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Sunday, 20 April 2014

SRS - Closing status 17 April

Reduced Tee International 15 lots as part of usual portfolio re-balancing for $166 nett gain; total holding now at 45 lots.  Tee Intl soft financial results for 3Q2014; revenue -29.5% due to lower recognition of revenue and profit -ve 13% due to higher admin costs from the acquisition of Interlift Sales Pte Ltd.  It  proposed an issue of 2 warrants for every 5 shares issue (exercise price of S$0.25 per warrant)  to strengthen its capital base and support its expanding business activities.

Divested away Mapletree Logistics 2 lots in this week at small nett profit of $13 as part of usual portfolio re-balancing.  For its 3Q2014 financial results, NPI -0.2%; excluding the forex impact then NPI +4.0%.  Borrowing costs -23% due to lower average interest rates achieved and weaker JPY.  Impact of weaker JPY on distribution is mitigated by currency hedges.  95% of amount distributable is hedged into / derived in SGD.  100% of income stream from Japan has been hedged.  Amount distributable to unitholders +8% driven by enlarged portfolio, positive rental reversions and lower financing costs.  NAV as of end Dec'13 at $0.93 but Mr Market says it is worth $1.085 at the moment.  Aggregate leverage ratio 33.9%.  73% of total debt hedged into fixed rates.  Portfolio occupancy 98.4%.    

Divested away Mapletree Industrial 2 lots in this week under CPF portfolio as part of usual portfolio re-balancing for $53 nett gain.   Using previous quarter dividends rate, the expected Qtr 4 dividends will be at $50 (2 lots x $0.0251) so, l have already collected its Qtr 4 dividends in advance. In 2013, the payment date was on 4th June.  For its 3Q2014 financial results, NPI +12.0%.  81% of borrowings had been hedged through interest rate swaps and fixed rate borrowings.  Amount distributable to unitholders +12.0%.  NAV as of end Dec'13 at $1.11 but Mr Market says it is worth $1.425 at the moment.   Aggregate leverage ratio 36.3%.  As of end Dec'13, net current liabilities position due to the reclassification of long term borrowings which are maturing in Aug'14 and Sep'14 (for financial year 2015).  It has existing banking facilities available to refinance most of these borrowings and has also obtained in-principle agreement with certain banks to refinance these loans on a longer term basis.  Portfolio occupancy 92.5%.  It recently signed a sale and purchase agreement to acquire a four-storey light industrial building located at 2A Changi North Street 2 on a sale-and-leaseback arrangement; completion of acquisition expected in 2nd Quarter of 2014.  has signed an agreement with Hewlett-Packard Singapore to develop and lease a new build-to-suit facility (BTS) at its existing Telok Blangah Cluster.  The proposed redevelopment is slated for completion in the first half of 2017 and will be carried out in two phases.  It has sufficient financial capacity to fund the BTS Facility.  Assuming the BTS Facility is fully funded by debt, the aggregate leverage ratio is expected to increase progressively from 36.3% (as at 31 December 2013) to 41.0% upon completion of the BTS Facility.

Divested away CDL Hospitality Trusts 2 lots at a small nett profit of $25 in this week, as part of usual portoflio re-balancing.  For its 4Q13 results, net property income +2.5%; income available for distribution per unit +0.6%.  Income from acquisition growth in 2013 has mitigated the impact of the softer trading conditions experienced in Singapore.  Its healthy gearing puts it in good stead to capitalise on expansion opportunities as it continues to actively seek yield-accretive acquisition opportunities in the hospitality sector.  Orchard Hotel Shopping Arcade, currently under AEI will be rebranded as "Claymore Link"; incremental rental income to be more than S$2.0 million on an annualized basis.

Portfolio walk since previous posting :-

+$8,331 Total Returns as of 11 April

+$257 Nett gains on sales of Tee Intl, Mapletree Logistics, Mapletree Industrial, CDL HTrust

+$259 Unrealised positions improved

+$8,847 Total Returns as of 17 April

previous posting :- SRS - Closing status 11 April

Remarks :- Profits locked in to-date $15,044 / year 2014 $2,442

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