Yes bro,... agreed with your approach above. Stabilize yrself in yr career first,... then only start to focus more in investments...

This type of charge is cut throat,... which bank is that ?? Is this in their agmt when you first opened the acct ?

Showtime,... yr posting here is a great consolation for me,... tq,...

Had a bad day today,... broker, private banking summore,.. bloody well queued late for me,.. had to buy a stock at 2.2% higher,....

But yeah,.. from yr posting above, since we are long term, then will make back the money lar,...

The co is trying to diversify,... this is good,... I will buy,... hav you read the latest report ?

No prb,... don't worry, but don't pour everything in,... the policy of this co on divvy payouts is very good,... she cares abt her investors. And the mgmt is very prudent.

Okay,... till now-lar,... always must have this caveat,...for things can chg in future !

Tq Showtime,... good hopes there,...

Bro,.. he's also my friend,.. been with him for many years already,.. I think just leave it be-lar,.. after the air is let out, just move-on,..

Glad to be able to help,... glad that I am right !

Only 5% for this ETF ? Maybe a bit too low for me...

On my part, I've just discovered a round-up report of another REIT this evening,.. Viva Industrial Trust. Research and data compiled by OCBC and evaluations from OCBC too,.. read-on :-

++ Reaping rewards at VBP
++ McDermott non-renewal
++ FV increases to S$0.80

FY16 results within expectations

Viva Industrial Trust’s (VIT) results were within expectations. FY16 DPU dropped 0.6% to 6.958 S cents, or 95% of our full-year forecast, as dilution from last year’s placement in 4Q16 had yet to be accompanied by income contribution from the Chin Bee acquisition, which was only completed in Jan 2017. FY16 gross revenue and NPI increased 28.6% to S$95.1m and 34.7% to S$68.5m respectively. Both came up to 102% of our forecast.

Beyond Chin Bee, growth visibility at VBP and potential for strong rental reversions at UEBH

In 2017, beside new contributions from Chin Bee property, we anticipate strong growth prospects at Viva Business Park (VBP). While VIT has achieved 94.9% committed occupancy for the VBP “white space” as at 31 Dec 2016, we note that only 58% of total “white space” contributed to 4Q16 income with the rest of the occupants yet to start their leases. We expect all remaining ~37% of space to start contributing to revenue in stages by end 2017 – VBP’s revenue and NPI is forecasted to increase 23% and 30% YoY respectively in FY17. In 2018, we are optimistic on the UE Bizhub (UEBH) rents with the Downtown line connection due to open at Expo and forecast a ~10% rental reversions for lease renewals.

Trading at 10.0% yield

In terms of risks, we note that a large tenant at Jackson Square (JS), McDermott (which currently contributes around 3.7% of VIT’s monthly rental income) will not be renewing its lease expiring in Apr 2017 (see appendix). JS is currently protected by a rental guarantee arrangement till Nov 2019. We currently assume that only ~3/4 of the vacated space will be leased out by Nov 2019. While we view the nonrenewal as a negative, we note that McDermott is one of VIT’s only O&G tenant and expect few repeats of this scenario. After adjusting our forecasts for VBP, UEBH, and JS, our fair value estimate increases from S$0.78 to S$0.80. As of now, VIT is trading at 10.0% FY17 forward yield. We reiterate our BUY rating on VIT.

Source: OCBC Research - 27 Jan 2017


I find the above quite detailed and complete for VIT moving fwd,... Appreciate some opinions,...

Tq bro gark,... yeah, I recalled we discussed this earlier, buy in light of more complete details from OCBC,... and recently, Religare Capital started coverage too,.. I was thinking if our opinions of the fundamentals could have improved. Rental support will finish at the following locations around the following times :-

1) Jackson Square (JS) in November 2019. OCBC expects ONLY 75% of the space here can be leased out by November 2019, with the remaining 25% not contributing the rental income after the guaranteed rental payment has been stopped.

Currently 91% occupied. By April, 2017, will be 77% occupied only with MsDermott moving out and Foxconn moving-in.

I said earlier that Jackson and UE Bizhub are of Business Park type-of-assets, hence, chances for lease renewal will always be there, provided the co's leasing these properties are doing well in their businesses. But the way OCBC commented in the above abt JS,... looks like it may not be true anymore,..

2) UE Bizhub (UEBH) in 2018,... which month is unknown,.... On this end, OCBC is optimistic on the UEBH rents with the Downtown line connection due to open at Expo and forecast a ~10% rental reversions for lease renewals. But,... how many % will renew ? Currently 89% occupied with 31 tenants.

Above two properties are not of master lease type, hence, when guaranteed rental payments do NOT come in anymore, another challenge would be the property-related expenses will go up, pushing the NPI down. The effect is equivalent to an industrial property losing its master-lease and converting to being multi-tenanted.

The question that comes to mind would be at worst cases for UEBH and JS, how much of the rental income would be reduced by ?

Then we can count the yield at a unit price of 93 Cts at worst case scenario.

Some positives,.. well,... according to OCBC are :-

1) a growing rental income from the Viva Business Park (VBP) this year - from OCBC : 94.9% committed occupancy for the VBP “white space” as at 31 Dec 2016. At this moment, only 58% of total “white space” contributed to 4Q16 income with the rest of the occupants yet to start their leases. We expect all remaining ~37% of space to start contributing to revenue in stages by end-2017 – VBP’s revenue and NPI is forecasted to increase 23% and 30% YoY respectively in FY17.

2) a 7 years triple net master lease from "6 Chin Bee", which is already 100% leased out, acquisition completed end-2016.

The second question that comes to mind will then be : how much of the positives in 1) & 2) of the immediate above be able to offset the worst case scenarios if experienced by UEBH and JS in 2018 & 2019 respectively ?

Tq bear,.. this is a useful observation and feedback ! I'm thinking of going in to VIT, but need to make the contingencies first,...

Let's hear bro gark's comments to my 'calculations' above too,....

I would not selloff yet,.. probably can go higher as more and more investors know of the recent 'good news'. But,.. since the yield is good, don't selloff,... keep to reap the divvies, this ctr's dividend policy is v good !

If you read his article carefully, you will see he keeps harping on a land lease problem that will not happen for another 10+ years,... Coming from the angle, then we ask ourselves if we would be investing in a ctr for so long,.. unless the price starts dropping FROM NOW, I wouldn't be so concerned abt a land lease problem expiring in 14 years from now,...

Interest-coverage-wise, well, 4 times is good enough, and furthermore 90% of the loans have no renewal till 2018 !

Unless you are investing forever in this ctr, no need to worry on the above traits. I would put in more focus on the two expiring props without rental support next year and in November 2019.

Bro,... you bought in the 60's ? Hmm,... I wasn't born yet, and SG had REITs already ?? Actually, if that AK fella wants to sleep peacefully at night, he shld release all his Industrial REITs at these times,..

I think,... as an investor becomes mare matured, and 'smart',... she shld not invest into too many ctrs anymore,.. diversification is, of course, a must,...but keeping it minimal will invite less work,...I rcalled I had this experience too when I first started,...

Having said the above,... I know hold 14 counters in the ASX,...

Just started-lar,.... perhaps in another 9 months from now, can cut down already,... when the holdings have 'matured' and some positions have very high margins-of-safety,... hopefully, hopefully... bought some right counters,...

You went in at end-2016 after the cash-raising exercise, right ? One thing abt this ctr is : there is a CR exercise every year-end,... look at the past records,...

As for AK ; if yuo look closely at his investing style, he always piurs in new money into his investments,... we can call it averaging down,... but which do you think is more skillful ?

1) Pouring-in new money to average down always, hence lowering the average price and upping the yield; OR
2) Divesting lower-performing assets when the 'time comes' and then investing the proceeds into higher-performing assets ?

True,.. different styles and objectives,.. but wouldn't yuo say instinctively, being able to cycle our capital and changing the instruments in order to get higher returns is better than using new money ? It does not mean that this person does not have new money, but we are putting new money aside, and using only available money to make more money than what we made earlier,.. this is more skillful, right ?

Hmm,... if an investor invests like AK, everybody would run out of ctrs,.. surely, because he is spraying bullets everywhere.

Bro,... you did not tell him that as everybody thinks of the pauyout, as time approaches the 'targetted XDate', the share price of unit price may go up, ie more expensive.

I'm glad I divested Ascott REIT after attending the AGM last year, after hearing the GM spoke. Shareholders reminded him to be more conservative when doing these exercises, and he said yes,... He was very friendly and down-to-earth, I must say,...

But now,... doing it again,...

For Cache Logs Trust - Daniel and the board said okay,... they will be more conservative, and not to do too much anymore. Since that AGM last year, none was done anymore ! Okay-lar for CLT !!!!!!!

Means REIT prices will need to pullback to provide higher yields to unitholders.

Conceptually, only if REIT yields are high enough, and are HIGHER than the safe and risk-free US Treasury 10Y Bonds will encourage investors to go into REITs !

YES,....