Nov Review of my portfolio (BHG REIT added)
Realised i have not posted for a month. Was a little busy with work and socialising( Make myself sound very important but mainly just drinking with different group of friends. haha), found some time today. What a difference a month make! A month back, i was still saying my portfolio is holding up well. Excluding distributions, the portfolio has slipped back into the reds.
Also bought into BHG Reit. I know alot of investors dont like this counter. IPOed at 80 SGD cents. When i bought it, it was at 60 SGD. At point of writing this post, it is at 57.5 SGD cents! Damn! Hurts. However, i bought it due to the following reasons.
1. I like the low gearing. <30%
2. I like that it is heavy in china. I dont really care about what people say about China is slowing down. They are still expanding at 6 plus percent! With the sheer size of China's economy, that is stil a big deal! Good for me to start moving away from SG heavy counters.
3. 13 Voluntary Sponsor ROFRs properties in the pipeline
4. China's relaxation of the 1 child policy. The Chinese love their kids.
5. 3 out of 5 malls are at 100% occupancy, 1 at 99.4% and the last 1 at 92.7%.
Apparently alot of investors dont like the financial engineering used by the REIT in order to artificially inflate the DPU. No problem with me for that. It's good. 5 years of artificially inflated income and as long as the Sponsor doesnt suddenly pull the plug, im happy. 1H dpu was 2.85cents. Let's say 2H is going to be 2.85 cents as well. Theoretically, my annualised yield is 9.5%!!!
I think ill buy more if the price continues down to 55 cents. I'm still waiting to see what Sime Darby has up their sleeves with regards to Saizen. The last 20k in the warchest will most probably be spent on that or the BHG.
Side Note: After i finished this post, i did more reading on BHG. Realised they will pay out only 90 percent of distribution available, starting from next year. Assuming it is a straight multiplication in reduction of yield, ill still get at least 8.55% assuming the growth projection is achieved or 'better-ed'. Still buey pai lah!
Also bought into BHG Reit. I know alot of investors dont like this counter. IPOed at 80 SGD cents. When i bought it, it was at 60 SGD. At point of writing this post, it is at 57.5 SGD cents! Damn! Hurts. However, i bought it due to the following reasons.
1. I like the low gearing. <30%
2. I like that it is heavy in china. I dont really care about what people say about China is slowing down. They are still expanding at 6 plus percent! With the sheer size of China's economy, that is stil a big deal! Good for me to start moving away from SG heavy counters.
3. 13 Voluntary Sponsor ROFRs properties in the pipeline
4. China's relaxation of the 1 child policy. The Chinese love their kids.
5. 3 out of 5 malls are at 100% occupancy, 1 at 99.4% and the last 1 at 92.7%.
Apparently alot of investors dont like the financial engineering used by the REIT in order to artificially inflate the DPU. No problem with me for that. It's good. 5 years of artificially inflated income and as long as the Sponsor doesnt suddenly pull the plug, im happy. 1H dpu was 2.85cents. Let's say 2H is going to be 2.85 cents as well. Theoretically, my annualised yield is 9.5%!!!
I think ill buy more if the price continues down to 55 cents. I'm still waiting to see what Sime Darby has up their sleeves with regards to Saizen. The last 20k in the warchest will most probably be spent on that or the BHG.
Side Note: After i finished this post, i did more reading on BHG. Realised they will pay out only 90 percent of distribution available, starting from next year. Assuming it is a straight multiplication in reduction of yield, ill still get at least 8.55% assuming the growth projection is achieved or 'better-ed'. Still buey pai lah!
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