Yesterday evening, VICOM Limited (SGX: V01) released its 2018 full year earnings update. The company is a leading provider of technical testing and inspection services in Singapore. Here are some key takeaways from VICOM’s latest results announcement: 1. Revenue for the full year was up 3.1% from S$97.0 million in 2017 to S$100.1 million because of higher business volumes. 2. Total operating costs increased by a lower rate of 2.3% from S$66.6 million to S$68.1 million, as several categories of expenses – such as repairs and maintenance and contract services – declined. The declines were partially offset by higher utilities and communication costs. 3. During the year, there was S$7.7 million recognized as a net gain on the surrender of the lease of a property at 18 Teban

Every investor loves dividends, as this represents a direct cash inflow into an investor’s pocket. Inevitably though, there will be times when investors experience a cut in the dividends. This may be due to various reasons which I will be discussing below, but the initial and expected reaction would always be one of disappointment. Investors should remember that a reduction in dividends is a fairly common occurrence and should not be taken as a sign that things are necessarily wrong. Deterioration In Business Prospects The most scary situation for an investor is when a company slashes its dividend due to a deterioration in business prospects. This may be due to stronger competition, higher expenses which impact profits, a decline in cash flow due to lower business volumes, or custome

It’s Chinese New Year, which not only means lots of food and plenty of socialising but probably a game or two of cards, too. Playing games of chance amongst friends and family over the festive holiday can be a great opportunity to forge closer bonds. Nobody really minds too much whether they win or lose. It’s all in the name of a bit of fun. But gambling in professional establishments, such as casinos or at the racetrack, is a totally different matter…. …. I have had many people tell me that buying shares is no different to playing blackjack or roulette in a casino. How wrong can they be? When we gamble, there are by necessity, winners and losers, where money is transferred from losers to winners. That’s because gambling is a zero-sum game. Someone must win. Somebody has

Whenever a topic on investment is brought up, many people automatically assume that it involves a lot of numbers. This is a natural instinct as accounting is the language of business, and financial statements basically tell investors everything they need to know about the state of the company and its financial health. Investors who may not be numerically-inclined may be put off by this assumption as they may feel that investing is tough to grasp. However, I would argue that investing is more than just numbers; in fact, it involves a study of facts, people and also one’s own psychology. The Quantitative Aspect Of Investing Investing involves several key aspects, and the quantitative aspect is the most prominent of all. As mentioned, investors rely on financial numbers, ratios and metr

It’s always tough to come up with an investment idea, even if stocks, in general, appear cheap. There are many factors to analyse, and understanding and evaluating the business is just the first step. With such a large universe of stocks out there, how does one go about filtering them such that you only focus on ideas which may be viable? Here are three effective methods which I use to screen for ideas. Screen For Stocks Hitting 52-Week Lows The website of our local bourse has a StockFacts section which allows investors to screen for companies with certain attributes. The screen allows one to filter out companies which have recently hit their 52-week lows in share price, and though some of these declines may be totally justified, there is a possibility that the baby has been thrown

It’s a holiday-shortened trading week with the Singapore market closed on Tuesday and Wednesday for Chinese New Year celebrations. No Straits Times Index (SGX: ^STI) are pencilled in for results next week. But on the economic front, the US is expected to post another yawning deficit in its balance of trade with the rest of the world for November. The October deficit was already the highest in 10 years. China will be on a very long break as the country comes to a virtual standstill for the Chinese New Year celebrations. But it will provide a glimpse into its foreign reserves, which are expected to be a healthy US$3.06 trillion. The Bank of England will announce its latest interest-rate decision. No change is expected, given the ongoing uncertainty over Brexit. The UK central bank will al

Mapletree Logistics Trust (SGX: M44U) and Mapletree Industrial Trust (SGX: ME8U) are real estate investment trusts (REITs) with a focus on industrial assets. The former specializes in logistics properties, owning 140 logistics properties around Asia and Australia. The latter owns a more diversified group of 86 industrial properties and data centres in the U.S. (through its 40% joint venture). Both companies share a common sponsor, Mapletree Investments Pte Ltd. Given that both REITs are exposed to the similar type of properties, investors might want to know which is a better buy now. To decide, I’ve put the duo to a test made up of three parts. In this article, I will focus on the first part: the track record of growth in distribution per unit (DPU) in the last five years (both REIT

As investors, we are bound to make mistakes, both in the judgement of a company’s prospects and quality, as well as how much we should reasonably be paying for a stake in the company’s future. Recall that I had encouraged readers to properly document their mistakes in an earlier article. The question now arises as to how investors should react when it comes to such mistakes – should they put more money into the position (in order to average down), hold the position and wait, or sell the position? Let us explore all three options. Doubling Down On The Position Doubling down is a term used in blackjack and refers to doubling your initial bet. In investing parlance, this means significantly increasing your position even as you are staring at a large unrealised loss. A logica

With the 90-day truce in the US-China trade war coming to a halfway mark, attention is now on the outcome of those talks. While the news so far appears to be indicating that the talks will end in a positive note, it is hardly a foregone conclusion. Things could still change in a swift if either party changes its mind. So, what happens if the US-China trade talks fall apart? Investors Takeaway: 3 Things To Do If US-China Trade Talks Go Wrong By DBS Stay Invested In REITs S-REITs managed to put in the second-best performance in 2H18 after healthcare. According to DBS, S-REITs should continue to garner investors’ interest as bond yields are still pressured by the Fed turning more dovish. The Federal Reserve’s previous guidance in December last year pointed to two interest rate hikes in

https://www.fool.sg/2019/01/23/is-first-real-estate-investment-trust-or-parkway-life-a-better-buy-now-part-3/https://www.fool.sg/2019/01/23/mapletree-logistics-trusts-latest-results-net-property-income-jumps-26/https://www.fool.sg/2019/01/23/2-reits-to-buy-in-2019/https://www.fool.sg/2019/01/21/is-first-real-estate-investment-trust-or-parkway-life-a-better-buy-now-part-2/https://www.fool.sg/2019/01/21/3-companies-paying-dividends-this-week-53/It’s earnings season again. Real estate investment trust (REITs) have always been one of the favourite investment choices for risk adverse investors due to its stable earnings qualities. In this article, I will look at two REITs that have lived up to their investors’ expectation by delivering positive performances in their latest earnings upda

Earlier this week, Mapletree Logistics Trust (SGX: M44U), or MLT, released its financial results for the third quarter ended 31 December 2018 (3Q FY18/19). As a quick introduction, MLT is a real estate investment trust (REIT) that owns 140 logistics properties around Asia and Australia. Here are 10 things investors should know about MLT’s latest results: 1. Gross revenue for the reporting quarter grew 23.0% to S$120.8 million while net property income jumped 25.9% to S$104.5 million. 2. Similarly, the REIT’s distribution per unit (DPU) was up by 5.0% year-on-year to 2.002 cents. 3. Based on MLT’s annualised DPU of 7.89 Singapore cents and its closing unit price of S$1.34 (as of the time of writing), the REIT has a trailing distribution yield of 5.9%. 4. As of 31 December 2018, th

In this article, we highlight two trade diversion plays that DBS recommends investors in 2019. Looming Danger Of US-China Trade War The ongoing trade disputes between the US and China will affect export dependent economies such as Singapore. Singapore’s manufacturing base is largely focused on high value-added intermediate products, and a large proportion is shipped to China for subsequent processing. However, as the trade war is largely bilateral in nature, there could be some degree of trade diversion, which could benefit Southeast Asia’s economies. Singapore is in a unique position given its regional hub status, a comprehensive Free Trade Agreement network and higher level of innovation and business sophistication. Being a regional shipping and financial hub, Singapore could also se

In this article, we continue to highlight another investment theme that DBS recommends for investors in 2019: Yield plays with growth potential. Investors Takeaway: 5 Yield Plays With Growth Potential By DBS ComfortDelGro Corporation The greatest concern about investing in ComfortDelgro Corporation (ComfortDelgro) is the impending full entry of Go-Jek. Go-Jek’s entry will create increased competition from the private hire cars on ComfortDelgro’s core business. However, DBS is confident that competition is unlikely to heighten back to the times when Grab and Uber were both competing in the space. Heading into 2019, DBS is forecasting positive year-on-year growth for ComfortDelgro, which may be surprising to some investors. DBS notes that ComfortDelgro has been showing positives signs of

There are many ways to find investment insights. Some useful ways are to screen for stocks or to look at a list of stocks near their 52-week lows to sieve out potential bargains. Studying what institutional investors have been buying or selling is another avenue. Institutional investors are typically large investment organisations, such as hedge funds, mutual funds, unit trust companies, sovereign wealth funds, insurance companies and so on. These investors tend to possess vastly greater resources than individual investors like you and me when researching stocks. Hence, it may be useful to keep a close eye on what they are doing, as a way to generate ideas. In this article, I will look at three Singapore REITs that have seen the highest net disposal in dollar value by institutional investo

Current Price on 28th Dec 2018 = $0.505Yield = 8.37%  Price-to-book Ratio = 0.985Assets per unit = $0.956Debt per unit = $0.443 (including current liabilities)Gearing = 46.4%Secured NAV = $0.513 (101% of trading price)ESR-REIT is currently my biggest holdings with about 329,000 shares worth about $166,000. It is earning me a monthly dividend of $1,100 which helps to pay a lot of my bills. This is because of the merger earlier with Viva Industrial Trust where most of my holdings in Viva Industrial Trust is converted to ESR REIT (and coupled with my original holdings). It looks a lot so may pare down but let's take a look at the statistics first.With a yield of 8.37%, it is quite attractive. In fact, REITs with similar size (Ascendas REIT, Mapletree Logistics Trust, Mapletree Indus

In the last two months, stock markets around the world have been falling as investors lost confidence in tech companies’ valuation. Moving forward, 2019 appears to be a year where stocks with solid earnings profile are going to thrive. According to DBS, there are three REITs with strong earnings visibility that are suitable for low-risk investors to position their portfolio in 2019. Investors Takeaway: 3 REITs With Strong Earnings Visibility For Low-Risk Investors AIMS AMP Capital Industrial REIT AIMS Amp REIT is a REIT that is predominantly focused on Singapore. AIMS Amp REIT has a diversified asset portfolio and attractive exposure to in-demand properties such as business parks and modern ramp-up facilities. With around 600,000 sqft of untapped gross floor area, it is one of the hig

Distribution per unit (DPU) growth is crucial when investing in real estate investment trusts (REITs). A REIT that can consistently increase its DPU will not only provide the investor with higher distribution, its unit price will likely appreciate along with the DPU growth. With that, here are two REITs that have increased their DPU in the last quarter. Frasers Logistics and Industrial Trust (SGX: BUOU) With a portfolio valued at A$3.0 billion, Frasers Logistics and Industrial Trust is one of the larger industrial REITs in Singapore. Its investment portfolio consists of 61 properties in Australia, 17 in Germany and four in the Netherlands. In the July to September quarter, the REIT managed to increase its distribution per unit by 0.6%. While a 0.6% increase may not seem like much, it is a

Against the backdrop of a rising interest rate environment, REITs seem to be one of the obvious losers. This is because REITs are asset-heavy investments that require high levels of leverage, borrowing substantial amounts of money to purchase properties that they subsequently rent out. Read Also: Increasing Interest Rates In 2018: Here Are 4 Ways Singaporeans Will Be Affected In Singapore, there are currently 39 listed REITs and a further nine business trusts (of which six are property related). On average, they have a debt to asset ratio of just under 35%. With rising interest rates, REITs will have to fork out more in interest payment, potentially reducing the distributions they can pay to investors. How REITs Have Performed In YTD 2018 To gauge the performance of REITs in 2018, we can l

It’s earnings season again. Real estate investment trusts (REITs) have always been one of the favourite investment choices for risk adverse investors due to their stable earnings qualities. In this article, I will look at two REITs that have lived up to their investors’ expectation by delivering positive performances in their latest earnings updates. The first REIT on the list is Ascott Residence Trust (SGX: A68U). As a quick introduction, Ascott Residence Trust is a REIT focusing on hospitality assets. Its sponsor is property giant, CapitaLand Limited (SGX: C31). For the third quarter ended 30 September 2018, Ascott reported that revenue grew 6% year-on-year to S$134.5 million while gross profit improved by 9% to S$64.2 million. Similarly, distribution per unit (DPU) was up by

Is Mapletree Logistics Trust Worth Investing In Now? What you do say to a growing property with a 6.4% yield in a growing industry? The post Is Mapletree Logistics Trust Worth Investing In Now? appeared first on Value Invest Asia.