Summary of October 2019 Transactions

Besides the regular monthly purchase of Singapore Savings Bonds, I have made no other buy or sell transactions. The effective interest rate for Singapore Savings Bonds is falling and I am expecting it to fall further. Fixed deposits are offering better interest rates as much as 1.7% p.a. for a 12 month fixed deposit but of course the minimum amount is much higher as compared to the minimum amount of S$500 for Singapore Savings Bonds.

I am looking forward to the preferential offering by Mapletree Commercial Trust. Today, I received the following notification:

  1. Launch of Preferential Offering and Despatch of Instruction Booklet and ARE to Entitled Unitholders Pursuant to the Preferential Offering
  2. Instruction Booklet dated 30 October 2019 in connection with the Preferential Offering

If you didn’t know yet, Mapletree Commercial Trust is acquiring MBC II and thus the preferential offering. Mapletree Commercial Trust currently makes up 9% of my stock portfolio. I shall be taking up the offer and thus you shall see the reflected changes in my stock portfolio the next month.

If you didn’t know, I have been diligently contributing to my Supplementary Retirement Scheme (“SRS”) for the benefit of tax rebates. Since the monies in SRS also earn very low interest, I also invest my SRS monies into Singapore Savings Bonds since I am unable to withdraw from SRS until my retirement age.

As the year is coming to an end in two months, I am looking forward to December whereby I shall be receiving my Annual Wage Supplement. This should give my war chest a boost. I have been performing routine screening for stocks but found nothing worth investing into yet. Even though the old saying “There is no right time to buy”, I believe in buying the right stock and at the right price.

That’s all for my October updates. See you next month!

Summary of September 2019 Transactions

This month, OUE Hospitality Trust has disappeared from my stock portfolio due to its merger with OUE Commercial Reit. After the merger, OUE Commercial Reit makes up 3% of my stock portfolio. I am not sure if there is anything to applaud with regards to the merger as I am not familiar with OUE Commercial Reit. For now, I am not doing anything until I find time to look into the assets of OUE Commercial Reit.

I know there is a hype about the IPO of LendLease Commercial Reit recently. The IPO ends today and I am giving it a miss after much consideration. There is only two assets in its portfolio which is 313 Somerset and Sky Complex. There is a possibility the manager will inject more properties into this Reit in the future such as Parkway Parade or Paya Lebar Quarters. For now, I am keeping watch on this Reit as the concentration is mostly on 313 Somerset.

I continued my monthly screening for dividend stocks using Stocks Café and did one personal analysis of Haw Par Corporation Limited. Haw Par did not qualify my criteria of a dividend stock as the dividend yield is too low. Hopefully I am able to find a good dividend yielding company over the next few months.

One good news I received is the proposed acquisition of Mapletree Business City Phase II by Mapletree Commercial Trust. There will be a boost of dividends if the acquisition manages to go through.

That is all the updates that I have!

Summary of August 2019 Transactions

Today is the last day of the month of August 2019. As usual, I am stock taking my stock portfolio. When the stock market fell this month, I tried to find an opportunity to make a purchase but unfortunately, I didn’t find anything that was attractive.

Frasers Commercial Trust continue to held steady at the price range of S$1.58 to S$1.64. Given the risk of Microsoft vacating its premises which I wrote about recently, this is pretty quite a risk to jump in at this price and moment even though its Distribution Per Unit (DPU) head steady at 2.40 cents. (Read more: Frasers Commercial Trust Maintain DPU of 2.40 Cents)

I was fortunate that most of my major holdings did well (SPH REIT, Mapletree Commercial Trust, Frasers Logistics and Industrial Trust, ST Engineering, Parkway Life REIT, CapitaMall Trust) and those that didn’t do well (Kingsmen Creatives, OUE Hospitality Trust) are minority among my stock holdings.

The hospitality sector is expected to remain weak this year and I would have sold off OUE Hospitality Trust if not given its quality assets and its recent announced merger with OUE Commercial Trust which may or may not renewed its life.

As for my wife’s stock portfolio, Starhill Global REIT credit rating was downgraded yesterday to ‘BBB’ given the lack of prospects and weakened rental income for the next few years.

Last but not least, I have continued to add on to my Singapore Savings Bonds since I have no alternative place to park my month allocated money for investment. This is despite the super lousy interest rate that it offers in the latest issue. (Read more: September 2019 Singapore Savings Bonds is 1.95%) The sum that I have is too little to buy any Endowment Plans and honestly, I dislike the lock in period for 3 years. (Read more: NTUC Capital Plus Versus Singapore Savings Bonds Versus SPH REIT )

I will unlock my war chest once I find an opportunity!