Portfolio - September 2019

With this, our portfolio update will be back on track :) StashAway update has been scheduled to be published tonight and the backlog will be our expenses update and travel posts.

Our portfolio decrease by 0.19% to $420,854 - $2,985.54 of capital withdrawal and $2,195.93 of capital gain. The one in blue is the StashAway portfolio, green is SGX and the total is in black.

If you prefer to look at numbers, this is the raw data used to generate the above bar graph. These numbers are as of the last day of the month.

"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)

SOLD
- APAC Realty (12,000 units) @ $0.51

After holding for an average of 391 days and collecting $870 of dividends, we have sold all our shares at a loss of -$2,631.95 which is about -17.6% and annualized -16.6%.

You can be right one moment and wrong the next. We first entered bought the stock (12,000 units @ $0.86) around 2 years ago (Oct 2017) - APAC Realty. Within 2/3 months, we were on 25% capital gain when the price went up to $1.08. Then came the cooling measure and it became a horror show (one of my top 5 worst investments) by the end of 2018 - Portfolio Performance in 2018. Along the way, we bought more 8,000 units @ $0.57 and sold them shortly @ $0.665.

Their latest quarterly result was simply too bad. Although revenue was just 28% lower, the profit had shrunk by 63%! The increase of 154% in marketing and promotion expenses wasn't translated to an increase in revenue shows a lot about the current property market sentiment... In addition, the depreciation of assets and finance costs due to the acquisition of a new property last year (wrong move) will be recurring, hence "eating" into the revenue. You can read more about it here in TTI's analysis - APAC REALTY – ACQUISITION OF ERA CENTRE IS CASHFLOW NEGATIVE.

It is no surprise that their EPS has also decreased by 62.4%. This meant that the previous dividends they had payout will no longer be sustainable and they have already reduced the latest dividends. I believe they will be cutting more, hence the decision to sell them now.

BOUGHT
- Soilbuild REIT (6,000 units) @ $0.53

Nothing new, I blogged about this previously - Soilbuild Business Space REIT (Not) Bad Preferential Offering. We were given 2,700 rights which I exercised all of them, applied in excess another 3,300 and were given full allocation.

There were 2 other companies that had issued rights and I shall give a quick update on the actions we took:
Keppel DC REIT - Exercised and oversubscribed
Chip Eng Seng - Letting it expire because of issues in corporate governance. You can read more about it here - Corporate governance: More teeth and substance needed. In addition, the exercise price >= market price which makes it pretty unattractive and the rights worthless. I could not even sell it in the market.

Dividends
The total dividends collected this month is $164.29. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Keppel DC REIT	AJBU	23-Sep-19	3,000	$54.29
OUE Limited	LJ3	11-Sep-19	11,000	$110.00

Total dividends collected for 2019: $15,744.85
Average dividends per month for 2019: $1,749.43

StashAway

KPO

CZM

Capital: $23,000.00
Current: $‭25,510.69‬

You might be interested in previous months update too:
- Portfolio Performance in 2018 - $354,145
- Portfolio - January 2019 - $376,381
- Portfolio - February 2019 - $379,814
- Portfolio - March 2019 - $400,263
- Portfolio - April 2019 - $400,263
- Portfolio - May 2019 - $392,934
- Portfolio - June 2019 - $415,611
- Portfolio - July 2019 - $420,798
- Portfolio - August 2019 - $421,644
- Portfolio - September 2019 - $420,854

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
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3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Portfolio - March 2019

We have hit a new high/milestone this month with a portfolio of $400k! Technically, we can sell off all our shares now, pay for our 4 room BTO and we will be debt free. lol. Of course not, we will never do that and I have blogged about it previously - Chiong Housing Loan or Take It Slow?

Our portfolio increase by 5.38% to $400,263 - $1,469.57 of capital withdrawal and $21,919.17 of capital gain. The one in blue is the StashAway portfolio, green is SGX and the total is in black.

If you prefer to look at numbers, this is the raw data used to generate the above bar graph. These numbers are as of the last day of the month.

"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)

SOLD
- APAC Realty (8,000 units) @ $0.665
- QAF (3,000 units) @ $0.755

- Hong Fok (16,500 units) @ $0.940

We purchased 8,000 units of APAC Realty @ $0.57 last month and blogged about its risks. I set a trailing stop loss as the price went higher and higher and eventually, the stop loss was triggered. This gave us a 16.67% return or $760 profit. We are still holding on to the remaining 12,000 units that had a much higher entry price of $0.86 for dividends.

I have given up on QAF after looking at its latest financial results and decided to sell it after ~2 years.

Their earnings/profit has decreased by >50% and although QAF continues to pay out the same amount of dividends for FY 2018 (note that the payout ratio is 351%?!), it is not going to be sustainable... Once QAF cut their dividends and the price will tumble/react accordingly too which is something I would like to avoid. We lost -$1,559.73 in total and that translates an annualized return of -23.3%.

Hong Fok started running up in the last few weeks way before the new URA draft masterplan was announced. We noticed it and decided to set trailing stop loss as well which eventually triggered a day after it hits $1. Fundamentally, PB = 0.33 and PE = 3.32, Hong Fok still looks extremely undervalued. Having said that, I don't believe Hong Fok will ever reach PB 1 and its dividend yield of ~1+% is just not aligned with our long term goal. We made a profit of $4,988.25 in total which is an annualized return of 12.4%.

BOUGHT
- Pacific Century (14,000 units) @ $0.445
- Mapletree Commercial Trust (500 units) @ $1.810
- Frasers Commercial Trust (7,500 units) @ $1.460
- Suntec REIT (5,000 units) @ $1.970
- First REIT (3,900 units) @ $0.990
- Far East HTrust (160 units - DRIP) @ $0.632

We initiated a pretty speculative small position Pacific Century (~1.5% of our portfolio) after reading this report by stockresearchasia.com - Pacific Century Regional Developments (PCRD) rewards shareholders' patience with bumper dividends of 8.7 cts. Ideally, we should be getting 6-8% dividend yield per year until it gets privatised.

Our initial plan/strategy to invest in a REIT ETF on a monthly basis was no longer valid (read this - Lion-Phillip S-REIT ETF - High Cost and Low Yield) and the money had to be redeployed somewhere. With the office rental recovering/growing, we bought the above commercial REITs to "ride" the wave.

First REIT has fallen from grace due to many uncertainties in its sponsor/parent company, Lippo Karawaci. It used to trade at around 5-6% dividend yield but is trading close to 9% dividend yield now. I will not go into the details but this is definitely quite risky.

Dividends
No dividends for this month :(

Total dividends collected for 2019: $2,467.84
Average dividends per month for 2019: $822.61

StashAway

KPO

CZM

Capital: $18,000.00
Current: $18,810.99

You might be interested in previous months update too:
- Portfolio Performance in 2018 - $354,145
- Portfolio - January 2019 - $376,381
- Portfolio - February 2019 - $379,814
- Portfolio - March 2019 - $400,263

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Portfolio - February 2019

Everyone has their "poison" and mine happened to be electronic gadgets >.<" Went to the IT fair over the weekend and bought a NAS (Network Attached Storage). If you have no idea what is that, it is very normal. CZM does not understand why am I spending so much money on it too. lol.

Synology DS918+ with 8GB RAM

4 x 3 TB Seagate IronWolf NAS Hard Drives

Guess the total price? Shall reveal it at the end of the post. Haha. This is probably going to be one of the longest portfolio updates because there were lots of transactions so let's not get distracted.

Our portfolio increase by 0.91% to $379,814 - $848.52 of capital withdrawal and $4,281.49 of capital gain. The one in blue is the StashAway portfolio, green is SGX and the total is in black.

If you prefer to look at numbers, this is the raw data used to generate the above bar graph. These numbers are as of the last day of the month.

"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)

SOLD
- SingPost (7,000 units) @ $0.950
- TSH (1,000 units) @ $0.350
- Lion-Philip S-REIT ETF (9,000 units) @ $1.034
- Lion-Philip S-REIT ETF (3,000 units) @ $1.041

I have blogged about our reasons for selling the above except for TSH, you can read about them here:
- Unethical SingPost
- Lion-Phillip S-REIT ETF - High Cost and Low Yield

TSH was a legacy position which I had bought in April 2016 after reading this - TSH Corporation Ltd- Classic net-net micro-cap trading at steep discount to net cash, announces big dividends. Since then it has diversified its assets, did a capital distribution/huge dividends and became a shell company.

I was hoping it will just get delisted so I can save some commission but it never did until last month when it got reverse takeover, went through a share consolidation (1:20) and became a pub and bar business. Took a quick look at the new business and decided to sell it to get whatever remaining that is left and I am stuck with 50 units -.- Overall, it was still a pretty good investment with an annualized return of ~19%.

BOUGHT
- DBS (400 units) @ $24.92
- City Development Limited (400 units) @ $9.47
- APAC Realty (8,000 units) @ $0.57

These are all not new purchases so really nothing much to blog about. The reason for buying them remains the same:
- DBS has changed its dividend policy and has pledged $1.20 per annual going forward. This translate to ~4.8% dividend yield on cost with potential for capital growth.
- CDL properties are stated at cost and should be trading > PB 1. To be honest, we are not very fated with CDL. Whenever we buy, the price will always fall significantly.
- We did a quick comparison between APAC Realty and its peer, Propnex and concluded that it was more undervalued and attractive dividend yield for now. Having said that, I think APAC Realty has its risks. In its IPO prospectus, it was stated that dividend will be paid for the first 2 years and remains unclear if the company will continue to distribute dividends.

In addition, ThumbTack Investor (TTI) has written a pretty scary/negative piece of article on APAC Realty that is definitely worth a read - Acquisition of ERA Centre is Cashflow Negative. The way he does his due diligence is very respectable. Regardless, all investment is a good investment at the right price.

Dividends
The total dividends collected this month is $1,531.24. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Far East Hospitality Trust	Q5T	20-Feb-19	10,156	$101.56
Ascott Residence Trust	A68U	7-Feb-19	7,600	$301.42
Starhill Global Real Estate Investment Trust	P40U	7-Feb-19	12,000	$135.60
Parkway Life Real Estate Investment Trust	C2PU	4-Feb-19	2,000	$65.60
Thai Beverage Public Co Ltd	Y92	4-Feb-19	11,000	$102.71
SPDR STI ETF Units	ES3	4-Feb-19	13,000	$728.00
Mapletree North Asia Commercial Trust	RW0U	1-Feb-19	5,000	$96.35

Total dividends collected for 2019: $2,467.84
Average dividends per month for 2019: $1,233.92

StashAway

KPO

CZM

Capital: $17,000.00
Current: $17,340.29

The NAS costs $1,282 in total @_@"

On a side note, one can invest in StashAway using SRS and I have already blogged about our plan - New Strategy: StashAway + Supplementary Retirement Scheme (SRS)

You might be interested in previous months update too:
- Portfolio Performance in 2018 - $354,145
- Portfolio - January 2019 - $376,381
- Portfolio - February 2019 - $379,814

Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Ascendas Hospitality Trust

With the market running up so much and STI hitting a multi-year high, it has been harder and harder for us to buy stocks. Everything seems so expensive until today! Our latest buy - Ascendas Hospitality Trust 9000 units @ $0.895 :)

Let me give a quick introduction to Ascendas Hospitality Trust. It has 11 9 properties in 7 6 cities, 4 3 countries (Australia, China, Japan and Singapore) valued at $1.6 Billion. Based on the last quarter financial statement, its current NAV is was at $0.891 which translate to a PB of 1.01.

However, on the 29th January 2018 (after market close), Ascendas Hospitality Trust announced that it will be divesting its China investment/properties at a premium of 101.5% above the Independent Valuation. You read that right.

This divestment meant that its NAV would shoot up. Note that the numbers are generated with the assumption that the divestment has taken place at 31st March 2017. The total number of shares/stapled security would have increased since then. Using the latest (2Q) financial statement, a more realistic NAV should be [1.02 - (0.92 - 0.891)] * 1,124,481 / 1,127,553 ~ $0.988 which translate to a PB of 0.905 (at a discount)! I am expecting it to trade closer to PB of 1 which is around $0.99.

Looking at the annual report FY2016/2017, China contributed 8% of the Net Property Income (NPI). A conservative assumption is that the DPU (Dividend Per Unit) will be impacted by the same percentage, 5.68 * 0.92 ~ 5.22 which translate to a 5.8% dividend yield. This is on the low side but it certainly has room for improvement through yield accretive acquisitions because it has the cash/lower gearing going forward (~20+%).

I made all these calculations while I was on a bus traveling to work yesterday and decided to queue for it before market open. Blogging it down to see how wrong/right I am as its 3Q financial statement will be out today after trading hours.

On a side note, APAC Realty went up by 9% crazily (no announcement) yesterday to close at $1.08. At least I am right for this analysis and am sitting on a 25% profit (for now)!

Do like any of the following for the latest update/post!
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2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)

Portfolio Update - December 2017

Our portfolio increase by 5.35% to $296,159 - $10,344.29 of capital injection and $4,692.21 of  capital growth/reduction. The last few days of 2017 brought our portfolio value closer to the $300,000 mark! You can refer to Portfolio Performance in 2017 for more information on the performance for the whole year :)

BOUGHT
- APAC Realty (12,000 units) @ $0.86

I did a write up on APAC Realty previously. In short, looking at its PE and our entry price, the stock was worth more than when it first IPO-ed at $0.66. At the point of writing this article, it is currently trading at $0.89 :)

Dividends
The total dividends collected this month is $540.25. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Singapore Telecommunications Ltd	Z74	18-Dec-17	3,000	$294.00
Asian Pay Television Trust	S7OU	13-Dec-17	5,000	$81.25
Accordia Golf Trust	ADQU	04-Dec-17	10,000	$165.00

Total dividends collected for 2017: $11,237.48
Average dividends per month for 2017: $936.46

We were so close to meeting another of our short term goal of having a passive income of $1,000 per month! Guess we got to try harder this year.

StashAway

Capital: $3,000
Current: $3,053.16 (IRR: 3.4%)

Do take a look at this article if you missed it - StashAway Clarifications - Reward-to-Risk Ratio where Freddy Lim (Co-Founder & Chief Investment Officer of StashAway) clarify how StashAway is optimising return by taking on lesser risk.

StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link

Health - KPO Needs to Lose Weight
Date: 2018-01-02
Weight: 72.5 kg (Lost close > 10 kg already!)

BMI: 24.2

Do like any of the following for the latest update/post!
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2. Twitter - KPO and CZM
3. Click here to subscribe using email :)

APAC Realty

We have purchased 12,000 units of APAC Realty last week (7th December 2017) at $0.86. The IPO price was at $0.66, opened at $0.695 on 28th September 2017 and went as high as $0.975! At the point of writing this article, the price is currently at $0.865.

The latest 3rd Quarter financial statement was pretty good where the revenue till date for the year (9 months) improved by 30.3% and the profit by 64.6%!

In its IPO prospectus, using the adjusted 2016 EPS of 4.47 cents and IPO price of $0.66, the PE ratio was about 14.76. If we were to use a more conservative approach, we know the PE for 2016 is 4.47 so the EPS for the last quarter is probably 4.47 - 3.52 = 0.95. Assuming that the remaining 2017 (last quarter) would perform as good/bad as 2016, the full year EPS estimate would be around 5.78 + 0.95 = 6.73. At our entry price of $0.86, the PE ratio is at 12.78!

Alternatively, we can also estimate the EPS by averaging and extrapolating it to give 5.78 / 3 x 4 = 7.71. That would bring the PE ratio down to 11.15! If the market is willing to pay/value it at 14.76 PE initially, the price should go up to $0.99 to  $1.14? Does this mean it is currently cheaper than it first IPO or it is a must buy? I do not know. lol. The above numbers are just estimations made by a regular IT guy based on one of the many financial ratios. Do take it with a pinch of salt :)

Taken from RHB Research Report

What we like about the business is that it is easy to understand - real estate brokerage services (commissions) and other revenue from training fees, franchise fees, etc.

The other revenue only contributes about 2-3% as compared to the core real estate brokerage services. Do you foresee Singapore property market recovering/getting better?

For more in-depth analysis, do read what the pros have written:
- Singapore IPOs: APAC Realty
- SmallCapAsia: APAC Realty
- SG Investors.io: DBS Research - $1.12
- SG Investors.io: RHB - $1.20

Do like any of the following for the latest update/post!
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