Mapletree Logistrics achieves significant milestone in South Korea!

I like Mapletree Logistrics Trust, it has a stable and mature performance.It is one of the REIT eyes oversea property instead of Singapore marekt only. Recently they announced that it achieve significant milestone in South Korea. For the announcement you can click here. Its core company - Mapletree investment delivers strong performance for 1Q2011! This encouraging news boosting its related company shares price higher. MLT & MIT is one of the beneficials. Will their newly born brother Mapletree Commercial Trust performs well too? Who trades below its IPO price now! The answer has to wait until 2Q2011 result release. I personally quite confident and optimistic for all Mapletree companys' performance.

Below are highlight for Mapletree's FY10 Financial Performance:
• Revenue of S$590 million, up 30%
• PATMI of S$747 million, up 90%
• Shareholder’s Funds of S$5.8 billion, up 14%
• Total Assets at S$9.7 billion, up 11%
• Owned and Managed Assets S$15.4 billion, up 19%
• ROE up from 8% to 14%
• ROIE up from 8% to 12%

STI Talks

Someone asked me how to invest on current condition? I said if you aim for stable, low risk, moderate returns then go for REIT stocks. If you look for 5 to 10 years profitable investment, go for oil & gas sector. Oil & gas sector generally doing bad now. In others words, most of them are below fair value now. The upside room bigger. Furthermore, they have slower recovery rate compare to others sectors. You can always use others sector's condition as benchmark to judge oil & gas sector's condition. This will give you an overall pictures.
If you trust professional's report, you can always search through internet to read them. Here i am attached with two reports for your reference. This is profesional recommedation on Trading strategy. This for REIT recommendation.

CapitalMall Asia in eyes

CapitaMalls Asia a mall developer who go public listed at November 2009 with a IPO Price 2.12. This is an expensive IPO. Is it worths to try? My answer is you can consider it if it can be around S$1.7!

Good news is.. its shares price dropped to 1.64 now! This is an attractive entry price if you intend go for long term! It invests in Singapore, Malaysia, Japan, China and India's real estate sector. It is well - positioned and to benefit from opportunities presented by significant growth in Asian especially at economic rising country - China and India! It owns 32 shopping mall at China and 1 at India. After years 2012 it will increase to 50 and 9 respectively. It has the early mover advantage at China and India. This is very important for property players. Besides, the expansion of consumer spending at this two countries is booming. Such expansion catched market attention and competition starts to surround. For those interested on this shares, please stay tube on the competition and China interest rate issues before invest! Keep on my watchlist now.

Stable and profitable high dividend stock

Pacific Shipping Trust is the first business trust to be listed on the Singapore Exchange (SGX). It is one of the high dividend, cheap and stable stock. It is fundamentally good and attractive. 3 consecutive years of 7.3 P/E value, ROE of 11%, dividend yield 9%, 52 weeks range 0.26-0.38. For more analysis data you can find it here. For its official website, you can click here.

If you compare PST with others business trusts, you will find that it is doing better then others. Stable debt, growing revenue and profitable margin make its financial report shining!

This stock is in my watchlist, its fair value should around 0.3. This is the reason i do not enter this counter now. Judge from current situation, it is not likely drop to my ideal prices unless global economic condition turn worst. For me this is quite impossible, as mentioned at previous post, midle east crisis, Japan disaster, China & India condition did not turn worst and at the stage of re-built / recovery. USA also on their way of recovery. The worst is over, things are turning good. So current 0.35 prices will be a good entry point for near term unless another disaster crashs shares market. For those adventurous investors, maybe this is a good entry point for you. Good luck!

Profit Warning from Courage Marine

Courage Marine announced profit warning for its 1Q2011 result, this announcement smashed shares price badly and caused a heavy sell pressure. The heavy sell leads to 52 weeks new low! For past one year, this shares was oscillating between 0.18 to 0.2. Now it touched 0.165. This pricing expects to be a very strong resistant line for Courage Marine. If this break, another heavy drop will happen. Base on current situation, it is unlikely to drop further unless bad news persist. I personally think that current situation is the worst for this year. Unsolve middle east crisis, unstable Europe economic condition, Japan disaster, China & India unease interest rate are current impacts on STI. If any of them show the good sign, STI will be boosted.
For Courage Marine, its shares price was affected by overall unclear economic condition cum unfavourable operating result. I am quite optimistic and positive for the coming half year. At least the midle east crisis, Japan disaster, China & India condition did not turn worst and at the stage of re-built / recovery. Another encouraging news is USA is on their way of recovery too. The worst is over, things are turning good. Please move carefully as the overall condition is brittle and weak, invest with close monitoring now.

A follow up on Cambridge

As mentioned on previous post, REIT needs to expand and acquire more properties to increase their revenue, income and distribution. When they achieved this, only shareholders can enjoy higher dividend yield.

Now, Cambridge has action! I learned that Cambridge has the intention to expand and acquire more properties from 1Q financial report under page 13 "Potential Property 2". This interested me, and leads to my buy call. (one of the reasons :P) 

Based on latest announcement, ( for those interested on this announcement, you can have the information Here) the acquisition process doing well. The only negative part is the cost increased 2 million as the vendor not agree to the proposed price (S$12.5m). This increase reflects the current favourable market conditions? Or seller just try to mark up higher to earn more profit? Anyway as a sharesholder, my concern is when Cambridge can close the deal? When the newly bought units can contribute to us?

Cambridge Industrial trust 1Q2011 results summary

Information sharing: CIT quoted from hardwarezone forum:

.Cambridge Industrial Trust (“CIT”) announces its unaudited first quarter financial results ended 31 March 2011.
Key highlights include:
• Fully underwritten and renounceable Rights Issue of approximately 132.1 million units raising gross proceeds of approximately S$56.7 million. Issue price of S$0.429 per Unit. Rights Issue was 2.51 times subscribed.
• Debt refinancing with S$320.0 million new term loan agreed (subject to loan documentation) with a syndicate of financial institutions. All-in debt cost is approx. 4.4% p.a.
• CIT increased its Acquisition Term Loan Facility from S$50.0 million to S$120.0 million. All-in debt cost is approx. 3.0% p.a.
• Distributable income for 1Q2011 was S$11.9 million, representing a 1.0% decrease from 4Q2010 distributable income of S$12.0 million.
Singapore, 28 April 2011 - Cambridge Industrial Trust Management Limited (“CITM”), the Manager (“Manager”) of CIT, announced that CIT registered gross revenue of S$19.3 million and a net property income (“NPI”) of S$16.6 million for its first quarter financial results ended 31 March 2011 (“1Q2011”).
The Trust has delivered a distribution per unit (“DPU”) of 1.001 cents to its Unitholders for 1Q2011, which will be payable to Unitholders on 14 June 2011.
1Q2011 DPU of 1.001 cents is 16.1% less than the DPU for 4Q2010. This is largely attributable to the distribution being diluted as a result of the recent Rights Issue. Unitholders who exercised their Rights, and as a result have been issued additional Units, will receive a distribution payment not affected by this dilution.
If the Rights Units had been excluded from the distribution calculation (as the capital raised did not contribute to the 1Q2011 earnings), the 1Q2011 DPU would have been 1.126 cents, which is 5.6% less than the previous quarter. This decrease is attributable to dilution from the equity raising in November 2010 and the time being taken to deploy the proceeds of this raise into income earning assets.

1Q result was bringing negative impact to Cambridge. CIT was 0.52cent before this announcement, but dropped to 0.5cent when investor learned about this news. I bought this counter at 0.5cent after the announcement. Many persons doubt that why I bought at this timing? Actually I did research and keep a close eye at this counter few months ago. According to my personal calculation, the fair value is 0.45 - 0.5 cent. Although this quarter is not doing well, but the overall performance is acceptable cum they just done their Right issues which collected S$56.7 million fund.

To me, Singapore property’s phenomenon is who has the cash, who win the profit! REIT needs to expand and acquire more properties to increase their revenue, income and distribution. Hence, now they collected funds, it is time to expand and grow! Work hard Cambridge!