S-REIT With 10.7% Dividend Yield and Consistent Occupancies & Resilient Results Plus Key Risks To Note.

Today, I will be looking into this S-REIT that does not have much analysts coverage and that its market unit price has plunged close to almost 50% of its IPO price back in 2020 albeit resilient results and high occupancies of over 95% for the past few years.

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Investment Portfolios Updates (26 May 2024) - Net S$602K and Projected Annualised Passive Income of S$41K.

These past 2 months have been absolutely horrendous for investors that held SREITs in high concentration in their investment portfolios. It is like putting money into a blackhole where it just kept pulverising. The only good thing is that I have diverted most of my new funds, as well as dividends received recently, into the bond funds on Endowus platform. Lots of further work in progress to diversify the portfolios further from real estate related investments.   

1. Portfolio 1- Stocks held in SGX Central Depository 

(Note: This portfolio is designed to provide immediate dividends for use as it is under my own CDP account and the dividends credited goes directly to my bank account.)

Have decided to sell off all my Netlink Trust units for now as there seems to be better opportunities out there. Also, the 6.1% distribution yield from Netlink Trust are not sustainable for the long term as Netlink Trust is actually paying out distributions from bank borrowings. Please see my YouTube Video here: "Netlink Trust 6.13% Distribution Yield Unsustainable and Ballooning Accumulated Losses of -S$617Mil".

2. Portfolio 2- Margin purchased securities

(Note: My margin purchased securities has grown to a sufficient scale to sustain itself and can pay off annual financing charges as well as to gradually pay down the margin loan through dividends generated.) 

The valuation of SREITs in my margin portfolio continued to nose-dive. Dividends from stocks were used to pay off margin loan financing as well as foraging into the HKEX in the form of Ping An and Link REIT after seeing signs of recovery in the China and Hong Kong market. 

3. Portfolio 3 (with Tiger Brokers and MooMoo) 

(Venture into higher risk as well as capital growth stocks here)

I opened up another online trading account MooMoo here to further diversify the online brokers and also the lower commission on offer by MooMoo. MooMoo is also giving away more than S$280 worth of US shares for signing up. Have took up additional stakes in Alibaba as well as Ping An Insurance. 

4. Portfolio 4 (Endowus Unit Trusts & Other Investments)

I have continued re-investing dividends from my Portfolio 1 mainly into the bond funds on Endowus platform. The market value for Endowus bond fund approximates the historical cost (with the exception of Income Insurance share price) hence I did not make any further fair value adjustments. From various sources that were using Philip Securities, privately held Income Insurance seems to be trading privately from S$20 to $22 per share on the blockchain powered Alta digital exchange platform. Logically, I think I should be selling it off if it is really at more than 100% capital gain and then reinvesting the proceeds. Nevertheless, since the amount I am holding is just a small stake, I think I will just keep it as a form of souvenir. 

Netlink Trust 6.13% Distribution Yield Unsustainable and Ballooning Accumulated Losses of -S$617Mil.

I was looking through the FY2024 results of Netlink Trust ending 31 March 2024. It was shocking to see that once again, it is still paying out excessive distributions. Its accumulated losses ballooned to <-S$617Mil> as at 31 March 2024. Apparently since this is a "Business Trust", it is thus "ok". Today, I will be sharing my thoughts on the latest results in the following video and the key risk to take note if one were to invest in Netlink Trust.  

Please see below for my latest video on YouTube channel. Going forward, I will be posting various exclusive investment contents onto my YouTube channel only. Please subscribe to my YouTube channel also to get the latest content for sharing.

Alibaba Full Year Results- Don't Miss the Forest For the Trees.

Not sure why many analysts were extremely disappointed with Alibaba for missing earnings expectations which brought about a sell down in the US market. On the contrary, I thought that Alibaba did fairly well for its last March Quarter 2024 and full year. Revenue continued to grow by 7% on a year to year basis for Q4. So clearly, Alibaba seems to be returning to growth mode. I will ignore the "Net Income" due to the "fair value" mark to market for its non-core business activities (public listed investments) and focus instead on the non-GAAP net income.  Also interestingly, Alibaba is going to pay out dividends again!

1. Not too bad results- investment for topline revenue growth

Q4 March 24 Results

The non-GAAP net income for Q4 ended 31 March 2024 decreased 11% from  RMB 27,375Mil to RMB 24,418Mil. Nevertheless non-GAAP diluted earnings per share decrease only 5% year on year due mainly to share buy-back (please see below).

2. Share Repurchases

Share buy-back

US$4.8 billion was spent buying back ADs and shares in US and Hong Kong markets respectively. This help mitigate the earnings per share decline due to latest strategies to re-ignite growth in Alibaba's business. 

3. Fantastic upcoming pay out of regular cash dividends and special dividends to rewards shareholders.

Wow, Alibaba really seems to be becoming a dividend stock. Total year end approved payouts will be a total of US$0.2075. I am currently holding on to about 2,300 shares. So this translates to a dividend of US$477.25. Less off withholding tax of 10% and the quantum we are looking at is thus US$429.53 (S$580) on 3 July 2024 (Wednesday). This is a respectable sustainable dividend yield of almost 2%. Ex-dividend date is on 3 June 2024.

Parting thoughts

Today (15th May) is Buddha's Day in Hong Kong and a public holiday. Once the HKSE open on 16th May 2024, the price will probably drop by 5%-6% to mirror the US market. If there is another strong pull-back on the 9988 counter, I may look into accumulating more Alibaba shares.  

Strong Alibaba Stock Rally Sustainable? How To Get Exposure To China Tech Sector Without Placing All Your Eggs In One Basket?

Hi folks, China stocks have been rallying over the past 2 weeks. Is this just a temporary China bear market rally? For those interested in China tech stocks such as Alibaba and wanted some exposure but worried on total failure of the business, jumping into the ETF bandwagon might be a good way to diversify away the over-concentration risk in a few counters.

Please see below for my latest video on YouTube channel. Going forward, I will be posting various exclusive investment contents onto my YouTube channel only. Please subscribe to my YouTube channel also to get the latest content for sharing.

Why I No Longer Invest In Fixed Deposits But Parked Funds Into Robo Advisor Platform Money Fund Instead?

Hi folks, hope everyone has a good rest and enjoyable time thus far for this week. This is a short video to explore the better options out there in the Singapore market as alternative to fixed deposit.

Please see below for my latest video on YouTube channel. Going forward, I will be posting various exclusive investment contents onto my YouTube channel only. Please subscribe to my YouTube channel also to get the latest content for sharing.