Wednesday, 2 August 2017

Recent Action - Mapletree Logistics Trust

Taking advantage of the dip in price, I purchased 10,000 shares of Mapletree Logistics Trust (MLT) today as my maiden entry to the Mapletree family.

Has been eyeing several of the Mapletree counters in my watch list for some time and ironically my first choice in the Mapletree family is actually another trust : )

Anyway the reasons for purchase are summarised as follows.

The recent news concerning logistics players such as FLT and GLP signal a favourable outlook for this sector as a whole.

With a diversified portfolio in 8 countries, MLT presents a good choice with exposure to growth in the APAC region.

And add a well spread of tenants to the equation. I like the fact that the biggest sector of tenants accounts for just 24% of the revenue contribution. This is from the F&B sector by the way.

Exposure to the troubled oil & gas and marine sectors is also limited as they account for only 5%.

Customers-wise, none account for more than 5% of total gross revenue. I find this a good hedge against any major upheaval in specific industries.

Weighted lease term to expiry (WALE) of over 4 years. Although this is not too long in my opinion, I am not overly concern with this.

After all there is no one anchor tenant account that makes up a substantial portion of the revenue where it can skews the results upwards (or downwards!).

Furthermore a lower WALE might be advantageous to MLT since it has shown positive rental reversions in China, Vietnam, Japan and Hong Kong.

Portfolio occupancy remains high at 95.5% despite a slight decline from previous quarter. This can be be explained by the transitional downtime from a property in South Korea.

Importantly, occupancy rates from other countries actually improved from the last quarter.

93% of leases that expired in 1Q FY17/18 has been renewed or replaced.

Freehold and long leasehold properties. About 30% of MLT's portfolio is freehold and average expiry to their leasehold land is 47 years. Pretty long if you ask me.

Talking about portfolio, I also like the current and future yield-accretive acquisitions and AEIs by MLT.

Even with lower contributions from the South Korean property and absence of contribution from one block of Ouluo Logistics Centre, MLT's gross revenue actually grew by 7% year on year and NPI grew by 7.5%.

Nice!

Of course DPU increased of 2% year on year and 1.5% quarter on quarter doesn't hurt ; )

Risks

Total outstanding debt increased by S$18 million. However approximately 79% of total debt has been hedged into fixed rates.

Continued pressure over the increased in supply of warehouse space locally. However this is mitigated by the renewal and replacement of expiring leases as well as positive rental reversions in other markets.

Lastly, I'm paying a slight premium to the NAV. Not my usual style. But I feel the upsides outweigh this hence this purchase.

Note: Figures obtained from 1Q FY17/18 financial results.

Tuesday, 1 August 2017

New Subsidiary for ISOTeam - Tide is Turning?

So ISOTeam has incorporated a new subsidiary for the wholesale and leasing of bikes, including provision of bike sharing services.

Bike sharing is not new in Singapore with Ofo, Mobike and Obike having the first mover advantage. Now with SG Bike (ISOTeam's subsi) jumping into the bandwagon, we have a homegrown player in this business.

I like this move of ISOTeam because of two reasons:

1) Green and eco-friendly business development
2) New business that rides with the trend

These two are among the reasons why I initiated a position in this counter and I have blogged about them here previously.

However I feel it's more than these reasons as to why ISOTeam decided to go into this business.

Our government is pushing for a car-lite country and they have long taken steps to move in this direction. Among these is the round the island park connector.

Now with a park connector that is more than 100 km and can connect you to most parts of the country, how do you traverse on it?

Bikes of course! So this makes business sense afterall.

Another plus point for me (I like companies that leverage on the governments initiatives)!

Monday, 31 July 2017

Quotable Quotes

Last day of July, decided to share some quotable quotes that I have came across over the years.

Some of these quotes are inspirational, some funny, some serious, some serve as a reminder and some are simply coined by myself.

1. When you are nobody everything you say is rubbish. When you are somebody everything you say is a quote.

2. It's not what you say. It's how you say it.

3. Having a bad day doing something you love is better than having a good day in an uninspiring workplace.

4. Second place is the first loser.

5. Nobody dies a virgin because life fucks us all.

6. Enjoy life. There is plenty of time to be dead.

7. Since like travels faster than sound, people appear bright until you hear them speak.

8. Money is not everything. There's Mastercard & Visa.

9. Behind every successful man, there is a woman. And behind every unsuccessful man, there are two.

10. Every man should marry. After all, happiness is not the only thing in life.

11. The wise never marry. And when they marry they become otherwise.

12. Earlier in my life I have to choose between hypocritical humility and honest arrogance, I chose arrogance.

13. Only speak if you can better the silence.

14. We do not stop playing because we are old. We grow old because we stop playing.

15. Try and regret rather than regret for not trying.

Friday, 28 July 2017

Recent Actions - June & July 17

Just to update my transactions for June and July 2017 as follows.

OCBC

Received some dividend last month for the scrips that I'm still holding on.

Always looking for a chance to enter OCBC again. But at current price points I would stay on the side line. 

NetLink Trust

Will be keeping my 4,000 shares from the IPO for the long haul if the >5% annual dividend can be maintained. This is a more than decent yield considering our 'risk-free' interest from CPF SA is 4%.

Furthermore I see potential capital gain for this counter as well. Am secretly hoping this can eventually be a free holding for me.. Shhh 😀

M1

Taking advantage of the recent drop in price and added 2,000 shares to my holdings. Bought pre-XD at $1.86. Current total holdings @ 12,000 shares.

From the release of their 2Q results on 18th July to now, the share price has dropped from $2.10 to $1.785.

To me this is simply irrational. Seems artificial to me even. Looking at the broader scheme of things, is M1's performance so lousy that it warrants a 15% drop in a span of 8 trading days?

Not to me. I can understand if M1 becomes loss-making. But considering it's a profitable company, this simply baffles me. 😖

Perhaps.. Just perhaps.. is someone pressing the price down for a potential take over?

Just a wild guess. In the mean time I will consider adding more if opportunity arises.

mm2 Asia

Bought 5,000 shares when the price dipped to $0.51 on news of the stalemate at buying over GV.

I'm more of a dividend investor than growth or value, however I see an opportunity for a short term capital gain at this price. Time will tell whether I'm right or wrong.

Plus it wouldn't hurt to try balloting for free concert tickets isn't it? 😁

Monday, 24 July 2017

Little Milestone 2


Just wanna say a word of thank to you guys.
All readers and fellow bloggers who read and commented on my blog.


Just realised my blog has reached 10K readership!

I'm normally not a number person. But at least this little milestone shows that my blog is still being read by people who don't mind the lack of quality and sometimes boring posts of my musings.

And this is still going strong seven months after I blogged my first post.

Because of this I will keep going and keep posting my thoughts be it random, serious or not.

Cheers and thanks all.

Sunday, 23 July 2017

Property Buying - Rule of 15

Eyeing that particular unit but not sure whether you are overpaying it?

This question must be one of the most common faced by property buyers.

I was doing some research as my wife and I are thinking of getting a second property when I came across an interesting piece of information - The Rule of 15.

The Rule of 15 is a guideline or rule of thumb that enables a buyer to judge whether that listed price will get you a bargain or make you end up being a carrot head.

Similarly it can help sellers price their property better too.

Basically the rule works this way:

1) Find the going monthly rent of a similar unit (e.g. 2 bedder) in the location you are interested in.

2) Multiply that rent by 12 to get the annual rent and multiply again by 15.

3) If the unit that you are eyeing costs much more than the figure you obtained in step 2, the listed price is probably way over.

This is a simple way to get a quick valuation. However there are many factors that can affect a property's price. So due diligence must still be done in your research.

Hope this piece of information helps.

Wednesday, 19 July 2017

Why I Feel M1 is a Potential Winner

With the release of the results yesterday, the selldown in M1 is expected today.

The magnitude of drop also doesn't surprised me. Afterall it has happened not too long ago during the announcement of the 4th entrant.

This is a classic example of market (people) sentiment.

People seldom look beyond the surface. Yes M1's earnings dropped. But they are still profitable. It is a company still making money and churning out decent dividends.

Furthermore as announced in their AGM, they are branching out into other stuffs apart from their traditional income. Stuffs such as smart metering and IoT. It takes time to realise the fruits from these plantings.

But the most important thing is this:

M1 is a prime candidate for M&A.


Considering the high barrier of entry into the telco sector, if I were a conglomerate looking to enter, I would seriously consider buying over the current players with existing infrastructure and customer base instead of starting from the ground.

Among the 3 incumbents, M1 looks attractive.


And we already have a hint to that happening recently. The interest is there. Buyers are willing to buy just that the seller is not willing. For now.

However I believe this is not the end of story. On the contrary this is just the beginning.

We will soon see more news on the takeover of M1 from this point onwards.

Usually deals like this takes a long time before coming to fruition. Just look at GLP.

* Extremely bias view with vested interest.