my portfolio. 

Counter (Singapore) 
1. Raffles Medical
2. CDL HTrust 
3. Capitaland 
4. Capitaland Commercial Trust

5. Manulife REIT USD

6. Ascott REIT

7. Ascendas REIT

8. AIMSAMP CAP REIT

Counter (USA)
1. VNGRD ENERGY 
2. Transocean

3. Schlumberger

4. Qualcomm

5. Royal Dutch

6. Exxon Mobil
7. TSM

Realised Gains (Since 2009) 
SGX Counters - S$162,457.26 + US$240.35
USD Counters - US$654.77

Dividends (Since 2009) 
S$69,636.27

Dividends (2018)

S$5147.00

Portfolio Update - 18 Dec 2017

Commentary

Nov and Dec 17 are active months for myself. I have added several positions listed in the US.

Positions Added/Reduced

I have added positions for VDE, Qualcomm, Exxon Mobil Dutch Shell, Taiwan Semiconductor Manufacturing, Ascendas REIT, AIMS AMP CAP REIT, and Capitaland. I increasing my exposure in oil and gas sector and semiconductors space.

I have reduced my positions in Capitaland Comm Trust.  Yield at 4.2% seems low due to the run up in prices.

Cash is 10 % of my portfolio. 

Counter (Singapore) 
1. RafflesMG

2. CDL HTrust 

3. Capitaland 

4. Capitaland Commercial Trust

6. Manulife REIT USD

7. Ascott REIT

8. Ascendas REIT

9. AIMSAMP CAP REIT

Counter (USA)
1. VNGRD ENERGY 
2. Transocean

3. Schlumberger

4. TSM

5. Qualcomm

6. Royal Dutch

7. Exxon Mobil
Realised Gains (Since 2009) 
SGX Counters - S$148,511.01 + US$240.35
US Counters - US$623.75

Dividends (Since 2009) 
S$64,030.07

Dividends (2017)

S$7,518.87

Portfolio Update - 15 Oct 17

Commentary

Sep and Oct 17 seems to be quiet months for the stock market. For me, I had subscribed to a two rights issues and added positions in some oil and gas counters. I had increased my positions in a few SG REITS.

Positions Added/Reduced

I have added positions for Ascott REIT, Ascendas REIT, Manulife REIT and Capitaland Commercial Trust. I have sold my positions in Capitaland Retail China Trust. The yield at 6% seems low for the exposure. I will deploy the capital to other REITs with a higher yield (i.e Manulife or AIMS)

I have also added positions in Schlumberger. Positioning for a potential recovery in oil and gas sector.

Cash is 19%of my portfolio. 

Counter (Singapore) 
1. RafflesMG

2. CDL HTrust 

3. Capitaland 

4. Capitaland Commercial Trust

6. Manulife REIT USD

7. Ascott REIT

8. Ascendas REIT

9. AIMSAMP CAP REIT

Counter (USA)
1. VNGRD ENERGY 
2. Transocean

3. Schlumberger

Realised Gains (Since 2009) 
SGX Counters - S$144,699.78 + US$240.35
US Counters - US$623.75

Dividends (Since 2009) 
S$63,170.78

Dividends (2017)

S$6659.58

Portfolio - 18 Aug 17

Commentary

Jul and Aug 17. I have made a change in my investment strategy. I begin to think that investing for income to ensure cashflow will be important when I reach my forties. Therefore, I will start to invest in positions that will yield me a decent amount of dividends moving forwards.

Raffles Medical has lost a fair bit of ground due to stagnant revenue. I believe the counter will suffer within the next one or two years but revenue grow will pick up again once the hospitals in China is ready and operational.

Positions Added/Reduced

I have added positions for Ascott REIT, Ascendas REIT, AIMPSAMP, Manulife REIT. These are the top performers in their sector. AIMPSAMP and Manulife REIT are added due to their attractive yield (>7%)

I have also added positions in Schlumberger. The biggest oil field service providers with a decent dividend yield at 3% despite the doldrums in the oil and gas markets.

I am also thinking hard if I had made the right decision for transocean. The counter is taking on alot of risk with the acquisition of Songo Offshore. The aggressive move while strategically makes sense but the paying a high price and taking on leverage might not make sense as the near term when the offshore industry is in a bad shape.

Cash is 27%of my portfolio. 

Counter (Singapore) 
1. RafflesMG

2. CDL HTrust 

3. Capitaland 

4. CapitalR China Tr 

5. Capitaland Commercial Trust

6. Manulife REIT USD

7. Ascott REIT

8. Ascendas REIT

9. AIMSAMP CAP REIT

Counter (USA)
1. VNGRD ENERGY 
2. Transocean

3. Schlumberger

Realised Gains (Since 2009) 
SGX Counters - S$144,030.22 + US$240.35
US Counters - US$1,479.71

Dividends (Since 2009) 
S$60,330.59

Dividends (2017)

S$3,819.39

CDL Hospitality Trust (CDLHT) Rights Issuance

Transaction Overview

CDLHT recently acquired two properties, Pullman Hotel Munich and Lowry Hotel Manchester in Germany and UK respectively. Due to the acquisition, the gearing ratio of the trust increased to 42.6%. The gearing limits the ability for the trust to pursue other acquistion in the future, hence it needed to raise equity to reduce the gearing ratio. The rights will be issued at S$1.280 per rights stapled security.

The analysis is divided into two parts.

Firstly, are the acquisitions by CDLHT accretive to the overall property yield of the trust?
Second , should you subscribe to the rights issue?

1) Are the acquisitions by CDLHT accretive CDLHT Munich One Pte. Ltd. (the “Purchaser”), entered into a share purchase agreement (the “Share Purchase Agreement”) for the acquisition of an effective interest of 94.5% in Pullman Hotel Munich (the “Hotel”) and its office and retail components (the “Commercial Components”) and the fixture, furniture and equipment used by the Hotel (“FF&E”, and together with the Hotel and the Commercial Components, the “Property”).

Before Acquisition FY 2016, NPI = S$137.56M
Post Acquisition FY 2016, NPI = S$146.70M
Before Acquisition FY 2016, Total Valuation of Property = S$2,175M
Post Acquisition FY 2016, Total Valuation of Property = S$2,339M

NPI Yield before acquisition = 6.32%
NPI Yield after acquisition of Pullman Hotel = 6.27%

Clearly, this transaction is not accretive and marginal.

Acquisition The Lowry Hotel Manchester, United Kingdom,  an iconic, 5-star luxury hotel in Manchester with 165 keys
Long leasehold interest with ~130 years remaining
Property Price: £52.5M (~S$94.1M) 
Net Property Income of £3.78M or S$6.615M assuming £1=S$1.75

Before Acquisition FY 2016, NPI = S$137.56M
Post Acquisition FY 2016, NPI = S$144.175M
Before Acquisition FY 2016, Total Valuation of Property = S$2,175M
Post Acquisition FY 2016, Total Valuation of Property = S$2,267M

NPI Yield before acquisition = 6.32%
NPI Yield after acquisition Lowry Hotel = 6.36%

The acquisition is accretive for Lowry Hotel Manchester but not Pullman Hotel Munich.

2) The next point should you subscribe to the rights issue?
After the transaction, the projected yield has decreased to 5.85%. This means that the transaction has made the DPS yield decrease. The current market price has corrected very quickly and the yield has maintain at about 6%. But more work needs to be done to ascertain the amount available for distribution and how it is being derived to come to a more conclusive results. The actual DPS yield can be even much lower. But overall, the manager has not done anything detrimental to the trust and we have a high probablity that the yield will stabilise around 6%. Hence the rights issue is not particular attractive nor unattractive. Hence if you have spare cash in your portfolio, do consider subscribing to the rights issues and holding on to it for the medium and long term.

Portfolio - 01 Jun 2017

Commentary

May 17 has been a quiet month for me. I am anticipating a dip in stocks in the energy sector and will be waiting for opportunity to increase my stakes in Schlumberger and Transocean. 

Positions Added/Reduced

Sold my SIA position before the results announcement. Clearly, some of the brokerage firms are either incompetent or pumping prices up. See news(link) about SIA before the results announcement. 

I have to acknowledge the SIA position was no longer viable when I saw the huge CAPEX involved in aircraft purchase. I must admit that it might not be a right move and I cannot extract the value in the purchase. I understand fleet renewable is necessary but at such a pace of renewal might not necessarily be sustainable from a cashflow perspective. I will argue spending more money on interior cabin retrofit might be a better use of the investment.

I have been more "courageous" by increasing my Transocean (RIG) position despite the drop in oil prices. 

I have reduced my position in CDL HTrust to take profit.

Cash is 33% of my portfolio. 

Counter (Singapore) 
1. RafflesMG

2. CDL HTrust 

3. Capitaland 

4. CapitalR China Tr 

5. Capitaland Commercial Trust

Counter (USA)
1. VNGRD ENERGY 
2. Transocean


Realised Gains (Since 2009) 
SGX Counters - S$144,030.22 + US$240.35
US Counters - US$1,479.71

Dividends (Since 2009) 
S$59,818.46

Dividends (2017)

S$3,307.26

Friday, 3 March 2017

Portfolio - 03 Mar 2017

Commentary

Feb 17 has been a quiet month for me. I am not so active in this month due to my commitments with my family.

Positions Added/Reduced

Added positions in Transocean (NYSE : RIG).

Sold my positions in Keppel Corp. 

Ironic trade? 

Keppel Corp was a mistake for me and I was lucky to made some money in this trade due to the market momentum driving the share price up.
Transocean is a deep value play.

Cash is 28 % of my portfolio. 

Counter (Singapore) 
1. RafflesMG

2. CDL HTrust 

3. Capitaland 

4. City Dev

5. CapitalR China Tr 

6. Capitaland Commercial Trust

7. SIA

Counter (USA)
1. VNGRD ENERGY 
2. Transocean


Realised Gains (Since 2009) 
SGX Counters - S$140,744.33 + US$240.35
US Counters - US$1,479.71

Dividends (Since 2009) 
S$58,519.76

Dividends (2017)

S$2008.56

Portfolio - 15 Apr 2017

Commentary

Mar and Apr 17 has been a quiet month for me. Sitting on the sideline patiently waiting. I added some positions in Foreign Currency FD. Sold my positions in City Development.

Positions Added/Reduced

Sold my positions in City Development after budget announcement. I think the market is anticipating a gradual relaxation in govt tightening of the property market. 

Cash is 32% of my portfolio. 

Counter (Singapore) 
1. RafflesMG

2. CDL HTrust 

3. Capitaland 

4. CapitalR China Tr 

5. Capitaland Commercial Trust

6. SIA

Counter (USA)
1. VNGRD ENERGY 
2. Transocean


Realised Gains (Since 2009) 
SGX Counters - S$143,779.95 + US$240.35
US Counters - US$1,479.71

Dividends (Since 2009) 
S$59,418.46

Dividends (2017)

S$2907.26