My Stock Portfolio @ end Feb 2017

Top 30 in my portfolio:

No.	STOCK NAME	No.of SHARES	PORTFOLIO%	MARKET $
1	SGX	4,000	11.58	7.50
2	SPH	6,000	8.11	3.50
3	Starhub	7,000	7.78	2.88
4	SATS	3,000	5.79	5.00
5	OCBC Bank	1,438	5.25	9.46
6	CapitaLand Mall Tr	6,700	5.10	1.97
7	UOB	613	5.09	21.50
8	Keppel Corp	1,600	4.21	6.81
9	AIMS AMPI Reit	7,700	4.03	1.355
10	Suntec Reit	5,800	3.87	1.73
11	FCT	4,700	3.63	2.00
12	ParkwayLife Reit	3,600	3.38	2.43
13	Keppel DC Reit	7,400	3.37	1.18
14	SingTel	2,190	3.33	3.94
15	SPH Reit	7,600	2.85	0.97
16	CapitaLand	2,000	2.81	3.64
17	Starhill Global Reit	9,800	2.80	0.74
18	Mapletree Com Tr	4,800	2.78	1.50
19	Sembcorp Indust	1,800	2.22	3.20
20	CDL HTrust	3,900	2.13	1.415
21	Frasers Com Tr	3,700	1.81	1.27
22	SIA Engg	1,000	1.42	3.69
23	FCL	1,800	1.16	1.675
24	Keppel InfraTr	6,000	1.15	0.495
25	ST Engg	800	1.14	3.68
26	Frasers L&I Tr	2,700	1.02	0.975
27	Cache Log Tr	2,700	0.85	0.82
28	FE HTrust	2,800	0.63	0.585
29	Silverlake Axis	1,800	0.39	0.56
30	Accordia Golf Tr	900	0.26	0.75

Movement in my portfolio in February:-
Sold:- Nil
Bought:- Silverlake Axis, Capitaland Mall Trust
Dividends collected in Feb: $1,714.16
2017 avg dividends/month: $931.54 [41.3% up at this stage cf. 2016]

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

Comments:
1. Sleeping giant Capitaland is waking up.  First time the counter is positive since the beginning of this blog.

2. Unable to sell Starhub the first two days after the announcement of the dividend cut.  As the price has stabilized, I decided to keep Starhub and will reduce my exposure by adding to other counters.  After all, Starhub still produce a decent 5+% dividend yield.

3. Current worst performing counter: SIA Engg (14.2% unrealised loss).

Starhub...and Capitaland

As expected, the selldown of Starhub was furious on Monday.  Starhub dropped 20 cents at market close.  This means a wipe out of more than one full year of the proposed dividend payout (16 cents) in one trading day.

I also placed 2,000 units of Starhub for sell but did not manage to sell any.  Well, let see tomorrow...

A more happy circumstance for Capitaland.  The sleeping giant finally show sign of waking up.  Capitaland is a red counter in my portfolio since the beginning of this blog and it has turned green today.

Starhub - 20% Dividend Cut

Finally it happens.

I bought Starhub after it lost the English Premier League broadcast rights to SingTel.  The steady flow of 20 cents dividends a year or 5 cents a quarter finally comes to an end.

Starhub announced after Friday market close that the company will be paying 4 cents a quarter or 16 cents for financial year 2017.

Starhub was a good dividend master all these year.  It is one of my core holdings and accounted for more than 20% in my portfolio in my earlier days.

I have gradually reduced my exposure to Starhub over the years and it is now just above 8% in my portfolio.  This 20% dividend cut means about 2% reduction in my dividend harvest.  Painful but still tolerable for a 5+% yield.

I am expecting a selldown of Starhub shares when the market opens on Monday.  Perhaps I should sell some Starhub too?   

My Stock Portfolio @ end Jan 2017

No.	STOCK NAME	No.of SHARES	PORTFOLIO%	MARKET $
1	SGX	4,000	11.68	7.42
2	Starhub	7,000	8.18	2.97
3	SPH	6,000	8.15	3.45
4	SATS	3,000	6.23	5.28
5	OCBC Bank	1,438	5.31	9.39
6	UOB	613	5.05	20.92
7	CapitaLand Mall Tr	5,800	4.43	1.94
8	AIMS AMPI Reit	7,700	4.12	1.36
9	Suntec Reit	5,800	3.95	1.73
10	Keppel Corp	1,600	3.89	6.17
11	FCT	4,700	3.70	2.00
12	Keppel DC Reit	7,400	3.48	1.195
13	ParkwayLife Reit	3,600	3.44	2.43
14	SingTel	2,190	3.34	3.87
15	Starhill Global Reit	9,800	2.95	0.765
16	SPH Reit	7,600	2.90	0.97
17	Mapletree Com Tr	4,800	2.89	1.53
18	CapitaLand	2,000	2.59	3.29
19	Sembcorp Indust	1,800	2.23	3.15
20	CDL HTrust	3,900	2.17	1.415
21	Frasers Com Tr	3,700	1.83	1.255
22	SIA Engg	1,000	1.37	3.49
23	Keppel InfraTr	6,000	1.17	0.495
24	FCL	1,800	1.12	1.575
25	ST Engg	800	1.04	3.30
26	Frasers L&I Tr	2,700	1.00	0.94
27	Cache Log Tr	2,700	0.86	0.81
28	FE HTrust	2,800	0.66	0.60
29	Accordia Golf Tr	900	0.24	0.67
30	Saizen Reit	1,800	0.04	0.051

Movement in my portfolio in January:-
Sold:- Nil
Bought:- Starhill Global Reit, Keppel DC Reit.

Dividends collected in Jan: $148.92
2017 avg dividends/month: $148.92 [6.3% down at this stage cf. 2016]

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

Comments:
1. January is a traditional weak dividend month.  Despite the increase in portfolio size compared to Jan 2016, the dividend collected this January was actually lower after the divestment of Boustead.

2. STI has managed to stay above 3,000.  Though not seeing much fundamental changes in the market, the bull is winning at the moment.

3. Current worst performing counter: SIA Engg (18.3% unrealised loss). Still pondering whether to average down...

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.