This is my Portfolio update in the month of October 2019.
Not much changes for my Portfolio in the month of September but there were various or rather exciting moments for S-Reits. IPO for Lendlease Reit also happen in the month of October.
As of now, Reits prices have rallied up to their peaks thanks to the low interest rate environment. US-China trade war and uncertain Brexit deal coupled with the looming of economy recession contributed to the volatility of shares prices on a daily basis.
However this have not affected the confidence of investors in quality Reits with a number of them announcing further acquisition with Private and Preferential Offering to fund their purchases. CRCT starts in the month of August followed by Keppel DC Reit and Manulife Reit in the month of end September to early October.
Even MAS is considering to raise gearing limits for S-Reits to 45% and if that happens, it definitely will boost S-Reits even further with more acquisitions.
We are now seeing a trend of quality Reits purchasing properties from their Sponsors. CRCT is one of them where they are purchasing 3 Shopping Malls from Capitaland. We are also expecting results announcement from majority of Listed Companies and Reits in the month of October.
Below is an extract of my top 10 Counters at the moment.
Total Cost: SGD 188,529.28
Current Value: SGD 196,772.73
Current P&L: SGD 8,242.75
Portfolio Current Yield: 4.99%
Dividend per Annum: SGD 9,396.25
For those who is interested to see my whole Portfolio, please follow me at:
https://stocks.cafe/user/profile?username=sgcashflowinvestor
For the month of September and October, I have done the following:
1) Initiated positions on Manulife Reit
2) Applied for Preferential Shares on Keppel DC Reit
3) Applied for Preferential Shares on Manulife Reit
Lastly, I am waiting for Mapletree Commercial Trust preferential offering which to me will be one of the most exciting deal in Year 2019. MCT has proposed an equity fundraising comprising of 406.5 million new units via in a private placement and preferential offering to raise at least $902.30. The funds will be used to acquire Mapletree Business City (Phrase 2) for $1.55 billion.
MCT is one of my favourite top holdings and I have been holding them since IPO time. I first bought it at $0.88 and divested it when it reaches $1.55 around 3/4 years later. Subsequently I bought it back at $1.585 and have been holding since and added another 2 lots at $1.99 few months back.
Through this, I have personally experienced the Time-Weighted returns of holding quality Reits on a long term basis. I feel there is a lot to gain with share price appreciation and increasing DPU year on year and a lot to lose if you sell too early.
As such, this increases my confidence and faith of my strategy being a long-term investor with majority of my money invested into the market. I am focused on long term returns instead of short term gain. Of course, it's never wrong to take profit when you feel the price has reach its ceiling with the risk of global economy recession lurking round the corner.
Financial Horse has given their comments to sell MCT early this year January when their share price has driven up to $1.74 but no one would expect MCT to be elevated to be part of STI few months later with share price richly valued at $2.30 now. https://financialhorse.com/sell-mct-reits-2019/
Sometimes the price will get higher even though the price seems unreasonably high over their NAV and P/B ratio. So when is the right time to sell your shares or Reits? No know can give you a definite answer except yourself.
I am waiting for the Preferential Offering to open on 30 October and will be bidding in excess of my allocated shares for MCT.
Disclaimer: This is not a Recommendation to buy or sell any Stocks and please do your own due diligence and research before making any decision.
Regards,
SG Cashflow Investor
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