Search Results for: ipo

Taking a look at Frasers Logistics and Industrial Trust (FLT) Cap Rate versus that of Ascendas REIT and Charter Hall’s Portfolio

When it comes to Frasers Logistics and Industrial Trust (FLT) IPO at SG$0.89, the narrative have been on the portfolio’s pricing of 2.7% or 2.8% above its net asset value. There is a prevailing idea that anything above its net asset value is expensive. My take is that, net asset value is only part of the valuation equation. And folks would have let the narrative of how much dividend yield we stand to earn dictate our investment decision. When price goes above NAV, it will be the book value that drives growth, and the narrative shifts to capital appreciation based...

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Frasers Logistics and Industrial Trust

Another REIT is going IPO, this times, it’s an Australian pure-play REIT with logistics and industrial properties, Frasers Logistics and Industrial Trust. With the Australian dollar at a fairly favourable exchange rate to the Sing dollar now, or at least compared to the past, it might be a good chance to invest in Australian assets. (Image source: Frasers Logistics and Industrial Trust prospectus) Looking at the profit and loss statement, I’ll be using the pro forma financial statements provided in the prospectus. The distributable income looks so-so, with around $0.05 per unit (I’ll use a A$1 = S$1 exchange...

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Journey To Retirement Part 1.2 — Genting SP

2016 is the 10th year that I have vested in Genting SP share.  Bought into it in April 2006 after knowing that Singapore was going to build 2 IRs then and Genting SP was one of the company going to bid for one of the IR.  This will be the 2nd longest stock I have ever hold in investment with SingTel being the longest after holding for 14 years from start of IPO in 1993 to 2007. I was pretty confident that Genting SP will be involved in one of the IRs back in 2006 after the Government decision...

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Prefs and Perps are Generally Inferior to Stocks and Bonds as an Investment Form

I have been investing in preference shares (prefs) for many years, so much so that I had forgotten that as an investment form, prefs are actually inferior to stocks and bonds. In fact, prefs have been the cornerstone of my equity-centric investment strategy, saving my equity portfolio during severe market crashes, as described in Behind Every Successful Bear Market Recovery is A Cash-Like Instrument. It was only last week when Hyflux launched its IPO of perpetual capital securities (perps) that I looked into the features of perps and remembered that prefs and perps (which are similar in nature to prefs)...

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Will you buy this blue-chip stock with 9.92% dividends yields?

I applied for Hutchinson Ports Holdings trust when the trust went IPO in year 2011 for 2,000 shares and I was allotted the full 2,000 shares. Paying $2,588 for the 2,000 shares, my average cost per share worked out to $1.294 (which was US $1.03 then), not counting the $2 transaction fee for the application of the IPO via ATM.Since the IPO, Hutchinson Ports Holdings trust has not traded above its IPO price. However I have been receiving dividends from the trust from my 2,000 shares in the trust as below (the trust’s annual dividends payouts are in March...

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Hyflux Perpetual 6%

Please read the disclaimer at the bottom of my blog if you wish to continue with the contents below. official opening of Tuaspring desalination plant Hyflux is issuing $300mil perpetual at 6% which will be increased to $500mil if it is oversubscribed. Their placement tranche was 4x oversubscribed and hence they increased it from $50mil to $165mil and it was closed within a day. I guess everyone by now knows that its is a perpetual bond that has a step up in 4 years time. It is also cumulative and compounded with dividend stopper. Mr IPO did a very good write up...

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Temasek Acquisition of Eu Yan Sang at Low Optimism

We have learned from Dr Tee to buy giant stocks at low optimism for investing. However, nowadays fund managers have become competitors for retail investors for such investing opportunities.  Recently a consortium including Temasek, has offered to acquire Eu Yan Sang.  Let’s analyse further based on optimism strategies. The earning ability of Eu Yan Sang has declined over the past few years due to slowdown in local and regional economy but still it is profitable. Net Asset Value (NAV) of Eu Yan Sang has increased consistently over the past 10 years since IPO (see chart below).  Temasek and partners...

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Do Hyflux’s 6% Perps Have Sufficient Margin of Safety?

Hot on the heels of Aspial, Perennial and Oxley, Hyflux has launched an IPO for its retail 6% perpetual capital securities (perps). I used to own its existing 6% preference shares when it launched in 2011. However, that was before I calculated whether it had sufficient margin of safety based on Benjamin Graham’s criteria. After I calculated the figures, I sold it off in Jan 2014. Hyflux’s preference shares were the first bond / preference shares that I evaluated using Benjamin Graham’s criteria of minimum average earnings coverage and minimum current stock value ratio as discussed in The Lost...

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Manulife US Reit – Feeling before and after

What a different feeling. Yesterday I felt sad and frustrated that I got zero allocation for the Manulife US Reit IPO units. Today I feel relief that I got zero allocation for the Manulife US Reit IPO units. It was surprising to me that Manulife US Reit opened trading at USD 0.82, even below its IPO price of USD 0.83.  It ends the day at USD 0.79, 4.8% lower than its IPO price.  Well, I think the market has spoken that the Reit was priced too high. Surprising on Manulife US Reit’s performance as today is a green day for the...

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Manulife REIT – Balloting Results

Manulife announced that its public offering was 1.6x subscribed. Given that this is a big size offering, it was not difficult to get some via the public tranche. The balloting ratio are as follows: Investors who applied for 50,000 shares will get a 38:50 chance and will be alloted in full.  The list of placement shareholders have some interesting names like Dymon Asoa and SeaTown. Let’s see if it has any impact on share price performance tomorrow.  Best wishes to those who got some shares....

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Manulife US REIT

Manulife US REIT is touting itself as the “first pure-play” US office REIT in Asia. They probably have learnt some important lessons from the prior failed attempt to list last year. They downsized the portfolio, lined up a list of cornerstone investors and seemed more able tell a better story this time.  Of course, timing wise, it is definitely better than last year. Manulife US REIT is offering 396.569m units in total at $0.83 per Unit with about 45.787m units for the public. The IPO will close on 18 May 2016 at 12pm and starts trading on 20 May...

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Manulife US REIT

There are 2 IPOs going on the market this week, one being the Manulife US REIT and the other another Oxley bond issue (5.15%, 4 years), since I’ve covered Oxley bonds before (here), I’m going to cover the Manulife US REIT, which is the first pure-play US REIT to be listed in Asia, which would make it a convenient way to diversify into US property. It is also listed in US dollars, but for the initial public offering here, investors will pay in Sing dollar ($1.138 per unit). The P/E ratio of the REIT for 2015 is quite high...

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Searching for moats: Facebook, Inc. and how it dominates the social media industry

We’ve primed you on what qualitative and quantitative factors to consider when looking for companies with economic moats. We’ve also talk about two companies (Apple & Blackrock) with moats and how they’re amassing wealth at such a rapid pace that leaves all other companies in the dust (and some bankrupt). I’m starting this series of articles to help and initiate you to look for wonderful companies, and you decide when it’s a fair price to invest. Now the search begins with the elephant in the room: Facebook. The social media industry This is a relatively new industry, and with...

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Soilbuild Business Space REIT: 10 things I learned from the FY2015 AGM

Soilbuild Business Space REIT (SGX: SV3U) portfolio of properties include two business parks and nine industrial properties located around Singapore. The REIT has a total net lettable area of approximately 3.53 million square feet and a portfolio valuation of S$1.19 billion as at 31 December 2015. Singapore’s industrial production fell 0.5% in March from a year ago. While that might seem like a small drop, the figure was boosted by strong monthly figures from the volatile biomedical manufacturing cluster. Exclude that and Singapore’s industrial production actually fell 5.5% year-on-year. So with the local economy slowing down and demand for...

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MGCCT 4Q DPU up 10.4% at 1.923 cents

Mapletree Greater China Commercial Trust posted their 4Q FY 15/16 earning report in summary below.  Available Distribution per Unit (DPU) for 4Q FY 15/16 of 1.923 cents, 10.4% higher than the corresponding quarter a year ago FY 15/16 DPU increased 10.8% year on year Gross revenue grew 15.2% to $87.8 million Net Profit Income (NPI) rose 17.3% to $73 million The growth in revenue and NPI was mainly due to the acquisition of Sandhill Plaza and steady contribution from Festival Walk and Gateway Plaza. There is rental uplifts of 37% from Festival Walk and 25% from Gateway Plaza. 94%...

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