Monday, January 26, 2015

Recent Action - Ascott Reit

I manage to divest all my 15 lots of Ascott Reit today at a price of $1.31.




This has been a very good performing counters for years and gave me a very decent capital and dividend gains. Thank you Ascott. However, given the recent run-up for Reits in general and the reason why I would like to divest in this Reit which I have explained in detail here, I decided to let it go. This also means that I will not be getting the dividends in the month of February which they have announced at around $0.042/share for the 6 months.

There are really nothing much to add for the reason for my divestment other than the fact that their dividends have been somewhat at par and not increasing while their asset base grows and there is a high likelihood that you will be forced to participate in the rights issue to avoid dilution. The dividends at current price still remain at around 6.4% yield so it's still overall very decent, though the cost of borrowings is at 3% and the distribution represents a full 100% payout.

The recent run-up in Reits is very much akin to the great 2013 run where the yield spread with the risk free rate has tightened. I think it's a very good chance at this time to divest the weaker Reits you have in your portfolio and restructure the portfolio. If you are those with very little cash holdings, this could perhaps be a good time to divest some of the holdings, realized the capital gains and hold the cash as a potential warchest for future opportunity.

With this divestment, my only Reits holdings in the portfolio is left with Fraser Centerpoint Trust (FCT), Fraser Commercial Trust (FCOT) and Mapletree Greater Commercial Trust (MGCCT), which I thought represents a very strong case why they deserve to be there more than the others.

This is just a quick update and I will update my portfolio soon. Thanks for reading.

Any divestment for you so far? What do you think of the recent Reits run-up?


20 comments:

  1. Hello B,

    Note that you are consolidating your portfolio to reduce the need to follow so many companies. Is there a comfortable number of companies that you are looking at?

    ReplyDelete
    Replies
    1. Hi SRSI

      I am actually looking to consolidate them at around 8 to 10.

      After divesting a couple of counters in recent weeks, I now have 10 in my portfolio. I still have 1 more counter that I think will be rather weak so we'll see if I decide to divest them when the time is right.

      Delete
  2. Hi B,

    No divestment so far, in fact, December was a firing session.

    Not just looking around, nothing much really catch my attention, and even there is 1 that piped my interest, I will just wait given I am 100% vested now.

    The reits run also caught me by surprise, I own them for longer term dividends which I belived they have no problem except LMIR which is a high gamble!

    I am waitinh for my counters to announce all their results before updating my portfolio.

    ReplyDelete
    Replies
    1. Hi Sillyinvestor

      Companies are releasing their results one by one, which means dividends are coming up pretty soon :) Cash flow is coming your way.

      Delete
  3. Hi B

    Same Sentiments . Divested First Reit and Cache . The recent run up in Reits just reminds me of the earlier months in 2013.

    ReplyDelete
    Replies
    1. Hi STI

      Woah... First Reit is rather good. I will consider them as one of the best top Reits to pick. I used to own them in the past too though have regretted divesting it.

      Delete
  4. Hi B,

    Congratulations for realizing your profits!

    ReplyDelete
    Replies
    1. Hi Secretinvestors

      Thank you!!!

      The time to sell is always not the easiest.

      I'll realized the profit first and hide one side :)

      Delete
  5. Hi B,

    I also divested partially Suntec to take profits early this month.

    Thinking to divert Croesus also since price is stagnant n 2 yrs promise to distribute 100% div is up soon

    ReplyDelete
    Replies
    1. Hi Rolf

      Suntec has run up very much though I like the counter for not having to raise equity in the past.

      Pretty sure you locked in super good gains out there. Congrats!!!

      Delete
  6. Hi,

    Anyone knows why it dropped so much today?

    ReplyDelete
    Replies
    1. Hi Anonymous

      It went X-dividend today, so if you had sold today, you would be receiving the dividend payable in Feb.

      Delete
  7. Hi B,

    Congrats on your Ascott profit. Actually I was thinking about buying into Ascott, but it has gone up too much for my liking.

    For me, I have taken a small profit off SingPost.

    Cheers,
    Farmer.

    ReplyDelete
  8. Hi PIF

    Congrats on your realized profits too. Singpost have gone up a lot since the alibaba days so you must hv made quite a bit there. :)

    ReplyDelete
  9. congrats on the divestment for the gains ! are you looking at any other blue chips with the proceeds of the divestment ?

    ReplyDelete
    Replies
    1. Hi Augmentin

      I am actually looking into a few counters that are.able to generate strong free cash flow. Identified a few of them but still deciding which to go in.

      Delete
  10. Hi B,
    Doing some spring cleaning before CNY, divested all my Cache as I presume is weaker than Aimsamp and MIT.

    ReplyDelete
    Replies
    1. Hi Stock Hunter

      Congrats on the divestment.

      Whoever is selling right now should be making a decent profit. Hopefully those translates into the owners retained earnings :)

      Delete

UA-57154194-1