Buy @ $0.188
A new addition to my portfolio. Assets are all in Japan, Residential Properties. Was listed on 9-Nov-07 @ $1.00. Bad timing as it was subsequently hit by the US Financial Crisis. Did a few value destructive Rights Issues and latest NAV = $0.27. For Japan assets, the key risk (Double Whammy) is FOREX (S$ very strong) + Deflation (20+years already) which'd also contributed to the decreasing NAV.
Controlling shareholder is V-Nee Yeh, a Hong Konger @ ~17%. I'd previously not subscribed for this IPO as I was fearful of foreigners coming here to list in SGX. But, recently, I'd read in the book 'The Value Investors: Lessons from the World's Top Fund Managers' by Ronald Chan that V-Nee Yeh is quite a famous Value Investor from Value Partners (quite well known and sometimes compared to Warren Buffett aproach). My interest was piqued after that…
After IPO, no DPU was paid till Jun-10. Their DPU / NAV / Shares Issued record,
- Jun-10 : 0.26ct / 40ct / 953M
- Dec-10 : 0.52ct / 36ct / 1122M
- Jun-11 : 0.50ct / 32ct / 1182M
- Dec-11 : 0.61ct / 35ct / 1235M
- Jun-12 : 0.63ct / 30ct / 1424M
- Dec-12 : 0.66ct / 27ct / 1418M
IIRC, some of the Rights came with attached warrants. When exercised, it increased the numbers of shares. They also have a Shares Buy-Back program in place which explains the drop in number of shares from Jun-12 to Dec-12.
Yield = 7.021% ; Gearing = 32% ; NAV = $0.27
Here, I'm kind of switching from A-HTrust which has similar Yield and FOREX risks. I'm also betting on Abenomics to beat deflation. Recent impact is the weakening of Yen, which may impact the next DPU negatively. Hopefully, this'll be offset by the positive impact of inflation…:D