Author: The Lepak Investor

Ascott REIT and AsiaPhos Rights Issue – The Pauper and The Prince

My humble apologies dear readers, as I was really caught up with work till date. There wasn’t much time for me to put my thoughts onto “paper”, so finally here is my quick write-up of two counters – Ascott REIT and AsiaPhos. Two very different counters, two very different industries, but both have a common goal – raising cash. For Ascott REIT, the objective was to raise cash for an acquisition in Europe and one in Singapore. While it might be dilutive to existing unitholders, this was an opportune time for me to enter into Ascott REIT by way...

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After 13 Years, I Sold My Endowment Policy!

In a rare case of “happy endings” with insurance companies, I sold my NTUC endowment policy that I bought during my NS days to a company that buys them. After calculating the quoted value that REPS Holdings gave me (using the spreadsheet from InvestmentMoats) by e-mail, versus the internal rate of return on the total value of premiums paid till date, it was at an “acceptable” value of -1.53%, which is around the cost of a fund manager’s fees for a unit trust. Some of you might ask, why would I want to sell it? Well, silly me did...

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KrisEnergy Preferential Offer – Measured Risk Taking

After raising money back in 2005, KrisEnergy is back at the deal table due to their upcoming notes this year. Seems that it was a pretty good deal for the shareholders, as the zero coupon bonds that were issued are secured. However, instead of a vanilla zero coupon bond mechanism, they moved the discount on the zero coupon bonds to the free warrants attached to the bonds. Pretty cleverly designed – I guess the apple doesn’t fall far from the tree (Keppel). Personally I didn’t like the way bondholders were treating KrisEnergy, as the noteholders were most likely to believe that it...

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Sabana REIT Rights Issue – A Trap, or Simple Underperformance?

Usually, REITs don’t issue rights at a severely discounted price to it’s NAV unless they are in financial distress, and the recent rights issue from Sabana was heavily discounted, but Sabana isn’t in a financially distressed position. So what gives? Well it turns out that having a REIT with a sponsor is a double-edged sword; particularly if the REIT made some purchases which are of a questionable nature in terms of valuation and yield accretion, and the REIT manager prices the rights issue to finance the purchases at a very high discount to it’s recent trading price, compared to...

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2016 SGX Portfolio Breakdown, and a Li Chun (立春) Idea

So apparently I forgot to do a portfolio review at the start of 2016 (and I’m not sure why!), so I guess it’s opportune to do a breakdown now. Looks like my portfolio is heavily weighted on Finance, mainly due to the REITs which I’ve picked up over the years during the recovery from the 2008 crisis, and Producer Manufacturing, which is a little vague, and I will drill down that sector further below. It looks like the bulk of my exposure to the finance sector consists of REITs and banks, followed by real estate developers. With regards to interest...

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FSMOne – New Trading Platform from IFAST

Yes, a new platform has arrived in Singapore as announced in the newspaper today, and while most people did not see this coming, I have been following the company’s growth and development closely over the last year or two when they started to expand their business to overseas markets, being a shareholder of IFAST, so this doesn’t come as much as a surprise to me. So what’s up with FSMOne? Well it is a unified account which comprises of their funds, bonds and equities platforms, and also their robo-investing product called MAPS. So after logging in as an “old user” with my...

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Frasers Hospitality Trust Rights Issue – Opportune Time To Lower Gearing

Sorry folks for the late post (almost a month!), as I was really busy with work and life. Anyway, Frasers Hospitality Trust declared a rights issue at the end of September, and I took up the rights issue with excess, as I believe that this was a prudent and pro-active measure by the management to lower their gearing and to fund an acquisition of a hotel in Australia. An interesting thing to note was that the dormant business trust portion of the stapled security would be activated as the master lesse of the hotel once the hotel as been acquired, as...

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Phillip SGX APAC Dividend Leaders REIT ETF – A Panacea For Low Yield?

Normally, I’m not an active blogger due to my day job, which requires me to dabble in technology and finance, but when an interesting piece of news comes across my desk, I can’t pass up the chance to write. In case anyone hasn’t heard the news yet, Phillip Capital has launched an IPO for a REIT ETF to be listed on the SGX, and from the product fact sheet, the ETF shall track a list of Asia-Pacific REITs, excluding Japan. Given the large expanse of Asian-Pacific countries, it’s no surprise that Australia, Hong Kong and Singapore comes up tops in the list,...

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IREIT Global – Management Shuffle, with a Twist

An interesting announcement by IREIT Global yesterday about the sale of the manager to a subsidiary of a private equity firm perked my interest to do a little bit of digging on the company being sold to, and to my surprise, there was a little twist to the deal. To recap, Tikehau Capital, a private equity firm, is acquiring 80% of the shares in the manager of IREIT Global, and once that is done, Tikehau will control IREIT Global through their asset management company, Tikehau Investment Management. From the company’s website, it appears that they are holding on to a couple...

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Soilbuild Business REIT Preferential Offer – Doing What’s Right?

A few weeks ago, Soilbuild Business REIT announced a preferential offer, and this came as no surprise to me, as they needed cash to purchase a Bukit Batok property from their sponsor, despite after claiming 18 months’ worth of rental deposit from Technics Oil & Gas when they went into judicial management. Given the current state of the oil & gas sector, it appears that they have wisely pared down their exposure to the industry, and it looks like the property purchase is a decent compromise in risk-taking and diversification. Thus, I am convinced of the ability of the management, and have decided to take up excess...

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Croesus Retail Trust & Mapletree Commercial Trust – Preferential Offers

Phew, it’s been another busy month, and I was involved in my military reserve training at the start of the month (i.e. “NSmen ICT” or “reservist training” in the local lingo), so with my completion of that, I am free to write about the two cash calls which I participated recently, on Croesus Retail Trust and Mapletree Commercial Trust. The Edge article on CRT’s internalization move, kindly provided by an anonymous netizen Croesus Retail Trust issued a preferential offer as they wanted to internalize their trustee-manager. According to what I’ve seen on various blogs and online forums, the sentiment seems to be that...

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Sime Darby takes over Saizen REIT – Trustable Management?

Whoops, it’s been more than two months since I’ve last blogged! I’ve been really busy at work, and July seems to be quite a relatively boring month for the market (relatively speaking), and hence there wasn’t anything that piqued my interest to comment about. However, today’s news on Saizen REIT was a shocker! Now, for those who aren’t aware, Saizen REIT was one of my picks in early 2015, and somehow I “got lucky” and had my capital returned in about one year. After lingering on the SGX mainboard for about 3 months, there was a decision made by the management...

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A Review Of Maybank-Kim Eng’s Monthly Investment Plan

On the back of the minimum commission charges being imposed by Standard Chartered, I’m writing this review of Maybank-Kim Eng (MBKE in short) Monthly Investment Plan as there weren’t any detailed study of this product. So how does this work? Well, it is similar to the plans offered by POEMS, OCBC and POSB, and has its own features. Every month on the 8th, MBKE will buy shares up to the amount which you have specified, and excess cash is refunded back to your bank account via GIRO. I started the monthly investment plan in May, and it was linked to my...

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When the Music Stops – No More Minimum Commissions on Standard Chartered

Well, an era of no minimum commissions has ended for retail investors in Singapore – Standard Chartered has sent out love letters to clients like me, informing us of the change in commissions from August 2016 onwards: Right about now, unless you’re a priority banking client with SCB, panic should set in for you, dear reader. First off, stop panicking. Life still goes on. Despite the $10 or so charge, it is still cheaper to use SCB to buy for overseas shares, as SCB has promised to not charge us maintenance fees, dividend handling fees, corporate action fees, etc. . However,...

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OUE Hospitality Trust Rights Issue – Opportunity, or Fallacy?

Sure-win lottery? I really wanted to write an article on this over the Labour Day weekend at the start of May, but somehow procrastination set in, and with my busy schedule, somehow I forgotten to comment on this rights issue. My humble apologies to my readers, and I promise that the next article would be of more interest. Well, basically, it’s another classic case of being unable to “digest” the acquisitions, as per OUE C-REIT last year – therefore, a rights issue was required. I was able to capitalize on this by buying a small stake on OUE Hospitality Trust...

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