Aztech Global Disastrous Financial Performance and Share Price Since IPO.

Aztech Global listed in March 2021 at S$1.28 per share. Its current share price has plunged by a jaw dropping -47% to S$0.675 per share since IPO. I can't help but feel a sense of Deja Vu as Aztech reminded me of the many short drama plots about "Reborn" and reliving a previous life. Back in March 8, 2021, I have posted a blog on 5 reasons on why I will be giving this IPO a miss. Given that Aztech just recently announced a -21.2% drop in net profit to S$10.8Mil for 3rd quarter ending September 30, 2025 as well as declining revenue for 3rd quarter with a horrendous -19.9% plunge to S$133.5Mil from S$166.7Mil, the probability of it following the old playbook of privatising at a huge discount seems to be imminent (personal thoughts only).  

Aztech is another classic example of why retail investors should not be too fixated on high dividend (7%-8%) yield without considering other business factors such as type of business and associated risks as well as track record of management team.

Venturing Into BYD (Build Your Dream) EV Stock.

Crypto crashed last Friday (Oct 10, 2025) with US$19 billion in valuation being wiped out and 1.5 million folks, in particularly those heavily on leverage, are being margin called and forced to sell off their coins during the worst part of the storm. While most Crypto later rebounded, many Crypto investors had already lost their fortune through forced liquidation at the worst possible time. The stock market is expected to also dive sharply on this week (Oct 13, 2025 onwards) but surprisingly, the decline seems to be a gradual drop in valuation. Nevertheless, there is still some decline in prices for stocks and I decided to add into a new counter, that is, BYD (HKEX: 01211) from the Hong Kong Stock Exchange. 

1. BYD is clear market leader in EV with its own vertical batteries development and sales of EVs

There has been reports online that the new generation solid state batteries are undergoing live testing and maybe giving a range of over 1,200 km in single charge. This is more than 2 times the current range. The current practical range offered by EV is between 400km to 480km which is sufficient for 4-6 days for family usage. The new EV solid state battery from BYD will mean that going forward, drivers will only need to charge their cars once every 2 weeks instead of 1 or 2 times per week. Singaporeans travelling to Malaysia KL or Genting will also be able to complete a back and forth trip without charging their EV. Trial production of BYD EV retrofitted with solid state battery is being planned for 2027 while mass production is targeted for 2030.

So far, BYD, CATL and Toyota seem closest to the completion race of mass production technology of the solid state batteries.

Moreover, since 2024, BYD has surpassed Tesla in terms of EV production and sales. Many countries are also in the midst of phasing out internal combustion engines ("ICE").

BYD Sealion 7 With 480KM Range

2. BYD EV Cars Offer Good Quality and Value

I used to own and drive Japanese cars like Honda and Mazda. Recently, my Mazda car's COE came to an end and I have to look for a new replacement car. For environmental sustainability purpose, I decided to switch from ICE to EV propulsion. After going through many EV brands, I finally settled on BYD. Main reason is cheapest price and the bunch of features thrown in which offers the best value package.

I believe that BYD has its competitive advantage in production due to it producing many of its own components. Also it has been able to attract various international talent like Wolfgang Egger, BYD's Global Design Director. Egger is a renowned automotive designer who previously led design teams at luxury brands such as Alfa Romeo, Audi, and Lamborghini. 

BYD Seal

Parting Thoughts,

Many analysts seems to be projecting 50% or 100% increase in price target (HKD150 to HKD200 +). So, I have decided to start building up a position in BYD. 

Taking a Punt in Keppel DC REIT Rights Issue To Make Small Immediate Profit.

For my thoughts on whether I will be subscribing for this latest rights issue and key application milestone from Keppel DC REIT ("KDC"), please refer to my earlier post. Additionally, have decided to take a punt and make use of Keppel DC REIT ("KDC") rights issue exercise to try to earn some spare cash. The current market price is S$2.40 per unit as at Oct 3, 2025 (Friday) which I think is the peak price for this period. and price will start dropping from this point. Generally, by the time the new units get listed on SGX (Oct 22, 2025), the market price will commence tapering off as some investors will not feel happy with subscribed folks who are getting new KDC units at a discounted S$2.24. So the period from Oct 3, 2025 till Oct 22, 2025 will present an opportunity to maximise making the most money for immediate realisation and usage which I will further elaborate below. In fact, the probability of this one off punt making money is higher than striking the SG Toto's Group 7 prize (striking 3 numbers and winning S$10). 

1. Key Factors to Consider

(a) No major changes in macro-economic outlook or market events causing sudden surge in market prices within this short period;

(b) Able to have the "lobang"(via your stock broker) to get one's hand on the exact same number of excess rights issue as the number of units that one will be selling off immediately so as to maintain the same number of holdings in KDC;

(c) No of units for immediate sell-off should be of sufficient size to make the transactional trading cost (referring to selling cost here as the rights allotment admin fees is just S$2 irrespective of size of the subscription/purchase) worth it.

(d) As alluded to 1(b), if unfortunately unable to get the full 5,000 units of excess rights, then I will re-invest the proceeds into other higher yield SREITs. I believe that KDC current 4% per unit will be easy to beat. 

2. Execution of Plan and Mechanics

On the morning of Oct 6, 2025 (Monday), I have sold off 5,000 units of KDC at S$2.39 per unit for a total of S$11,950 (sold off immediately at S$2.39 bid price as I decided against queueing to sell at S$2.40 per unit).

Subsequently, I have made an excess rights application of 5,000 units of KDC at S$2.24 (totalling S$11,200) on top of my allocated allotment with my stock broker.

3. Mechanics & Targeted Profits

I am targeting for a quick profit realisation of S$750 (S$11,950 less off S$11,200) with the above maneuver by locking in the selling price of S$2.40 per unit as of Oct 6, 2025 morning. 

Parting Thoughts

Overall, I have no interest in increasing my stakes in KDC by too much as it is only yielding 4% and the market price per unit is at a huge premium over its NTA per unit. Market seems to be pricing KDC as a growth stock. Hence I am taking a bet that S$2.40 per unit is the peak market price reached for this rights issuance and to sell off immediately to optimise the profit realisation.

Prime US REIT Short-Changed Existing Unit-Holders With Private Share Placement.

By now, everyone should be aware of the downside of investing in US Commercial REITs listed on SGX. Given the maximum rule of no individual unit-holders can hold more than 9.8% of total units without dismantling with special tax concession granted by Uncle Sam, existing unit-holders will not be able to participate in rights issue. Instead existing unit-holders have to watch their investment get diluted at the worst possible time.

Financial Highlights

Prime US REIT remains in great peril with aggregate leverage level of 46.7% albeit the gradual but slow recovery in US Offices occupancy rate. While Manulife US REIT is in a far worse condition, this gives scant comfort to existing unit-holders of Prime US REIT. The current strategy of suspending bulk of the dividends distribution from Unit-holders to finance CAPEX seems not to be working well as on September 25, 2025, the management of Prime US REIT announced a private placement of 129.2Mil new units to raise approximately US$25Mil at a 10% discount of average market price of US$0.215 per unit. This led to an immediate dip in market price of Prime US REIT to US$0.199 per unit as at Oct 3, 2025. 

Parting Thoughts

Existing loyal retail unit-holders remain adversely short-changed by the management of Prime US REIT with this dilutive move. I hope that the management of Keppel Pacific Oak US REIT does not get inspired by this terrible move while trading at a huge discount to NAV per unit.  

Keppel DC REIT Growing Fast- New Acquisition of Tokyo Data Centre and Preferential Offering.

Wow....great news for folks holding on to Keppel DC REIT ("KDCREIT"). KDCREIT just announced on September 23, 2025 that it will be acquiring a 98.47% stake in a freehold new data centre in Tokyo. This is a newly completed 5 storey data centre in 2025 that comes with a Fortune Global 500 client that has signed on for 15 years and granted an option to renew the lease for another 5 years at the end of the current lease term. 

1. Acquisition Overview

This acquisition is expected to be immediate yield accretive by 2.8% while maintaining a healthy debt leverage of 34.5% post acquisition. With the entry of this hyperscaler tenant, this property is expected to strengthen overall portfolio resilience and also provide even more diversification. This is a wonderful growth opportunity.

2. Method of Financing

The total acquisition cost of the new Tokyo data centre is expected to be S$708.3Mil. It will be funded via a mix of new JPY denominated debts and equity fund raising.

3. Key Details of the Preferential Offerings

The issuance price will be S$2.24 per unit on a 80 for 1000 units allotment ratio. As as September 23, 2025, the last market traded price of KDCREIT is S$2.36 per unit. The offer price is thus at a 5.1% discount to the market price.

4. Timetable of Preferential Offering

For those interested in the rights issue by KDCREIT, please take note of the above timeline so as not to miss the subscription. The last date and time for acceptance of the new units is on October 13, 2025 at 5.30pm (Monday).

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5. Parting Thoughts- Will I subscribe to this Preferential Offering?

Well, this is after all a yield accretive deal so yes, I will be subscribing as long as the market price does not drop below S$2.24 per unit. As of September 23, 2025 morning, KDCREIT market price has increased to S$2.37 per unit after investors begin digesting news of the announcement. 

Record High Car COE Prices in Singapore and Association With S$100 Chicken Rice.

I was watching 1M65 channel by the influential Mr Loo yesterday. Apparently, Mr Loo is in angst over the record high Certificate of Entitlement (“COE”) price as his current car COE is expiring by mid January 2026. Consequently, he lamented that he has no choice but to spend a large sum of money to buy a car which is essential for him as he needs to travel to Malaysia frequently as well as for local business meetings or business appointments. Interestingly, he gave an example of a S$100 chicken rice to elaborate how S$100 is deemed affordable to many local residents but that many will think that it is not value for money as an analogy to his unhappiness over the raging COE prices across the motor vehicle categories.

The Tesla Model Y Now Comes With Cat A Version To Keep It Affordable

1. Car is a always a Luxury Good in Singapore Context

I think that car is always a luxury good….period. From economics perspective, owning a car is one of the most wasteful consumption act in society. If we are using cars like taxis or private hired vehicle which are on the road most of the time during the day, then it will be a just consumption. However, for privately owned cars, the real issue is that most people just drive it to and fro work and that most of the day, the car remains idle thus producing no real benefits.

Furthermore, in Singapore context, the public transport network such as MRT trains, buses as well as public hired vehicles like Grabs and also hailed down taxis are very well developed and convenient.

Given Singapore’s limited land size and growing population, there is unfortunately a limit to the growth in car supply. COE at S$100K will be a norm going forward under the constraint in supply situation.

2. The Chicken Rice Analogy is Flawed

Chicken rice is actually nearer to the spectrum of essential goods rather than luxury goods from economics theory perspective. So there is actually no meaning to compare the current high COE prices to the imaginary scenario of S$100 chicken rice and paining that as an analogy to the high car prices in Singapore.

Moreover, S$100 plate of chicken rice is never affordable in the first place for basic essential meals so not sure why Mr Loo thinks that it is affordable. 

The BYD Sealion 7 Now Also Comes With Cat Version To Beat High COE Price.

Parting Thoughts

If one wants to own a car in Singapore, then one has to accept the fact that one has to pay a heavy price to government coffers for the right to own a car in Singapore for 10 years. Be prepared to fork out S$200K for a new car in Singapore going forward. S$200K is a huge sacrifice towards financial freedom as the opportunity cost at 6% per annum amounted to the loss of <S$12K> of recurring income on a yearly basis.  

Centurion Accommodation REIT IPO- 3 Reasons To Stay Away (Part 2).

Honestly speaking, I think that it is too pre-mature for Centurion to launch their Centurion Accommodation REIT ("CAREIT"). A REIT is supposed to hold investment properties that are stable and has a good historical track record of generating an amount of rental income, so I was very surprised that some of its assets that just came online from development or redevelopment are being pushed directly into CAREIT for a lightning pace listing. For example, there is a student accommodation that is still being developed in UK but will be injected into CAREIT within 6 months after its anticipated IPO date (estimated to be Oct 1, 2025). The management should have waited at least 1 year till end 2026 to allow such newly developed property to be pumped into CAREIT so that it can prove its worth. Then there is also the enigmatic variable called the "Mandai Expanded Capacity" (please see my previous post) that makes the entire prospectus hard to understand due to it being loosely crafted. Seriously, it makes me wonder whether the Centurion management team is facing a dire cash crunch crisis as they seemed desperately in need of cash for working capital and trying so hard to get CAREIT listed on SGX as soon as possible.

1. Investment Property With No Proven Track Record Being Pushed into CAREIT + Weaker Rental Rates across some properties. 

(i) Unstable and concerning lower rental rates for student accommodation?

For dwell Princess Street, dwell Cathedral Campus, dwell Archer House and dwell Hotwells House, there is a reduction in NPI for projected FY2026 and FY2027 relative to FY2024 due to reductions in rental rates. Does this mean that there is a correction in student accommodation rental market or are there issues with the properties? Will this lead to a fall in its other UK properties going forward?

(ii)  Epiisod Macquire Park property in UK still being built but to be pushed into CAREIT upon TOP.

Epiisod Macquarie Park is one of the newer premium student accommodation (PBSA) assets under development by Centurion, and slated to be included in the CAREIT after completion. The problem here is that Centurion should have held on to this property while awaiting it to be more stabilised before injecting it into CAREIT. Instead, it is pushing CAREIT unit-holders to take on the risk of a new property that may not perform as well as expected. 

(iii) 4th block of worker dormitory with 3,696 beds still being developed at Mandai

While this can be termed as an asset enhancement, the fact remains that this is a significant new development in its Mandai property portfolio, and it will need to be filled to match financial projection.

2. Weakness in Financial Strength of CAREIT's Sponsor Centurion.

Unfortunately, despite the fantastic performance in its share price, Centurion Corporation Holdings is still relatively tiny in scale relative to the Big REIT Sponsors in Singapore. Centurion is much smaller compared to heavyweights like Mapletree, CapitaLand, Keppel or Frasers.

Market cap (as of mid-2025) is approximately S$1.1–1.2 billion, versus tens of billions for the mega sponsors.

So in relative terms, Centurion is a mid-cap niche operator and not a “mega-sponsor”. During times of financial crisis of CAREIT, there will always be lingering doubts on the mind of investors on whether Centurion will be able to save its own REIT. There is no free lunch, hence the high distribution yield on offer of around 7.66% to 8.57% in projected FY2026 and FY2027 respectively (based on S$0.88 per share) to entice investors for subscription into CAREIT which reflects the substantial market risk premium. 

3. Workers accommodation is significantly more than student accommodation

This is a huge bugbear for me. Personally, my own view is that student accommodation supporting the education industry is probably the most resilient business out there while worker accommodation industry I thought is rather cyclical in nature that follows the boom and bust of the construction industry. If construction demand slowed down, there is no point in business owner keeping too many workers in the dormitory. I am utterly disappointed that the student accommodation component (even if the sponsor throws in Epiisod Macquire Park) is such a tiny proportion of the entire CAREIT. It is not even 50% of the entire portfolio. My preference would be to wait for a REIT that has 100% holdings in student accommodation.

Only a small fraction is Student Accommodation

Accommodation Industry Is NOT weatherproof

One final thoughts on this point is that since we have just been through COVID, the hard truth is that not even student accommodation industry resilience can save it during times of pandemic but nonetheless, the probability of another pandemic occurring in our lifetime is on the low side based on history.

Parting Thoughts

I am actually lukewarm with regard to my overall feel for this IPO and not particularly excited. With the projected cuts in interest rate and recovery of the REIT market, I think that CAREIT should do fairly well in its IPO given its low leverage ratio of 30% even after targeted acquisition of the newly developed Epiisod student accommodation into its enlarged portfolio- It does gives it additional room for further yield accretive acquisition. Nevertheless, I am still troubled by the weaker financial strength and capabilities of the sponsor during crisis relative to the Singapore government linked sponsors.  

Put it this way, if Mapletree Investments were to list their student accommodation business for IPO, I will definitely be subscribing for it. Summarising, I am going to give this IPO a miss while waiting for a more suitable investment opportunity. 

[P.S: For those interested in CAREIT IPO, note that it opened at 10pm on September 18, 2025 (Thursday) and will close by 12pm on September 23, 2025 (Tuesday). It will commence trading at 2pm on September 25 , 2025 (Thursday).]

Centurion Accommodation REIT IPO-Preliminary Thoughts and Highlights (Part 1).

Centurion Corporation Holdings will be launching the IPO of its workers' dormitories and UK student accommodations soon. It will be known as the Centurion Accommodation REIT ("CAREIT"). CAREIT will be paying out a very attractive 7.66% distribution yield for FY2026 and 8.57% for FY2027 based on S$0.88 per unit. The targeted listing date that its management are eyeing on seems to be early October 2025. I will do up another post after looking through its prospectus filed with the MAS- it is a jaw- dropping 1240 pages thick- before sharing my final thoughts in subsequent part 2 post of whether to get into this IPO. Preliminary highlights as follow:   

1. The enigmatic "Mandai Expanded Capacity" Terminology-Poorly Crafted and Misleading Propsectus.

In the prospectus, one will keep seeing this strange term appearing (first appeared on page 100) and talking about the impact of "expanded" capacity but then the definition appears quite the opposite as it is loosely worded as a contradictory reduction of bed capacity. So what the heck is this term talking about? 

Definition of  "Mandai Expanded Capacity"

It was further mentioned in the prospectus that the Mandai Expanded Capacity Consideration” means the consideration of S$34.0 million payable in relation to the Mandai Expanded Capacity. Such consideration is payable when the Mandai Expanded Capacity (i.e. the additional 1,980 beds) is operational for immediate occupation (Please see Page 288 of the Prospectus for details)

Unless otherwise stated, all information in this Prospectus relating to the Properties, such as Agreed Property Value, Appraised Value, aggregate purchase consideration, number of beds and portfolio information, excludes the Mandai Expanded Capacity and the Mandai Expanded Capacity Consideration.

2.  So what the heck is "Mandai Expanded Capacity" then?

<Quote>

"Mandai Expanded Capacity" refers to the 1,980 beds in Westlite Mandai which were supposed to be removed upon completion of an additional block. 

</Quote>

Now, this becomes a real test of one's English language. My initial understanding is that the essence and emphasis is on the 1,980 beds that will be eventually removed.

3. Nope, my initial understanding is totally wrong!

After looking through the financial projection on page 200 and also number of beds including and excluding comparative in Mandai property on page 291, the essence as aforesaid mentioned in point 2 above totally does not align with the financial information.

 

Personally, I thought that the investment banker or staff crafting the definition of the Mandai Expanded Capacity ought to be shot. They are actually referring to 2 points here:

(i) it includes in the 1,980 beds in Westlit Mandai that was supposed to be removed but still taken in as revenue generating since the new government regulation only come into effect after 31 December 2030.

(ii) on top of (i) above, the term also includes in an additional 3,696 beds from the 4th block that is still in development and expected temporary occupation ("TOP") in January 2026.

The original definition is totally misleading and contradictory to different parts of the prospectus and not transparent at all.  

So the point is that the financial projection on page 200 on Distributable Income actually includes in the assumption of the successful leasing out of beds in phases in the newly built 4th block of Westlit Mandai. The risk here of course then is whether the projection is overly optimistic.   

3. Management Fees.
The base management fees and incentive structure is quite similar to the Mapletree Pan Asia Commercial Trust. Other REITs are on the AUM model. So think still in line and a fair model.

4. The Enlarged Portfolio.
This is the other strange part that keep popping out on "enlarged" and normal portfolio that forms the REIT. Basically, this is referring to the Epissod Macquire Park Student Accommodation that is currently still being built. But it will be added into CAREIT after it is listed as it is about 6 months away from completion.

Parting Thoughts.

Personally, I am actually annoyed at the poorly and loosely crafted "Mandai Expanded Capacity" that leads to a lot of mental acrobatics which gives a rather poor impression of the entire IPO. I will do a part 2 post of my personal thoughts on whether I am jumping into this upcoming IPO after diving through the prospectus. 

[P.S: Please refer to Part 2 continuation of my post on whether I am subscribing for CAREIT here]

New Dividend Fund Allspring Global Equity Enhanced Income Fund- Targeted 6% Dividend Yield Per Annum.

Just came across the Allspring Global Equity Enhanced Income Fund from Endowus recommendation on dividend funds besides Fidelity Global Dividend Fund and Fidelity Asia Pacific Dividend Fund. Interesting thing about this Allspring unit trust is that it invested in global dividend stocks as well as employ an option strategy to earn option premium. Of course, if market performs well, this Allspring fund may lack behind due to the use of option. 

1. Performance of Allspring Global Equity Enhanced Income Fund

It has outperformed the high dividend benchmark and peers since its inception in 2020 while providing clients with a consistent quarterly dividend income stream. It offers a target pay-out of 6% with 4% from a high yielding equity component and 2% from an options overlay strategy. Options overlay is dynamically managed to ensure that the upside of the equity sleeve is not adversely compromised. 

Its NAV also has a good overall uptrend unlike some funds which pays high dividends of more than 8% per annum but is actually paying this out of their capital with NAV going downwards.

Overall, Allspring Global Equity Enhanced Income Fund has annualised returns of 16.42% over the past 3 years which is extremely impressive.

2. Low overall annual management fees of only 0.8% per annum at fund level

This is way lower than many of the equity funds (over 1%) out there with only 0.8% per annum.

3. Be careful of its US sector exposure

I think that the US stock market is overly valued. This fund does have close to 20% exposure to US with tech stocks such as Nvidia in its stock holding portfolio. For those who thinks that the AI bubble will burst, then there maybe potential downside from holding on to this particular fund. It is also not very clear and transparent on 76% of its geographical allocation as it show up as "Unclassified". So the big question mark is what is "Unclassified"?

4. Size of Fund is only S$117.5Mil as at 29 August 2025.

The fund size is actually very tiny relative to the Fidelity Global Dividend Fun of S$22.9 billion as well as to the Fidelity Asia Pacific Dividend Fund of S$500Mil. There is the probability that this Unit Trust may be closed down by its fund manager and one maybe exiting their investment at the worst possible time due to market downturn.

Parting Thoughts

I maybe allocating part of my future portfolio into this fund for diversification. Do note that there is another similar USD funds by Allspring with the same name. However, one should go for the SGD hedged fund to minimise one's forex risk. Another point to note is that this fund pays out distributions on a quarterly basis and not monthly.

Venture Into UnitedHealth Group- Will It Recover To Its Heyday of More Than US$630 Per Share?

UnitedHealth Group is a multinational health and well-being company that operates primarily in the United States and internationally through its health benefits business. As can be seen in the share price of UnitedHealth Group's ("UNH") trending over the past few years, 2025 saw a disastrous collapse of it's share price to a record 5 year low of U$234.60 at 1 given time. While it has since recovered to the level of approximately US$310 per share, it is unfortunately just a faint shadow of its former glorious day. I have decided to take up a a very tiny position in UNH as I think that in the long run, its experienced management team should be able to resolve all current challenges and its earnings should at least go back up by 50% even if not 100%. 

Recent decline in UNH’s share price stems from a combination of operational pressures, regulatory concerns, and leadership instability:

(1) Skyrocketing medical costs

The company’s medical cost (loss) ratio surged to 89.4%, up from around 82% in 2022, severely eroding margins. Operating margin dropped from 8.8% to approximately 7.3% over the last year.

(2) Collapsed earnings guidance & missed expectations

UNH slashed its full-year adjusted EPS forecast from about $30 to just $16—a ~47% downward revision—falling well below analyst expectations. In Q2 2025, it reported EPS of $4.08 vs. ~$4.48 expected, disappointing investors despite revenue being roughly in line.

(3) $6.5 billion of unexpected medical costs

This oversized burden, mainly impacting Medicare Advantage and Medicaid segments, triggered sharp margin contraction.

(4) DOJ investigations and regulatory scrutiny

UnitedHealth confirmed both criminal and civil investigations by the U.S. Department of Justice concerning its Medicare billing and practices—heightening uncertainty.

(5) Leadership upheaval and reputation risks

The abrupt resignation of CEO Andrew Witty and the fallout from the high-profile murder of an executive, Brian Thompson, who was shot and killed while walking to an investor conference further rattled investor confidence.

Parting Thoughts

It had been reported that Warren Buffett’s Berkshire Hathaway purchased approximately 5 million shares of UNH during Q2 2025, investing around U$1.57 billion, which means an average entry price of about $314 per share. Based on its share price of US$307 per share as at 3 September 2025, this means that one is buying in at a lower price than Berkshire. I have initiated a tiny position of 2 shares into UNH. Will accumulate further if the price of UNH went back into a slump below US$300 per share.

Will Alibaba (9988) Rise 10% This Week In Line With US ADR Performance?

Interestingly, Alibaba missed analyst revenue target but its US ADR shot up more than 10% last Friday. Apparently, market is excited over the news that Alibaba is producing its own AI chip. I am not sure whether market were speculating that Alibaba may be going down chips production like Nvidia or excited over the impressive more than 20% Alibaba cloud growth. On hindsight, should have added in S$10K of Alibaba stocks last Friday but then who can predict the market right? 

Investment Portfolios Updates (29 August 2025) - Net Investment of S$813K and Projected Annualised Passive Income of S$48K.

Hi Folks, welcome back to my bi-monthly investment portfolios update. With the anticipation of the long awaited lowering of US interest rates finally having a high chance of materialising after Powell's recent speech, REITs' rally became more sustainable from the expected higher distributable income from much lower financing cost. Let's keep our fingers crossed that the September 2025 first rate cut of 25 basis points happen as per anticipation- I really have enough of the roller costal ride over the past year. With the recent strong rally from REITs, my overall gross portfolios hits S$1.08Mil while net portfolios after leverage hits S$813K. This is a drastic improvement of almost +S$80K in just 2 months from the market recovery. As a mainly dividend focused strategy investor, it is not this capital gain that excites me but rather the upcoming additional cashflow expected from the lower interest rate effect on my various investment portfolios and additionally, the significant savings from my margin loan. 

1. Portfolio 1- Stocks Held in SGX Central Depository 

Not much changes here except for the improved market valuation of equities during the recent rally.

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 the dividends generated.) 

Keppel and Lendlease continue to perform exceptionally well. The gross dividend yield is currently on the low side as Keppel Pacific Oak US REIT is still in the midst of distribution suspension and will only resume its payout in 2026. Also, there is around S$15K invested in Alibaba when its price drop below HKD110 per share recently.  

3. Portfolio 3 (with Tiger Brokers and MooMoo) 

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

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

I continued to add to my Endowus bond funds of PIMCO and Pine APB to diversify away from excessive heavy weightage of my entire gross portfolios in equities. This may also be the last opportunity to accumulate interest income as former attractive bond interest yield is fast coming down. Going forward, I will also be drawing down the pay-out from this particular portfolio for daily uses. 

Parting Thoughts

Well, I am happy that the interest rate cuts from my wish list is finally materialising. Ok, that's all the updates I have for today folks. Have a great week ahead!

China has Sufficient Thorium Nuclear Fuel Deposit to Power Itself for 60,000 Years.

Interestingly, China has discovered vast deposits of Thorium in Bayan Obo mining complex in Inner Mongolia, a northern autonomous region, where estimates suggest that full extraction of these deposits could yield up to one million tonnes of thorium. This substantial reserve can fuel China for the next 60,000 years.

1.Benefit 1: More In Abundance Than Uranium 
The importance of thorium in the nuclear energy industry lies in its potential to be a more abundant and efficient substitute for uranium, potentially addressing energy needs in the long term. Thorium is three times as abundant as uranium and nearly as abundant as lead and gallium in the Earth's crust. The Thorium Energy Alliance estimates "there is enough thorium in the United States alone to power the country at its current energy level for over 1,000 years.

2.Benefit 2: Safer Than Uranium

Long-lived radioactive waste for thorium is just a fraction from nuclear plants using Uranium. In a molten-salt reactor, thorium is combined with lithium fluoride and heated to extreme temperatures of 1,400°C, where neutron bombardment initiates a chain reaction. This method is more efficient than conventional uranium reactors, generates significantly less nuclear waste, and minimizes the risk of catastrophic meltdowns

3.Thorium Nuclear Fission Fuel Just A Myth?

Nope, this is not a myth. China has already successfully proven the functionality of this concept. It has built the world's first thorium molten salt reactor (TMSR-LF1) in the Gobi Desert, achieving stable criticality in 2023 and reaching full power operation in 2024. While the reactor is a small one and only 2 Megawatt, it demonstrated the feasibility of using the less pollutive thorium to replace uranium as a nuclear fission fuel.

Parting Thoughts

The use of thorium should buy our human race sufficient time to achieve a breakthrough in the holy grail of nuclear fusion technology whereby atoms are fused together to generate energy and the waste generated are low-medium level radioactive materials relative to the current nuclear fission process. 

(Note: For those interested about uranium and thorium, can read more here.)

The Margin Investing Series 1- The Income Booster Approach To Early Retirement.

Hi Folks, welcome to another episode of Investment Income For Life. Today, I am going to touch on a very sensitive topic, that is, the use of margin financing as an investment tool to boost passive income.  Anyway, just a personal sharing session on why I embark on this path and how this margin strategy works to boost income and open up a route to escape the rat race earlier- please see below video.

A Date With My Financial Planner- Stop Investing Yourself and Leave It To Your FA To Manage For You.

Earlier this week, I metup with a Financial Planner for one of my critical illness policy-let's call him "David". David has been asking for a meet-up to review my financial planning needs as people in different stages of life have varying needs as he put it. We met-up at Ya Kun Toast Box. He went on to say that he is different from other financial planners as he don't anyhow push products but rather listen to customers to know more about their needs before recommending them appropriate products. 

1. Stop Investing Yourself and Leave It To Your Financial Planner To Manage For You.

Before long, David started talking about how his client lost over 30% in stock investing when this client went on holiday and forgot to place a stop loss standing order. Hence one should spend time on focusing on his/own jobs and family instead of doing investments themselves- leave such investments to the trusted Financial Planner. He then rattled on that the unit trusts he recommended his other clients were making over 30% recently. 

This is the classic sales tactics of brain-washing customers to keep them dependant on their financial planner by arguing that people should spend their time on more "useful matters". The hard truth is that your financial advisor will not help you pick or buy/sell individual stocks. They will just be putting your money into a fund run by a fund manager. So, they themselves are actually just acting as a middlemen to the different unit trusts out there. 

Personally, I think that everyone needs to learn how to manage their own money and NOT leave it to a financial planner. If one is not good in stock picking, then there are other alternatives out there such as buying passive index funds (SPY500) or buying recommended portfolios from Robo Advisors such as Endowus or Syfe or even the local banks (DBS, UOB & OCBC) which have their own recommended managed fund portfolios. 

2. Change Your Hospitalisation and Surgical Plans ("H&S") to Cheaper Premiums Insurance Provider On a Yearly Basis To Save On Premium Costs.

The other shocking point on the meetup is when David mentioned that H&S premiums have very different amount of premiums these days for different age groups. Hence before any renewal with current provider, David highly recommend all his clients to approach him first to see whether other insurance providers H&S are cheaper. The difference can be more than S$1K per year for an entire family he asserted. 

I have to politely tell David that this can be extremely risky as there maybe pre-existing conditions that one is not aware of and that will complicate matters in event that you suffer from a major medical condition after switching over. There is always the risk that your new insurer will argue that this is pre-existing condition. This is just creating vast uncertainty in one's own risk management. 

Final Thoughts

I bade farewell to David in about half an hour time as I think that some of his beliefs are just way too strange. The only useful thing I got out from him is the will planning in event of one's own death. It is best to lay down a proper will on what to do with one's wealth else your remaining family members maybe spending unnecessary cost to get the lawyer to write in to all banks and wealth management platforms to enquire about whether you got any holdings with them.   

US Office REITs Recovery Play (KORE focus) And Disappointing Projected Distribution Yield Even If Full Payout Resumes-Part 2

Hi Folks, today let's do some stress tests on the expected distribution yield of Keppel Pacific Oak REIT ("KORE") once it resumes its distribution in FY2026. I know that there are many folks who have been holding on to their US commercial office REITs units since the pre-COVID days which also coincided with the then super low interest rate environment. There are also folks who have accumulated additional units of Manulife US REIT ("MUST"), Prime US REIT and also KORE to take advantage of the implosion in unit pricing at rock bottom while waiting for capital appreciation and dividends post recovery phase. KORE seems to be in a better shape than Prime US REIT and MUST from the key metric of occupancy rate and also leverage ratio. 

First and foremost, let's take a quick look at the recent announced cashflow of KORE 2nd half results before we annualised the numbers for analysis. The net operating cashflow from rental of offices has plunged from US$36.2Mil for 1H2024 to only US$29.8Mil for 1H2025. This is disastrous. This is a drop of <US$6.4Mil> rental income for half a year and if we annualised it, this will be precarious drop of <US$12.8Mil> in FY2025. 

Extract of Cashflow Statement 1H FY2025

Next, we will proceed to examine 3 different scenarios by assuming different level of CAPEX spending and the free cashflow available for distributions. 

1. Assuming CAPEX Required in 2nd Half 2025 is similar to 1st Half 2025

For this conservative scenario, the free cashflow is unable to sustain any payout unless KORE's management decided to go back to their own way of using borrowings to finance renovation to trigger off new leases or renewal of existing leases. 

2. Assuming CAPEX Required in 2nd Half 2025 same as FY2024 Full Year as Benchmark

Initially, as alluded to point 1 above, I thought that I was too conservative with the CAPEX of FY2025 when I annualised the half year released results of 30 June 2025. So I decided to just go back to FY2024 full year to use the CAPEX as benchmark to stress test the free cashflow available. Unfortunately, I got into a even bigger deficit of <US$18.4Mil>. 

3. Assuming CAPEX to Trigger off New Leases Already Done by 1H FY2025 and ZERO for 2H FY2025

If we can assume that KORE management has completed all the necessary renovation add on to their investment properties and that the CAPEX for 2nd half is zero, then we will have US$12.7Mil available for distribution in FY2026. This will be a sustainable 5.79% distribution yield under this relaxed assumption.

Parting Thoughts-Personal Thoughts

The expected sharp recovery in market price of KORE may not happen overnight albeit the 70% discount off its NTA per unit of US$0.70 as the probable distribution yield will be between 0% to 5.79% based on my projection if KORE decided to include in CAPEX and stop their unhealthy previous practice of paying for renovation using bank borrowings. 

US Office REITs Recovery Play And Disappointing Projected Distribution Yield Even If Full Payout Resumes.

Prime US REIT just released its first half results ending 30 June 2025. The results are a mixed bag of good news as well as some slight disappointment. Good news is that green shoots are indeed confirmed with the US office market making a painful but gradual slow recovery from both more favourable demand and supply side. The disappointing news is that distribution is still at only a fraction of the historical distribution. As for Keppel Pacific Oak REIT ("KORE"), its earlier announcement is also not too bad with occupancy maintained at the high end of 85%. I will run a financial projection later on for sharing also on the expect distribution using Prime US REIT to see the 2026 normalised distribution yield.

1. Current US Office Commercial Sector Updates

On the supply front, office ground breakings hit all-time lows, and the construction pipeline contracted to near historic levels, at a fraction of pre-pandemic levels. At the same time, inventory removals for conversions and demolitions outpaced new deliveries, resulting in a net decline of 700,000 square feet nationally in Q2. Scarcity of new, high-end supply is driving aggressive rent growth in the trophy segment and is expected to spur increased spillover demand in well-located, renovated assets as the pipeline dries up

Extract of Prime US REIT Occupancy

2. Financial Projection of Distribution Yield in FY2026 Normalisation.

The numbers are looking really bad with cash balances still dwindling. Free cashflow also still in huge negative after paying for CAPEX and financing expenses. Please see below.

Basically, unless Prime US REIT goes back to its previous free wheeling practice of paying CAPEX with more borrowings, there is nothing much left for payback to unit-holders. Some good news here is that Prime US REIT managed to sign on new 120,000 sqft leases at Waterfront At Washingtonian in June 2025 as well as 43,000 sqft of new leases at its Village Centre property in the same month. But the resultant upsides in cashflow from these new leases using US national average of US$32.87 per sqft annually for proxy reference, will mean only an additional net positive cashflow of US$5.36Mil.

If we divide it by 1,308,259,000 units, then the sustainable distribution per unit will be US$0.0041 per unit. Based on market price of U$0.175 per unit as at 13 August 2025, the annualised yield will thus be 2.34% in FY2026 assuming 100% pay-out ratio is reinstated. (Let me know if there is anything incorrect in my maths or assumptions).

Parting Thoughts
Retails investors need to take note that even if the management of Prime US REIT decided to reinstate the distributions, the payout will now need to factor in CAPEX requirement to cover for activating new leases. Unless operating rental income goes up further along with further cut in CAPEX and financing cost, there is not much left in terms of free cashflow for distribution to investors.

DBS Wonderful PayLah S$3 Cashback Programme and the Ugly Sides of It.

I love the DBS PayLah cashback rebate promotion every Saturday morning where DBS gives back to society as well as gained marketing exposure from it. Nonetheless, I was somewhat exasperated by some dark side of it over the past 2 weekends:

1. Aunties Jostling up the Escalator to Hawker Centre As If It Is The End of the World.

I was shocked by elderly aunties moving to the right side of the escalator and climbing it to beat others in the queue at 7.30am. Hey, I mean the cashback is up to the first 160,000 folks and it normally ends at 9am or 9.30am so there is ample time. I think folks need to take care of their own safety rather than have the fear that the promotion will run out soon in the next minute.

2. Long Waiting Time At Participating Stall’s Cashier- Guy with 3 Mobile Phones For Payment.

This is madness. This morning I saw a young chap in front of me who took ages to complete payment for 3 packets of Nasi Lemak and White Bee Hong. The young man was fumbling with unlocking 3 different mobile phones (he probably took his wife and kid phones along) for making payment. This is too much lah. Isn’t this also a breach of banking security by making payment using accounts not belonging to him as well as creating a public nuisance? 

Imagine if everyone were to follow, there will be folks with 6-7 phones each such as from their grandparents, spouses and kids  and unlocking them one by one to use the respective PayLah. It will take ages for the queue to clear.

Parting Thoughts

Haiz, sometimes I don’t know whether to laugh or cry when I met such strange folks and their intriguing pattern….haha.