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Post by Fletchsmile on Jun 8, 2015 13:33:19 GMT 7
Have added some CDL Hospitality Trust (CDREIT:SP)to my portfolio. As above, I'd been looking at it, and its also held in the top 10 of the Singapore/Thailand mutual fund holdings.
Yield is currently around 6.8% and price/book 1.04, so a little over the price to book I prefer, but given there are fewer and fewer bargains around I can accept it. Intention is to hold long term for yield, and not worry too much about the capital side. A short to mid term negative is it increases my portfolio weighting to hospitality REITs, which could well be softer than other sectors in the current economic climate.
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Post by Fletchsmile on Jun 8, 2015 13:36:57 GMT 7
Have also enquired about TMB's Property Income Fund. It is available thru my bank Stan Chart - so will probably buy thru there instead of direct from TMB as we have the investment accounts already in place.
One thing I'm not sure of yet is the WHT rates on the fund. Normally Thai mutual funds deduct 10% tax on divs (although you can elect from zero and be taxed at your marginal rate). On Singapore REITs if you buy direct they are tax efficient, with very little tax if any deducted on dividends and no further tax to pay.
So will probably do what I often do of buy a small amount and see how things go, then add more if it pans out. Will likely add/buy in Mrs Smile's name this month.
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Post by Fletchsmile on Jun 8, 2015 13:50:49 GMT 7
BIG thanks Fletch! but having access to your expert knowledge why should i waste precious time on research? edited for addendum unfortunately 3 out of the 6 mentioned do not "qualify" because our arrogant Swiss bankers, respectively their custodian refuses to provide custody for stocks with a unit price valued less than USD 1.- yes, these archaic rules still crop up in places now and again. Many years ago there was probably some logic behind it. Not now really So of my favourite 3: ART, FCT, FCOT, only 2 FCT and FCOT are priced above 1 USD. Of the others: CDREIT (Fletch just added) FIRT would also qualify as a secondary 2 KREIT,LMRT,OUEHT are all under 1 USD --------------------------------------------- BTW Crazy rule, as in the real world if you like an investment and it's 1 USD/share you just buy twice as many shares as if its 2 USD/share or half as much as USD 0.50/share. Funnily enough one of the most popular quoted indices the Dow Jones DJIA uses this archaic "price weighted index method", and is not weighted according to market cap like S&P. Crazy as a stock priced at USD $500/ share with a market cap of say $10bio would have a much higher weighting in the index than a stock priced at $50 with the same market cap of $10 bio
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Post by Fletchsmile on Jun 26, 2015 15:09:05 GMT 7
Just filled in the forms in to buy a little of the TMB Property Income Fund. I buy a regular amount of funds in Thailand each month for our daughters to save/invest for their future. So decided to channel this month's contribution there. Just to dip toes in and see how it is. Their portfolios have a range of asset classes via funds: various international and Thai equities, fixed income, gold fund, oil fund, but so far no property exposure, so thought why not. I believe WHT is applicable, so like most Thai dividend paying mutual funds you can select to be taxed at either marginal rate of tax, or flat 10% rate. To be honest as it's for the kids future, I'd prefer accumulation units, to save messing with divs/re-investment but no big deal Cheers Fletch
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Post by paddyjenkins on Jun 28, 2015 15:29:28 GMT 7
I have to say, cdl hospitality reit looks not only overvalued but overvalued within a market facing intensifying competition as well as potentially rising debt costs.
So, what was the attraction? Personally i would prefer to wait to buy cheaper.
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Post by Fletchsmile on Jun 28, 2015 15:47:17 GMT 7
I have to say, cdl hospitality reit looks not only overvalued but overvalued within a market facing intensifying competition as well as potentially rising debt costs. So, what was the attraction? Personally i would prefer to wait to buy cheaper. Already put some key reasons on reply #30, as well as considered some of the short-mid term possible negatives you mention vs long term hold. Have a look at some of the broker reports, target prices etc eg Nomura, UOB. Lease on Revenue Grand Hotel, potential for acquisitive growth, etc Did I miss the bit where you made suggestions as to what other REITs you hold?
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Post by Fletchsmile on Jun 29, 2015 13:47:39 GMT 7
Today, 29/6 DJ Newsire: CIMB remains optimistic on Singapore tourism despite weak figures: Singapore tourism visitor arrivals down 5.3% YOY, but CIMB optimistic tone - weakness due to volatile currency and intense competition. But CIMB still upbeat on Singapore hospitality REITs and overweight the sector, as Singapore tourism board promotions and launch of a 10 year visa for Chinese will buck up total visitors over time. CIMB prefers CDL Hospitality trust.
25/6 DJ Newswire: Singapore REITS coping with China slowdown: Jefferies say Singapore REIT coping with China slowdown, and an appreciating SGD. Jefferies believes the decline in tourist arrivals from China may be bottoming out. Jefferies adds CDL after meeting with them
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Post by paddyjenkins on Jun 29, 2015 18:44:23 GMT 7
So the Chinese hordes are to be diverted? Well, that would certainly cheer me up.
But why will they be flocking to Singapore based on a 10 year visa? Will these people on a 10 year visa be staying in hotels?
On CIMB, but pretty much any local bank, I consider their analysis to be fit for little more than toilet paper...if I was to print it out, which I wouldn't do.
A specific problem I also have with CDL is they have very few freeholds in their portfolio....none in fact. I can see their numbers can be made to look good when depreciation is ignored, but as a long term hold I am suspicious, and also suspicious of CIMB in recommending them...I wonder which expensive restaurants the analysts were taken to.
Nah, till convinced otherwise I'll wait for a discount to book.
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Post by Fletchsmile on Jun 29, 2015 19:46:10 GMT 7
So I guess you're also suspicious of Jefferies, UOB, and Nomura as well as CIMB? Same restaurant on different dates I guess? All have as buy or add. Competition and demand are already in the price, you're not exactly raising anything new. I'm still waiting for the famous Paddyjenkins recommendation on what to actually buy..., I believe the species still exists, although rarely ever spotted
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me
Crazy Mango Extraordinaire
Posts: 6,342
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Post by me on Jun 29, 2015 19:51:53 GMT 7
So the Chinese hordes are to be diverted? Well, that would certainly cheer me up.
But why will they be flocking to Singapore based on a 10 year visa? Will these people on a 10 year visa be staying in hotels?
On CIMB, but pretty much any local bank, I consider their analysis to be fit for little more than toilet paper...if I was to print it out, which I wouldn't do.
A specific problem I also have with CDL is they have very few freeholds in their portfolio....none in fact. I can see their numbers can be made to look good when depreciation is ignored, but as a long term hold I am suspicious, and also suspicious of CIMB in recommending them...I wonder which expensive restaurants the analysts were taken to.
Nah, till convinced otherwise I'll wait for a discount to book. In Singapore possible they stay in a long term hotel. Not much other accomodation available.
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