Sunday, March 27, 2011

The Clementi Mall attains Full Occupancy

Clementi Mall is fully leased. Yea! ^^
I never had any doubts that Clementi Mall will be anything but a huge success for SPH and NTUC Income. Clementi Mall is located in an estate with heavy human traffic due to its proximity to the Clementi MRT station, bus interchange, HDB residential homes, Singapore Polytechnic, Ngee Ann Polytechnic, SimUni and NUS.  It is a no-brainer, really. 

Anchor tenants already opened:
  • FairPrice Finest (Basement)
  • BHG
  • Foodfare foodcourt

Anchor tenants to opened in April 2011:
  • Best Denki
  • Popular Bookstore
  • Clementi Public Library
Fashion and accessories labels such as Charles & Keith, Cache Cache, Cotton On, Denizen, Giordano, Skechers and Samuel & Kevin can be found on Level 3. Lifestyle, sports and electrical shops such as Aussino, Arena, Challenger and World Of Sports will be on Level 4. Family and kids brands such as Chateau De Sable, Kiddy Palace and Mini Princess will be on Level 5. The Clementi public library and Popular Bookstore will also be located on this level.
* The bridge which links the mall directly to the Clementi MRT station on Level 3 has already opened to the public, allowing shoppers access via the station during retail hours.

Those of you staying in Clementi, have you visited Clementi Mall yet? If yes, how do you find it?

Peace Out,
Dividends Warrior

Friday, March 18, 2011

Cleaning Up My Dividends Portfolio

February and March have been terrible for most investors. After the Chinese New Year holidays, everything went downhill.
  • Cooling measures in China
  • Property-cooling measures in Singapore
  • Turmoil in the Middle East 
  • Inflation fears (worsening into stagflation)
  • Natural disasters - Australia floods, New Zealand earthquake and Japan earthquake/tsunami/radioactive contamination/volcanic eruption
  • Downgrading of Spain and Portugal

Even though my dividends portfolio contain resilient blue-chips like SPH, Starhub, SingTel and Singpost, I am still rather concerned because the nuclear plant crisis can worsen very quickly. Japan is the world's 3rd largest economy. Many global corporations have business dealings with Japan in one way of another. If this turns out to be another Chernobyl, Japan's economy will be severely affected and so will Asia. 

Stocking up on Blue-chips:
My dividends portfolio is still in the black after all the recent dreadful events. This proves that my overall portfolio is resilient enough to withstand reasonable amounts of continuous shocks. At first, I wanted to be passive and stay on the sidelines. However, I remember Warren Buffett's famous words "When others are fearful, you should be greedy. When others are greedy, you should be fearful". One of my fellow CNA forum members named ThreeCents has an investment rule, "For a wonderful company, be delighted when its stock price falls, be regretful when its stock price rises."
A few blue-chips are approaching attractive prices. Therefore, I decided to ignore my initial fears and do a major clean-up of my portfolio. I cut loss for K-Green Trust, CitySpring, FSL. I then took profit for EpiCentre and PLife REIT. Next, I re-directed the fresh funds into more lots of SingTel and F & N. I will also accumulate more SPH shares if the price approaches $3.70

This major clean-up will further fortify my dividends portfolio against future shocks. You might want to do a consolidation of your portfolio too.

Finally, I pray that all my Japanese readers are safe and sound. Japan will emerge from this crisis stronger, just like my portfolio. ^^

Peace out,
Dividends Warrior

Sunday, March 6, 2011

Let Your Portfolio Ride on the Smartphone and Tablet Craze

If you have been following my blog, you would know that I have added telecommunications stocks ( Singtel & M1) to my dividends portfolio. I want my portfolio to ride on the current smartphone and tablet PC craze. 

These are the reasons why telecommunications stocks should be part of your portfolio.

1. Resistant to Economic Recession:
Due to the rise of the middle-class, especially in Asia. There is a huge demand for fancy digital devices such as smartphones and tablet PCs. As a result of all this demand, telecommunications firms are remarkably resistant to the global economic recession. Even as consumers cut back on discretionary spending, they're continuing to pay for wireless telecommunications and data services -- these are true essential services much like electricity or water. People just cannot live/function properly without their smartphones. They are kind of "addicted" to these digital gadgets. 

Great news for investors of Singtel, Starhub and M1. ^^

2. Strong Stable Cash Flow:
Firms with strong, stable cash flow are just what you need in your portfolio. Telecommunications companies typically have strong and stable cash flows. That's because once these companies build out their networks and basic infrastructure, there's little additional cost associated with adding new subscribers. Strong cash flow generation allows the telecom firms to pay out significant dividends to shareholders. Singtel's dividends distribution is increasing (even though the firm has not committed dividend policy yet), Starhub's dividends have been consistently high (even rising during the 2008 credit crisis 0_o") and M1 has increased its dividends steadily.

3. The Apple Craze
Consumers are increasingly smitten with Apple products. With the impending arrival of iPad 2, the telecommunication firms will stand to reap profits again. And we are not even talking about iPhone 5 yet. Personally, I have an iMac, and it is the best desktop PC I have ever used. No kidding. It does not crash, AT ALL! Not prone to viruses. Quiet. Good graphics. Fast. Sleek and simple. And most importantly, looks gorgeous on my desk! >_<

I love it when tech companies churn out products in series. So, Thank you, Apple. Thank you, Steve Jobs. Please continue to work your magic. Hoping to see iPhone 5 next year.^^ By the way, Motorola Xoom looks great too!

Epicentre Holdings - A Proxy to Apple's Growth:
Just to sidetrack a little here. You may wish to include Epicentre in your portfolio too. Epicentre is an Apple Premium Reseller in Singapore. The firm is venturing into China soon. Decent dividends with increasing profits over the past 2 years throughout the 2009 global recession.

Epicentre shop at 313@Somerset, Singapore

The article excerpt below was taken from the company's recent financial report.

Business Times 15 Feb 11

EpiCentre posts record half-year profit of $4.7m


RIDING on pent-up demand for iPhones and iPads, homegrown Apple products retailer EpiCentre Holdings posted a record half-yearly profit of $4.7 million for the first half ended Dec 31.

The 159 per cent surge in net profit for the first half of FY2011 was underpinned by strong growth in revenue to $92.1 million from $41.2 million in the same period a year ago, even surpassing FY2010 full-year revenue of $88.1 million.

Profit before tax of $5.8 million for the fiscal first-half also exceeded the full-year profit before tax of $4.1 million for fiscal 2010. Group earnings per share jumped to 5.05 cents for the first half of FY2011 from 1.95 cents in the same period a year ago.

'The results reflect not only increased demand for Apple products due to the phenomenal success of the iPhone and the iPad, but also our store expansion strategy which is based on securing the very best locations in both Singapore and Malaysia,' said group chairman and CEO Jimmy Fong.

EpiCentre's six stores in Singapore accounted for 88.4 per cent of group revenue, with new stores at Marina Bay Sands and 313@Somerset launched between January and May last year contributing $14.5 million to group revenue, while the three stores in Malaysia accounted for the balance.

With FY2011 performance well secured as the first half has already surpassed the full fiscal 2010, EpiCentre is gearing up for expansion this year. The group hopes to open a few more stores in Singapore and Malaysia and enter China this year, said chief financial officer Joanne Chua. According to her, EpiCentre is looking for retail space in first-tier Chinese cities.

While Apple's product launches will continue to drive EpiCentre's earnings, the group is also looking to diversify and raise the revenue contribution of non-Apple product sales from 15 per cent to 20 per cent, Ms Chua said.

So, what are your views on telecommunication stocks? Are you vested heavily in them, a little or not at all? Post your comments below. ^^

Peace Out,
Dividends Warrior

Saturday, March 5, 2011

Position Your Portfolio to benefit from SGX-ASX Merger 2011


Consolidation of major stock exchanges has become a strong trend recently. Even the mighty New York Stock Exchange and Nasdaq are going for mergers. Obviously, being "kiasu", Singapore never wants to lag behind. A SGX-ASX merger is looking increasingly likely by the day. Critical mass and economies of scale that result from the ASX-SGX merger would potentially provide a highly efficient international capital market linked to the vibrant economies of South Asia, and provide a gateway for Australian business to Asia and the rest of the world.

In this post, I will be suggesting 3 ways to position or re-position one's portfolio to benefit from the very possible SGX-ASX merger in the second half of 2011. 

Here goes.......

1. Focus on SGX-listed companies which have good, solid businesses in Australia. E.g. Singtel (Telecommunications) and Noble Group (Commodities/Resources)

2. Focus on SGX-listed blue chips because the Australian investors and fund managers will probably load up on them once the SGX-ASX merger is approved.

3. Focus on SGX component stocks because they will probably be the first to rise if the merger goes through as funds and retail investors from Australia enter the Singapore market.

Of course, for my lovely Australian readers, all of you just need to apply the above-mentioned ways on the ASX because Singaporean investors and funds will be entering the Australian market too. ^^

I admit I am no expert. There are probably more effective ways of positioning one's portfolio for the merger. There might be a difference positioning a "Singaporean" portfolio compared to an "Australian" one.

Please feel free to post your comments and suggestions below. =)

Peace Out,
Dividends Warrior

Friday, March 4, 2011

February 2011 Dividends Portfolio Update

No.  Stock Lots Dividends Collected Average Price % of Dividends Portfolio              Cost
1 SPH 3 $600.00 $3.71 13.65% $11,130.00
2 Starhub 6 $850 $2.27 16.71% $13,620.00
3 M1 5 $0.00 $2.290 14.04% $11,450.00
4 Singtel 2 $0.00 $2.935 7.20% $5,870.00
5 Singapore Post 5 $25.00 $1.156 7.09% $5,780.00
6 Capitamall Trust 3 $349.20 $1.70 6.26% $5,100.00
7 UOB KayHian 2 $0.00 $1.67 4.09% $3,334.00
8 Suntec REIT 2 $308.72 $1.33 3.26% $2,660.00
9 CACHE Logistics Trust 3 $131.14 $0.950 3.50% $2,850.00
10 CitySpring Infrastructure Trust 3 $94.50 $0.61 2.24% $1,830.00
11 K-Green Trust 3 $0.00 $1.087 4.00% $3,261.00
12 First Ship Lease 10 $182.85 $0.455 5.58% $4,550.00
13 Parkway Life REIT 1 $23.80 $1.620 1.99% $1,620.00
14 First REIT 8 $26.10 $0.728 7.14% $5,824.00
15 Neratel 6 $0.00 $0.393 2.89% $2,358.00
16 Epicentre 1 $0.00 $0.295 0.36% $295.00

Total dividend collected (since Jan 2010)  $2,591
Total Invested Capital  $81,532
Dividends over Capital (%)  3.18%

*Note: Blue-coloured stocks are blue chips on the Singapore Straits Times Index 

In February 2011, I collected dividends from SingPost, CapitalMall Trust, Suntec REIT, First Ship Lease, Parkway Life REIT and First REIT. This will bring the total amount of dividends collected to $2591 since Jan 2010.

During the recent market correction, I took the opportunity to load up more on SingPost, Singtel, First REIT and Neratel. As a result, my invested capital has ballooned to $81, 532. I am also heartened by the strength of my portfolio in these times of uncertainty. My portfolio is still in the black despite weeks of price fluctuations in the STI. It all boils down to the high percentage of blue chips in my portfolio. Blue chips make up about 58% of my dividends portfolio. 

When there is a minor market correction, it is always good to ride out the storm while collecting dividends. ^^

Finally, I decided to include Epicentre in my dividends portfolio because the company has been doing increasingly well over the past 2 years as it rides on the phenomenal Apple craze. It acts as my growth stock too.^^ I used to have a few lots but I  took profit too soon. Now, I am only left with 1 lot. Sighzzzz. A lesson learnt. Never mind, I can always wait until XD to load up more. Fingers crossed.

Peace Out,
Dividends Warrior

Wednesday, March 2, 2011

CapitaMall Trust Ready to Boomz

CapitaMall Trust has a few catalyst that will contribute to a higher DPU from 2011 onwards.

1. Purchase of Iluma Shopping Mall:
Given its strategic location next to Bugis Junction (the two malls are already connected by an overhead linkbridge) and by leveraging on its pro-active asset and lease management capabilities, there will be further opportunities to improve the occupancy rate, tenancy mix and utilisation of space at Iluma. 

In terms of rental upside, there’s 16.3% of immediate vacancy and 10.4% and 40% of leases are up for renewal in 2011 & 2012 respectively. Iluma presently attracts shopper traffic of more than 1m per month, compared to 3.2m at Bugis Junction. There is thus scope for more synergistic values to be created through the integration of Iluma with Bugis Junction, with a combined NLA of more than 606,000 sq ft – about the size of Ion Orchard. 

The combined offerings of the integrated mall will further strengthen its overall attractiveness to shoppers. This bundling approach is similar to what CMT has initiated for Plaza Singapura and the Atrium@Orchard at the moment.

2. Integration of Plaza Singapura and Atrium@Orchard:

The first three levels of The Atrium will be converted to retail use and linked to Plaza Singapura to create a seamless shopping experience. A canopy will be built along the open plaza between the two properties to maximise their combined 170-metre-long frontage along Orchard Road.

3. Completion of Asset Enhancement Work at Raffles City (RCS):

The enhancement works at RCS involves the re-configuration of the Basement 1 space. The existing City Hall MRT station to the new Esplanade MRT station via a seamless shopping experience through Basements 1 and 2 of RCS. The Basement 2 link will provide a short underground connection between City Hall MRT station and the Esplanade MRT station. When this connection is completed, there will be three train lines bringing shoppers to RCS.

Of the additional 12,180 square feet (sq ft) of net lettable area (NLA) which will be created in the Basement 2 link, an estimated 63.0% of the area has already been pre-committed as at end-January 2010. The enhancement works will result in CMT incurring capital expenditure of approximately S$33.2 million and are expected to generate additional net property income (NPI) of approximately S$2.7 million per annum. This would enable CMT to achieve an expected ungeared return on investment (ROI) of 8.0%.

4. JCube 

Jurong Entertainment Centre (JEC) is situated in the heart of the Jurong East Regional Centre. The site is strategically located next to the Jurong East MRT interchange station and bus interchange, offering convenient access for shoppers in the western region of Singapore. JEC has ceased operations in preparation for asset enhancement works. When completed in the first quarter of 2012, JEC will be renamed JCube and will boast more than 200,000 square feet of net lettable area spread over five retail levels, including a basement level. It will also house an Olympic-sized ice-skating rink.

5. Possible Future Acquisition of iON Orchard:
CapitaMall Trust also has the option to acquire iON Orchard Mall in the future. 

iON Orchard is a prime retail-cum-luxury-residential landmark development located at the gateway of Orchard Road in Singapore. The iconic development is strategically situated above the Orchard Mass Rapid Transit (MRT) station and will enjoy underground connectivity to nearby buildings. The five-storied mall (with 4 basement levels) targets High Net worth Individuals, professionals, managers, executives, businessmen, tourists, youths and families. Major tenants include retailers such as Cartier, Christian Dior, Dolce & Gabbana, Giorgio Armani, Louis Vuitton, Prada, Sephora, TopShop/Topman, Uniqlo, Zara, New Look and Muji.

A good time to be a CMT shareholder. ^^

Peace Out
Dividends Warrior