Category: A-HTrust

Buy @ $0.72

Contnue to add with every 0.5ct drop. Currently the highest yielding REIT, assuming Q4 (Mar) DPU matches that of Q3. At this point in time, A$ is slightly stronger (1.1575) than end-Dec (1.1258) and not expected to hit DPU. There could be fears due to,

• Economic Weakness in Australia + Potential Increase in Interest Rate (NZ had raised theirs)

May take the risk to collect more… just for the coming 2H DPU (Semi-Annual Payout)… 😀

 

Reference : http://www.tradingeconomics.com/australia/interest-rate

 

Buy @ $0.725

Add to my collection, back to previous level again.  😀

Buy @ $0.73

Add back to my portfolio to prepare for 2H (Mar) results. DPU is paid semi-annually. DPU had shown good recovery over the past 2Qs, after the huge drop previously following the issuance of new units to fund a new acquisition,

• Q3 (Dec-13) = 1.61ct
• Q2 (Sep-13) = 1.41ct
• Q1 (Jun-13) = 1.35ct
• 2H (Mar-13) = 3.6616ct
• Q3 (Dec-12) = 1,77ct

Using Q3 (Dec-13) DPU, Yield = 8,822% ; Gearing = 35.8% ; NAV = $0.73

The key risks are,

• FOREX : Majority of assets are overseas – Australia, China, Japan and the strong S$ had affected DPU
• Economic : Assets are Hotels. The state of the economy will affect their biz which targets Tourists & Biz travellers

Short term or long term, I'm ok… 😀

Sell @ $0.745

Jump-Q at 5pm matching to clear my tiny stake. I just couldn't resist the temptation to take profit, especially since I'm totally out of Free Cash. In fact, I was even planning to take a couple of $$ Loss by selling at $0.725 in the AM so that I could buy Neratel…

At $0.745,

• Yield = 8.64% remains the 2nd highest of all REITs
• Gearing = 35.8% is just above my danger 35% level ie. Good Chance of New Shares Issues which are usually DPU Dilutive
• NAV = $0.73 ie. 2.05% Premium

In addition, FOREX Risks means a further strengthening of S$ can be detrimental to Yield (DPU) & NAV. Will be +ve if A$ stregthens.

Still, if not for my need to raise Free Cash (for Opportunistic Buys), I'd have very likely keep it till the next Q when they do their semi-annual DPU Payout… Will likely vest again if it should drop… 😀

Buy @ $0.72

A new addition to my current postfolio. I was previously vested during IPO and subsequently added more when prices dropped. However, I decided to sell off my entire stake when they announced an acquisition cum fund raising for a Singapore hotel, which resulted in a lower DPU and no improvement to Gearing…

Last week, they released their Q3 (Dec) results on 6-Feb (Thu). DPU had improved from 1.41ct (Sep) to 1.61ct. The Yield would improve from 7.78% to 8.88%. It looks like their Australian Hotels are finally done with their AEIs plus re-positioning and finally seeing improved earnings. At the same time, the costs involved in the Singapore acquisition must have seen the last of it's negative impact on earnings.

On Friday (day after results), prices quickly went up to 73.5ct to 74ct. I decided to give it a miss as it'd gone up and it wasn't a Dividend Paying Q anyway (Semi-Annual). But, this week, I see it dropping back, with someone persistently selling down.. As I now have a bit of free cash, my fingers got itchy….

The other news I read which affected my decision was a Bloomberg article which mentioned that Australia was enjoying better biz with China (majority of A-HTrust assets are in Australia) and this is helping to drive their economy..

Still, it can be short term as market is full of uncertainties and surprises nowadays.. Seller CP = Macquarie, an Australia linked entity… 😀

Sell @ $0.87

Contra off, take profit first. The 2-for-25 Rights Offer @ $0.88 have not closed. Don't be greedy, sell first. No more left. A$ have stopped falling, looks stable at 1.19x for now. 😀

Buy @ $0.855

Add back to my portfolio. I previously sold off my entire holdings as I didn't feel comfortable that they were going to acquire a huge asset ($300M) that's not yield accretive.

On hindsight, I was real lucky to have sold the bulk @ $1.01 to $1.025 cd (DPU 3.6616ct) and the last few lots @ $0.995xd (7-May). It's mainly luck as the STI started to tumble during the last days of May and suddenly REITs and Yield Stocks which'd been the darling of the market became unwanted and got dumped in a massive way. Many dropped by more than 10%…

The Private Placement ones @ $0.885 started trading on 10-Jun and again, I was lucky to hold back any purchase as I was expecting a possible sell off as these were placed out on 30-May (market still not too bad). My target price was < $0.875 (Rights @ $0.88 less transaction costs) and today, I decided to take the plunge as STI is +30.74 (most likely technical rebound) while A-HTrust was -0.5ct.

I'm out of cash again and will have to sell something if I want to buy more on any further downside… The possible good news is A$ seems to have stopped dropping… for today… 😀

Sell @ $0.995

Decided to clear my last few lots. After it xd, prices didn't drop more than the DPU = 3.6616ct. (cd $ $1.02). After I sold, it hit a high of $1.01 and closed @ $1.005! Looks set to get higher in the coming days, otherwise the Equity Fund Raising will not be that successful. At an indicative rights price of $0.965, the market price does not have a lot of leeway to drop. Any drop means more units have to be issued which means a higher dilution to DPU and yield.

The other negative is the recent weakness of the A$. During listing, it was 1.309 but has  dropped to 1.278 by end-Apr and is now @ 1.243 (~-5%). This will impact the DPU & NAV in the longer term if A$ stays weak.

Will likely only look at it again after they complete the Fund Raising. 😀

Sell @ $1.02

Last day of cd today (DPU = 3.6616ct). I decided to take profit for the bulk of my holdings even tho' Yield = 7.18% is still the 2nd highest. Gearing = 35.3% ; NAV = $0.82 makes it only a bit less attractive. My main concern is the impending Equity Fund Raising to raise $300M for their acquisition of Park Hotel (Singapore). It's going to be massive as it's ~30% of current total assets.

After market closed, some brief details were released in an SGX Annc. Doesn't look too good to me as the two scenarios (different amount of Debts used) will result in what appeared to be a slightly lower DPU on a Proforma basis. The Illustrative Issue Price used was $0.965 and I'm surprised they didn't compute the Yield using TERP (Theoretical Ex-Rights Price). Perhaps it's not too surprising after all as using TERP will result in even lower Yield for existing shareholders!

Let's see if the market punishes the share price on Monday. I have left a few lots so that I can join in the fun (Rights Issue) but after looking at this SGX Annc, I think I'll sell if prices maintain at xd level ie. $0.98+ 😀

Sell @ $1.01, $1.015

Have decided to sell cos' of impending Fund Raising for their proposed $300M purchase of Park Hotel @ Clarke Quay. Most likely, they'll announce the details with the upcoming Q4 Results on 29-Apr. Actually, there's a very strong possibility that share prices will not drop as,

• REITs are the latest market fad for it's yields during this period of super low bank interest
• A-HTrust Yield is high, close to 7% with upcoming DPU estimated to be 3.35ct
• Market is still bullish (when market is bearish, Rights Issues usually results in a sharp fall in share price)
• Recent Fund Raising Annc by FE-HTrust & AIMSAMPReit had not resulted in any sustained negative price reaction

Nevertheless, I'm currently more likely to continue selling and perhaps even all of it. Main reason is my cash flow is low and A-HTrust is my No.1 candidate to sell to raise funds.. 😀