Tuesday 30 June 2015

Portfolio Update - June 2015

*As of 30 June 2015

No. of Shares
Average Price (SGD)
Total Capital Invested (SGD)
Cache Logistics Trust
Keppel DC REIT
Cash Reserves and Equivalents

Total SGD

Total Invested Capital = $36,635.20

Total Expected Dividends/month = $218.59

Average Dividend Yield = 7.16%

For the month of June, I have bought up a fair bit of REITs to my portfolio. This includes the usual Cache Logistics Trust and a small addition of Keppel DC REIT.

The purchase of Cache Logistics Trust is a usual REIT which I have traded regularly over the past few quarters, with the exception of certain quarters where I felt the prices were too overvalued and ran the risk of a heavy profit taking. Other than that, prices which were fair and below was generally welcomed and I am happy to accumulate for a good risk to reward ratio. If my trading plan fails, I intend to hold the stock for its good yield of 7+% to cover for my risks taken. 

But why this stock but not others?

Well, it has to do with the charts. Cache Logistics Trust presents a good trading opportunity to buy on supports and sell on resistances. It produces clear support and resistance lines, which is pretty easy to spot even for a novice. The plus point of trading a REIT is that compared to trading other stocks which give little or no dividend, REITs provide high dividend yields which allows some protection if the trade goes bad, which should be acceptable because I had entered at a position where the price was either fair or undervalued in my opinion. So far I had been fairly successful, but I have been generally trading only in small quantities as it is still currently in a "testing" phase. This time I have increased to a fair bit of position, partly because of the breaking of supports at 1.15/1.145 which I had initiated the first and second positions, and towards the lower support at 1.13/1.135 where I averaged for my third position. Now, basically its a more of a hope and pray situation haha

For Keppel DC REIT, its more of an investment than a trading position, though if the price becomes attractive, I will not rule out selling my position. Keppel DC REIT is a defensive stock with its long WALE of 9.2 years. It has a healthy 8.1 interest coverage ratio and a low average interest rate of about 2%. This numbers are important particularly with the impending interest rate hike by the US Federal Reserve. I would like to see high coverage ratio, which shows how many times of earnings covering its interest expenses from taking on debt and low average interest rate to minimise interest costs. Gearing is a low 29.9% which allows for ample growth of DPU through acquisitions, which recently it has made its maiden acquisition of a data centre in Sydney which is likely to provide some boost to the DPU. The current yield is a decent 6%, but I am hoping for more acquisitions to provide a greater boost to its distributions, taking advantage of its low gearing. 

Let's see how this 2 investments go from here.


  1. hey what is your email address I have something to ask you.

  2. Hi GV,

    My email address is jdhope89@gmail.com. Feel free to hit me up!