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Buy @ $3.72
1H Results out before mkt open. Div = 6.8ct + 3ct (Special – NetLink IPO) ; Biz-wise, weaker due to Airtel, Optus & Singapore, stronger in Thailand. Mkt opened and -6ct, decided to grab some after a quick look at their results. A 2nd order was not done as prices quickly recovered a bit. Likely holding till prices is closer to $4.
Sell @ $1.415
Extract of SGX Annc on 3-Nov on HPS short term lease renewal for 304,920 sqft expiring on 30-Nov-17,
HPS 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.
Mkt seems cheered by this annc. DPU will likely still be impacted negatively in the coming Qs but it does give FCOT more time to look for new tenants and the drop in DPU will be less abrupt (unless supported by higher Capital Payouts fm the Hotel site).
Decided to sell more first.
Sell @ $1.425
Seeing revenue decline at most assets for E-Sep Q.
My main concern is the HPS lease which expires on 30-Nov at Alexandra TechnoPark, which accounts for 11.1% of Gross Rental Income or 304.9ksf. An earlier HPE lease expired on 30-Sep & 30-Nov accounted for 6.6% of Gross Rental Income but they have secured 61/178.8 ksf committments.
I see a high probability of DPU decline for next 2-3 Qs, unless supported by higher Capital Returns from the Hotel site lease.
My portfolio (at cost) of S’pore stocks for Q317 close,
|
% Holding |
Stocks |
Total |
|
> 5% |
Raffles Medical |
80.3% |
|
|
Kep Infra Tr |
|
|
|
M1 |
|
|
|
Frasers Com Tr |
|
|
|
KingsmenCreative |
|
|
|
King Wan |
|
|
|
SingPost |
|
|
< 5% |
F & N |
11.1% |
|
|
Genting Sing |
|
|
|
Starhub |
|
|
Cash |
|
8.6% |
Note : Stocks are arranged in descending order of % holdings
Summary
The STI closed at 3,3304.29, +14.7% from end 2016. Using cost as a reference, my portfolio stats (vs 2016),
So, +1.06% vs +14.7% (STI), grossly under-performed the STI!
For Q3, I continued to reduce my transaction volume. I did some purchases to average down some of my losers – RafflesMed, SingPost & M1. I’m expecting the first two to be bottoming, in terms of EPS.
For Q4, I plan to stay inactive. I’ll be reducing FCOT as I’m expecting DPU to decline if HPS do not renew their lease at Alexandra TechnoPark or at least, prices ought to weaken before there’s any clarity. But, I’ll stay alert to buy back. I’ll also be looking to add to RafflesMed & SingPost, plus others in my portfolio.
Portfolio Changes (vs Q416)
Exchange Rates (for Q317)