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Mapletree North Asia Commercial Trust: Should You Receive Your Distributions in Cash or in New Units of the REIT?

Mapletree North Asia Commercial Trust: Should You Receive Your Distributions in Cash or in New Units of the REIT?

I received a mail in my letterbox over the weekend from Mapletree North Asia Commercial Trust – a long-term investment of mine (in case you’re wondering, I have gotten the mail because I invested in the REIT via a CDP-linked brokerage account.

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1083  followers.

If you invested in the REIT via a custodian account, you should receive the same message in your brokerage account and if you don’t, you can contact your brokerage firm to enquire.)

In the letter, I was asked to state my preference to either receive the distributions (declared when the REIT announced its fourth quarter and full year 2020 results on 29 April 2020) in a form of cash (of S$0.00496 per unit), in a form of new units of the REIT (which will be computed based on the unit price of S$0.8752 per new unit), or a combination of both.

By default, all unitholders will receive their distributions in a form of a cash payout (unless you state your preference to either receive units of the REIT, or a combination of cash and units of the REIT by 04 June 2020.)

One of the questions on my mind (and very likely the minds of many unitholders) are – how do I calculate the number of new units of the REIT I will receive (if I opt for this option), and which option is more “worth it”?

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Hyphens Pharma: 5 Things I like about the company (Guest Post)

Hyphens Pharma: 5 Things I like about the company (Guest Post)

Hyphens Pharma recently announced its 1st quarter 2020 results ended 31 March 2020.

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with username known as Smallcapasia and has 853 followers.

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I have to say that its results are pretty impressive. Compared to the previous year, 1Q 2020 revenue came in at 16.1% higher to $31.4 mil and net profits surged 48.6% to $2.12 mil.

Dividends were also hiked up to $0.01 from $0.0055 last year, which translates to a 4% dividend yield based on its share price of $0.25.

There are much more things to cover but let’s check out the company’s profile first.

About Hyphens Pharma

For a quick background, Hyphens Pharma International Limited (SGX: 1J5) is Singapore’s leading specialty pharmaceutical and consumer healthcare group.

With a long history dating back to 1998, Hyphens has a direct presence in 5 ASEAN countries – Singapore (HQ), Indonesia, Malaysia, the Philippines and Vietnam, and is supplemented by a marketing and distribution network covering 6 other markets – Bangladesh, Brunei, Cambodia, Hong Kong, Myanmar and Oman.

The group operates in 3 main segments:

  1. Specialty Pharma Principals – premium quality specialty pharmaceutical products including Stérimar® nasal sprays, Bausch+Lomb eye drops, Vivomixx™, Fenosup® Lidose® and Piascledine®.
  2. Proprietary Brands – Hyphens’ own proprietary range of dermatological products (Ceradan® and TDF® brands) and health supplement products (Ocean Health® brand).
  3. Medical Hypermart & Digital – wholesale of pharmaceuticals and medical supplies in Singapore through Pan-Malayan Pharmaceuticals – a medical hypermart that many healthcare professionals (i.e. doctors) are familiar with.

Next up, I will also share 5 things I like about the company.

#1 Simple and Scalable Business Model

First of all, Hyphens Pharma business model is easy to understand – selling of derma and supplement products. Once you can get things up and running, it’s pretty much a recurring stream of revenue for each product line.

To add on, I like how they acquired Health Supplementbrand –Ocean Health which gives them a strong retail distribution channel.

With that, they can also sell their higher profit margin, proprietary range of dermatological products – Ceradan® in Guardian, Watsons, Unity etc. and TDF® in pharmacies located in hospitals.

Throughexclusive distributorship or licensing and supply agreements with brand principals mainly from Europe and the United States, the group also sells products likeStérimar® nasal sprays, Bausch+Lomb eye drops, in selected markets in the ASEAN region.

#2 Strong Financial Track Record

Apart from the superb 1st quarter 2020 results, the group has been steadily increasing its revenue and profits over the past 5 years as seen below.

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Components of Passive Income

Components of Passive Income

According to Wikipedia, “Passive income is income resulting from cashflow received on a regular basis, requiring minimal to little effort by the recipient to maintain it.”

It is a source of income that most people in this world strives to achieve because of the attributes that I will be going through below.
Almost few people to none started off with having passive income as their first main source of income but this should become each and every single individual’s first choice source of income in the years to come.

Here, we’ll go through some of the components and traits of passive income and dissect why it is so special.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and has 2110  followers.

Component 1: High Effort Now, Low Effort Later
If you re-read the definition of passive income from Wikipedia in my opening paragraph, the key word that stands out is “minimal to little effort”.
This is probably one of the most, if not THE most singled out factor on why passive income is so attractive to many people who’s striving to achieve it.
But don’t get it mixed all up.
Low effort later does not means low effort put in the beginning.
In fact, it requires a huge amount of effort to start the ball rolling for the first few years until the system that you’ve built have become a giant on its own. Take rental properties for instance.

Rental properties can be a great source of passive income once you have invested enough money into the properties and get the rental up and running. There might be a few maintenance works or administrative paper works that as landlord you might still have a role to play at times, but the amount of time spent comparatively to salaried workers working is mostly negligible.

The high efforts in this case allude to the amount of capital that you have to save up over the years before being able to afford your own investment property.

Component 2: Physically Discretionary
There is a quote from the famous Warren Buffet that says “If you don’t find a way to make money while you sleep, you will work until you die”.
I’ll do a follow-up to that piece of advice by adding “Count your ROI while you sleep until it’s worth a positive number”.
The idea behind this quote is basically saying that you don’t have to exchange your physical time for money for it to be worth. Built a system such that you’ll continue to get paid even while you are resting, eating or even sleeping.
This is almost not possible for salaried blue or white collar workers because they actually have to turn up to office or sites from 9 to 6 in order to get an exchange for their pay-check.
It’s okay to have this as a starting point as most people did (including myself) but the system has to gradually switch gear.
Okay, we’ll exclude the anomaly of current existing situation because everyone is equally WFH-ing.

Component 3: Regular Basis

The third component of passive income is to have the source coming in on a regular basis.
I wanted to say this usually happens regardless of rain or shine but again the anomaly of the pandemic we are facing today throw this into uncertainty.
For example, we’ve seen some companies in the retail or hospitality sectors that are slashing or deferring their dividend payout to shareholders because they wanted to conserve some bullets to weather the storm.
Nevertheless, when things return to normalcy, strong companies should see a return of their fundamentals and dividend payout should also return back to the norm.

Conclusion
Passive income is probably one of the most exciting project in my lifetime that I’ve managed to figure out early in my career.
For all the plus and minuses, I like what it has to offer in terms of predictability, stability and liberty for freedom.
It’s probably a concept that I would be teaching my own children too in future because I wanted them to rationalize this concept as an option when they grow up and start their career.

Thanks for reading.

Once again, this article is a guest post and was originally posted on 3Fss profile on InvestingNote. 

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

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Suntec REIT’s Annual Report 2019: A Quick Summary

Suntec REIT’s Annual Report 2019: A Quick Summary

Some insights of Suntec REIT’s portfolio, Tenants and Net Property Income from their annual report and key pointers to take note.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 886 followers.

Fountain of Wealth – Suntec City , Singapore | PLACES-CITY

 

Suntec REIT (SGX:T282U), another long-term investment of mine, released their annual report for the financial year ended 31 December 2019 last Thursday (09 April 2020.)

I have gone through the report, identify key pointers to take note of, and am going to present them in today’s post for the benefit of those who do not have the time to go through it:

Suntec REIT’s Key Figures in FY2019 at a Glance:

  • Net Property Income: Decreased 2.0% year-on-year (y-o-y) to S$236.2mil due to the sinking fund contribution from Suntec City upgrading works (excluding it, the Net Property Income would be 1.3% higher y-o-y)
  • Distributable Income from Operations: Increased 3.9% y-o-y to S$236.7mil due to increase in contributions from Suntec City, Southgate Complex (Australia), MBFC properties, and contribution from 55 Currie Street (Australia)
  • Distributable Income to Unitholders: Down by 1.5% y-o-y to S$262.7mil as increase in distributable income from operations was offset by lower capital distribution
  • Distribution Per Unit: Decreased by 4.8% y-o-y to 9.507 Singapore cents/unit due to the enlarged unit base and lower capital distribution
  • Portfolio Occupancy: 98.7% (office), 99.1% (retail)
  • Aggregate Leverage: 37.7% (31 December 2018: 38.1%)
  • All-In Financing Cost: 3.05% per annum, with approximately 75.0% of their debt fixed or hedged
  • Weighted Average Debt Maturity: 3.1 years

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Most Traders Will Tell You To Stay Away From Indicators (Guest Post)

Most Traders Will Tell You To Stay Away From Indicators (Guest Post)

Learn how to switch gears and use different indicators for different market conditions. Indicators are a derivative of price. They simply indicate to you what has happened, not what will happen. So you’ll never be a profitable trader if you solely rely on trading indicators to make your decisions.

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with username known as Rayner and has 329 followers.

Volatile stock markets are an option trader's dream — here's how ...

Most traders will tell you to stay away from indicators.
They give you reasons like:
  • It lags the market
  • It gives you late entries
  • It can’t predict what the markets will do

Nope, those are excuses.

Want to know the real reason why traders lose money with indicators?

Here’s why…

You got conned into the “indicators game”

Many traders don’t know how this game is supposed to be played.

They believe the answer lies in the “right” combination of indicators that will make them rich.

So they buy the latest trading indicators to help them crack the code.

And after many failed attempts, they wonder why they lose money with trading indicators.

Do you want to know why?

Here’s the truth…

Indicators are a derivative of price. They simply indicate to you what has happened, not what will happen.

So, no matter how many different combinations you try, you’ll never be a profitable trader if you solely rely on trading indicators to make your decisions.

Trading indicators are meant to aid your decision-making process, not be the decision-maker.

Trading indicators: Do you make this mistake?

Look at the chart below…

Now, you might be thinking…

“Look how strong the signal is.”

“All three indicators are pointing in the same direction.”

“The market is about to move higher.”

Sorry to burst your bubble.

But that’s the wrong way to use trading indicators.

Why?

Because the RSI, CCI, and Stochastic indicator belong to the same category (otherwise known as Oscillators).

This means the values of these indicators are calculated using similar mathematical formulas — which explains why their lines move in the same direction.

So don’t make the mistake of thinking a signal is “strong” because multiple indicators confirm it. Chances are, they are indicators from the same category.

You blindly copy what others do

Here’s the thing:

There are profitable traders out there who use indicators in their trading.

And you’re probably thinking:

“Since they are making money with these indicators, why don’t I just copy them?”

So, that’s what you do.

You follow the same indicators, settings, instructions, etc.

But, you still lose money with trading indicators.

Why?

Because what you see is only the surface, not the complete picture.

Here’s an example:

Let’s say Michael is a profitable trader who relies on trading indicators to time his entries and exits.

Now, the reason why Michael finds success with indicators is not that he found the “perfect” settings or whatsoever.

Rather, it’s because he knows how to switch gears and use different indicators for different market conditions.

So if you were to blindly follow what he does, then when the market changes, your trading indicators will stop working and that’s when the bleeding starts.

 

How professional traders use indicators (it’s not what you think)

At this point, you’ve learned that trading indicators shouldn’t be the basis of your analysis and why you shouldn’t copy other traders.

So now the question is, how do you use trading indicators the correct way?

The secret is this…

You want to classify trading indicators according to their purpose, then use the appropriate trading indicators for the right purpose.

So, what’s the purpose of trading indicators?

Well, you can use them to:

  1. Filter for market conditions
  2. Identify areas of value
  3. Time your entries
  4. Manage your trades

Let me explain…

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What You Should Do if You Lost Your Job Or Lost Your Income Temporarily (Guest Post)

What You Should Do if You Lost Your Job Or Lost Your Income Temporarily (Guest Post)

Which direction should you take, the urgency of how you should perform things, will depend on how great or how dire is your current situation. Here are some things that you need to evaluate…

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with username known as Kyith and has 967  followers.

How prepared is Washington for a recession? - Lens

I started work after we came out from SARS in 2004. So I have been through the mental aspect of not knowing if you have a job when you graduated from university.

2008 was different in that I was already working but in my old company, the email will announced new hires every week.

This COVID-19 thing is a bit different. Not sure if it is because as an almost 40 year old, there are more people being furlough or retrenched.

I have not been retrenched before. Friends have shared with me that my old place is an iron rice bowl.

In the current workplace, we are doing OK, at least for now.

I am not going to be that guy to tell you what you should do.

I have read a few stuff out there and while they point you to resources such as the Ministry of Manpower, what are your rights, where to get support aid, they do not show you money-wise how you should pivot.

I came across some of these stuff in podcasts in the past. I think they might prove useful for you at this time.

  1. A part of the content explores what you should do if you are laid off.
  2. There is also the part of the content where you are not laid off but you need to fortify your work position.
  3. Lastly, there is a little bit exploring about coming up with backup plans

Let’s minimize on flowery words and get straight to the content.

Take Stock of Your Current Situation

Which direction you should take, the urgency of how you should perform things, will depend on how great or how dire is your current situation.

Here are some things that you need to evaluate:

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Possible Movements of 30 Blue Chip Companies in the Week Ahead(between 13 – 17 April 2020) (Guest Post)

Possible Movements of 30 Blue Chip Companies in the Week Ahead(between 13 – 17 April 2020) (Guest Post)

If you have been following my weekly posts, you probably would be aware that I’ve mentioned before that, should the STI for the week closed above 2,560 points, we could see a possible change in trend.  That said, is an uptrend in sight? In my post today, I’d be sharing with you my personal thoughts on how the STI, as well as all the 30 blue chip companies’ share price may move in the week ahead based on a weekly timeframe…

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 858 followers.

If you have been following my weekly posts on the possible movement of STI and all 30 blue chip companies’ share price movements, you probably would be aware that I’ve mentioned before that, should the STI for the week closed above 2,560 points, we could see a possible change in trend (from a downward moving one to an upward moving one.)

When trading for the week ended last Thursday (09 April 2020), STI was at 2,571 points (above the 2,560 points.) That said, is an uptrend in sight? In my post today, I’d be sharing with you my personal thoughts on how the STI, as well as all the 30 blue chip companies’ share price may move in the week ahead (between 13 – 17 April 2020) based on a weekly timeframe…

 

1. Straits Times Index
Straits Times Index’s Movements on a Weekly Timeframe

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Mapletree Commercial Trust – Why Did I Invest in the Blue Chip REIT? (Guest Post)

Mapletree Commercial Trust – Why Did I Invest in the Blue Chip REIT? (Guest Post)

Mapletree Commercial Trust had been in my “shopping list”, and a drop in its unit price of late presented a golden opportunity for me to add it to my long-term investment portfolio – which I did last Friday (03 April 2020) when the REIT’s unit price fell to my intended entry price of S$1.57.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 834 followers.

Where to shop in Harbourfront and Sentosa - Visit Singapore ...

 

Mapletree Commercial Trust (SGX:N2IU) was one of the “casualties” of the ongoing Covid-19 outbreak in Singapore, where its unit price took a huge tumble by 34% at the time of writing (it fell from its 52-week high of S$2.48 to S$1.64.)

This “blue chip REIT” had been in my “shopping list”, and a drop in its unit price of late presented a golden opportunity for me to add it to my long-term investment portfolio – which I did last Friday (03 April 2020) when the REIT’s unit price fell to my intended entry price of S$1.57.

In my post today, I will be sharing with you reasons why I’ve invested in the REIT.

Let’s get started…

 

Brief Introduction to Mapletree Commercial Trust

Mapletree Commercial Trust was listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 27 April 2011, and subsequently joining the benchmark Straits Times Index (STI) on 23 September 2019 (taking the place of Hutchison Port Holdings Trust.)

At the time of writing, the REIT’s properties in its portfolio are all located in Singapore, and they are:

  • Vivocity
  • Mapletree Business City
  • PSA Building
  • Mapletree Anson
  • Bank of America Merrill Lynch Harbourfront

 

Historical Financial Results of Mapletree Commercial Trust between FY2011/12 and FY2018/19

One of the first things I look at before I invest in any company or REIT is to first study its historical financial results (for at least the past 5 years.)

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The F.I Mainstream Movement Is Fueled By A Crisis Like This (Guest Post)

The F.I Mainstream Movement Is Fueled By A Crisis Like This (Guest Post)

Many businesses closing down their operations or shutting down due to worldwide lockdown. Many employers and employees from the Travel, Entertainment and Aviation industries were severely disrupted and hit by the crisis that they either have to retrench their staff headcount or staff has to take on unpaid leave.

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with username known as 3Fs and 2078+ followers.

For Emerging Markets, 2015 Isn't 1997 - WSJ

I started writing articles in this blog barely a few months after we’ve endured one of the Great Financial Crisis back in 2009.

I was barely into a few months of working when the great financial crisis and recession hits the world and I recalled the shockwaves hit the entire population hard. People lost their jobs and many were retrenched without package to compensate for their loss. Many businesses had to shut down, some bigger ones had to downsize because of the scale of the crisis and credit liquidities plunge as banks, enabler for businesses, struggled to stay afloat.

I was fortunate to have kept on my job throughout the duration of the crisis. The only thing that probably impacted me was the salary increment that was freeze and bonus that was scrapped. It sucks especially after enduring a year of hard work but it was still better than the wider population out there who had lost their jobs.

When people lost their jobs, they lost their main source of income. This is bad because not only these people have to cope with losing their cash cow but they also have to cope with the existing expenses that remain on the table such as mortgages, car loans, credit cards, utilities, food on the table, and children’s education.

Most of these people either do not have emergency funds or other sources of income that could help them tide through the crisis. In short, they were unprepared by the shock and were left hanging by a thread facing unprecedented crisis that could impact their entire years of hard work and sustainability.

Because of such unprecedented shock in the economic cycle, I began to join the F.I mainstream community by writing articles and meeting with alike minded people, who believes in the same ideology of achieving financial independence over time.

Financial Independence is not simply just about having sufficient passive income (mostly through the dividends or rental income derived from our investments) covering our daily expenses.

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Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio (Guest Post)

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio (Guest Post)

Some insights about UOB ’s historical financial performance, along with its dividend payouts to shareholders over the years and many more.

This post was originally posted here. The writer, Jun Yuan Lim is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 797 followers.

 UOB launches high street branch model at Faber House targeting ...

Why Did I Add UOB (SGX:U11) to My Long-Term Investment Portfolio

With my investment in UOB (SGX:U11) on 06 March 2020 at my intended entry price of S$23.26 (based on this entry price, and a dividend payout of S$1.30/share in FY2019, my dividend yield is 5.6%), I now have all 3 Singapore banks, plus another financial institution in Hong Leong Finance (SGX:S41) in my long-term investment portfolio.

In my post today, I would like to share with you reasons why I’ve invested in the bank…

 

Brief Introduction to United Overseas Bank

Before I talk about the bank’s historical financial performance, along with its dividend payouts to shareholders over the years, let me first a quick introduction about the bank.

Besides Singapore, UOB has more than 500 branches and offices in 19 countries (Australia, Brunei, Canada, China, France, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand, United Kingdom, United States of America, and Vietnam.)

 

Historical Financial Performance of UOB over the Past 10 Years

Before I put my hard-earned money into any company, I will need to make sure the company fulfils some criteria – one of which is an improving set of financial results reported by the company over the years.

In this section, I will be sharing some of the key financial statistics reported by UOB over a period of 10 years (between FY2010 and FY2019):

Net Interest Income, Net Fee & Commission Income, and Other Non-Interest Income:

UOB’s “Total Income” comprises of 3 business components – (i) Net Interest Income, (ii) Net Fee & Commission Income, and (iii) Other Non-Interest Income.

Let us now take a look at the performances of these 3 business components between FY2010 and FY2019:

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