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"Cash Flow" is the amount of money being injected/withdrawn from the portfolio (buying stocks = +ve cash flow while selling stocks and collecting dividends = -ve cash flow)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

Portfolio - May 2018

It was another roller coaster month but life goes on! CZM and I are preparing our wedding invitation cards, about 4 more months to our big day! Our portfolio decrease by -0.59% to $334,055 - $9,252.77 of capital injection and $11,218.72 of capital loss.

SOLD
- None

BOUGHT
- Keppel DC REIT (3,000 units) @ $1.353
- Lion-Philip S-REIT ETF (1,000 units) @ $0.997
- Capitaland (1,000 units) @ $3.54
- Singtel (1,000 units) @ $3.30

It seems like we lost and bought a lot this month. A total dividend of $2,683.38 was paid in May and we merely reinvested/redeployed the dividends into the market. In fact, apart from Lion-Philip S-REIT ETF which was a planned purchase as part of our new strategy - New Singapore Budget, New REIT Strategy!, the other purchases were either a surprise or an opportunity in our opinion.

I blogged about the Keppel DC REIT Private Placement and we were allocated 3,000 units (out of 8,000 units) from the placement. We bought more of Capitaland and Singtel when the market went down. It is interesting to note that both companies have been/are performing share buyback recently. You can refer to this - Why Would A Company Buyback Its Own Shares? by Investopedia to understand the significance of share buyback.

Singtel is pretty interesting and I am writing a separate article for it. If you read the news or the financial statement, at one glance, you will see that FY 2018 was a record year in terms of net profit and earnings and you are wondering why the price is dropping lower and lower. However, if you were to remove the divestment gain from Netlink Trust, one will see that hidden beneath those record net profit/earnings is actually a declining business/revenue. Why did we still buy the share then? Keep a lookout for the next post :)

Dividends
The total dividends collected this month is $4,067.59. The breakdown is as follows:

Company	Symbol	ExDate	Shares	Total
Thai Beverage Public Co Ltd	Y92	25-May-18	10,000	$62.67
CapitaLand Commercial Trust	C61U	23-May-18	2,000	$69.80
NetLink NBN Trust	CJLU	21-May-18	3,000	$194.40
Frasers Logistics & Industrial Trust	BUOU	16-May-18	8,000	$344.00
Ascendas Hospitality Trust	Q1P	16-May-18	15,000	$469.50
OUE Ltd	LJ3	15-May-18	10,000	$200.00
Raffles Medical Group Ltd	BSL	14-May-18	14,000	$245.00
Hong Fok Corporation Ltd	H30	8-May-18	16,500	$165.00
CapitaLand Ltd	C31	8-May-18	5,000	$600.00
Parkway Life Real Estate Investment Trust	C2PU	7-May-18	2,000	$63.40
Chip Eng Seng Corporation Ltd	C29	4-May-18	8,000	$320.00
QAF Ltd	Q01	3-May-18	3,000	$120.00
Far East Hospitality Trust	Q5T	3-May-18	10,156	$95.47
Starhill Global Real Estate Investment Trust	P40U	3-May-18	12,000	$130.80
Mapletree North Asia Commercial Trust	RW0U	3-May-18	5,000	$226.55
Sheng Siong Group Ltd	OV8	3-May-18	18,000	$315.00
Wilmar International Ltd	F34	3-May-18	2,000	$140.00
Tuan Sing Holdings Ltd	T24	2-May-18	11,000	$66.00
APAC Realty Limited	CLN	2-May-18	12,000	$240.00

Total dividends collected for 2018: $6,765.11
Average dividends per month for 2018: $1,353.02

StashAway

Capital: $8,000.00
Current: $8,095.42 (IRR: 2.8%)

Health - KPO Needs to Lose Weight
Date: 2018-06-01
Weight: 69.2 kg (Yay! 3 more weeks to our prewedding photoshoot!)

BMI: 23.1

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 -->)

Keppel DC REIT Private Placement

Keppel DC REIT requested for a trading halt earlier and launched a private placement of 224,000,000 shares at an issue price of $1.353 per share to raise gross proceeds of approximately $303.1 million. You can refer to the official announcement here. Let's look at the numbers!

Current/Latest Numbers
Price: $1.43
Dividend/Distribution Per Unit (DPU) for FY2017: $0.0712
DPU Excluding a one-off capital distribution of S$1.7 million or 0.15 cents for FY2017: $0.0697
Dividend Yield (Assuming DPU remain constant for FY2018): 0.0697 / 1.43 = 4.87%
NAV: $0.97
PB: 1.47 (47% premium!)

Gearing: 37.4% (MAS limit is 45%, the lower the better)
WALE (Weighted Average Lease Expiry): 9.6 years (the higher the better)
Total shares based on 2018Q1 (including manager's fees): 1,127,275,000

Long portfolio WALE provides income stability for the REIT (the longer the better) hence it is fairly conservative to assume DPU remain constant for this year as well. This is probably one of the reasons why Keppel DC REIT is trading at such a huge premium!

Do note that the numbers are just estimated and the assumption is that the acquisition happened on 1st January 2017 and rental are collected for the FY2017. This is not a projection/promise for FY2018. The NAV after the acquisition would be around $1.03. At the issue price of $1.353, the PB would be 1.31 which means I would be getting it at a premium of 31% instead of 47%!

It seems that the DPU will be affected by some IRAS rules as well which I am clueless about but if you are interested, you can read about it here - Income Tax Treatment of Real Estate Investment Trusts and Approved Sub-Trusts. Given the above numbers, I will try to project a much more conservative yield I should be expecting by using the worst case scenario/numbers if I were to subscribe to the private placement.

Distributable Income (no tax transparency and excluding a one-off capital distribution): $97,810,000
Issued Units (using the latest issued units from 2018Q1 instead of FY2017): 1,127,275,000 + (1,351,990,000 - 1,127,171,000) = 1,352,094,000
DPU = $97,810,000 / 1,352,094,000 = $0.0723?! (higher than $0.701 with a larger base/shares?)

Weird. Now I am confused by the numbers, no matter how I calculate/reverse the computation, I cannot tie/tally the numbers... 97,810 / 1,351,990 != 7.01! Although it clearly states that the distributable income has already excluded the one-off capital distribution of $1.7 million. Now that I look closely at it, even 82,300 / 1,127,171 != 7.12. I guess I probably oversimplify the numbers and the only way to proceed is to use whatever number that was given.

Dividend Yield: 0.0701 / 1.353 = 5.18%

In addition, the gearing will improve to 32.1% from 37.4% which will give them more opportunity to acquire more assets and improve DPU in the future. As technology advances, data have become increasingly important for every business. Guess what would be needed to do that? lol. The numbers definitely look more decent as compared to buying it off the market.

Another thing which I observe is that Keppel DC REIT declares distributions on a half-yearly basis (payment months are in February and August). This would be aligned with our DBS Multiplier strategy which I blogged about here - DBS Multiplier + SSBs + Joint Account = Higher Interest! With this REIT in our CDP, we can probably skip the SSB for August 2018.

All these while, I have been diluted by private placement. This is our first time receiving a private placement offer and it is finally our turn to dilute existing shareholders. Wahahahaha. Since the stock halted at $1.43, the share price will probably fall once it resumes trading. If you are comfortable with the above numbers, you can consider buying some if the price is lesser or around $1.353 :)

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 -->)