*Official* MasterLeong Thread - Part 2

[havetheveryfun]

No worries......as long as there are no 'Jip Lai! Hot stock tips to share!' threads sprouting up everywhere, we are not in a bubble yet

have leh.. edmw got some already for past few weeks to few months

 

[Shion]

No worries......as long as there are no 'Jip Lai! Hot stock tips to share!' threads sprouting up everywhere, we are not in a bubble yet

Subjective. But if the auntie selling vegetables or the uncle selling newspapers are playing stocks too, then...

 

[lewissac]

Which REIT managers are creating the most value for investors?
By: Goola Warden


SINGAPORE (Jan 20): The external manager model adopted by most locally listed trusts is not common in more developed markets such as the US and Australia, and the managers of some successful REITs here have been able to make fortunes for themselves.

However, valuations that managers garner in a transaction, to the extent that they are known, vary widely.

Saizen REIT’s manager, for example, is being sold at a seemingly low price because it is not actually managing any assets.

On the other hand, while Croesus Retail Trust (CRT) has been reporting stable distributions per unit since its listing in 2013, its units traded at relatively high yields because local investors were not familiar with its retail malls in Japan.

The managers that never get transacted are those that run the biggest and most successful REITs in the market, such as CapitaLand Mall Trust (CMT) and CapitaLand Commercial Trust (CCT).

These managers also seem to charge relatively low fees.

For instance, CCT paid asset and property management fees totalling only $21.7 million last year, equivalent to just 0.25% of its assets under management of $8.5 billion.

By comparison, Cambridge Industrial Trust — with an asset size of $1.4 billion — paid asset and property management fees of $9.17 million for the July-to-September quarter alone.

REIT investors should perhaps ask themselves which managers are creating value for them, and which are not.

Source:

http://smr.theedgemarkets.com/artic...ail&utm_term=0_46b7beec93-e3e32892d2-91663741

 

[lewissac]

I invest my emergency funds too to prevent myself from spending them but only in blue chips stocks though hahaha

Why not on Govt bonds like SSB? Emergency funds need to be as stable and risk-free as possible right?

Stocks no matter if it is (Super) Blue chips or Berkshire-type is still subject to fair amount of risk.

 

[MasterLeong]

I think sg still far from a bull market
Most here never experienced the real 2005-2007 bull before
That kinda bull, even taxi drivers quit their job to trade full time

 

[MasterLeong]

Why not on Govt bonds like SSB? Emergency funds need to be as stable and risk-free as possible right?

Stocks no matter if it is (Super) Blue chips or Berkshire-type is still subject to fair amount of risk.

Yup, emergency funds should be park in ssb or fd
Cannot afford to lose

 

[lewissac]

Optus bags A$75m deal with Flight Centre
byVIVIEN SHIAO

SINGTEL'S Australian subsidiary Optus has announced a A$75 million (S$80.6 million) five-year agreement with Flight Centre Travel Group to deliver a range of new collaboration and communication services.

The contract will support Flight Centre in the next phase of its transformation strategy to 2021, including delivering global security, mobility, expansion of data connectivity, as well as unified communications and collaboration services to more than 1,150 stores and 9,000 staff throughout Australia.

As part of the contract, within the next 12 months, Optus will migrate Flight Centre to the Optus CCaaS platform - a virtualised contact centre solution - that enables Flight Centre to increase its focus and resources to boost customer experience, improve staff management and other service offerings.

Source:

http://www.businesstimes.com.sg/companies-markets/optus-bags-a75m-deal-with-flight-centre

Good news for ST and us, I guess

 

[Retireready]

Don't know leh, maybe at my phase of life right now not emergency need a lump sum. I leave only like 2k in my bank account lol, cause no kids yet mah and not married also, only gf lol. Well don't know if what I am doing is right anot though hahaha.

Yup, emergency funds should be park in ssb or fd
Cannot afford to lose

 

[SeVenn]

Looks like analysts finished digesting CMT results over the weekend and their call is SELL

 

[MasterLeong]

Don't know leh, maybe at my phase of life right now not emergency need a lump sum. I leave only like 2k in my bank account lol, cause no kids yet mah and not married also, only gf lol. Well don't know if what I am doing is right anot though hahaha.

how old are u?

if say like first 3 years out from degree and working.. ok la... anything wrong can fall back on parents

if u age like 27 or higher... best to have a 6 month expenses emergency fund in case kanna pok, no job for half year at least u can survive

 

[MasterLeong]

CMT and FCT at 1.97, boat still at port

ST below 3.80 can consider

cheers

 

[lewissac]

Don't know leh, maybe at my phase of life right now not emergency need a lump sum. I leave only like 2k in my bank account lol, cause no kids yet mah and not married also, only gf lol. Well don't know if what I am doing is right anot though hahaha.

So is 2K enough to last you if you got retrenched until you found your next job?
Assume you got burned in stocks you only have 2K left in the bank because your Emergency Fund go bust in stocks, in worst case scenario.

 

[MasterLeong]

so far my portfolio as of now

only 3 stocks a bit red

CMT FCT and CDG

these 3 boat still at port ba

 

[MasterLeong]

the worst thing u wanna do is to tio retrench
then jobless 6-12 months no money, u forced to sell out your stocks
then bull market comes and you miss out everything

double ownself poke ownself back side

 

[lewissac]

so far my portfolio as of now

only 3 stocks a bit red

CMT FCT and CDG

these 3 boat still at port ba

Nice. Mine only STI ETF in red. rest still abit greenish going to red soon. lol.

 

[Retireready]

27 Liao, hahaha, I can't fall back on my parents, they are not rich.

how old are u?

if say like first 3 years out from degree and working.. ok la... anything wrong can fall back on parents

if u age like 27 or higher... best to have a 6 month expenses emergency fund in case kanna pok, no job for half year at least u can survive

 

[MasterLeong]

27 Liao, hahaha, I can't fall back on my parents, they are not rich.

27 liao must have emergency fund ba

at least 3 months of expenses... say 5k maybe?

 

[MasterLeong]

OCBC research got buy call on both CMT and FCT
2 piece chicken meal LOL


Frasers Centrepoint Trust (FCT) reported an in-line set of 1QFY17 results. Gross revenue and NPI fell 6.4% and 5.7% YoY to S$44.1m and S$31.6m, respectively. This was largely due to loss of income from planned vacancies at Northpoint as a result of its ongoing AEI. However, DPU inched up 0.7% YoY to 2.89 S cents. Notwithstanding the headwinds facing Singapore’s retail sector, FCT managed to register a robust rental reversion of 6.9% for its portfolio. Looking ahead, we expect Northpoint’s occupancy to trough in the coming months. We factor in FCT’s recent acquisition of the ten strata-titled ground floor retails units at Yishun 10 Cinema Complex in our model, and consequently raise our FY17 and FY18 DPU forecasts marginally by 0.3%. Given a steeper yield curve environment, we raise our risk-free rate assumption from 2.4% to 2.7%, which consequently lowers our fair value estimate from S$2.33 to S$2.28.


CapitaLand Mall Trust (CMT) reported a 6.1% YoY decline in its 4Q16 gross revenue to S$169.3m, but DPU was flat at 2.88 S cents. Results were in-line with our expectations. CMT showcased its resilience by recording higher shopper traffic and tenants’ sales psf per month in FY16, while occupancy was also stable. However, it experienced a continued moderation in its rental reversion trend, and we believe there will be more pressure on this front in the foreseeable future. However, we expect management to continue its proactive approach in managing its lease expiries, tenant mix and operational efficiencies. We make some minor adjustments to our DPU forecasts, and also factor in a slightly higher cost of equity assumption of 7.3% (previously 7.2%). Rolling forward our valuations, our fair value estimate is lowered from S$2.23 to S$2.20. However, we maintain our BUY rating given potential total returns of ~16%.

 

[MasterLeong]

their TP on the reits quite high sia... like over 10% capital gains over 1 year

dun forget still got the 6% yield

 

[MasterLeong]

ocbc research on FCT

1QFY17 results in-line with our expectations
Frasers Centrepoint Trust (FCT) reported an in-line set of 1QFY17
results. Gross revenue and NPI fell 6.4% and 5.7% YoY to S$44.1m
and S$31.6m, and formed 24.0% and 24.5% of our full-year forecasts,
respectively. This was largely due to loss of income from planned
vacancies at Northpoint as a result of its ongoing AEI. However, DPU
inched up 0.7% YoY to 2.89 S cents and accounted for 24.6% of our
FY17 projection. This was because the REIT Manager elected to take a
larger proportion of management fees in units, while S$1.0m of income
available for distribution was retained, versus S$1.4m in 1QFY16.
Expect Northpoint’s occupancy to trough in coming months
Notwithstanding the headwinds facing Singapore’s retail sector, FCT
managed to register a robust rental reversion of 6.9% for its portfolio.
This was driven by Changi City Point (+12.2%) and Causeway Point
(+10.6%), but partially offset by weakness at Bedok Point (-10.1%)
and Anchorpoint (-3.2%). Occupancy improved 1.9% QoQ to 91.3% as
FCT completed phase 1 of its Northpoint AEI. Looking ahead, occupancy
of Northpoint is expected to reach a trough of ~57%-58% for the
months of Feb to Apr this year, before recovering as the AEI
approaches completion.
Reiterate BUY
We factor in FCT’s recent acquisition of the ten strata-titled ground floor
retails units at Yishun 10 Cinema Complex in our model, and
consequently raise our FY17 and FY18 DPU forecasts marginally by
0.3%. As a result of this acquisition, FCT’s gearing ratio increased
slightly from 28.3% (as at end-FY16) to 29.7%, but remains one of the
lowest amongst the S-REITs universe. Interest cover was also healthy
at 7.3x, although its proportion of borrowings which are hedged or on
fixed rates stood at 56%, as at 31 Dec 2016. Given a steeper yield
curve environment, we raise our risk-free rate assumption from 2.4%
to 2.7%, which consequently lowers our fair value estimate from
S$2.33 to S$2.28. However, we are keeping our BUY rating on FCT, as
we continue to like its resilient portfolio and attractive FY17F
distribution yield of 6.0%.