Portfolio - October 2019

How was your 11.11? Did you manage to save money by not buying anything or save money by buying things cheaper? Anyway, we spent close $1k buying "essentials" and random stuff for our new house. According to Lazada, I am a "Savings Master" who had saved $902.78. lol.

Sharing the first (and most expensive) loot to be delivered - PRISM+ X300 Ultrawide Gaming Monitor. The irony is we are not even using it to game, CZM has been complaining that my laptop screen is too small for her to work. Happy wife, happy life.

The current price is $399 and we got it at $334 during flash sale + some voucher.

We also bought a fake Dyson - Dreame V9P Cordless Handheld Vacuum by Xiaomi because the real one is simply too expensive for us. This model is one of the more powerful fake Dyson with 20,000 Pa Suction and 60 minutes usage.

The current price is $219 and we got it at $176. Shall not bore you with our purchases. lol.

Our portfolio reached a new high as it increases by 4.30% to $438,957- $11,816.95 of capital injection and $6,285.25 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"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)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
None

We decided to let 2,000 Chip Eng Seng Rights expired.

BOUGHT
- Keppel DC REIT (1,900 units) @ $1.710
- Eagle Hospitality Trust USD (10,000 units) @ US$0.570

This was the first time I participated in a rights issue for a stock in my CDP (the majority of my stocks are with SCB in a custodian account). I had to head down to an ATM (troublesome) and there was an administrative fee of $2! Never had to pay a single cents for SCB. Another reason why I will recommend people new to investing to start an SCB online trading account. Anyway, we were allocated 315 rights which I exercised all of them and oversubscribed by another 3,685 units.

There are so many articles out there on Eagle Hospitality Trust so I think by now everyone knows what's going on. Having said that, do take a look at this interesting article by InvestmentMoat where he used Eagle Hospitality Trust as an example to showcase the psychological stress of being in the market - A Strategy to Avoid The Pain of Losses? Don’t Be Naive. We are pretty zen now and the volatility doesn't affect us :)

So why did I buy it? Ignoring the series of bad news and ASSUMING that they will still pay out the forecasted DPU of 6.54 cents in their prospectus, the dividend yield will be around 11.47% and I think it is worth the risk. That's it because we are not a trader and we will just ride the volatility.

Dividends
The total dividends collected this month is $1,349.85. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Suntec Real Estate Investment Trust - Units	T82U	31-Oct-19	5,000	$118.25
Guocoland Limited	F17	31-Oct-19	9,000	$630.00
Frasers Commercial Trust - Units	ND8U	30-Oct-19	7,500	$179.97
CapitaLand Mall Trust - Units	C38U	29-Oct-19	7,000	$214.20
Mapletree Commercial Trust	N2IU	23-Oct-19	500	$14.65
Soilbuild Business Space REIT - Units	SV3U	23-Oct-19	21,000	$192.78

Total dividends collected for 2019: $17,094.70
Average dividends per month for 2019: $‭1,709.47‬

StashAway

KPO

CZM

Capital: $24,500.00
Current: $‭‭27,195.94‬

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
- Portfolio - October 2019 - $438,957

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.)

IPO - ARA US Hospitality Trust VS Eagle Hospitality Trust

I usually don't look at stocks/REITs in overseas currency but given how the yield of the local REITs have been compressed (~4/5%+). I took a quick look at these 2 US hospitality trust.

ARA US Hospitality Trust
There are 38 hotels/properties, 4,950 rooms by Hyatt (Hyatt Place and Hyatt House).

Offering Price: US$0.88
NAV: US$0.86
PB: 1.02

Estimated/Forecast Dividend Yield for 2019: 8.0%
Estimated/Forecast Dividend Yield for 2020: 8.2%
Gearing: 35.9%

Closing date and time for the Singapore Public Offer: 7 May 2019, 12pm

The revenue was lower for FY2016 due to the disruptions from renovations while the decrease in FY2018 was due to the following: 1) disruptions in operations from the marketing sale process of the Initial Portfolio by the previous owner and 2) supply increases in certain markets that diluted demand temporarily.

Naturally, we will see the same trend in the NPI.

RevPAR of around US$90+.

Eagle Hospitality Trust
There are 18 hotels/properties, 5,420 rooms across different brands - IHG, Marriot, Hilton, and Independent.

Offering Price: US$0.81 or US$0.82
NAV: US$0.89
PB: 0.91 - 0.92

Estimated/Forecast Dividend Yield for 2019: 7.9% to 8.0%
Estimated/Forecast Dividend Yield for 2020: 8.1% to 8.2%
Gearing: 38.0%

Increasing Revenue, NPI and distribution income year on year.

RevPAR of around US$90+ too. They are expecting RevPAR to improve due to newly renovated or refurbished hotels and rooms or improved revenue management. Certain hotels are expected to generate increased room revenue from contracts with corporates or government agencies. Room revenue at Holiday Inn Resort Orlando Suites – Waterpark is also expected to improve from potential partnerships with certain brands to improve occupancy rate in the off-peak season

KPO's Thoughts
I prefer Eagle Hospitality Trust over ARA US Hospitality Trust for a few reasons. The hotels listed by Eagle Hospitality Trust are by different brands and are of higher "quality" as compared to ARA US Hospitality Trust. People that stay in the above hotels are probably better off and would not mind paying more for various reasons or have some form of hotel loyalty/membership. The problem with ARA US Hospitality Trust is that it will probably only attract Hyatt members. Otherwise, for that price, Airbnb might be a better option?

In addition, the above numbers speak for itself. I am not sure if ARA US Hospitality Trust deserves to be trading at PB 1... For all we know, it may even be snatched up by yield hungry investor to sustain the above book valuation. No crystal ball to tell you what will happen exactly.

Last but not least, do take note of the exchange rate risk. You may be looking at capital gain for your investment but in actual fact, the return could be "countered" by the exchange rate. Having said that, it can also work for you and give the return a boost.

We will be sitting out for ARA US Hospitality Trust IPO. All the best to those that are applying for them! Huat ah!

You can find their prospectus here:
ARA US Hospitality Trust
Eagle Hospitality Trust

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.)