The "Gems" of 2016 reviewed in 2017.

In 2016, I shared investment ideas on 3 stocks and we are going to review them today.

#1 Cache Logistic Trust - Mar 16

Then 0.840... Now 0.815.

What has changed?

Cache Logistics Trust dragged into tenant's rental dispute with logistics giant Schenker

Cache Logistics Trust ditches Changi warehouse for $25.5m 

Cache Logistics Trust's Q4 DPU down 10.8% to 1.85 cents

How is it doing in my portfolio?

Fully divested in July 2016 (@0.870) after I was aware of the rental dispute. Not planning to reinvest given current performance of the reit.

#2 ARA Asset Management - Apr 16

Then 1.160... Now 1.720.

What has changed?

BRIEF-ARA Asset Management announces joint proposal to privatise company

How is it doing in my portfolio?

Fully divested in November 2016 (@1.705) & December 2016 (@1.695) after its price shot up from the privatisation offer announcement. The offer is at 1.780 but there is risk that the offer might be rejected by shareholders. 

#3 Frasers Centrepoint Ltd - May 16

Frasers Centrepoint Ltd - Jul 16

Panote, CEO FCL

Charoen, Chairman FCL

Then 1.640 in May & 1.505 in Jul... Now 1.640.

What has changed?

SGX-listed Frasers Centerpoint buys 40% stake in Thai developer TICON for $378m

Frasers Logistics prices Singapore IPO at top end of range, to raise S$903m 

How is it doing in my portfolio?

Never sold any of FCL before, current average price is 1.565. Attended the latest AGM and my confidence in FCL is stronger than ever. The board recommended the same FY dividend again. I believe they are trying to build a stable track record for dividends payout. TICON will be a superb platform to tap on a growing demand for logistical assets in Asia. I wish to hold long term.

Thank you for reading.

ARA Asset Management: Updates from the AGM April 2016

If you have not read my last Investment Idea post, follow the link.

Updates from the latest AGM

Stable business

1. The board of directors are rather confident in the company, some have bought shares recently using their own money.
2. CEO assured that core business is REIT management, which generates recurrent income unless ARA loses position as manager.
3. Has been overperforming in terms of Assets under management (AUM) growth, vision to hit 40 billion AUM in near future, which CEO deem is world-class.

Drivers for growth

1. Trend that money from within South Korea, China and Hong Kong are moving out of  their country for investments. ARA is benefiting from this trend with their private funds set up in these countries.
2. Currently also making progress in Australia using the same strategy.

CEO's reply to query on last rights issue

Image source: forbes.com

1. The funds raise are not to clear debts but expansion.
2. Used as seed capital in REITs and private funds.
3. Seed capital is relatively low at <2% compared to competitors' 4%.
4. If never raise capital, would be to cut dividends.
5. ARA is asset-light company, so does not enjoy easy loans from banks.

Guidance on dividends

Image source: nasdaq.com

1. CEO admits that payout ratio is high but is committed to maintain 5cents per year for dividends.
2. The Board will consider shareholder's suggestion of scrip dividend option, where dividends are paid in terms of shares.

Investment Ideas (April 2016) - ARA

ARA Asset Management (D1R:SGX)
D1R Google finance Summary
Current price: 1.16
Expected Dividend yield: 4.3%
Trading plan: Buy and hold long term @ below 1.10

Background

ARA Asset Management Limited (“ARA”) is a premier integrated real estate fund manager in Asia. It manages familiar names like Suntec Reit.


Why I buy?

1. Gives exposure to reits 
2. Stable and sustainable dividends at $0.05/year 
3. $1.00 is psychological support level. Plus that is also the price of the latest rights issue 
4. Last FY results was a bit of a confidence booster amidst the equities selloff in Dec-Jan.

Disclosure: Already vested below 1.10, am looking to increase holdings should it fall below 1.10 again. So, if you are new to this counter and current price feels good to you, feel free to go ahead and buy. There is much potential for upside for price. DBS set a TP of 1.5X early this year.

That's my investment idea this time round, DYODD.