Random Brag:How About 30% annual Yield for a reit?

For those who click on this post for the first time because of the heading title, you will be disappointed if you are looking for a Gem or detailed analysis. It is just a simple bragging exercise, and most importantly, I am really curious if sensational headings really do increase click counts (I am not hard up for ad rev, but really curious looking at some headings from some bloggers at aggregated site)

The Reit I am talking about here is A-reit.

The annual yield include the trading gains of buying and selling and buying back again plus 1 year of dividends received.

OK, before my "regular readers" get really pissed off. A lesson learnt is really buy for sustainability of yield and not just yield.

I bought Sabana at yield of perceived  9% and was elated when they announced their Chai Chee acquisition! Wow! With growth driver through acquisition available, I am looking at 10% yield even if positive rental revision is not achieved and 1 or 2 tenancy become multi-tenanted and occupation rate slightly increase. It seems like a stock way undervalued with plenty of MOS.

In the end, you know how the story goes, the placement to fund the acquisition is at a rather  hefty discount and Chai Chee is 50% occupied only (Faint!), and they only managed to renew one master lease (The smallest building).

After this saga, I look at track records, and bought into Acendas Reit, one year ago at September, It was trading at a yield of 6.5% only but I bite because I like the prudence in capital management and its predictable track records of placements (at reasonable discount) to fund acquisition and all of it are yield accretive except for 2009.

When I saw the most recent reports of Ascendas and Sabana again, it further reinforced 2 points. Buy track records than perceived good yield. You are paying your own dividend when capital loss happen when market re-rated the counter for it reduced distribution. That Sabana has so many master leases up for renewal and none with a deal yet, the probability for reduced distribution is very high. If a building is close to full occupancy, there is little reason for a master tenant not to renew its lease so close to the expiry unless it has no plans to do so. A valid counter-argument could be Sabana is bargaining very hard for a higher positive renewal rate. But if you look at management quality, pace of occupancy being filled and most importantly track records, you can easily come to a conclusion if the odds are tilt to your favor.

Now, I was having second thoughts on Ascendas due to its large size, and acquisition of  1-2 buildings will hardly make a dent to its distribution. But as luck have it, the recent market volatility allowed me to collect it again, and I am glad I did, since thereafter it made a big buy at Australia. Management has guided that it will be yield accretive and I decide to trust track records. Although there are views in forum that it is the sellers that get a better deal, I am not concerned as long as distribution improve. From what I read about the acquisition, with its blue chip tenants, and locked in positive rental renewal, chances of a nasty surprise is not high in my humble opinon (Barring unfavorable currency movement ), Best of all, they did not use placement to fund this acquisition anymore, and the odds for yield accretive purchase after cost of acquisitions quarter (1-off) is rather high.

The biggest renewal rate came form business park, and the edge newspaper reported that JTC mentioned the fall in occupancy rate is greater in business park today. What good timing if you asked me, but I believed it also mean going forward we can expect little or no more such pleasant surprises. 

Also, least we get carried away by the strength of improvement of distribution, take note that:

"Included in the total amount available for distribution and DPU was a one-off distribution of taxable income from operations of S$6.5 million (DPU impact of 0.271 cents) for 1H FY15/16 in relation to a rollover adjustment from prior years arising from a ruling by IRAS on the non-deductibility of certain upfront fees for certain credit facilities incurred in FY09/10. The table below illustrates the impact of the rollover adjustment on both the amount available for distribution and DPU"

That is also one -off, and if you take that off, operating results is reasonable good but nothing to shout about.

Another quality industrial reit will be Mapletree Industrial Reit with its growth from BTS and funding of acquisition thus far through cash saved from dividends reinvestment by SH. Capital commerical trust has several things going for it too, but I might not want overexposure to reits and trusts

Only problem is the high valuation above NAV will put a cap on its capital gain prospects.

OK. you can throw your eggs now ...

Random thoughts: what is the theme of your reframing

We reframe to see things from a different angle. The advantages of it are numerous, I might not see something as a "problem" as compared to someone else. 

I have been going through this process numerous times, until I realize there generally 3 themes behind all reframing exercises.

1) compare to others who are worse

2) looking into the future 

3) philosophy, or religion learning

However, reframing need something in order to work, whatever theme u use.

Denial or acceptance.

I realize I have been in denial that I hate my current work. I wake up and it became a drag to go to work EVERY morning. 

It is only after comparing myself during the PSLE marking week where i simply move on to "work" and today that I realize it.

It is confusing because I love teaching and how could it be that I hate my work at the same time. That's why the denial stage went on for so long 

It is true. The tell-tale signs are there all along, I am not accepting it, therefore the reframing is just an act of denial. 

Can I do something about it? Of course! Reframing part 2! But I am not ready to.

I think accepting it will allow theme 3 of reframing to work better. 

So, is there a better way to "trick" the mind? LOL. 

Again, I went through the lesson of "what I wanted" with my Graduating class since  they are very free now. Strange no one says they wanted riches. Maybe they want to be politically correct or they have "awaken". In fact, most of them have the same mentality of buy one get one/ more free like adults ( u and me)

"If I have luck, I will have everything, also money etc." the only girl that chose health is the one that had a hole in the heart, but again her answer is like "I have health, then I can do whatever I like and get wisdom" still buy one get one free

I shared with them the serenity prayer and told them I used to want wisdom, but wanted courage to change things now. I told them what we wanted changes with time. 

How fast I change my mind. Now I wanted serenity to accept ... LOL

Random thoughts: what does "done my best" means?

I think we heard the sentence "I have done my best" rather frequently.

What does "best" entails?

Perhaps the opposite of doing best for something is doing something "effortlessly", and most of the time, the domain is in "efforts" not "results"

So, it is not actually a good thing to hear this sentence. It is used either as a explanation or excuse, the difference behind them is The validity of the reason.

So what is best effort?

Usually it means discomfort or even pain has already set in in the pursuit, or something is already sacrificed in that pursuit and a significant tradeoff has taken place.

However, everyone has a different threshold of pain and that boundary can be pushed. So best can be "more best" if one is willing to sacrifice more and endure more "pain"

The problem is it is not easily sustainable but without doing "best" we don't push our boundary and threshold.

And every "best" shot is like a marker, makes us pause and think: should I go on like this, and is the trade-off worth it.

We all have a choice. The choice might not be available to us immediately or in the short term.

But if i think about it, there is no such thing as we have done our best, u less we are talking about the immediate present. 

Have u done your best for the day? I think I did. Have I done my best as a son, or father? I will only know years later. 

Random thoughts: too iron-teeth in my work?

There is plenty of well-intended advices at my work. Being new to my role, many told me I need to be firm and is "too nice". My boss told me I didn't communicate enough.

The weird thing is: 

1) when I am reflecting how I can do my job better, there were many things which I thought I could have do better, but no one said anything about those,except one. He is a officer from my department.

2) those which are my core values, I do not think i will shift anytime, many have a opinion. LOL

The first thing which I find irksome is "calculative". I do not believe in taking someone for a ride, but I do think we can never be "fair" in workload. 

Having to manage that part is rather "bo Liao" and I felt my limited energy can be better served somewhere.

I made some arrangements on my own so that my staff who got less "rest time" will be "compensated" before they start their work in the afternoon. 

I was called in to my bosses "Twice" to explain why I make those arrangements and that I am making things difficult for my fellow colleague who did not make those arrangements. I explained and I said I understand where they are coming from, but seek their understanding in my decision. Inside me, I am screaming " BULLSHIT, that U did not care enough for your people is your bloody business because they are not under my charge, instead of asking me to lower my standards u should bloody reflect yourself"

I realised many, including, myself, seriously need to go to the lake and see their reflections, and if they are ugly, should put their head into the water and cool Themselves off. 

I am guided by this simple principle, I am not dogmatic in my approach as long as I can get past on this simple value.

First,

I am

Most importantly a human, I tried to be kind whatever I could as long as my kindness do not lead to

Negative consequences. And no, that my way of doing makes people compare unrealistically is your bloody problem

Next, I am a teacher, then a HOD. As long as the heart is with teaching and pupils, I can forgive all. And I hope my staff forgive my lack of adminstration competency too. 

Seriously, I am rather iron-teeth when those two principles are concerned. I wondered aloud if one day I am thrusted to the private world, will I survive?

Let's justs allow me to indulge and live with those 2 values I hold dear, and if I cannot survive here, then let me trade those useless values for the next pay cheque.

Don't tried to persuade me now. I find it full of shit when u claim u are trying to teach me when I felt u are hardly really more competent. 

Random thoughts: a old movie snippet moved me to tears

48min to 53 min

2 years ago, I saw the snippets as part of the MTV by 王杰，couldn't controlled my tears...

Today, again just randomly listening to the songs and saw that snippet again, feeling emotional, but this time round, there is the ending to go with it, and I burst out in tears again....

No movie moved me to tears for a decade if I remembered...

For those who might have forgotten how it feels to cry...

Random teaching reflection: Differentiated Instructions

There is this inherent struggle in the pass when I think about differentiated instructions (DI) for kids.

At the end of the day, every pupils sit for the same exam, so how can we "short-changed" our pupils by giving them different materials (differentiation in products)

The reflection was the a base-line need to be established first, and then we allow pupils to learn "more" at their own pace.

Now, after teaching a different profile of pupils for a year, I realised I cannot wait for the "base-line" to be established.

I taught in a boys school, and now in a co-Ed school. Girls, who matured earlier, are generally more focused and hardworking. After 1 year of "drilling", most of them could memorized the "good lines" and is already learning the way to apply them and combine them for writing of a ending etc. some of the pupils have problem remembering how to write the words even at the eve of PSLE.i went through with the weaker pupils one by one, identifying the words they had problem "spelling" and make up stories for them  to remember. 

I wonder the reason I didn't do that earlier was because I knew the girls who already learn the words will be "bored to death" for this lesson. 

I could have ask the girls to complete some tasks while I guide these weaker pupils one by one. 

Differentiation by process, now no longer is a textbook concept but a need in the classroom. 

Pitching it at the middle no longer work when the class has a wide diverse pupils of different abilities. 

We have been looking at differentiation at product since it has been the easier way to go about it. Different worksheets and notes for different pupils. 

The difference should not be just about having "more" or "less" or having a "simplified" version. 

We should allow the Higher progressing pupils to analyze and create and not frame their mind to just write a "good" essay.

----------------------

Back to writing, I wonder why do we write?

The easy answer would Defintely to be able to communicate and interact with others.

Is it just words and grammar that is needed to "interact"

Blogging makes me understand there is Defintely more than that.

Interaction required a "voice" as much as the form. I have been teaching the "form" because the "voice" is not in the syllabus.

It is the "voice" that calm yourself when u are writing a diary, it is the "voice" that allow your readers to "relate" to u. 

Random thoughts: My parents...

I remembered doing a bucket list years ago, more for fun and reflecting on the things I want to do. 

My sister told my mum her conditions and ask if she has anything she wants to do. 

She said she only has 2 wishes.

One, see all her 3 children through university which is already fulfilled.

Two, to die while sleeping.

So simple, isn't it? Hardly a list if u ask me. But the second wish, we will have to leave it to God/ Buddha or Karma... 

I was having a conversation with my sis as I drove her to see her client, she told me that although mum has this condition, it is good that there is still time for us to be with her, and prepare for eventuality. She told my sis she wants a Buddhist send off and my dad chips in that he wants a Taoist send off. 

I couldn't join them for a November vacation as school is still on. I suggested an earlier staycation at Sentosa and my mum ask to see the "free" water fountain musicial, (one of the few childhood mermory of family getaway) I told her it is no longer there and "free" and has become a more elaborated show with pyrotechnics and special effects, but we need a ticket. We will go see that nonetheless. My mum ask what time, I told her we will go relax at sentosa and stay a night there, my dad exclaim hotel rate there is 400 a night. I told Him not to worry, but he said it's expensive. My mum told him off and said "your son wanted a night with us, stop lamenting about money", just 6 months ago, it would be my mum saying it is a waste of money. Yes, my dad is the more outgoing guy. 

Recently, I start to think a lot about my mum than in my entire life. I am

Closer to dad all these while, and find my mum irksome, and "without substance", It remained me on the prose"背影”by 朱自清. Yes, my mum can't really hold a conversation with me even until now, but she is surprising a "woman of steel" in the way she coped with her illness. 

I look up to my father in his way he get on his work to send us through our education, no matter how tough it is, now my mum earned my respect on how to cope with cancer, and how even though the cells might have spread, is still positive about life. 

Life is a struggle. The struggle can be beautiful or a pain. It's the man/ woman behind the struggle that makes a hero or a coward.

My parents are my heroes, no matter how "uneducated" they might be. They only had primary 2 education.