Why I Bought Into Mapletree Commercial Trust

Recently, I mentioned that I have sold off SoilBuild Business Space REIT and reinvested the cash into another stock. One of the stock is Mapletree Commercial Trust. If you notice, I already own Mapletree Commercial Trust in my stock portfolio. I am only increasing my stake on it.

Why did I buy into Mapletree Commercial Trust? One of the reason is the excellent 2Q FY17/18 financial results that Mapletree Commercial Trust has released recently. While other REITs suffer from either flat DPU or declining DPU, Mapletree Commercial Trust achieved a DPU increase of 9.3%! Read More

Kingsmen Creatives 3Q2017 Results – Recovery No Where In Sight

Kingsmen Creative Logo

Kingsmen Creatives have just released their 3Q2017 results and the financial figures does not seem very pleasing. Revenue declined across three out of its four business divisions for 3Q2017 as compared to 3Q2016. It seems that recovery is no where in sight.

Here are the financial results across its four business divisions.

  • The Exhibitions & Thematic division registered a revenue of S$32.3 million, an increase of S$0.9 million or 2.7% from S$31.4 million recorded in 3Q 2016.
  • The Retail & Corporate Interiors division recorded a revenue of S$30.6 million, a decrease of S$8.0 million or 20.8% compared to S$38.6 million in 3Q 2016.
  • The Research & Design division registered a revenue of S$3.2 million, a decrease of S$0.2 million or 6.8% from S$3.4 million recorded in 3Q 2016.
  • The Alternative Marketing division achieved a revenue of  S$3.0 million, a decrease of S$0.4 million or 10.7% from S$3.4 million in 3Q 2016.

I remembered the Group’s cash and cash equivalents was S$58.5 million in 1Q2017.  The Group’s current cash and cash equivalents stood at S$50.7 million as at 30 September 2017 which was a 15% decrease.

Goodbye SoilBuild Business Space REIT

Soilbuild REIT Logo

I have long wanted to sell off SoilBuild Business Space REIT almost 1 year ago. Recently, I have divested all my holdings of SoilBuild Business Space REIT. Without dividends, I have made a loss of 11%. With dividends included, I have made a profit of 9%.

Below are my reasons for selling of SoilBuild Business Space REIT.

Risky Business

As we know, two tenants have defaulted over their rent (72 Loyang Way and NK Ingredients Pte Ltd). Blame it on poor economic outlook or collapse of marine oil and gas sector but as I wrote previously, 11% of Soilbuild Business REIT tenants are in the Marine Oil and Gas sector. This puts SoilBuild Business Space REIT in a high risky position should more tenants default their rent.

Declining Distribution Per Unit

Distribution Per Unit declines quarter on quarter. Given the declining share price and declining distribution, there is no reason I should be keeping this REIT.

Something Better to Buy

I am selling SoilBuild Business Space REIT as I have spotted something better to buy which I shall write in my upcoming post.