| Counter | Average Price | Yield on cost(%) | Weightage |
| Croesus Retail Trust |
0.8472
|
8.47
|
52.28%
|
| OCBC Bank |
9.0500
|
4.00
|
12.79%
|
| UOB Bank |
18.8800
|
4.00
|
8.89%
|
| Fraser Centrepoint |
1.8600
|
6.17
|
2.63%
|
| Cache Logistics |
0.9680
|
8.15
|
2.28%
|
| Soilbuild Business REIT |
0.7694
|
8.44
|
1.81%
|
| First REIT |
1.1933
|
6.91
|
1.69%
|
| Croesus Retail Trust |
0.8100
|
8.88
|
1.53%
|
| Keppel DC REIT |
1.0017
|
6.56
|
1.42%
|
| Saizen REIT |
0.9783
|
5.99
|
1.38%
|
| CapitaCommercial |
1.3013
|
6.15
|
1.23%
|
| Ho Bee Land |
1.9800
|
2.50
|
0.93%
|
| SPHREIT |
0.9500
|
5.80
|
0.89%
|
| AIMS AMP Cap REIT |
1.3375
|
8.37
|
0.63%
|
| Fraser Commercial |
1.3050
|
7.72
|
0.61%
|
| NOL |
1.2117
|
0.00
|
0.57%
|
| Mapletree Logistics |
0.9950
|
7.40
|
0.47%
|
| Sheng Siong |
0.8450
|
3.84
|
0.40%
|
| Lippo Mall REIT |
0.3200
|
9.90
|
0.30%
|
| Neratel |
0.5850
|
6.84
|
0.28%
|
| STI ETF |
2.9720
|
3.00
|
7.00%
|
| Total |
6.78
|
100.00%
|
| Legend |
| CDP |
| SCB |
Total Invested Capital = $21,230.17
Total Expected Dividends/month = $120
Average Dividend Yield = 6.78%
First of all, it has been a busy month for me towards year end, and I apologise for the late post, if anyone is wondering what happened to Dividend Simpleton. As my responsibilities pile up at work, there goes my free time to blog about all things finance, and I expect this to likely happen in future. So if any of my readers wonder what happened to me, do not panic haha :)
The biggest change in my portfolio was the liquidation of Accordia Golf Trust (AGT). The trust performed very poorly in its recent results and that was pinned to the poor weather conditions in Japan, despite the expectation that the JPY has strengthened against the SGD, supposedly positive for the trust. Furthermore, the decision to reduce payout to 90% did not help either, which depressed distribution to a mere 2.32 cents per unit. Assuming this is the worst case scenario, I had estimated that the price would most likely go around the low 50 cents per unit to maintain market's expectation of a 9% yield to factor in the risk this trust is exposed to. As the market price was around $0.60 when the news was just released, I sold off the trust as I believed the trust would soon lose around 16% of its value. Eventually, it did, partly because of its poor results maybe, but also due to the much poorer market sentiments generally hitting the markets in November and December. The question is, since the price was reached my target price, is it still worth a buy? Well, I definitely won't be buying the same amount as I did before, given that with the risk-off sentiments hitting the markets now, many other quality stocks are trading at attractive valuations. Given the current uncertain market conditions, it is much wiser to keep the cash in the warchest for strategic and staggered deployment in future. Perhaps I might use SCB platform to buy a few hundred shares in AGT, if the prices show clear consolidation.
With the reduction AGT, my warchest has now increased by about close to $10k, allowing me to use the proceeds to make smallish bets using the SCB platform, taking advantage of market volatility. The months of November and December had seen several changes in my portfolio, as capital was recycled, buying shares on weakness and selling them on strength. Much noticeable was the cut loss on Asian Pay TV trust as the price was falling continuously, along with the threat of the distribution likely to fall to the low 6-7% yield, I would rather use the proceeds to invest into many other quality REITs offering the same yield. Some of my favourite counters for trading plays include Capitaland Mall Trust, Capitaland Commercial Trust, Noble Group and many others. Some counters are not in the current portfolio as they could have been liquidated entirely while quite possibly waiting for the next opportunity to enter again. The big players prefer to move the big names, so using them to trade would be preferred as they tend to be more sensitive to market movements.
There are many other changes to my portfolio and I can list them all here, and I will touch a bit on each of them why I chose to take action.
Ascendas Hospitality
This counter has made a impressive return since I bought it back in August. Yield is a whooping 9-10% and the capital gains were immense. I had attempted to buy in when the prices corrected to $0.60 in November, but it failed to hit my buy price before trending higher quickly, up till the news on the offer to buy all existing shares of AHT. I was a little impatient and sold the remaining shares at $0.73.
Fraser Centrepoint Trust
A defensive retail reit with a good long track record, low gearing and currently dividends are still growing, albeit much more flattish growth than before. Likely to hold this stock for a longer time frame.
First Reit
Added some on weakness due to speculation of privatisation, which I believe is likely to not happen. Yield is the most decent amongst the medical reits listed in SGX, with a much lower premium to valuation, which is coincidentally caused by the recent speculative news of shifting of the listing of property trusts to Indonesia, due to changes in tax policy.
Cache Logistics Trust
Added more on weakness. The overall investment theme remains the same, although expect some weakness in the short term. The DHL BTS facility should be operating finally this year and the next results or the following one would determine if the BTS could mitigate higher expenses and lower rental from its other assets.
Keppel DC Reit
Added more on weakness. The theme of investing in this is the same, strong REIT fundamentals and likely more defensive in the face of rising interest rates.
Soilbuild Biz Reit
Added more on weakness. I like its exposure to the business space sector. Although it is named as such, majority of its properties are the industrial, so the jury is still not out on this one. DPU growth theme is still on the cards, I am hopeful that it could outperform like what AimsAmp has managed to do so far.
Saizen Reit
Added some at $1.085 in anticipation of the next dividend payout and the eventual sale of at least $1.10.
Capitaland Commercial Trust
Took profit on partial stake and then added more on weakness, average price lowered from $1.325 to $1.30. Investment theme remains the same as before.
Ho Bee Land
Initiated position as I felt the company is currently undervalued, even with the increase in share price over the years. With its anchor building metropolis doing pretty well, I think it has a very diversified portfolio of assets generating the cash flow needed for business functions. Also, it may be a possible takeover target, given the high proportion of shares held by its controlling shareholder.
AimsAmpCap Reit
Initiated position in the REIT as it has shown remarkable improvement in improving DPU despite the weakening of industrial rents. Added element of a growth play here and also to boost the overall yield of my portfolio as it was getting heavy on lower yield (defensive) reits.
NOL
Initiated position on NOL and waiting for CMA CGM to buy it from me at a higher price soon.
Sheng Siong
Initiated position on Sheng Siong for some growth element in the defensive retail segment. Smallish position given the a high premium in terms of PE.
Neratel
Reduced position to take profit from the rally in prices. Retained a smallish position as the theme of investing in it remains.
Final Comments
I have made quite a flurry of actions on my portfolio in these 2 months and mainly in my SCB mini-portfolio. The portfolio despite having some laggards like Cache Logistics and Fraser Commercial, strength in the other counters reduced the impact from this. This is the usefulness of using SCB as a broker, particularly since they do not charge a minimum commission, as it allows me to hugely diversify my portfolio without incurring large commission fees. It is also a huge plus when it comes to the ability to do Dollar Cost Averaging (DCA) on my existing counters which my investing theme has not changed. Furthermore, any sudden huge gains in certain counters can also be realised without compromising on the entire position, which would be virtually impossible with other brokers given the high commission charges. People who have used the conventional brokers would definitely agree with me on this. And most of all, SCB platform is most friendly to the small retail investor who has only a small amount of money to invest. What I mean by small really means very small capital outlay, for as little as a few tens of dollars to a few hundred depending on the share price of the stock, 100 shares allows us great flexibility for the small retail investor like ourselves!
It is still along way to go in this investing journey, and the jury is still not out on this mini-portfolio.
Good luck to anyone still holding on in this choppy waters, keep it up!
First of all, it has been a busy month for me towards year end, and I apologise for the late post, if anyone is wondering what happened to Dividend Simpleton. As my responsibilities pile up at work, there goes my free time to blog about all things finance, and I expect this to likely happen in future. So if any of my readers wonder what happened to me, do not panic haha :)
The biggest change in my portfolio was the liquidation of Accordia Golf Trust (AGT). The trust performed very poorly in its recent results and that was pinned to the poor weather conditions in Japan, despite the expectation that the JPY has strengthened against the SGD, supposedly positive for the trust. Furthermore, the decision to reduce payout to 90% did not help either, which depressed distribution to a mere 2.32 cents per unit. Assuming this is the worst case scenario, I had estimated that the price would most likely go around the low 50 cents per unit to maintain market's expectation of a 9% yield to factor in the risk this trust is exposed to. As the market price was around $0.60 when the news was just released, I sold off the trust as I believed the trust would soon lose around 16% of its value. Eventually, it did, partly because of its poor results maybe, but also due to the much poorer market sentiments generally hitting the markets in November and December. The question is, since the price was reached my target price, is it still worth a buy? Well, I definitely won't be buying the same amount as I did before, given that with the risk-off sentiments hitting the markets now, many other quality stocks are trading at attractive valuations. Given the current uncertain market conditions, it is much wiser to keep the cash in the warchest for strategic and staggered deployment in future. Perhaps I might use SCB platform to buy a few hundred shares in AGT, if the prices show clear consolidation.
With the reduction AGT, my warchest has now increased by about close to $10k, allowing me to use the proceeds to make smallish bets using the SCB platform, taking advantage of market volatility. The months of November and December had seen several changes in my portfolio, as capital was recycled, buying shares on weakness and selling them on strength. Much noticeable was the cut loss on Asian Pay TV trust as the price was falling continuously, along with the threat of the distribution likely to fall to the low 6-7% yield, I would rather use the proceeds to invest into many other quality REITs offering the same yield. Some of my favourite counters for trading plays include Capitaland Mall Trust, Capitaland Commercial Trust, Noble Group and many others. Some counters are not in the current portfolio as they could have been liquidated entirely while quite possibly waiting for the next opportunity to enter again. The big players prefer to move the big names, so using them to trade would be preferred as they tend to be more sensitive to market movements.
There are many other changes to my portfolio and I can list them all here, and I will touch a bit on each of them why I chose to take action.
Ascendas Hospitality
This counter has made a impressive return since I bought it back in August. Yield is a whooping 9-10% and the capital gains were immense. I had attempted to buy in when the prices corrected to $0.60 in November, but it failed to hit my buy price before trending higher quickly, up till the news on the offer to buy all existing shares of AHT. I was a little impatient and sold the remaining shares at $0.73.
Fraser Centrepoint Trust
A defensive retail reit with a good long track record, low gearing and currently dividends are still growing, albeit much more flattish growth than before. Likely to hold this stock for a longer time frame.
First Reit
Added some on weakness due to speculation of privatisation, which I believe is likely to not happen. Yield is the most decent amongst the medical reits listed in SGX, with a much lower premium to valuation, which is coincidentally caused by the recent speculative news of shifting of the listing of property trusts to Indonesia, due to changes in tax policy.
Cache Logistics Trust
Added more on weakness. The overall investment theme remains the same, although expect some weakness in the short term. The DHL BTS facility should be operating finally this year and the next results or the following one would determine if the BTS could mitigate higher expenses and lower rental from its other assets.
Keppel DC Reit
Added more on weakness. The theme of investing in this is the same, strong REIT fundamentals and likely more defensive in the face of rising interest rates.
Soilbuild Biz Reit
Added more on weakness. I like its exposure to the business space sector. Although it is named as such, majority of its properties are the industrial, so the jury is still not out on this one. DPU growth theme is still on the cards, I am hopeful that it could outperform like what AimsAmp has managed to do so far.
Saizen Reit
Added some at $1.085 in anticipation of the next dividend payout and the eventual sale of at least $1.10.
Capitaland Commercial Trust
Took profit on partial stake and then added more on weakness, average price lowered from $1.325 to $1.30. Investment theme remains the same as before.
Ho Bee Land
Initiated position as I felt the company is currently undervalued, even with the increase in share price over the years. With its anchor building metropolis doing pretty well, I think it has a very diversified portfolio of assets generating the cash flow needed for business functions. Also, it may be a possible takeover target, given the high proportion of shares held by its controlling shareholder.
AimsAmpCap Reit
Initiated position in the REIT as it has shown remarkable improvement in improving DPU despite the weakening of industrial rents. Added element of a growth play here and also to boost the overall yield of my portfolio as it was getting heavy on lower yield (defensive) reits.
NOL
Initiated position on NOL and waiting for CMA CGM to buy it from me at a higher price soon.
Sheng Siong
Initiated position on Sheng Siong for some growth element in the defensive retail segment. Smallish position given the a high premium in terms of PE.
Neratel
Reduced position to take profit from the rally in prices. Retained a smallish position as the theme of investing in it remains.
Final Comments
I have made quite a flurry of actions on my portfolio in these 2 months and mainly in my SCB mini-portfolio. The portfolio despite having some laggards like Cache Logistics and Fraser Commercial, strength in the other counters reduced the impact from this. This is the usefulness of using SCB as a broker, particularly since they do not charge a minimum commission, as it allows me to hugely diversify my portfolio without incurring large commission fees. It is also a huge plus when it comes to the ability to do Dollar Cost Averaging (DCA) on my existing counters which my investing theme has not changed. Furthermore, any sudden huge gains in certain counters can also be realised without compromising on the entire position, which would be virtually impossible with other brokers given the high commission charges. People who have used the conventional brokers would definitely agree with me on this. And most of all, SCB platform is most friendly to the small retail investor who has only a small amount of money to invest. What I mean by small really means very small capital outlay, for as little as a few tens of dollars to a few hundred depending on the share price of the stock, 100 shares allows us great flexibility for the small retail investor like ourselves!
It is still along way to go in this investing journey, and the jury is still not out on this mini-portfolio.
Good luck to anyone still holding on in this choppy waters, keep it up!
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