Unaudited Results of Keppel REIT for the Third Quarter and Nine Months Ended 30 September 2015

Keppel REIT's distributable income for 3Q 2015 rose 4.6% y-o-y

A resilient portfolio and the Manager's continued focus on tenant retention see
high retention rate of 90% and positive rental reversion of 16% on average

• Recorded a 4.6% and 1.8% year-on-year ("y-o-y") growth in distributable income for 3Q 2015 and year-to-date 2015 ("YTD 2015") respectively, as well as sustained levels of distributable income on a quarter-on-quarter ("q-o-q") basis
• Higher distributable income was due mainly to better performance from Ocean Financial Centre, Bugis Junction Towers and 8 Chifley Square in Sydney
• Distribution per unit ("DPU") of 1.70 cents for the third quarter 2015 ("3Q 2015")
• Increased fixed-rate loans to over 70%, which will insulate against interest rate fluctuations
• Average cost of debt remained constant at 2.5% and interest coverage ratio at a healthy 4.4 times
• Hedged almost 100% of distribution payment from Australia up till the first quarter of 2016 ("1Q 2016")
• Continued to maintain low refinancing obligations, with close to 100% of total borrowings not due for repayment till 2017
• Concluded a total of 82 leases or approximately 1.1 million sf of office space to-date
• Of the new office leases secured in 3Q 2015, one-third were from tenants setting up presence and operations in Singapore, one-third were from first-time entrants into Keppel REIT's portfolio and the remaining one-third were expansions by existing tenants
• Notwithstanding the supply of office spaces from both upcoming and existing buildings, the Manager completed 100% of all leases due for review and almost all leases due for renewal in 2015. With this, approximately 70% of total leases are not due for renewal till 2018 and beyond
• Despite challenging leasing market conditions, the Manager has achieved a positive rent reversion averaging 16% for office leases signed, renewed and reviewed year-to-date
• Overall portfolio occupancy declined slightly q-o-q from 99.3% to 98.5%
• Gained strategic control of the office and retail components at 8 Exhibition Street in Melbourne with the successful acquisition of the three remaining prime street-fronting retails units
• Achieved Certificate of Practical Completion for the office tower on the Old Treasury Building site in Perth, and the Government of Western Australia (WA) will commence its 25-year long lease in the fourth quarter of 2015 ("4Q 2015")

Keppel Infrastructure Trust Unaudited Results For The Second Quarter And Half Year Ended 30 September 2015

1H FY2016 RESULTS HIGHLIGHTS

1. Distribution per unit (DPU) of 0.93 Singapore cents was declared for the quarter ended 30 September 2015.
2. Group revenue for 1H FY2016 was S$267.3 million, 2.6% higher than 1H FY2015, with full quarter contributions by assets from the Crystal and KMC acquisitions, partially offset by lower revenue from City Gas as town gas tariff decreased with lower fuel prices, and higher negative CRSM⁽¹⁾ adjustment incurred by Basslink.
3. Profit attributable to Unitholders of the Trust of S$6.8 million in 1H FY2016 were higher than the last financial year as a result of contributions from the Crystal Trust and KMC Acquisitions during the current financial period.
4. 1H FY2016 distributable cash flows of S$48.9 million, was S$16.2 million higher than 1H FY2015 mainly due to contributions from the Crystal and KMC acquisitions, partially offset by the timing difference between City Gas' town gas tariff adjustment and actual fuel prices.
5. Net asset value per unit as at 30 September 2015 increased to 35.9 Singapore cents from 12.3 Singapore cents as at 31 March 2015. This was primarily attributable to the issue of new units in connection with the Crystal and KMC acquisitions and mark-to-market gains of derivative instruments, which were partially reduced by distributions paid.
6. Gearing⁽²⁾ as at 30 September 2015 was 32% compared to 52% as at 31 March 2015 as a result of the lower gearing of the Crystal assets and KMC.
   

⁽¹⁾ _{Commercial Risk Sharing Mechanism ("CRSM") is a mechanism provided under the Basslink Services Agreement ("BSA") between Basslink and Hydro Tasmania ("HT") for the sharing of the market risk associated with participating in the National Electricity Market of Australia. The CRSM payments are based on the differences between the high and low Victorian electricity pool prices, and are subject to a maximum +25% increase (i.e., a payment to Basslink) and -20% decrease (i.e., a payment from Basslink) of the unadjusted facility fee under the BSA. In accordance with paragraph (b) of schedule 4 of the BSA, the rolling 5-year cumulative CRSM shall be capped at -17% if it exceeds -17%.}
⁽²⁾ _{Defined as net debt over total assets.}

How Come So Heavy on Kep Corp and Semb Corp Ind??? (2)

 Read? How Come So Heavy on Kep Corp and Semb Corp Ind???

When reading blogs, sometime this is what we may see e.g. 

But, what the blogger may have not clearly tell or show what is below the ground e.g.

Not sure how risky can it be when we look at whole picture now?

Sometime, it is good we probe further and understand the reasoning behind it.

How Come So Heavy on Kep Corp and Semb Corp Ind???

FF: You seem heavily invested in Keppel and Sembcorp, any reasons why?


Read? Uncle8888, how do you find multi-bagger stock?


With the new add of OSIM (Round 1) on 15 Jul 2015, See? OSIM: Bought @ $1.43


Total number of different stocks traded or invested in SGX is 54 + 1 = 55



You can see that 55 is not a small number. Right?

Not really concentrating. Right?




Then why so heavy on Kep Corp and Semb Corp Ind?

Actually, it is not intentional!

They just happened to be TouchStone when the market rebounded at that time and they were not sold as Sardine.

Read? Touchstone or Sardine? (About time to do a refresh)

Kep Corp and Semb Corp Ind are not just touchstones. Look at the two charts below. You might be able to understand Uncle8888's yield pig feeling at that time. 

How to hate Kep Corp and Semb Corp for their yield on investment cost and then so eager to get rid of them over the following years as Sardine?

 
 

How to become rich in stocks??? (29)

Read? How to become rich in stocks??? (28)

One Man's Dream in Jan 2000 and the reality, the outcome, and wisdom for his future investing strategy.

Peter Lynch:

You don't need a lot in your lifetime. You only need a few good stocks in your lifetime. I mean how many times do you need a stock to go up ten-fold to make a lot of money? Not a lot.


I think the secret is if you have a lot of stocks, 

some will do mediocre, 
some will do okay, and 
if one of two of 'em go up big time, 

you produce a fabulous result.  

And I think that's the promise to some people. 

Some stocks go up 20-30 percent and they get rid of it and they hold onto the dogs. And it's sort of like watering the weeds and cutting out the flowers. You want to let the winners run. 

When the fun ones get better, add to 'em, and that one winner, you basically see a few stocks in your lifetime, that's all you need. 

I mean stocks are out there. When I ran Magellan, I wrote a book. I think I listed over a hundred stocks that went up over ten-fold when I ran Magellan and I owned thousands of stocks. I owned none of these stocks.

I missed every one of these stocks that went up over ten-fold. I didn't own a share of them. And I still managed to do well with Magellan. So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.

In this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten. This is not like pure science where you go, "Aha" and you've got the answer. By the time you've got "Aha," Chrysler's already quadrupled or Boeing's quadrupled. You have to take a little bit of risk.


Uncle8888 has to fully agree with Peter Lych's wise words and his great wisdom on long-term investing success!

The Reality, The Truth and The Outcome after 15+ years in Singapore stock market - SGX ...

You don't need a lot in your lifetime. You only need a few good stocks in your lifetime.- Peter Lych.


Uncle8888 has regretted missed his boat in end 2008/2009 and hope that he will have that great wisdom not to miss the next one and could be well be his last boat!

He opened his eyes wide open and aware of paper losses back to Mr. Market are not an illusion; but can potentially change the shape of the wealth pie in his favour! 

Another thing he learned that busyness in the stock market may not really build wealth. Taking and giving back will end up nowhere!
 

How to become rich in stocks??? (28)

Read? How to become rich in stocks??? (27)

After 15+ years of trying to become rich from the stock market and the truth is right in front of Uncle8888 everyday when he looked at this updated Pie chart!

It is easier to become rich from his human asset by saving but supplement by his investment return!

But, the truth for most of us is one day, our human asset will yield no return so we really have NO other choice but to depend on our financial assets to build sustainable retirement income for life. 

Like it or not, it is still better to invest and to become really good retail investor. 

But, his Kung Fu in the stock market is not cheem enough. Sianz!

Not Anguish Over Paper Losses??? (2)

 Read? Not Anguish Over Paper Losses???


How not to get anguish over paper losses?

Only dividends are real! Paper losses are not!

No Hear. No See. No Talk about it. Of course, will not be anguish.

Don't do this!

Hear it. See it. Talk about it.

If Uncle8888 can improve on his Exits and Entries, he will turn those paper losses into real money for his Fixed Assets in the bank.

 

Dividends As Passive Income???

Tell it to those are sitting on large paper losses whether they are anguish or not.

Come on! Put XIRR on paper loss + dividends and see whether you will see negative number or not! Still passive income when XIRR is negative? Chun bo?
 

When sitting on paper losses, dividends are just Panadol to ease heartache and practicing the art of self-consoling that dividends are coming soon!

When sitting on paper gains, the larger paper gains and higher dividend yield on investment will earn the right to shout loud in the Cyber World about their Money Tree and Passive Income.

Not Anguish Over Paper Losses???

Let Get Real!

Not just anguish; sometime it may be depressive too!

Paper losses are RELATIVE to our account size and net worth. 

Large % drop on paper losses relative to our net worth can be anguish or depressive!

Look closely at icons. It is exactly Uncle8888 felt about his paper losses. 

Best is to avoid getting into large paper losses and anguish no more!

Turning Active Earned Income Into Investment Portfolio Passive Income.

Technically, it should be correct!

Look at the image. How wrong can it be?

With words, some people will tend to find fault with them.

After a few or more years, we don't even need to lift a finger to receive the money. Sometime, we didn't even know that the money was already credited into our bank account.


 

Patience? It is Entries and Exits that determine your value of patience!!!

How much does your patience pay for you in the stock market?

Your Entries and Exits?

Your market timing determine the value of your patience.

Uncle8888 has plenty of patience; but it doesn't mean he will always win. No and never!


His last 4 Entries ...


Kep Corp : Round 95. Bought @ $9.64. Down by -23%

SembCorp: Round 54. Bought @ $4.97. Down by -23%

OSIM: Round 1. Bought @ $1.43. Up by +15%. This one may be his new TouchStone!

Read? Touchstone or Sardine? (About time to do a refresh)

DBS: Round 20. Bought @ $16.98. Up by +4.2%


So what is the moral of the story?

Do patience in the stock market really pay well?


Or better to improve your market timing?

Past STI Bull and Bear Ended in which month since 1987?

Your Investment Portfolio is your Accelerator on the Road to Financial Independence! (4)

Read? A Gift to Colleagues and Friends!

Read? Your Investment Portfolio is your Accelerator on the Road to Financial Independence! (3)

Uncle8888 started working in Aug 1977 @ 21 yrs old and became CPF member. Two more years in Aug 2017, he will celebrate his 40th years anniversary as CPF Member!


What has he achieved after 40 years as CPF Member?


Will his next milestone on the Road to Financial Independence is to become an old CPF member Millionaire with his CPF accounts in 2016 or 2017?

Is this something to celebrate on his 40th Year Anniversary as an old CPF Member?

Long-term Investing Is Like That!!!

What goes up must come down. What goes down must come up. 

Nothing goes on forever in the stock market!
 

What Can We Learn From Fishing - Pond and Shore Fishing???

Uncle8888 has done Pond fishing only once and no more. He loves Shore fishing. He also avoids doing Boat fishing as it will become an expensive fishing hobby for him.

In Pond fishing, we will know that there will be fish at anytime as the pond operator will release enough fish at designated timing to ensure that there will be fish in the water. So it is like investing in S-REITs or dividend income stocks of high dividend payout ratio of 80% or more.

How about Shore fishing?

We will never know there are fish around there or not. Most of the time, we may wait for so long but catch nothing. So it is like catching Growth-dividend stocks?

Life of fisherman is tough! 

Patience may not worth a cent!

Sianz!

 

Strengthening War Chest From Our Investment Portfolio??? (3)

uncle

i have increased my war chest and market rebound 


Read?  Strengthening War Chest From Our Investment Portfolio??? (2)



What you may not realize it!

 
Making hay in Summer while Sun shines or by pulling out weeds from Autumn Garden?


Same same but different when you get it wrong!


Making hay in Summer while Sun shine but somehow it went wrong. It has been a long Summer!

Sianz!

May be sibei sianz!

So?

Summer will never go on forever. One day it will come back to me and I will make back those lost paper profit opportunity!


Pulling out weeds from Autumn Garden but somehow it went wrong. Robins come, new leaves come! No Winter but unexpectedly an early Spring! WTF!


Let us honestly face the fact. It is extremely hard to recover our realized losses or regaining back our expected profits that were lost back to Mr. Market by sitting on cold hard cash.

We are expecting Winter but an early Spring unexpectedly came! 

Our investing mind may be still stuck in the Autumn. 

Can we expect our investing minds to change that fast?

Sianz?

Sibei sianz?

May be this  ...


 

Touchstone or Sardine? (About time to do a refresh)

Saturday, 2 October 2010

Read? Touchstone or Sardine?

 

Read and understand.

No need to ask Uncle8888 holding or selling his DBS or OSIM.

 

Do you think it is Touchstone or Sardine?

 

 

 

What Is The Most Important Thing In Investing???

Less Analyzing. More Investing - CW8888


So many theories and concepts!

Now, what is the important thing in investing?

Let be realistic. Those who are right are doing ...

 
 













 

My War Room (6)

Read? My War Room (5)

We may have just two to four opportunities in our lifetime of long term investing to create wealth from the stock market.

Uncle8888 has managed to create some passive income (Money Trees) from 2001 to 2003; BUT NONE from the biggest opportunity in the stock market in last GFC 2008/2009. 

His biggest mistake so far!

Instead of investing for Money Trees; he was caught busy cutting losses and switching horses to stay calm and raising cold hard cash to sleep better.

It is not the best way to create wealth in rare window of opportunity presented by Mr. Market by trying to stay calm and raising more cash to meet liquidity needs. Dumb! Really dumb!




Do you see his reason in retaining his larger War Chest?


 
















His Investing Goals is for ten years!

Another 6 years to go. Should have enough time for the next Great Bear opportunity to meet the ten-years End Goal.
 

 
 

Investing For Dividend Income(Passive) is a Fairytale???

 Read? Investing For Dividend Income(Passive) is a Fairytale !!!


No fairy tale here!

Real People. Real Dividends!

Not passive income? Then what?
 

 

Scary Net Worth Plunge? May be no more!

Nowadays, Uncle8888 really got no balls liao!

 

Too scary to see his net worth plunges by XX%. Better have more cash rotting than trying to get more return in the stock market.

 

16% plunge in his investment portfolio!

 

5% plunge in his Net Worth!

Stock market is a double edged sword - it can build or destory wealth!

Sometime, no choice after X point in our timeline, we may have to be kiasu and kiasi!

 

 

Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (2)

Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips

Can we recognize and find the Yield of Dreams e.g. at least 15% p.a.?

Unlikely, we can recognize them as they didn't look like one in the first place.

See for yourself on the left of these two images ...

Real People. Real Yield!

 

 

Time Is Money???

Depending on who you are asking?

When you are asking someone who is going up Hill or struggling along the Way; Time is indeed Money?

When you are asking someone who is going down Hill or fishing?

Time is Money?

Hmm ... 

Life is relative to a few moving points in our life. 

What is important in the past may not be important anymore. 

What has been ignored in the past may come back to haunt us!

That is life!



 

Yield of 4% or 8% . Which is potentially higher?

Yield of 4% or 8%. Which is potentially higher?

You won't know until you fully understand the compounding power (can be negatively too. double edged sword) of hidden carrot.

The Problem With Too Much Patience And Discipline???

We have heard about patience and discipline in long run (term) investing in the stock market. Wait for the Big Bear market and invest for double digits yield.

Real retail investor. Real Story.


He is 60 and has started investing, trading and punting in the stock market when he was in his late 20s. He can be said to be a veteran who went through several market cycles.  After winning and losing through his early YEARS of investing, trading and punting, he learned something that most of us understand. Patience and Discipline!

He told me his problem with patience and discipline. He has too much of them! Till now @ 60, he is still lack of future cash flow in dividends as he is too patient and discipline to convert his low yield interests to higher yield dividends.


How tough is long-term investing!

See for yourself!
 

When We Are Dying or When Our Loved One Is Dying???

Read? Retirement Income for Life??? (13)

Ordinary retirees in Singapore are likely to depend on combination of their investment portfolio, CPF OA, CPF SA and CPF Life and supported by some level of emergency cash and adequate medical coverage that fix our daily lifestyle. Everyday, we treat ourselves 365 days a year and year after year  in B1, B2 or C Ward; but when we are suddenly sick; we "demand" A ward treatment. 
That is strange! Guilty conscience at play or what?


Often heard at wakes.

Paying $XX,XXX for the service of 10 monks to do prayer for their parents soul. Some of these children might not even want to spend $X,XXX or $XXX to bring their parent out for vacation when they were alive!


That is strange! Guilty conscience at play or what?


 

Millionaire investor leaves nothing for own kids but uses wealth to help poor

Read? Millionaire investor leaves nothing for own kids but uses wealth to help poor

In 1975, he sold his controlling stake in Gamuda.

But it was on the stock market, 32 years ago, that Koon began accumulating even more assets and wealth.

"In 1983 I had an serious heart angina. Before my heart surgery in London, I gave all my assets to my wife and children. After my heart operation I started to learn how to make money from the stock market."

Up until then, he was an executive director in Mudajaya/IJM but gave up his position and invested his time and money in shares.

He started with only RM200,000 cash to dabble around with and has made money to the tune of millions ever since.

Koon said his trick to mastering the market is to be a "contrarian investor" – one who buys when everyone is selling and who sells when everyone is buying.

And it is a lesson he wants to pass on to others, as he regularly blogs about his investment tips.

"After having read several investment books by famous gurus like Benjamin Graham, Warren Buffet, Peter Lynch, etc and my 32 years of practical experience, I wish to share my knowledge with people who are interested.

"I believe teaching people to make money is like teaching people how to fish instead of giving them some fish."

His wish is the same no matter who he helps, whether by giving investment tips or monetarily, that they too will help the poor when they have made their money.

This applies to those who have benefitted from his investment tips, the 300-odd students who have received scholarships, and also the Penang state government, which received his RM50 million donation for the USM hostels.

In 1975, he sold his controlling stake in Gamuda.
But it was on the stock market, 32 years ago, that Koon began accumulating even more assets and wealth.
"In 1983 I had an serious heart angina. Before my heart surgery in London, I gave all my assets to my wife and children. After my heart operation I started to learn how to make money from the stock market."
Up until then, he was an executive director in Mudajaya/IJM but gave up his position and invested his time and money in shares.
He started with only RM200,000 cash to dabble around with and has made money to the tune of millions ever since.
Koon said his trick to mastering the market is to be a "contrarian investor" – one who buys when everyone is selling and who sells when everyone is buying.
And it is a lesson he wants to pass on to others, as he regularly blogs about his investment tips.
"After having read several investment books by famous gurus like Benjamin Graham, Warren Buffet, Peter Lynch, etc and my 32 years of practical experience, I wish to share my knowledge with people who are interested.
"I believe teaching people to make money is like teaching people how to fish instead of giving them some fish."
His wish is the same no matter who he helps, whether by giving investment tips or monetarily, that they too will help the poor when they have made their money.
This applies to those who have benefitted from his investment tips, the 300-odd students who have received scholarships, and also the Penang state government, which received his RM50 million donation for the USM hostels.
- See more at: http://www.themalaysianinsider.com/malaysia/article/millionaire-investor-leaves-nothing-for-own-kids-but-uses-stock-market-spoi#sthash.EPC51Z2a.dpuf

BY RAM ANAND

Published: 3 October 2015 10:59 AM | Updated: 3 October 2015 1:43 PM

- See more at: http://www.themalaysianinsider.com/malaysia/article/millionaire-investor-leaves-nothing-for-own-kids-but-uses-stock-market-spoi#sthash.EPC51Z2a.dpuf

BY RAM ANAND

Published: 3 October 2015 10:59 AM | Updated: 3 October 2015 1:43 PM

- See more at: http://www.themalaysianinsider.com/malaysia/article/millionaire-investor-leaves-nothing-for-own-kids-but-uses-stock-market-spoi#sthash.EPC51Z2a.dpuf

Passive Income From Dividends and Interests. Shake leg and collect money!

Timing the stock market to exchange between dividends and interests!

A binary option!

Cash is rotting or Cash is King!

No right or wrong!

The decision is ours!

Wealth = Asset Value + Cash Flow (As an investment, dividends + interests)

 

 

 

High Chance Of STI Bottom in Oct 2015 and Rebound. Who says? History said it may happen!

5 out of past 10 past Bear Market bottoms happened in either Sep or Oct and then rebound!

Since STI has missed Sep 2015; so it may happen in Oct 2015?

Chun bo?

 

To Know How Much Is Enough? (2) - The Balance Sheet Way!

Read seriously for your retirement planning. This is the best model found after Uncle8888 has been researching for model to follow --> Is Your Nest Egg Holding Up? 

Read? To Know How Much Is Enough?


CW8888's Wealth Formula:

Wealth = Asset Value + Cash Flow

Wealth = Human Asset + Financial Asset + Cash Flow

Human Wealth = Human Asset Value Cash Flow

Financial Asset = Market Asset Value + Cash Flow


When our Human Asset value is approaching to ZERO, we will have to fully shift gear to Financial Asset to generate future sustainable cash flow; BUT, some financial asset likes holding stock portfolio by nature will give us terrible emotional roller coaster ride. 

So how to be calm and steady over market cycles?

Think of having strong Balance sheet of future cash flow. Probably, this is the better to stay calm and steady for long, long time till RIP!

The Most Message In CW8888's Banner?

We really see what we want to see!

To Know How Much Is Enough?

Track our household expenses closely ..

Sep 2015 update

Beyond The Edge of Financial Independence

When our spouse chooses to remain as investing idiot; then we may have little choice; but to be richer than the inflation to be sustainable over our lifetime. It is still better to lose to Mr. Inflation with less emotional pain than to lose with so much emotionally painful to Mr. Market.


Reach a new milestone in Sep 2015; but it is for the other half!