Singapore shares down for 2nd day

Singapore shares were set to decline for the second consecutive day after prices ended 0.76% lower on Thursday as concerns of a rise of US interest rates triggered selling. The blue-chip STI fell 23.55 points after an overnight decline in US stocks.
Also, in some real estate shares news:
Mapletree Industrial Trust (MIT) is set to develop a $250 million1 build-to-suit facility at its existing Telok Blangah Cluster for Hewlett-Packard Singapore (Private) Limited.
Ascott Residence Trust (Ascott REIT) has acquired a rental housing property in Fukuoka for JPY6.3 billion ($78.4 million1). The property acquired has an EBITDA yield of 6.6%. This is set to increase FY 2013 distribution per unit by 2.1% from 8.40 cents to 8.58 cents. Ascott REIT has acquired the 389-unit Infini Garden from The Ascott Limited and ArcResidential Japan Investments Limited.

STI ends high for the month of Feb

Singapore shares ended at a high with the Straits Times Index hitting 3 090.3 points, keeping the level on track by gaining a rise of 2.1 %. This is its biggest gain since last September.

Meanwhile, new private home sales remained low in January since the implementation of the total debt servicing ratio (TDSR) framework last year. This has caused developers to hold back launches and lending restrictions curbed demand.

Let's just hope for all the remediation and adjustment to fall in place as discussed from Budget 2014 for better economic progress in 2014.

Singapore Budget 2014

Deputy Prime Minister and Finance Minister,Tharman gave his annual Singapore Budget speech in Parliament yesterday afternoon, highlighting to achieve a fair and equitable society in the upcoming year.

After the announcement of the Pioneer Package made by Prime Minister, Lee Hsien Loong earlier this month, Tharman elaborated on the details of the package. The package is launched to recognise the contributions pioneers have made, will apply to all Singaporeans who were at least 16 years old in 1965, and citizens by 1987.

In summary, there will be a further 50% discount off subsidised bills in SOCs and Polyclinics along with enhanced benefits under CHAS. There will also be disability assistance of $1.2k per year.

Medisave can also be used more flexibly along with $200-$800 top up per year. There will also be premiums through MediShield Life subsidies and Medisave Top-ups.

Meanwhile, with effect from Jan 2015, the CPF employer contribution rate will be raised by 1 percentage point for all workers. This increase will be channelled to the Medisave Account. The government will also raise the employer contribution rate by 0.5 % for those aged 55-65.

On the other hand, with immediate effect, there will be a higher tax rate implemented on tobacco, liquor and lottery betting. This is to discourage society from smoking while keeping the price of such goods balanced with the inflation rate.

In summary, Tharman unveiled the overall budget balance as a deficit of S$1.2 billion, which is about 0.3 per cent of Singapore’s GDP.

Generally, Singapore Budget 2014 has brought some smiles especially to the pioneer generation. However, a large group of people are unhappy with the further price hike in tobacco and alcohol since the initial prices of both goods were already much higher relative to other countries.

Well, only time can allow everyone to either accommodate or make the necessary adjustments.

CapitaLand's recent performance

CapitaLand announced that its fourth-quarter profit fell 46% after a loss on the sale of a stake in Australand Property Group. Lower revenue from its Singapore home sales was also recorded. Revenue dropped 2.3% to $1.09 billion. 

However, they are proposing its dividend at 8 cents per unit. CapitaLand is now trading at a big discount to their RNAV value. This stock is now in my radar, I will try to add it into my portfolio.

Ascott REIT acquisition

Ascott REIT new acquisition in year 2014, a serviced residence in Dalian for RMB571 million ($118.6 million) with an  EBITDA yield of 5.5%. This acquisition is expected to increase FY 2013 distribution per unit by 1.5% from 8.40 cents to 8.53 cents.


The property acquired has convenient access to the city and Dalian Zhoushuizi International Airport. It is also located to imperative places such as supermarket, international schools and hospital.

Ascott REIT closed at 1.180 today, I will start to enter at 1.165

News on HPH Trust

Lim&Tan on 12 Feb 2014

*Hutchison Port Holdings Trust: 4Q13 one-off items hit P&L*

*Summary: *HPHT reported 4Q13 earnings results that were lower than ours
and the street's expectations due to one-off items: (1) concession to
shipping lines after previous industrial action at HIT, (2) write-off of an
upfront fee after the US$3.6b bank loan refinancing, and (3) exchange loss
from the conversion of USD to HKD for repayment of bank loan for the ACT
acquisition. Revenue for 4Q13 fell 0.8% YoY to HK$3.12b. Total operating
expenses for the quarter increased by 10.9% to HK$2.17b. PATMI fell 47% to
HK$335m. Management is guiding mid-single digit growth in volume for its HK
and Shenzhen ports, with 1-2% increase in ASP. Due to the expiry of tax
holidays for some phases of Yantian, for FY14, management is guiding an
effective tax rate of 19-20%, a significant increase over FY13's 12%.
Lowering our DPU forecasts, we reduce our FV on HPHT from US$0.74 to
US$0.63. We maintain a *HOLD* rating on HPHT. HPHT is trading at a FY14F
dividend yield of 8.0%. (*Sarah Ong*)

Personally, I am holding 20 lots of HPH Trust.

Updated Dividend data for specific stocks

Company	Dividends per Unit (DPU)/cents	EX Dividend (XD) Date	Book Closure Date	Payable Date	Payment Period
Ascott Reit	3.698	27 January 2014	29 January 2014	27 February 2014	Jul-Dec 13
CACHE	2.137	-	29 January 2014	25 February 2014	Oct-Dec 13
Cambridge	1.251	23 January 2014	27 January 2014	28 February 2014	Oct-Dec 13
CapitaComm	4.130	-	3 February 2014	28 February 2014	Jul-Dec 13
CRCT	4.330	5 February 2014	7 February 2014	27 March 2014	Jul-Dec 13
CDL HTrust	5.560	4 February 2014	6 February  2014	28 February  2014	Jul-Dec 13
Far East HTrust	1.420	-	20 February 2014	28 March 2014	Oct-Dec 13
FrasersCT	2.500	-	29 January 2014	28 February 2014	Oct-Dec13
FCOT	2.050	-	30 January 2014	28 February 2014	Oct-Dec 13
HPH Trusts US$	22.30(HKD)	-	19 February 2014	28 March 2014	Jul-Dec 13
Kep Reit	1.970	-	28 January 2014	28 February 2014	Oct-Dec13
Keppel Corp	30	-	25 April 2014	7 May 2014	FY 13
LippoMalls	0.560	19 February 2014	21 February 2014	14 March 2014	Oct-Dec 2013
OUE Ltd	TBA	TBA	TBA	TBA	TBA
PCRT	1.9	17 February 2014	19 February 2014	11 March 2014	Jul-Dec 13
Starhill Gbl	1.230	-	4 February 2014	25 February 2014	Oct-Dec 13
Sabana Reit	2.190	29 January 2014	3 February 2014	28 February 2014	Oct-Dec13
Suntec Reit	2.562	-	3 February 2014	25 February 2014	Oct-Dec13

Personally, I bought 10 more lots of HPH Trust (SGD) at 0.830 last week.

New year, new low in STI

Happy New Year to all !!!Wishing everyone a prosperous year ahead in the year of horse !!!
Hope that everyone had an enjoyable break after all the Lunar New Year visiting and irresistible indulgence in new year goodies.

However in the stock market, this year's festive season hasn't been all good as the STI hits its new 52 week low at 2,953. Kudos to those who bought during the recent down correction saga. While the market is still feeling the effects of the US money tapering and the battered currency in the emerging markets, the Dow gained an astounding 188.3 points yesterday, expecting the upcoming US job report to be favourable.

As for me , I bought 2 lots of Keppel Corp at 10.21, hoping to make some coffee money in this current volatile market. On a side note, PCRT will be posting their results soon.

So stay tuned for more updates !!

News on Keppel Land

OCBC on 23 Jan 2014

KPLD reported 4Q13 PATMI of S$567.3m, up 7.6% YoY mostly due to a S$151.8m divestment gain from the sale of Jakarta Garden City and Hotel Sedona Manado, Indonesia. FY13 PATMI now cumulates to S$885.9m; excluding the effects of one-time items, we judge this to be in line with expectations. KPLD sold 370 residential units in Singapore over FY13, down 14%, and we expect another muted year ahead with the bulk of sales likely coming from its Tiong Bahru project (to be launched in 1H14). In China, the group sold an impressive 3.9k units, up 135% over FY12. Though we note 4Q13 sales dipped 30% QoQ to 800 units, management indicated that theycontinue to see fairly solid housing fundamentals on the ground. The group proposed a final dividend of 13 S-cents. Maintain BUY with an unchanged fair value estimate of S$4.09 (30% RNAV disc.).

Boost from sales of Indonesian assets
KPLD reported 4Q13 PATMI of S$567.3m, up 7.6% YoY, mostly due to a S$151.8m divestment gain from the sale of Jakarta Garden City and Hotel Sedona Manado, Indonesia, and partially offset by lower fair value gains on investment assets. FY13 PATMI now cumulates to S$885.9m; excluding the effects of one-time items, we judge this to be in line with expectations. In terms of the top line, KPLD booked S$505.7m of revenues in 4Q13. This increased 7.2% YoY as heavier progress recognition rolled in from Lakefront Residences and The Luxurie in Singapore as well as Riviera Cove in Vietnam. The group also proposed a final dividend of 13 S-cents.

Expect Tiong Bahru Site launch in 1H14
The group sold 370 residential units in Singapore over FY13, mostly derived from Corals at Keppel Bay and The Glades, and is down 14%. We expect another muted year in Singapore, given the uncertain residential outlook currently, and the bulk of KPLD’s FY14 sales would likely come from its 500-unit Tiong Bahru project (to be launched in 1H14). MBFC Tower 3 is now 95% committed with an average WALE of eight years. We understand that management is comfortable with conditions in the CBD office market currently, and would be willing to divest and recycle capital when the right offer comes along.

Impressive rate of sales in China
In FY13, the group sold an impressive 3.9k units in China, up 135% over FY12, mostly from The Botanica (Chengdu), The Springdale and Seasons Residence in Shanghai and Stamford City (Jiangyin). Though we note that sales in 4Q13 dipped 30% QoQ to 800 units, management indicated that they continue to see fairly solid housing fundamentals on the ground.

Maintain BUY with unchanged S$4.09 FV
We continue to like KPLD for its compelling valuation and its strong balance sheet with S$1.3b in cash and 38% net gearing. Maintain BUY with an unchanged fair value estimate of S$4.09 (30% discount to RNAV).

Dividend data for specific stocks

Company	Dividends per Unit (DPU)/cents	EX Dividend (XD) Date	Book Closure Date	Payable Date	Payment Period
Ascott Reit	3.698	27 January 2014	29 January 2014	27 February 2014	Jul-Dec 13
CACHE	2.137	-	29 January 2014	25 February 2014	Oct-Dec 13
Cambridge	1.251	23 January 2014	27 January 2014	28 February 2014	Oct-Dec 13
CapitaComm	4.130	-	3 February 2014	28 February 2014	Jul-Dec 13
CRCT	TBA	TBA	TBA	TBA	TBA
CDL HTrust	TBA	TBA	TBA	TBA	TBA
Far East HTrust	TBA	TBA	TBA	TBA	TBA
FrasersCT	2.500	-	29 January 2014	28 February 2014	Oct-Dec13
FCOT	2.050	-	30 January 2014	28 February 2014	Oct-Dec 13
HPH Trusts US$	TBA	TBA	TBA	TBA	TBA
Kep Reit	1.970	-	28 January 2014	28 February 2014	Oct-Dec13
Keppel Corp	30	-	25 April 2014	7 May 2014	FY 13
LippoMalls	TBA	TBA	TBA	TBA	TBA
OUE Ltd	TBA	TBA	TBA	TBA	TBA
PCRT	TBA	TBA	TBA	TBA	TBA
Starhill Gbl	1.230	-	4 February 2014	25 February 2014	Oct-Dec 13
Sabana Reit	2.190	29 January 2014	3 February 2014	28 February 2014	Oct-Dec13
Suntec Reit	2.562	-	3 February 2014	25 February 2014	Oct-Dec13

Note:

-TBA= To Be Announced

-Book Closure Date is usually 2-3 working days after XD Date

P.S.

You are never to young to start investing and never to old to begin with.