This week saw an unprecedented drop in oil prices to a negative level, almost -$40/barrel to be exact. Such a phenomenon has not happened in the past and it was largely the result of paper traders and Oil ETFs dumping their expiring May contracts “by all means” as buyers disappear. Since then, WTI oil prices
S-REITs are in the spot light again today, with SPH REIT surprise DPU cut as well as the government enacting a new law to be passed in mid-April, granting restaurants and other commercial tenants that are unable to pay rent due to COVID-19 be able to hold off such contractual obligation for at least six
Brief background summary By now, most of you would probably have been aware of Singapore Airlines’ (SIA) plight and the need to do a massive fund-raising exercise, fully-backed by Temasek. This means that if Singaporeans are not willing to support our national carrier by subscribing to those new shares, Temasek will come in to backstop
Lion-Phillip S-Reit ETF is one of the only 3 REIT ETFs available here in Singapore. Given its 100% focus on Singapore REIT counters, it is not surprising that Singapore investors have a natural preference over this Reit vs. its two predecessors: Phillip SGX APAC Dividend Leaders REIT ETF and Nikko AM REIT ETF, both of
Yangzijiang announced its 4Q19 on 28 Feb 2020 where its earnings were down 30% YoY compared to 4Q18 to RMB642m. We see the company as a steady ship, but one that is heading into a major storm in 2020. Yangzijiang’s share price declined by approx 3% post-4Q19 results, slightly underperforming the broader market, which has
Sembcorp Industries 4Q19 Sembcorp Industries announced its 4Q19 results before the market opens on 21 February. The losses at S$15m for 4Q19 came in smaller than my expectations, even after accounting for its share of Sembcorp Marine’s substantial losses. These were due to two main reasons. One, Sembcorp Industries’ Urban Development division performed extremely well
Capping a disastrous end to 2019 Sembcorp Marine announced its 4Q19 results before the market opens on 20 February. The company incurred 4Q19 losses of S$77.7m, bringing full-year 2019 losses to S$137m. We previously expected full-year 2019 losses to be in the region of S$100-110m. We believe the main reason why losses came in significantly
The sustainability of a REIT dividend/distribution payments is a key consideration for most investors looking at generating a passive income source from the ownership of such assets. We highlighted the dividend growth profile of our S-REITs in an article last week, entitled: Which S-REITs have the best record of dividend growth. This article is sort
SATS announced its 3QFY20 results on 13 February after the market closes. As expected, the results weren’t pretty. We highlighted in a short write-up of the company back in early December 2019 that the company will be negatively impacted by 3 near term headwinds: Margins pressure from consolidation Persistent cargo weakness Disruption in Hong Kong
I thought it will be useful to list the dividend-paying track records of S-REITs. Consistent dividend growth is one of the key criteria that I personally used in the evaluation of dividend-paying stocks or REITs. I wasn’t able to find any website that provides a summarized snapshot of the dividend track record of our S-REITs,
Sembcorp Industries profit warning Sembcorp Industries (SCI) issued a rare profit warning after the market closes on 6 February. The company highlighted that it will be making a material impairment of S$245m in its upcoming 4Q19 results to be announced on 21 February. These impairments are associated with the company’s energy assets. Consequently, the company
A quick introduction Manulife US REIT has seen strong appreciation in its share price post the counter inclusion in the FTSE EPRA Nareit Index on 23 December 2019. Likely due to institutional funds “front-running” the inclusion (perfectly legal way), the counter appreciated c.10% from 1 October 2019 to the date of inclusion and continued rallying
Straco had just been hit by the perfect storm that will almost certainly impact its upcoming 4Q19 results as well as 1Q20 results. Flyer suspension The bad news started streaming in back in late-Nov 2019 when a spokesperson for the Singapore Flyer said in a media statement on 26 Nov 2019 that the Singapore Flyer
I recently came across an interesting article. This was a Harvard Business Review (HBR) article back in Sep 2019 which identified the Top 20 global companies that have achieved the highest-impact business transformations over the past decade. These are the world’s most transformative companies that excelled in the development of new products, services, and business
Before all the Warren Buffett’s fans out there start stoning me, these are Warren Buffett’s own words pertaining to a particular loss opportunity: “In the earlier years, it’s very clear – the answer is stupidity” Warren Buffett What was this pertaining to? He was actually referring to his decision NOT to invest in Microsoft in
We recently wrote a results preview note for SATS, with the conclusion that its 2QFY20 results will remain lackluster due to margins pressure from cargo weakness. True enough, the company’s 2QFY20 results were below market expectations, with across-board downward earnings revision from the street. SATS: Long-term fundamentals in-tact Don’t get me wrong. I am positive
