Monday 7 March 2022

Investment Portfolios Updates- S$613k (4 Mar'22)- Impact of Ukraine and Russia War

The net assets value went down overall due to the invasion of Ukraine by Russia. Oil prices soared to USD129 per barrel on fear that the United States and its European allies will be banning imports of Russian oil. As energy prices went out of control, this will impact all aspects of products and services hence stock markets continued to react adversely to the ongoing Russo-Ukrainian war. 

1. Portfolio 1- Stocks held in SGX Central Depository
I have sold off my units in Mapletree NAC Trust and bought additional units in United Hampshire US REIT and Lendlease REIT from the sales proceeds.

Lendlease REIT has just announced the remaining acquisition of JEM shopping mall. I am rather intrigued by this additional acquisition of a suburban shopping mall along with its office property signed on a 30 year tenure with the Ministry of National Development. This new additional acquisition of the remaining stakes will improve the defensiveness of the earnings of Lendlease.

United Hampshire US REIT offers a very extremely attractive distribution payout of 10% per annum as its market price keep dropping despite good earning results.

2. Portfolio 2- Margin purchased securities
OCBC is interesting. Despite missing their Q4 2021 results against expectations of market analysts, it is still at an overall improvement of 35% net profit for FY2021 relative to FY2020. What's more, the reason for missing target is due more to conservative allowances being made. Personally, I felt that the market seems to have overreacted with a 5.8% drop in OCBC from S$13.16 to S$12.40 on 23 February 2022. Then as at 25 Feburary 2022, it further slumped to S$11.85 per share following Russia's invasion of Ukraine. I have started accumulating additional OCBC shares during this period.

3. Portfolio 3 (with Tiger Brokers)- Venture into higher risk as well as capital growth stocks here
Alibaba continued its downward plunge. Terrible performance so far as the growth rate no longer meets market expectations. I have sold off part of my Alibaba holdings to take on higher risk in Dasin Retail Trust by placing a bigger stake here. Will Dasin Retail Trust enter into bank loan default in mid March 2022?

United Hampshire US REIT announced a very good set of 2nd half and full year 2021 results. It has consistently performed well with an extremely attractive distribution yield of 10.0%. United Hamsphire has delivered resilient results throughout this COVID crisis. However, its unit price is currently at a miserable US$0.610 as at 25 February 2022.  Hence I have continued additional bite size investments into this US REIT.

Parting Thoughts
Despite the huge drop in valuation of the investments under my portfolio, I expect the dividends payout for this year to remain consistent. I am currently expecting S$13K of dividends distribution payout in March 2022. This period of gloomy sentiment represents a good time to continue to add on to more banking stocks or REITs to improve on the dividends receipt. I am currently looking forward to the rights issue of Lendlease REIT as well as the listing of Mapletree student accommodation REIT.

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