*Official* MasterLeong Thread

[MasterLeong]

Today just paid property tax on my hdb flat $64 lol

 

[lbs]

Oh I have read about the sad story of aims past in some book as well. The moral of the story was that they were expanding too aggressively. Not sure what their intentions were but to increase AUM to boost one's paycheck?

Nevertheless I am also wary of investing in REITs with high gearing ratios.

 

[MasterLeong]

Oh I have read about the sad story of aims past in some book as well. The moral of the story was that they were expanding too aggressively. Not sure what their intentions were but to increase AUM to boost one's paycheck?

Nevertheless I am also wary of investing in REITs with high gearing ratios.

aims does not have a big sponsor... during the GFC they did a big industrial property deal but the banks pulled out from lending them money in mist of the crisis

as such they had to tap into equity instead and did a super dilutive placement which caused it to fall from 1 dollar to 20 cents... it never recovered after that set back


after being through that 2007 GFC and 2011 europe crisia and the current oil crisis... I have learnt that during the worst times, small caps are the first to go down like what we saw in swiber recently... whereas blue chips that are garmen backed like KC SCI will stay afloat as banks continues to lend them money

then same goes for reits which are highly geared by nature, during crisis... banks may refuse to lend money to small reits... but banks will still lend to blue chip reits like Areit and CMT

 

[yihao93]

http://passiveincomefarmer.blogspot.sg/2016/12/reit-history-aimsamp-capital-industrial.html

SATURDAY, 17 DECEMBER 2016

REIT History: AIMSAMP Capital Industrial Reit
AIMSAMP Capital Industrial Reit is the 2nd largest of my REIT counters. I dug out history of the Reit from the Internet and I am particularly interested on its placements and rights issues in the past.

Apr 2007:
- IPO at $1.20 as Macarthurcook Industrial Reit, with 12 properties in the initial portfolio
- End 2007: 15 properties. Unit price: $0.97
(20% decline from IPO price)

2008:
- Increased number of properties since IPO to 21
- Global Financial Crisis
- End 2008: 21 properties. Unit price: $0.22
(Perhaps expanding too aggressively, MI Reit faced escalating debt issues compounded by GFC. Crashed 82% from IPO price just one year ago)

2009:
- Cambridge Industrial Trust sought to take over control of MI Reit. The move blocked by MAS because of potential conflict of interest issues
- Recapitalisation of MI Reit with Private Placement at $0.28
- 2 for 1 Rights at $0.159
- MI Reit acquired by AIMS Financial Group and AMP Capital
- Name changed to AIMSAMP Capital Industrial Reit
- End 2009: 22 properties. Unit price: $0.19

2010:
- 7 for 20 Rights at $0.155
- End 2010: 27 properties. Unit price: $0.21

2011:
- Private Placement at $0.1976
- Private Placement at $0.205
- 5 to 1 unit consolidation
- End 2011: 26 properties. Unit price: $0.91
(Not very clear whether one or two private placements?)

2012:
- End 2012: 25 properties. Unit price $1.44

2013:
- Private Placement at $1.60
- End 2013: 25 properties. Unit price $1.38
(My maiden purchase into the Reit at $1.70. Attracted by the high yield, I went in too high and the counter was in the red by year end)

2014:
- 7 for 40 Rights at $1.08
- Acquired Optus Centre in Australia
- End 2014: 26 properties. Unit price $1.42
(I took up the rights and subscripted to extra units)

2015:
- End 2015: 26 properties. Unit price $1.38

2016:
- Current price (16/12): $1.27
(The unit price has come down below $1.30 after the rate hike)

Quite a checkered history for this Reit. As I did not follow MI Reit in its early days, the early history may not be complete or accurate. Someone in the know please correct my error(s).

If I was in Singapore at MI Reit's IPO, most likely I would buy into MI Reit then. Don't really know if can breakeven now if I got in at IPO? I have quite a few toxic IPOs over the years, e.g., CitySpring (now Keppel Infra Tr), Yellow Pages, HPH Trust and Rickmers.

I like AIMSAMP Capital Industrial Reit for its high yield and its "off-sync" dividend payment months (3-6-9-12) to the common 2-5-8-11 for other REITS.

I have a high risk appetite and tolerance and AIMSAMPI Reit is part of my higher risk holdings. Hope this is a phoenix rising from the ashes.

thats why only buy stocks with long history of consistent payout and okok management

 

[MasterLeong]

thats why only buy stocks with long history of consistent payout and okok management

yup, track record super important and must have reputable management

example a reit with $1 asset and 40 cents of debt

during crisis year they got 15 cents of debt mature and need to renew... but if they are small cap and no name.. the banks will close their doors and not lend them anymore... so they have to do rights issue or placement to beg for the 15 cents of debt ....during crisis a $1 stock may have to do rights issue at 30 cents to get the money... that was how bad the GFC was


however if you are blue chip stock, with temasek backing... during GFC... banks will still lend the reit money... that's the major diffferent and also why big name reits often do not trade at big discount to books like small cap reits

example look at CMT... it rarely trades below book value unless super crisis

 

[lewissac]

Din know my dig-out is so informative for all about REIT everyone bought.

 

[MasterLeong]

Din know my dig-out is so informative for all about REIT everyone bought.

Knowing the history is really impt
Thanks

 

[Average]

Knowing the history is really impt
Thanks

aims does not have a big sponsor... during the GFC they did a big industrial property deal but the banks pulled out from lending them money in mist of the crisis

as such they had to tap into equity instead and did a super dilutive placement which caused it to fall from 1 dollar to 20 cents... it never recovered after that set back


after being through that 2007 GFC and 2011 europe crisia and the current oil crisis... I have learnt that during the worst times, small caps are the first to go down like what we saw in swiber recently... whereas blue chips that are garmen backed like KC SCI will stay afloat as banks continues to lend them money

then same goes for reits which are highly geared by nature, during crisis... banks may refuse to lend money to small reits... but banks will still lend to blue chip reits like Areit and CMT

thats why only buy stocks with long history of consistent payout and okok management

not true.

hint: new mangement, better or worse?

Sent from 穷小子 using GAGT

 

[Perisher]

$10,000 since inception 14 years ago would have net you $25,383 at the 6.88% interest. Not bad.
But $10,000 vested for 3 years would yield nothing so 3 years wasted.
10 years at 3.27% is also wasted.

 

[lasnoblur]

aims does not have a big sponsor... during the GFC they did a big industrial property deal but the banks pulled out from lending them money in mist of the crisis

as such they had to tap into equity instead and did a super dilutive placement which caused it to fall from 1 dollar to 20 cents... it never recovered after that set back


after being through that 2007 GFC and 2011 europe crisia and the current oil crisis... I have learnt that during the worst times, small caps are the first to go down like what we saw in swiber recently... whereas blue chips that are garmen backed like KC SCI will stay afloat as banks continues to lend them money

then same goes for reits which are highly geared by nature, during crisis... banks may refuse to lend money to small reits... but banks will still lend to blue chip reits like Areit and CMT

This is generally true.
however small caps with strong backing or rich owner should be okay too.

 

[Weaboo]

I was beating until I buy ass chips and lose all my money there

 

[stam]

Only a handful of REITs can buy only

Posted with My iPhone 7plus HardwareZone Forums app

 

[Dividends Warrior]

Dk is vested in this le. Biggest holding lol

ASSI also has a humongous position in AIMS.

http://singaporeanstocksinvestor.blogspot.sg/2016/06/brexit-and-1h-2016-income-from-s-reits.html

 

[havetheveryfun]

at what age do u plan to get married bro?


honestly finance was still manageable when i had 2 kids. total hsehold expenses was roughly $5k-$6k with a fully paid car (without factoring in hdb loan funded by CPF.)

if each individual earns say take home $3.5k, thats roughly 1k of savings a mth.. and there's bonus too! Still alrite i tink and so that 1k starts compounding.

But if u delay family planning til 40... and find XMM whos 10 years ur junior.. with ur 2 to 3k$ of savings compounded 10 years ago.. this seems more attainable..

1k a month is only 12k a year. means around 25-30 years to get 300k, and that's for 2 persons based on your example

 

[Shion]

^sti etf performance.

2016 is coming to an end. Have you beaten the index?

Definitely not the insurance par funds or ILP

 

[Average]

can elaborate ma?

means new manager no need to bear blame for lousy management by previous manager. do all those "track records" accurately depict performance of a new manager?

Sent from 穷小子 using GAGT

 

[havetheveryfun]

If you intend to get married, buy house and have kids, you don't need to bother calculating savings because most of your cash will be spent on these expenses.

so you are not intending to get married ?

 

[Dividends Warrior]

so you are not intending to get married ?

Got intention. Within next 2 years if things go smoothly. As for having kids, not really keen though.

 

[Jazzbie]

ASSI average price for Aims is probably very low, not even considering the dividends he has collected over the years. So he has high MOS now.

It's not a certainty that Aims will do as badly in renewing their leases as the market suggests it will too. But as a whole, all REIT sectors (commercial, retail and industrial) are facing headwinds in Singapore, and industrial assets are the least valuable to hold if you imagine yourself as a property buyer now.

 

[MasterLeong]

^sti etf performance.

2016 is coming to an end. Have you beaten the index?

the 10 year returns looks pretty low... machiam only collect dividends nia