4th Quarter 2018 : Dividend and Portfolio Update

image credit to Izquotes.com

Yeah !! Is time to update my dividend & interest income to be collected in 4th Qtr 2018. This will be a short and quick update as I am heading to JB for 2 nights staycation on 20th & 21st Oct and follow by another on 25th & 26th Oct to Lexis Hibiscus Port Dickson . From now till January 2019 it will be a quick pack for me as school holidays just started and will have more fun and spend more time on outdoor activities with my kids, as usual like rock climbing and ice-skating or even planning to climb "Bukit Timah Hill Summit  " ,,, yah Singapore's " Mount Everest ".




image credit to agoda.com

Why J.B and Port Dickson again ...? Well, is because of 3.0426 ... Yes, this was the exchange rate I had yesterday when I went down to China Town to change the money. Now you know why JB again and again .... hahaha :D

Back to my usual dividend and interest income update :

Total Dividend & Interest Income in 4th Qtr 2018 = $35,408

*This is about -7.5% lesser than last year same quarter. On yearly basis ,is about -2% lower ( $183,996 ( 2017) vs $180,307 ( 2018). 
** The lower dividend & interest income also partly due to portfolio realignment of reducing my exposure on REITs and Biz Trust

This is from my previous update :
% of REITs/ Biz Trust in my Portfolio :

2013 (92 %)2014 (88% )2015 (77.7% ) , 2016 (69%) , 2017 (60% ) , 2018 – June ( 48.6%) .

46.6 % as of  19 Nov 2018








Portfolio Update :




* Sold 4 counters and bought in 3 since last update, total counters reduced by 1 to 47.

*I bought Kep-KBS Reit on 25th Oct after they announced the right issues at USD0.64 which is still too early as the price continue to drop till USD0.54 subsequently, I have decided to buy more and subscribe the right plus applying for excess. My current average price is around USD0.59 and hopes to get more excess to lower my cost. But please take note that there might be DPU reduction as new tax ruling/issue still unclear. Please DYODD on these issues in case you would like to have a position on this counter. Kyith from InvestmentMoats.com have a very good and detail analysis on this " This Keppel KBS US REIT Rights Issue and Withholding Tax Debacle "

** The other two new stocks I bought after they have suffering price drop recently, one was because of "property cooling measures " and the other one was impacted by techs/ chips slow down globally. Both seem to have clean balance-sheet and I hope it will be able to overcome this cyclical or short term challenges. The most important thing is hopefully they will continue with current dividend pay-out.... I am a real "dividend pig ", sometimes being "slaughtered ", like the case of Lippo Mall  :D


 Stocks Sold :

 BHG Retail Reit

* For those vested in this counter will need to take note that there will be 10% reduce on DPU waiver from sponsor in 2019 as compare to 2.5% in 2016 and 2017 . This 10% reduction will translate to around 49 mil , the yield may drop to around 7% (if revenue remain the same ) base on my rough calculation , hence , I think there will be counter which would offer better yield on China Retails.
** I am really happy with this 15.9% of XIRR for just 2 years investment. :D


I-Reit


* Nothing much to talk about this, only 3.1% of XIRR for 3 years, definitely, my entry price was wrong.

SIA Eng

* This is worse than I-Reit , absolutely another "buy high sell low" . :(
** By hindsight, I think I'm lucky as the price drop a lot recently after the result announcement to $2.56 as of 19 Nov 2018


YZJ Ship Building



* Well, I think this is the best "cyclical play" so far, picture worth a thousand words. :D


Change of the Top 4 Companies in my Portfolio 


You may notice that First Reit and Lippo Mall has dropped from my top 4 positions. "AK sell I sell "
Hahaha, just kidding, I am not sure about the performance of this new Reit Manager but the intention of injecting new asset from OUE Lippo HC to First Reit is not a secret from the day they announced the purchase of the Reit Manager. To be frank, I don't really impress with asset under OUE Lippo HC , especially the Japan's Nursing Home which I think will be the first target of asset acquisition. You can't find the detail from their Website ( OUE Lippo HC )  but you may find it from their 2017 Annual Report. Again, please DYODD , don't

From recent price correction, I think the market is "damn " scare about " right issue" like a "plague ".

 Remember the OUE Comm Reit , I subscribe to the right and apply for 30,000 units of the excess, guess what, I got all the excess right I applied for at $0.456 and the share price now is $0.46, what a joke.  :D


But I really want to thank First Reit as it gave me total return ( including dividend ) of $ 200,472 which is also about XIRR of 19.8% after 8 years of investing. Thank You First Reit !! and I love you so much that I'm still holding a small position of you in my portfolio... hahaha :D
I hope you may give me another chance of collecting at another bargaining price...always remember " Price is what you pay, Value is what you get "..






What about Lippo Mall Reit ?

Yes, I made a terrible mistake and underestimate the impact or risk of tax and currency, the DPU down by another 17% from latest result announcement and almost -43% on YOY basis. I went in to buy more in Apr / May this year when it dropped to around 34 - 31 cts , now I have made a decision to cut down my holding at 26.5 and 21.5 cts .

I hope the DPU will be maintained at this level with more stabilize Rupiah in the past two months.
Since the remaining of the share is almost like "freehold " for me, I will just keep it and continue to collect the dividend of around 9% at the current price level. :D






Cheers !!

---- End of Update ----









Comments

  1. B20 November 2018 at 08:29

    That's a really solid dividend for the full year still.

    You've been very nimble too about entering and exiting on some of your companies which has done good for your portfolio.

    ReplyDelete
    Replies
    1. STE21 November 2018 at 11:13

      Hi B,
      Thanks for the comments,,yah.. normally I will try to start with small positions and test it out for new counters . But the last few one were not so lucky that still in red.. but I guess the whole market seems bad at this point of time.. Hope 2019 will be be.. :D
      Cheers .

      Delete
  2. Cory29 November 2018 at 00:05

    This year is tough for most investors. I would clap for those who still show positive for portfolio of your size.

    ReplyDelete
    Replies
    1. STE29 November 2018 at 06:54

      Hi Cory, Yes, this year is really a tough and volatile for stocks market ... my portfolio is at around - 9% (including dividend ) , worse than STI .. But this is the 'market' in the long run , up and down ... Not every year with positive or good return.. Hv faith n look for long term.
      Cheers ! :D

      Delete
  3. My Investment Machine1 December 2018 at 22:05

    Hi STE

    With your dividends you are in the likes of AK. At least that is what I think. I sold off my First Reit too. But I sold it at a loss. "Buy high sell low".

    What to do... always got to pay tuition money.

    Yes, keep calm is important!

    ReplyDelete
    Replies
    1. STE4 December 2018 at 14:01

      Hi My Investment Machine,
      Yah, investing is about price and "timing" as well, price will determine the value of stocks , even a good one, if we are buying at high price , we are not getting the best value ..
      But , yah, investing is also about luck , sometimes we gain , sometimes loss , so long as we have more gain than loss in the long run , we should be fine..
      :D
      Cheers , let's hope for better 2019 ... !!

      Delete

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