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What Happen to Soilbuild REIT 72 Loyang Way

72 Loyang Way is an integrated facility comprising offices, single-storey production facilities, blasting chamber, dormitory and a jetty with 142 metres of sea frontage. It is one of the asset under Soilbuild REIT’s portfolio.

Last year, due to the headwinds in the marine and offshore, oil and gas industry, Technics Offshore Engineering Pte Ltd defaulted on its rent at 72 Loyang Way. Being a shareholder of Soilbuild REIT, I am worried about the prospects of 72 Loyang Way. Have you also been waiting for some updates on 72 Loyang Way? Read More

Can Kingsmen Creatives Still Hold the Fort?

Kingsmen Creative Logo

Recently, I have noticed Kingsmen Creatives share price starts to shaken, fluctuating from $0.63 to $0.595. Below are some of the notes I have taken from reading the FY2016 annual report.

Based on the financials, we can see why investors are selling or avoiding Kingsmen Creatives at this moment. There are more negative news than positive news. I have also color coded the points I think are negative in red and positive in green.

  • Kingsmen Creatives achieved a revenue of $329.7 million in 2016 as compared to $327.9 million in 2015. Net profit decreased by 9.7%.
  • Earnings per share fell by 38% from 9.71 cents in FY2015 to 6.02 cents in FY2016.
  • Annual dividends fell from 3 cents in FY2015 to 2.5 cents in FY2016. Current dividend yield is 4.2% if we based on the closing price of $0.595.
  • Kingsmen Creatives has cash and cash equivalent of 74.6 million. Kingsmen Creatives is still in strong cash position. This is a positive news as it will help the company ride through the economic downturn.
  • The new Kingsmen Creatives headquarter in Changi Business Park will be ready by second half of 2018. The tenure of the land is 30 years, expiring on 30th November 2045.
  • Main bulk of Kingsmen Creatives revenue is contributed by Exhibitions and Thematic division 45.9% and Retail and Corporate Interiors division 45.6%.

  • Operating expenses was higher for FY2016 as compared to FY2015 due to higher depreciation charge incurred on property, plant and equipment as a result of the acquisition of plant and equipment in FY2016 to support the operations of the Group.

My Notes from OUE Hospitality Trust Annual Report 2016

Recently, I received the 2016 annual report for OUE Hospitality Trust. As I am invested in OUE Hospitality Trust, below are points I felt are important for me to take note of.

  • Net Asset Value (NAV) per stapled security has declined over the years. The Net Asset Value (NAV) per stapled security for FY2014, FY2015 and FY2016 are $0.90, $0.90 and $0.77 respectively.
  • OUE Hospitality Trust has no debt due until July 2018.
  • In 2017, higher traffic through Changi Airport could potentially benefit Singapore’s hospitality sector.
  • Distribution yield has declined over the years. The distribution yield for FY2014, FY2015 and FY2016 are 7.45%, 8.51%, 6.98% respectively.
  • The board of directors consists of men with politician experiences. Mr Lee Yi Shyan, Deputy Chairman was previously a member of the Cabinet of the Singapore government from 2006 to 2015. Mr Chong Kee Hiong, Chief Executive Officer was an elected member of parliament for Bishan-Toa Payoh GRC. Mr Ong Kian Min, Independent Director was an elected member of parliament in Singapore from 1997 to 2011. I consider the management as a strong team with rich experiences.
  • The two top tenants in FY2016 by rental income are OUE Limited and OUE Airport Hotel Pte Ltd who contributed 59% and 15% respectively. This shows that OUE Hospitality Trust has strong sponsor support.
  • The directors held more units of OUE H-BT from the beginning of the year to the end of the year (No change in holds as of 21 January 2017).
Name Holdings at beginning of year/date of appointment Holdings at end of the year
Chong Kee Hiong 1,008,333 1,341,082
Sanjiv Misra 400,000 532,000
Liu Chee Ming 400,000 532,000
Lee Yi Shyan 8,000 10,700

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