4th Qtr 2017 : Dividend and Portfolio Update

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Is time to see many updates from financial bloggers  on their year-end portfolio review  and total dividend to be collected in 2017, including B ( here ) and me of course.

Time flies, as usual with the last company to have announced the financial result, I will try to tabulate the total dividend to be collected in 4ht Qtr 2017 and a total amount for full-year 2017 vs 2016.

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Dividend & Interest Income  for 4th Qtr 2017 = $40,576.95

This is about  $3696 lesser than  4^th Qtr last year of $44,273

Total 2017 =  $185,623 vs 2016 of $195,547( down by -$9924 )

Singapore dividends to drop: study (link)

Quote “ SINGAPORE dividends are in for another tough year to the dismay of the legions of retiree investors; they also take some shine off the bull run in which the Straits Times Index has risen some 12 per cent since January.

Aggregate dividends (ordinary plus special) in 2017 will fall by 3.6 per cent year on year (YoY) to S$16 billion from S$16.6 billion reported a year ago, said financial data provider IHS Markit. “ Unquote

Base on above, my dividend was down by 5.07 % vs market the expectation of 3.6 %, the main reason was due to most of the REITs and Telco are paying a lesser dividend which contributing to about 67% of my total portfolio.

Also as mentioned in my previous update, I am moving more of my fund towards short term bond and cash ( total increased in 2017 vs 2016 = $66,509)  in view of high valuation in develop the market , although the STI is just moving slightly above the long term mean and some said still consider " cheap " base on PE or PB valuation, but the world market, especially the developed markets were mostly in high side, remember “ When US ( or maybe China ) sneezes, the world will catch cold “.

Moving and channelling more fund to bond and cash have also contributed to my lower dividend & Interest income in 2017.

Special THANKS to my reader “dpang”  ( see the comments here )for his assistance and helping me to automate the drawing part of SD line which really save me a lot of  time in drawing these lines manually.

Accordia Golf Trust posts 1^st HF DPU drops 32.7% to 1.65 cts !! ( here )

As most of the investors who have vested in Accordia G Trust , this really caught me by surprise !! and try to find out more about the so called “ un-usual withdrawal of membership fees “ …

Since Accordia is one of my major or top holding in my portfolio and I’m expecting to get a dividend of $7582 (if the DPU was same as last year ), but instead will just get  $5106 as DPU was down so much due to this “unexpected “ high refund of membership fees.

Well, I think many investors still puzzle about how this happened and how it may affect future payout!

Famous financial blogger AK has shed some light on the issue on his blog post  ( here ).

I really hope this will be a “one-off & un-usual “ events as mentioned by management and the payout will stabilize in coming quarters.

< Summary of Dividends in 4^th Qtr 2017 >

Portfolio Update :

Not many changes in my portfolio composition since last quarter’s update.

Total stocks down by one to 45 due to privatization of CROESUS Retail Trust where I have blogged about it (here ).

This quarter also seeing 3 right issues from CACHE / Capital COMM and  Manulife US REIT, I have subscripted all the right and apply for the excess right as well. Capital Comm was very generous that giving me all the excess right I have applied for ( 4368 units ) while CACHE was not so bad with 3800 units allocated vs 15400 applied for. Manulife was the less in term of excess right allocation with on 420 being given vs 12620 applied.

WOW !! so many right issues from REITs recently, you may recall the famous and highly debatable article from Ms The Hooi Leng  ” The REIT Myth Busted “ in 2011 with regards to Right issues and cash called from investing in REITs.

Well, it is very subjective to say if this is right or wrong, REIT is not like Bond and have a component of “growth “ vs bond of just getting the coupon rate … one may need to take note of this and prepare for some cash buffer to meet such “ cash called from time to time.  100% investing in REIT for a retiree who solely depending on dividend income to survive may not be a good idea, one may look at their own situation and adjust the % of REITs in their portfolio accordingly and not to be caught by surprised of these right issues.

Is the REIT Myth Busted? ( here ) , a  great summary and analysis of good and bad of Right issue from propwise.sg

 

Any right issues may not be bad as long as it is good for shareholders, be it for business expansion or buying a new property at right price … and not to issues right to pay a dividend.

 

I have reduced my holding of Soilbuild REIT substaintially to 1.2% vs 4.3 % in the previous quarter of my total portfolio as some of their O&G tenants in this REIT continue to struggle and facing uncertainty even with oil price hovering around USD60 per barrel.

FILING OF WRIT OF SUMMONS ( latest announcement of Soilbuild REIT in SGX – here )

Have also reduced my holding in Frasers Comm  from 6.4% to 2.8% in view of  the uncertainty facing by a major tenant ( HP ) in Alexandra Technopark. Another famous financial blogger Kyith from InvestmentMoats have a good and detail analysis about the issue (here ). 

The price has since rebounded back to above $1.4 level after the subsequent  announcement from Frasers Comm as below .

“HPS ( Hewlett-Packard Singapore) has committed to extend the lease in respect of an aggregate of 266,905 sf of space, as follows:

i.                     93,195 sf for thirteen months commencing from 1 December 2017;

ii.                    42,561 sf for five months commencing from 1 December 2017; and

iii.                   131,149 sf for between two to three months commencing from 1 December 2017; based on terms which are substantially similar to those in the existing lease.”

The share price of Accordia GT dropped by almost 8% after the result announcement, my portfolio value was down by almost $17K at one point due to this and Accordia GT has dropped to 3^rd place in my portfolio while Keppel Corp has moved up to the top position due to recent run-up in the share price. The share price of Keppel Corp was up by $1.1 as compared to my previous update and the total value has gone up by more than $33K.

The market seems to keep rotating from industry to industry, from banks to property and O&G now …who will be the next to move? Commodities (like Wilmar )? ComfortDelgro or M1? I have no idea nor crystal ball,,, please do your own due diligence and this is definitely not an advice to buy or sell...

Make sure you have a diversify portfolio and keep some “war-chest “  in case there is a sudden change in market direction … again remember “ When US ( or maybe China ) sneezes, the world will catch a cold “.

Cheers !!

Quote of The Day

“Generally, the greater the stigma or revulsion, the better the bargain.” By Seth Klarman