Summary of September 2017 Transactions

There is no change to my stock portfolio this month. Although the stock market has retraced slightly this month, I still think most of the companies are still expensive to buy. A recently article published by The Fifth Person has enlightened me which is to avoid buying a stock at the wrong price. I remembered the saying goes “A good stock purchased at the wrong price can be a bad investment” thus we should always be patient to wait for the right price and not rush into a hasty investment.

While waiting for an opportunity to divest Soilbuild Business Space REIT, bad news pop up again. Another tenant has default on its rent ( Another Tenant Default for Soilbuild Business Space REIT ). This will unlikely to impact its upcoming quarter financial results as Soilbuild REIT has called on its insurance guarantee but Soilbuild REIT better find a new tenant soon else it may have an impact on its distributions in subsequent quarters.

There are a few stocks I am currently watching. They are Frasers Commercial Trust, SPH REIT, Starhill Global REIT and Capital Commercial Trust.

HP recently announced they will not be renewing their lease at Alexandra Technopark. This opens an opportunity to buy more into Frasers Commercial Trust should the price comes down.

As for SPH REIT, I like the stability of this retail REIT however, the sponsor SPH is doing badly right now and I am worried about its SPH cash running out. This will have somehow an impact on SPH REIT. The dividend yield is pretty non attractive at less than 6%.

Starhill Global REIT remains my favorite pick due to its high dividend yield among other retail REITs right now. As Starhill Global REIT is in my spouse’s stock portfolio, I shall not be adding it to my stock portfolio but if opportunity arises, I may add more of it to my spouse’s stock portfolio. My preferred entry price is S$0.73.

The last REIT I am looking at is Capital Commercial Trust. I came to know about this trust due to Golden Shoe Carpark. The manager is good at recycling capital assets. At current S$1.66, it looks expensive to buy into this REIT. A good entry price is S$1.45 to S$1.51 but as I have not done any further personal analysis, this is just my rough feel.