Which REITs is leading the race? End Nov 2020

                                                     #MINT lose 2nd spot to AREIT

                                           #MCT overtake MLT and CICT is coming up fast!

                                                      #No changes for this group

Group 1 race all 4 horses are losing stamina, did you bet on them?

As compare to early Nov. PLIFE drop 3.15%, AREIT drop 6.3% because of right issue, MINT drop 7.8% and lastly KDC drop 4.4%. What is happening to group 1, cooking something big?

Look like today is the start of market correction for Asia market, US market didn't show a sign yet. I may be wrong, just a prediction.

Group 2 race still going strong, except for MLT drop 5.29%.

Group 3 race also still going strong, except for CRCT drop a little due to right issue.

Are you planning to buy Group 1 REITs at the low?

I'm planning to buy MINT at around $2.85. In future, MINT may be listed in MSCI so good opportunity to buy at the low.

There are too many REITs, I only select these few for fun of racing.

Do your own research before buying, this is not a buying or selling advise.

My Portfolio End Nov 2020

Since my last portfolio there are many changes, as I'm re-position my portfolio. In my last portfolio, I mention that I make 2 bad choice in investing ESR and Starhill REITs. I have sold them away this month. Start investing from late April till now, earning only $2,172.00 dividend. Will try to improve on future dividend earning.

Stock	Holding	Unrealised P/L	Period of investment
SATS Ltd. (S58.SI)	6,000	40%	Long term
SIA Engineering (SIAE.SI)	6,000	14%	Long term
Mapletree Commercial Trust (N2IU.SI)	5,000	10%	Long term
CapitaLand Retail China Trust (AU8U.SI)	14,000	1%	Long term
Frasers L&C Trust (BUOU.SI)	5,000	12%	Long term
UMS Holdings Limited (558.SI)	16,300	6%	Short term
Frencken Group Limited (E28.SI)	6,600	15%	Short term

This month transaction

Sold

SIA Engineering sold 5,000 @$1.93 9% profit (planning to average down when price drop back)

Suntec sold all 4,000 @1.43 beak even 

Lendlease sold all @$0.66 cut loss 7.6% (planning to buy back when price drop to $0.60)

Starhill sold 11,000 @$0.47 break even

Starhill sold 11,000 @$0.49 1% profit

ESR-REIT sold all @$0.41 4% profit

Sembcorp Marine 27,000 @0.171 25% profit (use the money from Lendlease transaction, haha)

Buy

Sembcorp Marine 27,000 @$0.136

Frasers L&C Trust 5,000 @$1.24 

Future Plan

Planning to add MINT for long term investment.

From TA point of view, MINT price will drop further, planning to buy at around price $2.85.

Wanted to add more FLCT but boat left, will wait for next boat. Hehe

Which REIT is leading in the race?

   

Did you place the bet for these 3 groups?

Group 1 race is too high for me, I prefer under value and growing REITs. 

Group 2 race, my MCT is on the 3rd place, hopping to catch up MLT.

Group 3 race, I got FLCT and CRCT in the race. Switch out Suntec REIT to replace by FLCT. Sold Suntec REIT on ex date, buy FLCT at the low @$1.24.

There are too many REITs, I only select these few for fun of racing. 

Do your own research before buying, this is not a buying or selling advise.

Is this a best time to buy REITS?

SGX market is falling on Sept and Oct, price are getting lower. US election is not completed yet as of today 1/11/2020. Who will win? Will Monday continue to fall or rise? I think everyone is asking this question including me. What I think is this is the best time to buy good REITS at the lower price, and hence you get higher dividend yield.

Let compare which REITS on sales.

There are some REITs didn't change much, that's why I didn't add into the table. Most of the REITS are oversold, just waiting for buyers to come in to push up the price. The question is when, maybe Monday is the day? Nobody know, so do you own research. This is just a reference even for myself. 

I sold off my Suntec on Thursday during Ex Date, heng ah the price dip to $1.35 after I sold.

Happy shopping!

My Portfolio

I start investing many years ago, but didn't do well so I stop. Only left with 1 unit trust (UT) after surviving from tech com bubble. I switch into 3 UT then on March 2020, switch out bond to emerging market UT, so left with 2 UT. In March 2020, many stocks are falling from their peak, I see this as a opportunity so I open a new account with Philip (Poems) but take weeks to approve, finally got it in late April, miss the boat 😥  Enough of history.

Stock	Holding	Period of investment
SATS Ltd. (S58)	6,000	long term
SIA Engineering (SIAE)	11,000	long term
Mapletree Commercial Trust (N2IU)	5,000	long term
CapitaLand Retail China Trust (AU8U)	14,000	long term
Lendlease Global Commercial REIT (JYEU)	5,800	mid-long term
Suntec Real Estate Inv Trust (T82U)	4,000	mid term
Starhill Global Real Estate Inv Trust (P40U)	22,000	mid term
ESR-REIT (J91U)	20,000	mid term
UMS Holdings Limited (558)	16,300	short term
Frencken Group Limited (E28)	5,400	short term

All this shares brought using cash and CPFOA.

Why I invest in Airline Supporting Industry?

All airlines have high debt because of periodically buy new air plane and long term maintenance of air planes. Airline Supporting Industry example Sats and SIA Engineering do not have high debt and their operation cost is also lower. Free cash flow is higher so this allow them to expand and grow further. I understand that airline industry is badly hit in this pandemic, that's why it's a good timing for me to hunt for good stock on sales. Sats didn't give out dividend this year, it's fine, I understand the difficulties that they need more cash to survive. I looking for long term capital gain, dividend is a plus.

Why only 2 Reits for long term?

I still trying to add more Reits for long term investment but good Reit doesn't come cheap. 

Mapletree Commercial Trust, I brought at $1.88 a bit high but now trading at $1.90 to $2.00. Current ROE is 10.44%, which mean this Reit revenue is growing.

CapitaLand Retail China Trust, I brought at $1.30 and it's start to drop more and more and I'm very nervous and panic. When it drop to $1.14, I tell myself, I had study and do my research on this Reit, it's for long term and I must not be fearful so I brought again to average down to $1.22. Currently it's trading at $1.27 and ROE is 6.67%. The latest good news is this Reit is going into other sector, not just mall in China. Maybe it's going into data center or industrial sector. 

My bad choices in my portfolio!

I found out that I make 2 bad choices in investing ESR and Starhill Reits. I didn't research enough, I thought they are cheap and give out high dividend. Price from now to pre-covid still have very high percentage to recover, mean a good bargain right? No, when I preparing my 2nd blog, then I know both Reits perform badly. Luckily I found out early, so still got time to sell them. Actually for short term still not bad, stock price will slowly recover, only question is how fast!

Why Technology Stocks?

In this pandemic, tech stocks didn't impact much and mostly recover very well. I have invested in global tech UT for many years and it's doing very well, although high risk. I spotted AEM in March when it's price is $1.71, my Poems account was not ready yet, so I recommend to my friend but he didn't trust it. Now it's trading at the range of $3.60 to $4.20. Late April my Poems account approve, AEM price already $2.00++ and it's already trading above pre-covid, so I give a pass and look at UMS, 2nd best ROE in Tech stocks. My mistake, AEM went up sky high, so sad. 

I brought UMS at $0.78 in May, sell it at $0.92. Buyback again at $0.905 and sell it at $1.00, I miss the ATH but no regret. I buyback again at $0.995 and $0.96, average $0.98, planning to sell near ATH.

UMS also give good dividend, this year 4.41%. I get all the dividend through my buying and selling period hehe. Take note, ex date price will drop, so not a good choice to sell at ex date. I wait till price recover and goes up before I sell.

Just pick up Frencken when I notice it's price and UMS goes together like brother. Frencken ATH is also higher than UMS, so I brought it when the price drop during Sept US Tech Stock crash.

I'm not advising you to follow my investment. This is just my journey in investing SGX stocks and Reits. Do your own research before buying and learn from my mistakes.

Which Reit to pick 2

 There are so many reits to choose, I group them in different groups.

1. 1st tier - strong and stable reits
2. 2nd tier - middle range price and growing reits
3. 3rd tier - low range price 

I have cover 1st tier in my first blog, let check out 2nd tier.

          2nd tier reits after gather all the information. Price and data base on 25th Sept 2020.

There are quite a few reits in this category, I shortlist those that are more popular and growing reits. 

From the list

The best reits from the 2nd tier are;

1. AIMS APAC Reit - I didn't expect this reit to be so good. High ROE and growing revenue.
2. Frasers Log & Comm Trust - high ROE, growing revenue and low gearing ratio but      lower DPU, unless I can buy it's at a lower price.
3. CapitaR China Trust - mid ROE, growing revenue and most important under value. As I  typing this, the price has went up to $1.29. 

Take note of Keppel Reit, revenue is decreasing and ROE is only 3.03%.

I like 2nd tier because price is still low as compare to 1st tier and the DPU is also higher. The potential is also greater. I prefer to have 6-7% DPU and if the price go up, that's will be the best.

Let check out 3 tier

         3rd tier reits after gather all the information. Price and data base on 25th Sept 2020

The best reits in 3rd tier are;!!!!!!

OMG how to choose, so many red colour, all these reits price are cheap and most giving out very high DPU. Is this what people said don't buy penny stock?

1. Lendlease Reit - still very new reit with IPO price $0.88 and ROE no update yet. DPU    is low, revenue stable, still undervalue.
2. SPH Reit - ROE good, revenue stable but sponsor SPH doesn't look too good.
3. OUE Com Reit - The only growing revenue but DPU is decreasing and high gearing        ratio.  

To better understand the reit before you invest, read financial report and portfolio will give you a inside of how well is the reit. Also take note of dividend payout ratio, if more than 100%, mean something is not right. 

Someone may ask why I didn't add First Reit into my 3rd tier. Just look at the sponsor Lippo Karawaci and Lippo family. If a reit do not have a good sponsor, any bad news from the sponsor will incur heavy selling of that reit. A good sponsor may even help the reit to expand further.  

Edit: AIMS APAC Reit DPU trend should be stable instead of growing. My mistake pointed out by one of the comment here and someone from FB. 

Btw AIMS APAC Reit ROE 8.53% and dividend 7.98% still one of the best in 2 tier.

Which Reit to pick?

 A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing properties. By law, 90% of a REIT's profits must be distributed as dividend to shareholders.

In Singapore Stock Exchange, there are more than 40 reits to pick and choose. How to start? 

First, I need to analysis the company financial health;

1. P/B ratio - price-book-ratio - measures the market's valuation of a company relative to its book value
2. ROE - return of revenue
3. DPU - Distribution Per Unit or dividend
4. NAV - Net Asset Value
5. Gearing Ratio - measure of financial leverage that demonstrates the degree to which a company's operations are funded by equity capital versus debt financing
6. Revenue Trend - is the revenue is growing or decreasing for the past few years
7. DPU Trend - is the DPU is growing or decreasing for the past few years

Since there are so many reits to choose, I group them in different groups.

1. 1st tier - strong and stable reits
2. 2nd tier - middle range price and growing reits
3. 3rd tier - low range price 

1st tier reits after gather all the information. Price and data base on 25th Sept 2020.

From the list, you can see that CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) ROE is very low mean revenue is not growing much. I think that's why both reits are merging now.

The best reits from the list are;

1. ParkwayLife Reit - high ROE, both revenue and DPU are growing.
2. Mapletree Ind Trust - high ROE and growing revenue.
3. Mapletree Comm Trust - high ROE, growing revenue and low gearing ratio.
4. Frasers Cpt Trust - high ROE, growing revenue and low gearing ratio

To better understand the reit before you invest, read financial report and portfolio will give you a inside of how well is the reit. Also take note of dividend payout ratio, if more than 100%, mean something is not right. 

This is my first blog, will continue to write more if I'm not lazy. 😂