Reit History: Sabana Reit

There is now an on-going movement by a group of minority unitholders for a proposal to remove the Manager of the Sabana Reit.  This is unprecedented in Singapore Reits.  As a Reit investor, I do hope for their success as this would be a wakeup call for all the other Reit managers.

Sabana Reit is the first and only Shari'ah Compliant Reit in Singapore.  Shari'ah Compliant Reits must have taken a certain level of commitment towards partaking in activities that are deemed to be acceptable according to principles of Islamic jurisprudence.  These include refraining from taking in tenants that are not seen to be aligned with Islamic values such as alcoholic beverages dealers, karaoke lounges, wine cellars, etc.

Beside the need for compliant to SGX listing rules, Shari’ah Compliant Reit is also subjected to Shari’ah audit.

I dug out the short history of Sabana Reit from the Internet and I am particularly interested on its placements and rights issues in the past.

Nov 2010:
- IPO at $1.05. First Shari’ah Compliant Reit in Singapore. 
- 15 properties in its initial portfolio
- End 2010, unit price $0.98

2011: 
- Acquired 5 properties
- End 2011, unit price $0.88

2012: 
- Acquired 1 property
- End 2012, unit price $1.14 

2013: 
- Private Placement at $1.00 (to acquire 508 Chai Chee Lane)
- End 2013, unit price $1.08

2014:
- Acquired 1 property
- End 2014, unit price $0.94

2015:
- End 2015, unit price $0.72

2016: 
- Divested 2 properties
- End 2016, unit price $0.38
(unit price plunged on news of the proposed right issues)

2017:
- Renouceable Rights: $0.258 (42 for 100) 

I did not follow Sabana Reit in its early days, the early history may not be complete or accurate.  Someone in the know please correct my error(s).

This is another IPO that I missed as I was not in Singapore at Sabana Reit's IPO.  Don't really know if can breakeven now if I got in at IPO?  I have quite a few toxic IPOs over the years, e.g., CitySpring (now Keppel Infra Tr), Yellow Pages, HPH Trust and Rickmers. 

Sabana Reit actually did not ask for money often, unlike some Reits that asked for money every year, e.g. Viva Ind Tr and Fraser Htrust.

Is it enough blood in the street?  I may "busybody" a bit and buy some Sabana Reit.

I do not know which path Sabana Reit will go.  Will Sabana Reit reborn like Macarthurcook Industrial Reit (AIMSAMP Capital Industrial Reit) and Allco Reit (Frasers Commercial Trust)? Buy out like Saizen Reit? Or challenge Indiabulls Trust for the title of the worst Reit/business trust?

Credit Card annual fee waiver rejected

Everything has a first.

After using credit cards for many years, first time has my credit card annual fee waiver request rejected.  The issuing bank is OCBC, so good riddance OCBC credit card.

As a OCBC Bank shareholder, I am happy that the bank try their best to increase their revenue streams.  But as a credit card user, I will not pay the pricy annual fee.

No trouble on my part in cancelling the OCBC credit card, as it is not linked to any GIRO payment.  But if one user has installment payment on the credit card, probably he or she would be forced to pay that pricy credit card annual fee.

By the way, I do not have annual fee waiver issues with Citibank, Standard Chartered Bank and Bank of China.      

IPO - Daisin Retail Trust

Daisin Retail Trust is the first IPO listing in 2017. 

This listing looks very rushing in its timing.  Just read about the news in the newspaper this Saturday morning.  Subscription already opened Friday 9 pm and will close on Wednesday noon.

I have doubts in this new Daisin Retail Trust.  The reasons:

1. China. Hmm..... 
All the initial three properties in one single city, Zhongshan, which means high geographical concentration risk.  The spsonsor of the trust, Zhongshan Dasin Reit Estate Co., also has right of first refusal for further 14 completed and uncompleted properties.  However, the bulk of these propertes are in Zhongshan too, which further aggravate the
geographical concentration risk.

2. Placement and rights issue?
Good to know that the Sponsor has properties in the pipeline to be injected into the Trust.  But will the investors be forced to cough out the dividends and more for rights? 

3. Sponsored by a China-based group
Of course not all China Reits are bad.  Capitaland Retail China Tr and Mapletree GCC Tr are doing fine, but they are managed by Capitaland and Mapletree.  For comparison, the 2 Reits sponsored and managed by China-based group:
- BHG Reit, IPO at $0.80, current price at $0.65;
- EC World Reit, IPO at $0.81, current price at $0.705

4. Track Record
Lack of track record for the sponsor Zhongshan Dasin Reit Estate Co.

5. Projected Yield of 8.5%
8.5% is with distribution wavier from its sponsor.  My holdings of AIMSAMPI Reit and Cache Log Trust have comparable yield and Accordia Golf Trust has higher yield. So, I do not wish to get a new and high risk holding.  DYODD.

6. NAV
I can't find the NAV in the prospectus.  But according to Mr IPO, it is $1.01.  Which means there is an approx 21% discount of the IPO price $0.80 to its NAV.  Is this sufficient safety margin?   

I will sit out this IPO despite its listing price below its NAV price.

STI 3,000 and 250K milestone

STI finally broke through 3,000 points today.  Very contrasting start of the year 2017 than 2016.  While last year we saw the bear raging in the beginning of the year, this year look like it is the bull's turn.

The good news for me is that my reit trees planting in the last two months is already bearing early fruits.  While doing nothing yet in 2017, my total portfolio value crosses 250K for the first time in my investment journey.

It has been a hard and bumpy ride reaching the 250K milestone.    

REIT History: Frasers Commercial Trust

Fraser Commercial Trust is one of my smaller REIT counters.  Like AIMSAMPI Capital Industrial Reit, it is another reit that rises from the ashes.  I dug out history of the Reit from the Internet and I am particularly interested on its placements and rights issues in the past.

Mar 2006:
- IPO at $1.00 as Allco Reit. First commercial reit with properties in Singapore (China Square Central) and Australia [Central Park, Perth (50% interest)]; and 15.7% interest in Australian Wholesale Property Fund in its initial portfolio
- Acquired 55 Market Street

2007:
- 1 for 1 Rights at $1.04. Excess rights priced at $1.14 (to acquire 50% interest in a property, Canberra)
- Acquired 4 properties in Japan
- Acquired Keypoint, Singapore 
- End 2007, unit price $0.90 

2008: 
- FCL bought Allco Reit (17.7%) and its Manager (100%) ($0.83 per unit) 
- Renamed Frasers Commercial Trust 
- Global Financial Crisis
- End 2008, unit price $0.24
(Perhaps FCL bought in at the wrong time?)

2009: 
- 3 for 1 Renouceable Rights at $0.095 (to acquire Alexandra Technopark)
- End 2009, unit price $0.14 

2010:
- End 2010, unit price $0.17

2011:
- Divested Cosmo Plaza, Japan
- Divested Australian Wholesale Property Fund 
- 5 to 1 unit consolidation
- End 2011, unit price $0.74

2012:
- Acquired remaining 50% of Caroline Chisholm Centre, Canberra
- Divested Keypoint 
- End 2012, unit price $1.32 

2013:
- Divested all remaining Japanese properties 
- End 2013, unit price $1.27

2014: 
- End 2014, unit price $1.42 
(My maiden purchase into the Reit at $1.46. Attracted by the high yield, I went in too high and the counter was in the red by year end)

2015:
- Private Placement at $1.48
- Acquired 357 Collins Street, Melbourne
- End 2015, unit price $1.27

2016:
- End 2016, unit price $1.26


Quite a checkered history for this Reit.  As I did not follow Allco Reit in its early days, the early history may not be complete or accurate.  Someone in the know please correct my error(s).

This is another IPO that I missed as I was not in Singapore at Allco Reit's IPO.  Don't really know if can breakeven now if I got in at IPO?  I have quite a few toxic IPOs over the years, e.g., CitySpring (now Keppel Infra Tr), Yellow Pages, HPH Trust and Rickmers. 

I have a high risk appetite and tolerance and FCOT is part of my higher risk holdings.  Hope this is a phoenix that rises from the ashes.

My Stock Portfolio @ end Dec 2016

No.	STOCK NAME	No.of SHARES	PORTFOLIO%	MARKET $
1	SGX	4,000	11.81	7.16
2	SPH	6,000	8.73	3.53
3	Starhub	7,000	8.11	2.81
4	SATS	3,000	6.00	4.85
5	OCBC Bank	1,438	5.29	8.92
6	UOB	613	5.16	20.40
7	CapitaLand Mall Tr	5,800	4.51	1.885
8	AIMS AMPI Reit	7,700	4.16	1.31
9	Suntec Reit	5,800	3.95	1.65
10	Keppel Corp	1,600	3.82	5.79
11	FCT	4,700	3.68	1.90
12	ParkwayLife Reit	3,600	3.50	2.36
13	SingTel	2,190	3.30	3.65
14	Keppel DC Reit	6,500	3.18	1.185
15	SPH Reit	7,600	2.98	0.95
16	Mapletree Com Tr	4,800	2.76	1.395
17	Starhill Global Reit	8,900	2.72	0.74
18	CapitaLand	2,000	2.49	3.02
19	CDL HTrust	3,900	2.15	1.34
20	Sembcorp Indust	1,800	2.11	2.85
21	Frasers Com Tr	3,700	1.92	1.26
22	SIA Engg	1,000	1.39	3.37
23	Keppel InfraTr	6,000	1.17	0.475
24	FCL	1,800	1.17	1.575
25	ST Engg	800	1.07	3.23
26	Frasers L&I Tr	2,700	1.03	0.925
27	Cache Log Tr	2,700	0.90	0.81
28	FE HTrust	2,800	0.69	0.60
29	Accordia Golf Tr	900	0.23	0.63
30	Saizen Reit	1,800	0.04	0.051

Movement in my portfolio in December:-
Sold:- Nil
Bought:- FCOT, FCT, PLife Reit, MCT, SPH Reit, FLT.

Dividends collected in Dec: $1,080.41
2016 avg dividends/month: $1,076.92 [40.6% up cf. 2015]
Total dividends collected in 2016: $12,922.99
Portfolio yield: 5.98%

Boring process of building up my passive income portfolio brick-by-brick (bit-by-bit).

Comments:
1. REIT trees planting episode 2 in December.  Took the opportunity to increase some of my REITs counters for future dividend fruits.

2. STI has closed at 2,880 at end December.  The year end window dressing not really materialized.

3. Current worst performing counter: SIA Engg (20.7% unrealised loss). Pondering whether to average down but found the REITs to be more tasty.