Saturday, December 31, 2016

Portfolio Review 4Q16

One transaction completed:
  1. Cambridge
    • Buy
      Gearing has been progressively lowered through periodic repayment of debt and is around 33.4% after the latest round of paying down approximately S$20.0 million on 17 February 2011 (cf. gearing level of >40% in the early part of 2010, see From the Beginning...), but continues to offer high yield of >9% at ~50cents
      Cessation of Distribution Reinvestment Plan -> no DPU dilution resulting from DRP ("Distribution Reinvestment Plan
      The Manager has been informed by the Ministry of Finance on 17 December 2010 that the Distribution Reinvestment Plan (“DRP”) for REITs will not be extended beyond 31December 2010.")
    • Sell
      Lack of sponsor coupled with challenging outlook for local industrial rentals amidst oversupply concerns

Currently holding on to 13 counters (see Portfolio Review 1Q10 for 1-3, Portfolio Review 2Q10 for 4, Portfolio Review 4Q10 for 5, Portfolio Review 2Q13 for 6, Portfolio Review 4Q13 for 7, Portfolio Review 2Q14 for 8, Portfolio Review 2Q15 for 9, Portfolio Review 2Q16 for 10, and Portfolio Review 3Q16 for 11 and 12):
  1. FrasersCT
  2. PLife
  3. Starhill
  4. Cache
  5. First REIT
  6. Croesus RTr
  7. CDL HTrust 
  8. OUE HTrust 
  9. FCL 3.65%b
  10. Hyflux 6%Perp
  11. SoilbuildBizReit
  12. FCOT
  13. AIMSAMP
    • Buy
      Presence of sponsor and optimism over venturing into developing built-to-suit properties
Next portfolio review due after 31 March 2017.

Note to self: only simple P/L calculated


Thank goodness for dividends... yet again

Deja vu? This is beginning to be a familiar refrain - once again decided to absorb some capital loss in rebalancing the portfolio while at the same time reaping the benefits of staying invested and collecting income.

In terms of looking ahead at 2017, amidst the aftermath of Brexit and a changing political scene, it is anyone's guess how the economy will pan out. Well, I should be keeping an eye on any large movements and be ready for more rebalancing in case of any impact on overall portfolio value / dividends stream.

Wishing everyone good fortune =)