Author: My Sweet Retirement

Parkway Life REIT Purchase New Japan Nursing Home

On 24th March 2016, Parkway Life REIT announces the purchase of a new nursing home facility, “Silver Heights Hitsujigaoka Ichiban-kan & Nibankan” for JPY1,100 million. This is approximately S$13.6 million. Location The nursing home facility is located in the residential neighborhood within Sapporo City, capital city of Hokkaido prefecture with a master lease of 20 years. Net Property Yield The newly acquired nursing home facility is expected to generate a net property yield of 6.7%. Occupancy Occupancy of the nursing home facility is healthy at 94%. Gearing Ratio The cost for the acquisition of the new nursing home will be funded...

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My Sweet Retirement Subscribes for OUE Hospitality Trust Rights

With the issuance of rights, DPS will fall from 6.55 cents to 5.38 cents. The DPS Yield will fall from 8.6% to 7.6%. I asked myself the following 3 questions below previously in my post here (OUE Hospitality Trust Issues Rights to Fund Acquisition of Crowne Plaza Changi Airport Extension). As issuance of rights usually dilute the share price, what will be the fair price after rights issue? This is similar to the recent ARA rights issue whereby the share price fell from estimate $1.17 to $1.05 after rights issue. How do I subscribe for the rights? How do...

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ST Engineering Contract Win with TERREX 2

On 17th March 2016, ST Kinetics, the land systems arm of ST Engineering announces that they have been awarded the contract for 13 prototypes of the amphibious combat vehicle Terrex 2 by the US Marine Corps. The 13 Terrex 2 prototypes would be tested next year. The contract that was awarded to ST Engineering (STE) and partner Science Applications International Corp (SAIC) was worth US$121.5 million. If the US Marines select the Terrex 2, a further contract will be awarded for the building of another 204 vehicles at an average procurement price of up to US$6.5 million per vehicle (Total worth US$1.3 billion) Competition During the tenders...

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Book Review: The Daily Edge

This is an excellent book by David Horsager that teaches you simple strategies to increase efficiency and make an impact every day. In layman terms, this book teaches you about increasing productivity. Besides reading financial related books, I also read books that teaches me about increasing my productivity and efficiency. My reason is that I can learn to do things faster and better at work so that I can spend more time on my retirement portfolio. I have more passion analyzing stocks and read up on financial planning as compared to my current nine to five office job which...

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My Sweet Retirement Portfolio for Dividend or Growth

There are two main school of thoughts when buying a stock. You either buy it for its dividend or for its growth, hoping it will unlock its value one day and perhaps become a multi-bagger. In my holdings, ComfortDelgro is currently one such stock. M1 used to be one, however prices have since fallen and it is no longer a multi-bagger stock in my portfolio. You may ask why I am not selling ComforDelgro, since it has unlock its value? My reason is simple. Currently, I have nothing better to buy. Furthermore, I will draw down from my war...

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Update on Singapore Savings Bonds March 2016

I have been monitoring the Singapore Savings Bonds for the past few months, hoping for interest rates rise. I was hoping for safe heaven to park my excess cash. However, the results have been disappointing. The effective return per year for Singapore Savings Bonds seems to be trending down and even fell to a low of 2.19% for the month of April 2016. The lowest yielding stock in my current portfolio gives an estimated return of 2.40% per year. The interest rates  of the OCBC 360 account can easily beat the Singapore Savings Bonds. I am glad I have...

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OUE Hospitality Trust Issues Rights to Fund Acquisition of Crowne Plaza Changi Airport Extension

On 7th March 2016, OUE Hospitalty Trust announce an underwritten and renounceable rights issue to raise proceeds of S$238.6 million.  The proceeds from the rights issue will be used to fund the acquisition of the Crowne Plaza Changi Airport Extension (CPEX). In the press release, Mr Chong, CEO of the REIT manager mention that following the rights issue, OUE H-Trust’s gearing will be reduced from 42.0% to approximately 37.8%. 33 Rights Stapled Securities will be offered for every 100 existing stapled securities in OUE H-Trust. The Rights Stapled Securities will be issued at S$0.54. This is a discount of approximately 29.4%, based...

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Book Review: How 30 Good Ideas Became Great Businesses

Do you aspire to be an entrepreneur? Do you have an idea but didn’t know if it will work out? Recently, I have borrowed a few books about entrepreneurship from the National Library. I hope to learn what are the challenges and how others embark on the path of entrepreneurship. This book is about how 30 good ideas became great businesses. Two excellent points I learnt from the book: #1 A significant minority of the founders started the business as a part time activity while they carried on with their day jobs t find their living expenses, focusing full time on...

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My Sweet Retirement Current Portfolio Dividend Yield

Recently, I did a rough calculation of the dividend yield on my stock portfolio. The formula is based on the total dividends I collected for FY15 divided by the total amount I invested. The current annual yield of my investment portfolio stands at 5.40%. Being curious how much I will have when I reach 55 years old, I used the Dividend Calculator found on Dividend Ladder to do a projection. If I have a total invested amount of $200K (for illustration purposes only) and with my current annual dividend yield of 5.40% (current), how much will I have for retirement...

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ST Engineering Announces Final Dividend of 10 cents

ST Engineering announces its financial year 2015 results on 26th February 2016. Revenue fell slightly by 3% from 6,539 million to 6,335 million dollars. Earnings per share fell slightly from 17.06 cents to 17.05 cents. With the announcement of final dividend of 10 cents, this brings the total dividend for FY15 to 15 cents which is the same as FY14. Personally, I felt the results are pretty good given the weakness in the Marine sector. Currently, ST Engineering is the largest percentage holding in my portfolio by invested amount. Financial Results FY2015 For the year ended 31 December 2015 FY15...

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NeraTel Cuts Dividend from Two Cents to One Cent

NeraTel announces its 4Q2015 results on 24th February 2016. Profit after tax for the full year fell 17.4% from $16.2 million to $13.4 million. A final dividend of one cent was declared as compared to two cents a year ago. NeraTel business comprises of two main segments. They are Telecommunications and Info-communications. Telecommunications Compared to FY 2014, turnover for FY 2015 declined 6.7% ($4.1 million) from $61.9 million to $57.8 million. The decrease was due to lower sales in the Middle East and Africa market. Info-communications Network Infrastructure Compared to FY 2014, turnover for FY2015 declined 4.5% ($3.6 million) YOY from...

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Far East Hospitality Trust DPU Fall for 4Q 2015

Far East Hospitality Trust (“FEHT”) announces its 4Q2015 results on 24th February. Distribution Per Unit (“DPU”) for 4Q2015 fell 8.6% to 1.17. The annualised DPU fell 10.5% to 4.60 cents. Net Property Income fell 4.9% as compared to 4Q2014. Unless tourism picks up, I am expecting the hospitality sector to be soft and DPU to fall further for FEHT. 4Q2015 (S$’000) 4Q2014 (S$ ‘000) YoY(%) Gross Revenue 28,851 30,280 (4.7) Net Property Income 26,289 27,652 (4.9) Distributable Amount 20,649 22,858 (9.7) Distribution Per Unit (“DPU”) (cents) 1.17 1.28 (8.6) Annualised DPU (cents) 4.60 5.14 (10.5) Occupancy Hotels The revenue per...

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Summary of February 2016 Transactions

The month of February, many companies continue to announce their FY2015 Full Year results. M1 held the fort well given the threat and market panic caused by the news of the 4th Telco. I am expecting to collect dividends from the stocks I hold such as Soilbuild REIT, Suntec REIT, Parkway Life REIT, Keppel REIT, Frasers Commercial Trust, Capitaland Mall Trust, OUE Hospitality Trust and Cambridge Industrial Trust. Given the market weakness, I bought a little more of ST Engineering. ST Engineering now stands at 15% of my entire portfolio. At the time of writing this post, ST Engineering has...

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Book Review: The 100 Best Stocks to Buy in 2015

I came across this book which is selling at a discount at Times Book store. Looking at a title, you can tell why it is selling at a discount. There is a newer copy “The 100 Best Stocks to Buy in 2016” but I shall be grabbing that later. The stocks listed in this book are all US based stocks. I have always been keen to invest in the US stock market and thus I grabbed this book to understand more. The authors (Peter Sander and Scott Bobo) classify the list of stocks into a few categories. Conservative Growth...

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Boustead Revenue and Net Profit fell for 3Q FY2016

On 12th February, my favourite company, Boustead Singapore Limited announced its 3Q FY2016 financial results. The revenue of S$142.3 million for 3Q FY2016 was 20% lower than 3Q FY2015. Net profit of S$7.5 million was 36% lower than 3Q FY2015. If you take into account the demerger and other gains and losses, then net profit for 3Q FY2016 would be 16% lower year-on-year. Mr Wong Fong Fui, Chairman and Group Chief Executive Officer of Boustead said, “All our divisions continued to deliver profitability even in these harsh business conditions. Nonetheless, our businesses face significant challenges and especially our Energy Related Engineering...

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