Portfolio Closing as at 29 Dec 2017

STI closed at 3402.02.

DBS  ($24.85)
UOB ($26.45)
SPH   ($2.65)
SingTel ($3.57)
StarHub ($2.85)
CityDev ($12.49)
SP Ausnet ($1.89)
Keppel Infra Trust ($0.575)
Olam ($2.03)
Wilmar ($3.09)
SIA ($10.67)
Keppelcorp ($7.35)
SembCorp ($3.03)
SIA Engineering ($3.13)
CDL Trust ($1.69)
AsiaPay TV Trust ($0.59)
Capital China Trust ($1.62)
Ascendas India Trust ($1.15)
Lippo Malls Trust ($0.40)
SuntecReit ($2.15)
OUE Comm Trust ($0.72)
StarHillGlobal Reit ($0.775)
MapleLogistics Trust ($1.32)
M1 ($1.78)
SATs ($5.20)
First Reit ($1.39)
KReit ($1.26)
Accordia Golf Trust ($0.685)
SoilBuild Trust ($0.67)
HPH Trust ($0.55)
AscotReit($1.22)
SingPost ($1.24)
Comfortdelgro ($1.98)
Noble ($0.20)
Dutech ($0.34)
Ezion (Suspended)
OCC 5.1%NCPS 100 ($102.75)
DBS$800M4.7%NCPS ($106.20)

Potential Cash Offer for Millenium & Copthorne Hotels pls

The Board of Directors of City Developments Limited(the “Company”) wishes to announce that the Company and the independent non-executive directors of Millennium & Copthorne Hotels plc (the “Target”), a 65.204%-subsidiary1 of the Company listed on the Main Market of the London Stock Exchange (“LSE”), have jointly released an announcement (the “Joint Announcement”) on the LSE todayin relation to a possible cash offer to be made by Agapier Investments Limited, a wholly-owned subsidiary of the Company, for the Target. A copy of the Joint Announcement is attached as an Appendix to this announcement.

ComfortDelgro Strategic Alliance With Uber?

ComfortDelGro Corporation Limited (the "Company") wishes to announce that the Company has signed an exclusivity letter with Uber Technologies, Inc. ("Uber") for exclusive discussions in relation to forming a potential strategic alliance between the Company and Uber, which may include collaboration in relation to management of fleet vehicles and booking software solutions in Singapore, including the Company’s taxis also being made available on Uber’s app ("Potential Strategic Alliance”). The Company believes that the Potential Strategic Alliance will strengthen the Company's position as a major mobility service provider in Singapore.

There is no certainty or assurance that such discussions between the Company and Uber will result in any definitive agreement or transaction or lead to a consummation of the Potential Strategic Alliance. The Company will, in compliance with its obligations under the Listing Manual of the SGX-ST, make an appropriate announcement in the event that there is any material development in relation to the Potential Strategic Alliance. In the meantime, shareholders of the Company are advised to exercise caution when dealing in the shares of the Company and to refrain from taking any action in respect of their shares which may be prejudicial to their interests, and to exercise caution when dealing in the securities of the Company as there is no certainty or assurance as at the date of this announcement that any definitive agreements will be entered into in relation to the Potential Strategic Alliance. Shareholders should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers if they have any doubt about the actions that they should take.

LMIRT 2QFY2017

Revenue                                 = $49,886,000
NPI                                         = $46,823,000
Distributable Income             = $25,403,000
DPU                                       = 0.90 cents
NAV                                       = 37 cents
Gearing                                   = 30.6%
Occupancy                              = 94.3%
Total Debt                               = $650.7m

OUE COMM Reit 2QFY2017

Revenue                          $44.2m
NPI                                  $34.8m
Amount Avail For Dist   $17.8m
DPU                                1.15 cents
NAV                                86 cents
Gearing                            36.4%
Total Debt                       $1151m
Avg Cost Of Debt            3.4%
Avg Term Of Debt           3.1 years
Interest Cover                   3.3 years

CDLTrust 2QFY2017

NPI                                               $34.9m
Income Available For Dist           $24.9m
DPU                                              2.08 cents
Occupancy                                    86.2% (Singapore)
ARR                                              $180 (Singapore)
RevPAR                                        $155 (Singapore)
Total Assets                                   $2,649m
Debt                                               $1026m
Gearing                                          38.7%
Interest Cover                                 6.4X
Avg Weighted Cost Of Debt          2.3%
NAV                                               $1.5454

CRCT 2QFY2017

Gross Revenue                                            RMB 291,530,000
NPI                                                              RMB 197,660,000
NPI                                                              $ 39,971,000
Distributable Income                                   $ 23,337,000
DPU                                                             2.62 cents (2.61 cents for 2QFY16)
NAV (adjusted for dist)                               $ 1.52
Gearing                                                        35,3%
Interest Cover                                              6.2X
Avg Cost Of Debt                                        2.44%
Unencumbered Assets                                 100%
Net Debt/EBITDA                                       6.4X

SuntecReit 2QFY2017

Gross Revenue                                 = $87.3m
NPI                                                   = $59.4m
Distributable Income                        = $66.0m
DPU                                                  = 2.493 cents
Total Liabilities                                = $3356m
Gearing                                             = 36.1%
All-In-Financing-Cost                      = 2.41%
Interest Coverage Ratio                    = 4.1X
Adjusted NAV                                  = $2.094

MapleLogistics 1QFY17/18

Revenue                                     = $95,801K
NPI                                            = $80,836K
Amount Distributable to Shrs   = $47,195K
DPU                                          = 1.887 cents
Total Debt                                  - $2,202m
NAV                                          = $1.02
Avg leverage ratio                     = 39.0%
Avg debt duration                      = 4years
Interest Cover                            = 5.7X

Ascott Reit 2QFY2017

Revenue                                    $123.6m
Gross Profit                               $59m
Unitholders Distribution           $46.9m
DPU                                          1.84 cents
RevPAU                                    $146
Gearing                                      32.4%
Interest Cover                            4.4X
Effective Interest rate                2.4%
Percentage Of Fixed Debts        85%
NAV                                           $1.23
Weighted Avg Debt to Maturity 4.8 years

SPH - M1 Strategic Review

The Company wishes to announce that Axiata Group Berhad, Keppel Telecommunications & Transportation Ltd and the Company (collectively, the “Majority Shareholders”) have decided not to proceed further with the Strategic Review. The Majority Shareholders have taken into consideration the proposals from interested parties, which despite a favourable level of interest, have not met the minimum criteria and parameters as determined by the Majority Shareholders. For the avoidance of doubt, no arrangement or agreement with any third party has been reached in relation to each Majority Shareholders’ respective shareholdings in M1 Limited.    

KeppelReit 2QFY2017

Property Income                    $39.846m
NPI                                        $31.892m
Shr of Associates&JV           $28,298m
Income Available for Dist    $47.406m
DPU                                      1.48 cents
NAV                                     $1.40
Gearing                                 38.5%
Interest Coverage Ratio        4.4
All-in Interest rate                 2.59%
Top Ten Tenants WALE      14 years
Portfolio WALE                   9 years

FirstReit 2QFY2017

Revenue                             = $27,477m
NPI                                    = $27,154m
Distributable Income         = $16.642m
DPU                                   = 2.14 cents (2QFY2016 2.11 cents)
Total Debt                          = $416m
Gearing                               = 31.0%
NAV                                   = 100.41cents

SPH Turn Property Developer?

Singapore, 21 June 2017 – The consortium formed by Singapore Press Holdings Limited (“SPH”) and Kajima Development Pte Ltd (“Kajima”) has been awarded the tender for a 99 year leasehold mixed commercial and residential site at Upper Serangoon Road by HDB.  It submitted the highest bid of S$1.132b for the land size of approximately 25,440.8 sqm.  The two consortium partners will take equal stakes in the joint venture. 

The mixed commercial and residential site, which comes with an air space for a commercial bridge across Bidadari Park Drive towards Bidadari Park and a subterranean space for an underpass to the bus interchange in Woodleigh Village BTO, is next to Woodleigh MRT station.  It forms part of the new Bidadari Estate, a new housing estate at the fringe of the city centre, and envisioned to be a “community in a garden”.  The Bidadari estate will encompass a green environment with a garden setting and the site overlooks the Alkaff Lake, Bidadari Park and Bidadari Heritage Walk. 

Popular primary schools such as Maris Stella High School and St Andrew’s Junior School, as well as the Stamford American International School and Australian International School, are also close by. 

The consortium plans to develop over 600 residential units with a retail/commercial component of ~310,000sf gross floor area.  As stated in the tender conditions, the successful bidder will also have to build a 6,000 sqm Community Club (CC), a 2,190 sqm Neighbourhood Police Centre (NPC), a commercial bridge towards Bidadari Park and an underpass to connect to the bus interchange as part of the development.

In view of the positive attributes of the site, the consortium believes that there will be demand for residential units in the project.  The HDB Bidadari BTO flat launches have been very well received and continue to see high demand among potential homebuyers. 

The consortium believes that the residents in the vicinity and the students from the schools nearby will provide a ready catchment for the upcoming retail/commercial development. The consortium will also bring in new ideas from Japan for this development.

I Finally bet on Noble!

I finally gather enough interest and guts to place a small bet on Noble. I bought 10lots at 60.5 cents a share yesterday. I have previously made a quick trade with Noble years ago and made some small profit. After which I have not touch it but it remains in my radar out of curiosity as it amazes me how a company can collapse so quickly.It make for good case study.

I am going into this with my eyes wide open and totally cognizant of the prospects that there is a reasonable probability that is  company going into chapter 11 in the near future. The next few quarters are critical.

Why do I made such a risky bet albeit a small amount? Firstly, as I read the out going chiarman and founder letter to the media, I got this impression that he is making one final bid to save the company he has so paintakingly built over the last thirty years.He is stepping aside for a new chairman is who is old hand in extracting value out of companies at risk of failing.Elman is a proud man but the last two years of trials and tribulations hace exacted a deep toll on the man and he has come to terms with acknowledging the incipient risk of Noble very existence. The incoming chairman is not new to Noble as he has been in the board for the last two years or so so there will be no steep learning curve. He will be quick off the block.  Being a highly experienced and connected person, I do not think he will consent being the chairman if he think the company is going into bankruptcy in the near future.

Secondly, much of Noble recent woes stem from the fact that it did a consolidation of 10-1 of its shares and more significantly the current quarter unexpected loss of US$130m due to hedging risks of it coal portfolio.I gave no problem with the consolidation as I did not own any shares previously and I am of the opinion that it is positive as it remove some of the ease to short the stock.As for the hedging loss, I understand it is more a divergence of the Newcastle index where the hedges are reference with the chinese index.It appears to me more like a unforseen distortion (probably manipulated by hedge funds) which can be corrected BUT I may be wrong.

I look at the factsheet and Noble now mostly have current assets viz-a-viz non-current assets in line with it vision to drive the company back to its roots as a smaller and nimbler trading company. According to the factsheet, it has an equity of US$3.8b on 1.3b outstanding shares. Work out to be about $3/share and about a p/b ratio of 0.2 (based on my purchased price). Of course I have read many comments online that all these figures are fluff and the company now really has nothing left in its equity.I do not object to such opinion based on Noble track record over the last 2-3 years.There may be  a grain of truth in what these naysayers are saying.

At the end of the day, there is no certainty in investing especially with one like Noble but I am betting against the chance that a once blue chip company with a valuation in excess of $10b can be reduced to nothing. 烂船也有三斤铁

I hope I am not wrong but I am prepared to lose my capital on this one.

OUE Comm Reit 1QFY2017

Revenue                          $44,816K
NPI                                  $34,642K
Amount Avail For Dist   $16,642K
DPU                                1.23 cents
NAV                                86 cents
Gearing                            36.2%
Total Debt                       $1145m
Avg Cost Of Debt            3.4%
Avg Term Of Debt           3.3 years
Interest Cover                   3.2 years

CDL Htrust Acquire UK Hotel

Acquisition of a 5-star luxury hotel which is located in proximity to the heart of Manchester city centre 
Property price of £52.5 million with a net property income yield of 7.3% for FY 2016  DPS accretion of 2.7%
Rare opportunity to acquire an iconic hotel in Manchester and gain exposure to a key beneficiary city of the Northern Powerhouse proposal
Strengthens portfolio and earnings base through diversification


 The purchase consideration for the Acquisition is based on the property price of £52.5 million (approximately S$94.1 million)2, and payment of approximately £0.4 million (approximately S$0.7 million) based on the estimated net working capital and cash of the Target, as at the time of completion with the aggregate amount being approximately £52.9 million (approximately S$94.7 million). Upon completion, the aggregate leverage of CDLHT is expected to be approximately 39.1%18.

The Property is a purpose-built 5-star luxury hotel offering 165 rooms and a comprehensive suite of facilities. It is located in proximity to the heart of Manchester city centre, and approximately 16.0 km from Manchester Airport, United Kingdom’s (“UK”) best airport for the third year in a row by Globe Awards4. It is also within the vicinity of top office developments such as Spinningfields, prominent retail establishments such as Arndale Shopping Centre, one of the busiest retail malls in UK5, and entertainment hubs such as Royal Theatre Exchange, the Manchester Opera House and the Manchester Arena.

LMIR 1QFY2017

Revenue                                 = $48,487,000
NPI                                         = $46,079,000
Distributable Income             = $25,120,000
DPU                                       = 0.89 cents
NAV                                       = 37 cents
Gearing                                   = 32.2%
Occupancy                              = 93.8%
Total Debt                               = $650.7m

Marco Polo Marine - Impending Collapse

I have written about Marco Polo before. Today, the company requested for a suspension of the company shares traded on the SGX in view that the restructuring of debt is not going on smoothly as there is resistance from some lenders.

I am of the opinion that this o&g counter will be the next to fall and taking the step of coming under judicial management is just a stone throw away. Equity holders will most likely get nothing.

not vested!

StarHillGlobal Reit 3QFY2016/17

Revenue                                   $53.3m
NPI                                           $41.2m
Income Available For Dist       $27.1m
DPU                                          1.18 cents
Total Debt                                 $1,136m
Gearing                                     35.3%
Interest Cover                           4.2X
Average Interest Rate               3.17%
Unencumbered Asset Ratio      73%
NAV                                          91 cents

MapleLogistics Trust 4QFY16/17

Revenue                                     = $96,488K
NPI                                            = $80,266
Amount Distributable to Shrs   = $46,603K
DPU                                          = 1.86 cents
Total Debt                                  - $2,184m
NAV                                          = $1.04
Avg leverage ratio                     = 38.5%
Avg debt duration                      = 3.9years
Interest Cover                            = 5.6X

Croesus Retail Trust - Potential Privatisation

Croesus Retail Asset Management Pte. Ltd. (the “Trustee-Manager”), as trustee-manager of Croesus Retail Trust (“CRT”), announced that it has been approached in connection with a potential transaction which may or may not lead to an acquisition of all the issued units in CRT (“Units”). Discussions are preliminary and there is no certainty or assurance whatsoever that these discussions will result in any transaction. The Trustee-Manager has appointed Citigroup Global Markets Singapore Pte. Ltd. as its financial adviser in connection with such approach.

SuntecReit Q1FY2017

Gross Revenue                                 = $88.4m
NPI                                                   = $61.8m
Distributable Income                        = $61.8m
DPU                                                  = 2.425 cents
Total Liabilities                                = $3504m
Gearing                                             = 37.7%
All-In-Financing-Cost                      = 2.42%
Interest Coverage Ratio                    = 4.3X
Adjusted NAV                                  = $2.12

CDL Hospitality Trust Q1FY2017

NPI                                               $35.9m
Income Available For Dist           $24.1m
DPU                                              2.42 cents (1QFY16 2.22cents)
Occupancy                                    88.4% (Singapore)
ARR                                              $180 (Singapore)
RevPAR                                        $159 (Singapore)
Total Assets                                   $2,535m
Debt                                               $924m
Gearing                                          36.8%
Interest Cover                                 6.5X
Avg Weighted Cost Of Debt          2.4%
NAV                                               $1.5298

SPH Mark First Foray into Healthcare

Singapore Press Holdings Limited (SPH) today announced its entry into the healthcare sector with the acquisition of Orange Valley Healthcare Pte Ltd (OV) at a consideration of approximately S$164m. OV was established in 1993. SPH purchased the shares and intellectual property of OV from KV Asia Capital Pte Ltd, which acquired OV in April 2014. 

OV, through several subsidiaries, operates a number of nursing homes and ancillary services like providing meal and catering services, offering physiotherapy and rehabilitation services, and supplying medical, nursing and healthcare equipment and consumables. 

The proportion of population aged above 65 in Singapore is expected to double by 2030 to 900,000 from the current 450,000. This means 1 in 4 Singaporeans will be elderly, which will lead to strong demand for aged care services in the next decade.  As family sizes shrink, there will be a surge of single elderly living alone. This will lead to increasing demand for quality aged care services across the spectrum from home care, community-based care to nursing homes.

Mr Alan Chan, CEO of SPH, said: "Singapore has a greying population with a need for long term medical care. The investment gives us an opportunity to contribute to the healthcare needs of our ageing community. We look forward to partnering the management and staff of Orange Valley to provide caring, competent and compassionate service to the elderly and their caregivers. We also look forward to working with the Ministry of Health and the regional healthcare systems to improve the accessibility and quality of aged care in Singapore.” 

Orange Valley Nursing Home currently runs five nursing homes island-wide with over 900 beds. Its homes are strategically located near major hospitals or housing estates with high density of senior population. They are in Changi, Clementi, Marsiling, Simei and Sims Avenue. The broad footprint across Singapore provides residents with abundant choices. Backed by an experienced management team and highly trained nursing workforce, OV also offers a wide spectrum of adjacent care services such as home care and respite care. 

Mr Karam Butalia, Executive Chairman of KV Asia Capital, said:"Orange Valley has been providing Singaporeans with a one-stop comprehensive eldercare service for more than 20 years. We trust that SPH will help solidify its position as the pre-eminent provider of high quality nursing care in Singapore, and bring its holistic and integrated healthcare service to a higher level." 

CRCT 1QFY2017

Gross Revenue                                            RMB 290,865,000
NPI                                                              RMB 194,896,000
NPI                                                              $ 40,303,000
Distributable Income                                   $ 24,355,000
DPU                                                             2.74 cents (2.71 cents for 1QFY16)
NAV (adjusted for dist)                               $ 1.55
Gearing                                                        36.4%
Interest Cover                                              6.1X
Avg Cost Of Debt                                        2.49%
Unencumbered Assets                                 98.5%
Net Debt/EBITDA                                       6.6X

Ascott Reit 1QFY2017

Revenue                                    $111.3m
Gross Profit                               $47.2m
Unitholders Distribution           $25.1m
DPU                                          1.51 cents
RevPAU                                    $128
Gearing                                      41.1%
Interest Cover                            3.8X
Effective Interest rate                2.3%
Percentage Of Fixed Debts        82%
NAV                                           $1.29
Weighted Avg Debt to Maturity 4.6 years

Keppel Reit 1QFY2017

Property Income                    $39.9m
NPI                                        $31.4m
Shr of Associates&JV           $31.5m
Income Available for Dist    $48.1m
DPU                                      1.48 cents
NAV                                     $1.42
Gearing                                 38.4%
Interest Coverage Ratio        4.6
All-in Interest rate                 2.57%
Top Ten Tenants WALE      9 years
Portfolio WALE                   6 years

Keppel Infrastructure Fund Q1FY2017

Cash                          $255m ($207m Excluding Basslink)
Borrowings               $1840m ($1094m ditto)
Net Debt                    $1585m ($888m ditto)
Net Assets                  $4102m ($3074m ditto)
Total Liabilities         $2680m ($1210m ditto)
Annualized EBITDA $236m ($171m ditto)
Net Gearing                38.7% (28.9% ditto)
Net Debt/EBITDA      6.7X (5.2X ditto)

Loans

City Gas                      $178m (bullet)
SingSpring                  $68.4m (Amortising)
BassLink                     $753.6m (Amortising)
KMC                           $700m (Bullet)
KIT                              $150.7m (Bullet)

FirstReit 1QFY2017

Revenue                             = $27,151m
NPI                                    = $26.867m
Distributable Income         = $16.593m
DPU                                   = 2.14 cents (1QFY2016 2.11 cents)
Total Debt                          = $417m
Gearing                               = 31.0%
NAV                                   = 100.7964cents

SPH Q2FY2017

Operating Revenue                    $168,030K
Operating Profit                         $52,992K
Investment Income                    $16,715K
Profit After Taxation                 $63,877K
Net Profit Attr To Shrs              $53,503K
EPS                                            3 cents
NAV                                           $2.08
Cash & Cash Equiv                    $2769,506K

Soilbuild Trust 1QFY2017

Gross Revenue                                                = $21,985K

NPI                                                                  = $19,213K
Distributable Income                                       = $15,573K
DPU                                                                 = 1.489 cents
NAV                                                                 = 72 cents
Leverage                                                          = 37.5%
Average All-In Interest Ratio                           = 3.37%
Interest Cover                                                  = 5X
Weighted Avg Debt Maturity                           = 2.6 years
WALE                                                              = 4.6
Secured Leverage                                             = 14.5%
Occupancy                                                        = 91.8%

Great Singapore Sale - Fabulous Discount!

M1 Halted, SPH Halted, KTT Halted??

Today, I see something that I do not see often in the SGX. The trio of M1, SPH and KTT all have halted the trading of their shares. Both SPH and KTT are two of the three major shareholders in M1 with Axiata as the third major shareholder.

So what is in the offing?? I bet a sale of M1 is in the process to consolidate the ownership of M1 into a single majority shareholder.

It is be clear by next week!

Good Article on Fintech

http://www.economist.com/news/finance-and-economics/21717393-advanced-technology-backward-banks-and-soaring-wealth-make-china-leader

CityDev 4QFY2016

Revenue                       $1,167m
PATMI                         $244m
EPS                              26.1 cents
NAV                             $10.22
ROE                             7.03%

Recurring Income Segment comprises of 55% EBITDA and 52% Total  Assets
International Income Segment comprises of 58% EBITDA and 45% Total Assets

Net Borrowings            $1865m
Gearing                         16%
Interest Cover Ratio     12.5X

CityDev has a gearing of 16% without taking into consideration fair value gains on investment properties!!!! It is one of the least geared companies in STI, I think.

Wilmar - FY2016

                                                       Dec 2016    Dec 2015
Debt/Equity (x)                              0.81            0.82
- Net Debt                                      $11,692m   $11,817m
- Shareholders' funds                     $14,435m   $14,394m
Adjusted Debt/Equity (x)               0.35            0.41
- Liquid working capital                $6,706m     $5,933m
- Adjusted Net Debt                       $4,986m    $5,884m
Net debt/EBITDA (x)                    5.21           5.63
Adjusted Net Debt/EBITDA (x)    2.23           2.80
EPS                                                15.4           16.1
NTA                                               159.4         158.6
NAV                                                228.5         227.6

Ezion - Profit Warning Q4FY2016 & FY2016

Ezion issued the following statement on Fri 17/2/2017:-

"As the market conditions of the global oil and gas industry remains uncertain, the Group has carried out an assessment on the impairments of its assets. While the value of the impairments are yet to be determined, the Group is expected to record a net loss for 4Q2016 and 12M2016 from this exercise. "

The turbulence in the O&G industry remains unabated.

SAT

I recently divested my investment in SAT at a price of $5.25/shr. Not that I think SAT is a  company that do not deserved holding on but it is more a case of valuation. The recent quarter and YTD 9 month earning are 5.8 cents/shr and 17.2 cents/shr corresponding. At a price of $5.25, this give a PE of about 22 if you take the anualized earnings. Although SAT has low or virtually no debt (debt/equity = 0.07) ,  is in a business area where entry of new competitors is not so easy and there may be potential growth oppotunities, I think the valuation has outrun the fundamentals of the company.

This in part I think is due to the inclusion of SAT into the STI last year.ETF funds who track the STI will automatically trigger buy into SAT leading to its higher valuation vis-a-vis earnings.

As such,  I decided to let go of my holdings at $5.25 but if a buying opportunity come up later, I will definitely consider again.

LMIRT 4QFY2016

Revenue                                 = $48,706,000
NPI                                         = $44,566,000
Distributable Income             = $24,335,000
DPU                                       = 0.87 cents
NAV                                       = 39 cents
Gearing                                   = 31.5%
Occupancy                              = 94.3%
Total Debt                               = $650.7m

SingPost - Impending Writeoff

The recent quarter of SingPost results is dismal. Net profits dropped by 27% yoy. Besides the traditional culprits of declining mail businesses, the main drag on profits came from the $10.2m loss suffered by its newly acquired US- based e-commerce company TradeGlobal.TradeGlobal is undergoing structural changes in its business as it lost two key customers ie one filed for bankruptcy and the other switched to in-source sourcing of its freight operations.

SingPost acquired Tradeglobal to the tune of $236m not too long ago under the previous CEO Wolfgang Baier.I do not know the rationale for the acquisition as I am not vested in Singpost after divesting them at around $2 sometime back when I am not convinced with its bloated valuation vis-a-viz revenue/profits.My interest only rekindled recently when Alibaba executed it second block purchase of  SingPost shares to become its largest shareholder.

I am expecting a large writeoff of TradeGobal on SingPost books to the tune of close to $200m in the coming quarters. the worst for SingPost is yet to come.

CroesusRetail 2QFY17

Revenue                                                                  JPY 3,180,943K
Income Available For Distribution                        JPY 1,685,014K
NPI                                                                         JPY 1,439,526K
DPU                                                                        1.81 cents
Gearing                                                                   46.1%
Interest Coverage Ratio                                          4.2X
Avg All-in Cost Of Debt                                        2.01%
Debt Maturity                                                         2.1 Years
NAV                                                                        JPY 77.89

Marco Polo - revisited

It was somewhere in last Nov that I wrote a short article on why Marco Polo could potentially be a candidate for bankruptcy.

Now as i look at it again, the share price has drop to 5.5 cents with a total market capitalisation of under US$12m. The recent quarter, it reported a net profit of in excess of $3m but the bulk of it came mainly from fair value change in foreign currency movements. On the other hand, cash & cash equiv has drop precipitously from $10m to down to $4m in the lastest report.

This company is indeed acting like a walking dead zombie where no one is willing to touch it with a ten foot pole. The CEO fortune has clearly turn south since his glamorous marriage with his celebrity taiwanese wife.The only that keep him on his seat is that his father own more than 50% of the distressed company.

All this is going on with the backdrop of the impending legal tussle with Sembcorp Submarine on the construction and handover of an "abandoned" oil rig. It is also noted that the CFO left the company last year.

This is a case of a distressed asset that could be betted on to make  a fortune or lose yoour pants!Any takers?Not me at this point in time.

A Piece OF Valuable Gem in Investing

I recently came across an opinion piece by Dr Seth A Klarman, a prominent value investor respected even by Warren Buffet.

He said the below:-

Perhaps the most distinctive point he makes — at least that finance geeks will appreciate — is what he says is the irony that investors now “have gotten excited about market-hugging index funds and exchange traded funds (E.T.F.s) that mimic various market or sector indices.”

He says he sees big trouble ahead in this area — or at least the potential for investors in individual stocks to profit.

“One of the perverse effects of increased indexing and E.T.F. activity is that it will tend to ‘lock in’ today’s relative valuations between securities,” Mr. Klarman wrote.

“When money flows into an index fund or index-related E.T.F., the manager generally buys into the securities in an index in proportion to their current market capitalization (often to the capitalization of only their public float, which interestingly adds a layer of distortion, disfavoring companies with large insider, strategic, or state ownership),” he wrote. “Thus today’s high-multiple companies are likely to also be tomorrow’s, regardless of merit, with less capital in the hands of active managers to potentially correct any mispricings.”

To Mr. Klarman, “stocks outside the indices may be cast adrift, no longer attached to the valuation grid but increasingly off of it.”

“This should give long-term value investors a distinct advantage,” he wrote. “The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.”

AscendasIndia Trust 3QFY16/17

Total Property Income                          =  Rupee 1,881m
NPI                                                        =  Rupee 1,265m
Income Available For Dist                   =  $14.7m
DPU                                                      =  1.42 cents (3QFY2015/2016 1.36 cents)
NAV                                                      = 71 cents (90cnts Adjusted)
Interest Cover                                         = 3.7X
Gearing                                                   = 30%
Percentage Fixed Rate Debt                   = 85%
Average Cost Of Debt                            = 6.1%
Effective Borrowings                             = $452m (INR:62%,SGD:38%)

StarHillGlobal Reit 2QFY16/17

Revenue                                   $54.1m
NPI                                           $41.4m
Income Available For Dist       $27.5m
DPU                                          1.26 cents
Total Debt                                 $1,132m
Gearing                                     35.2%
Interest Cover                           4.0X
Average Interest Rate               3.16%
Unencumbered Asset Ratio      73%
NAV                                          91 cents

OUE Comm Reit 4QFY2016

Revenue                          $45,023K
NPI                                  $34,820K
Amount Avail For Dist   $15,428K
DPU                                1.18 cents
NAV                                93 cents
Gearing                            39.8%
Total Debt                       $1261m
Avg Cost Of Debt            3.6%
Avg Term Of Debt           2.5 years
Interest Cover                   3.1 years

CRCT 4QFY2016

Gross Revenue                                            RMB 275,420,000
NPI                                                              RMB 169,145,000
NPI                                                              $ 34,779,000
Distributable Income                                   $ 20,623,000
DPU                                                             2.37 cents (2.59 cents for 4QFY15)
NAV (adjusted for dist)                               $ 1.60
Gearing                                                        35.3%
Interest Cover                                              6.0X
Avg Cost Of Debt                                        2.81%
Unencumbered Assets                                 97.9%
Net Debt/EBITDA                                       7.7X

CDL Hospitality Trust 4QFY2016

NPI                                               $37.7m
Income Available For Dist           $30.9m
DPU                                              3.11 cents (4QFY15 3.01cents)
Occupancy                                    83.6% (Singapore)
ARR                                              $184 (Singapore)
RevPAR                                        $154 (Singapore)
Total Assets                                   $2,535m
Debt                                               $933m
Gearing                                          36.8%
Interest Cover                                 6.2X
Avg Weighted Cost Of Debt          2.5%
NAV                                               $1.5513

SuntecReit 4QFY2016

Gross Revenue                                 = $88.9m
NPI                                                   = $60.7m
Distributable Income                        = $66.1m
DPU                                                  = 2.596 cents
Total Liabilities                                = $3500m
Gearing                                             = 36.4%
All-In-Financing-Cost                      = 2.28%
Interest Coverage Ratio                    = 4.0X
Adjusted NAV                                  = $2.121

Keppel Reit 4QFY2016

Property Income                    $40m
NPI                                        $31.4m
Shr of Associates                  $19.9m
Shr of JV                               $7.7m
Income Available for Dist    $48.7m
DPU                                      1.48 cents
NAV                                     $1.43
Gearing                                 38.5%
Interest Coverage Ratio        4.7
All-in Interest rate                 2.51%
Top Ten Tenants WALE      9.3 years
Portfolio WALE                   6.1 years

Ascott Residence Trust 4QFY2016

Revenue                                    $126.7m
Gross Profit                               $58.2m
Unitholders Distribution           $33.9m
DPU                                          1.93 cents
RevPAU                                    $148
Gearing                                      39.8%
Interest Cover                            4.3X
Effective Interest rate                2.4%
Percentage Of Fixed Debts        82%
NAV                                           $1.33
Weighted Avg Debt to Maturity 4.7 years

MapleLogistics Trust 3QFY16/17

Revenue                                     = $95,526K
NPI                                            = $79,889K
Amount Distributable to Shrs   = $46,841K
DPU                                          = 1.87 cents
Total Debt                                  - $2,175m
NAV                                          = $1.03
Avg leverage ratio                     = 38.7%
Avg debt duration                      = 3.5years
Interest Cover                            = 5.7X

As at 31 December 2016, MLT’s portfolio comprised 128 properties with a book value of S$5.5 billion and a gross floor area of approximately 3.6 million square metres (“sqm”). Of the 128 properties, 51 are in Singapore, 22 in Japan, 8 in Hong Kong, 15 in Malaysia, 9 in China, 11 in South Korea, 9 in Australia and 3 in Vietnam.