CPF - Closing Status 26 July

Divested Cambridge Industrial Trust 13 lots in this week under CPF portfolio at $143 nett gain.  Per its 2Q13 results announced in this week, dividend rate $0.0124 has been declared which will XD 30 July and its payment on 9 Sep.  The $143 nett gain was 89% of the full dividend amount $161 = 13 lots x dividend rate $0.0124 x 0.89.   The nett gain amount is slightly lower comparing to the full dividend amount but l have already collected its in advance and not having to wait till 9 Sep for it.   

Decided to divest away Starhub 2 lots in this week for a $106 nett gain.  Its next dividend is estimated to XD on 15 Aug and its dividend rate very likely remaining the same at $0.05.  For 2 lots, l should be getting dividend amount of $100 = 2 lots x dividend rate $0.05.  The $106 nett gain is slightly higher than the expected dividend amount and l have already collected it in advance.

Portfolio walk since previous posting :-

-$7,244 Total Returns as of 19 July

+$249 Gain on sales of Cambridge, Starhub

+$707 Unrealised positions improved

-$6,290 Total Returns as of 26 July

previous journal :- CPF - Closing Status 19 July

CPF - Closing Status 19 July

Invested into Cambridge Industrial Trust 13 lots in this week under CPF portfolio.  l have estimated on the investment costs as l do not have the visibility on the exact bank charges incurred.   

Cambridge recently divested its industrial building in Hillview at 28% gain.  The sale proceeds from the divestment will be used by Cambridge for the repayment of debt, acquisition opportunities, asset enhancement initiatives or developments and for working capital purposes.  Plenty of acquisition opportunities in Singapore for Cambridge as current property prices are quite depressed now.  

Portfolio walk since previous posting :-

-$6,933 Total Returns as of 12 July

-$312 Unrealised positions worsened

-$7,244 Total Returns as of 19 July

previous journal :- CPF - Closing Status 12 July

Right Reit l Like - 2 Mar

This is the final week to get into to both MIIF and CapitaRChina.  Stock that goes ex-dividend not necessarily will shed its share price.  It is really not so easy to forecast how a share price would react when it goes ex-dividend.  I reckon, stock that goes ex-dividend in a positive stock market would see its share price either unchanged or going up further; and its share price would go south in a negative market.  So, is it still worth going into both MIIF and CapitaRChina?

Looking at ROC itself is not that practical though.  As shown in the table below :- CDL Trust - ROC 3.09%, dividend amount $267;  LippoMalls - ROC 2.93%, dividend amount $293.  Though CDL (3.09%) has a higher dividend yield rate versus LippoMalls (2.93%) but when it comes to absolute dividend amount, LippoMalls ($293) is much better than CDL ($267).  As below is based on last year's declared interim dividend rate, circumstances this year would be different.  For example, Pluit Village and Plaza Medan Fair will add more rent collections for LippoMalls and revenue from Studio M Hotel will go into full swing for CDL.


The table below is assuming that all other matters remaining constant as each Reit stock has varied and many types of planned changes to its portfolios; so, the table below is just a quick guidance of the possible returns which can be so much different for an investment amount of $10k.   

Just to remind myself on my journal of 18 Feb :-
Money is always not enough so it must be used to work hardest so as to generate highest returns.  Assuming that l have $10k of funds and my focus is Reit and business trust; and also investment horizon timeline is important - one to two months or less than 6 months. Because of short investment timeline preference, l will not be looking at annual dividend payout rate. So, this table goes to show that with a available funds of $10k, l can get say, Cambridge 19 lots and its dividend amount of $190 versus say, Sabana Reit 10 lots which generates dividend amount of $304. Both stocks are having ex-dividend dates in May month.  A loyal investor on Cambridge would loose out to a cyclical investor who would have selected Sabana instead.  If stock prices are lowered (or gone up) then l can buy more (or less)  and this will directly affecting the dividend amount and its yield.  If the overall stock market is in a bull run but not supported by a bullish economy then there is no reason to drool over the high dividend amount and buying into the high dividend yield stock immediately.  Just Do It is not suppose to work this way.

previous journal :- Right Reit l Like - 24 Feb

Right Reit l Like - 17 Feb

Money is always not enough so it must be used to work hardest so as to generate highest returns.  Assuming that l have $10k of funds and my focus is Reit and business trust; and also investment horizon timeline is important - one to two months or less than 6 months. Because of short investment timeline prference, l will not be looking at annual dividend payout rate.

From the table and for Reit with ex-dividend date in the next one to two months, the top five value for money Reits are Frasers Comm, CapitaRetail China, MIIF, First Reit and Suntec Reit.

For longer ex-dividend dates, l would go for Ascendas India, Ascott Reit, K-Reit, Saizen Reit and Sabana Reit as these are expected to generate much higher returns versus popular Reit stocks, as an example on LippoMalls, Cache Logistics, Cambridge Industrial, K-Green, CitySpring and others.

So, this table goes to show that with a available funds of $10k, l can get say, Cambridge 19 lots and its dividend amount of $190 versus say, Sabana Reit 10 lots which generates dividend amount of $304. Both stocks are having ex-dividend dates in May month.  A loyal investor on Cambridge would loose out to a cyclical investor who would have selected Sabana instead.

The ranking will not be static as older ex-dividend dates will become obsolete as newer dates will then be assumed and their re-ranking is required.  As all stocks prices have gone up by a lot in recent weeks then its probably unwise to rush in to buy my favorite counters.  There is "plenty" of time till ex-dividend dates in March and if this is missed, ex-dividend dates in April and future months can be targeted.

If stock prices are lowered (or gone up) then l can buy more (or less)  and this will directly affecting the dividend amount and its yield.  If the overall stock market is in a bull run but not supported by a bullish economy then there is no reason to drool over the high dividend amount and buying into the high dividend yield stock immediately.  Just Do It is not suppose to work this way.

Reit stocks are popular as passive income source but they can be leveraged for an even bigger and better returns.  It is better not be overly sentimental  on certain Reit stocks but be always ready to consider other Reit stocks.  Thinking of only the same and certain Reit stocks are god-send is not a wise decision.  Even research houses do not always have the same stock pick within the same industry (hospitality, industrial, office, retail, etc.).

Cash - Closing Status 06 Jan

I will not update both the SRS and CPF portfolios as there is no movement in these portfolios.

For the Cash portfolio, new additions are HTL 6 lots and Latitude 10 lots; and sold off Cambridge 8 lots.

Latitude is probably paying interim dividend in March month and the amount is likely to be higher than interim dividend (usually happening) in February month by Reit counters.  Latitude has a higher dividend as it is considered a higher risk counter.  In the days and weeks ahead, if there is a good capital appreciation on Latitude then l will sell the entire 10 lots rather then waiting for it to go ex-dividend. For a high risk counter as Latitude, there is a chance that it would not be paying any dividend at all.  If all plans failed (no capital appreciation and no dividend) then l will just hang on to it.  I have put in $2.2k for 10 lots on it with the hope it is a worthwhile short term investment.

HTL is facing problems on forex volatility, cost increases in raw leather, higher freight rates and higher production costs in China.  Anyways, l am confident HTL is able to overcome these difficulties as they have been dealing with overseas businesses all these while.  It has a reasonably healthy balance sheet with healthy free cash flow position.  Its inventory on FG and WIP are made to order by customers. With the additional 6 lots this week, my total exposure in HTL is at reasonable amount of $3.4k (for 12 lots). 

Selling off Cambridge so that l can re-use the funds for reinvestment.

Going forward, l am considering putting in funds on anticipated higher paying interim dividend counters say, K-Reit, Ascott Reit, etc.   Projecting the annual dividend payout is already not easy so l am hoping the effort in anticipating the interim dividend payout is more rewarding.

previous posting :-  Cash - Closing Status 30 Dec

SSH of Cambridge (J91U)

Subsidiary company of Franklin Resources, Inc made 5 different announcements today that of its presence in Cambridge is now at 7.04% (from old percentage level 6.13%); resulted from various transactions between 21 Nov to 12 Dec.

Cambridge (J91U) caught in the act?

Cambridge clarifies that its 7 Ubi Close property was sold off at premium price of 2.2% over valuation. 

Reason for this asset disposal was not disclosed?

Cambridge (J91U) - Franklin Resources, Inc.

Franklin Resources, Inc. increased its presence in Cambridge from 6.03% to 7.00%  from a series of transactions that occurred between 10 November 2011 and 28 November 2011.   Will it continue to increase its position in this counter?   Why Cambridge; how about other Industrial Reit?