I’ve been reading some short articles (from Motley Fool Singapore) which I thought were quite useful both as an educational article and as a reminder for myself. I thought I’d share some of them here. The articles below contain topics of interest to my portfolio and to my investing strategy.
The author refers to Singtel’s FY2018 Q4 financial results to assert that the fall in stock price was due to poor financial performance by Singtel. I think that the author raises relevant points about Singtel’s recent financial results. However, I think the long term growth prospects for Singtel still remain strong (refer to my blog post for info) and the problems mentioned in the article will only affect a small (but not insignificant) part of Singtel’s business. Personally, I veiw this as an opportunity to accumulate more shares of Singtel. Currently, Singtel takes up about 12% of my portfolio and I am willing to hold more of this business in future.
The 2 risks were “Weakening performance in Singapore” and “Negative sentiment”. The author cited falling revenues and EBITDA in Singtel’s Singapore Consumer segment for the first risk. The author cited the impending 4th telco TPG Telecom as a reason for the second risk. These are very real concerns for the business fundamentals. However, note that both these concerns relate only to Singtel’s Singapore business and I think that Singtel has been able to diversify geographically such that only a small % of Singtel’s Group revenue comes from Singapore. Also, considering the success in their Enterprise and Digital segments, I am still optimistic about Singtel’s long term prospects.
The author is pessimistic about LMIRT’s prospects and points out some near term problems that LMIRT is facing, specifically the new tax regulation and the forex weakness for IDR. This is precisely the reason for my hesitation in buying into the company (I do not own any shares of the company in my portfolio despite my positive thesis about the company here). I will continue to monitor the effect of taxes on the company’s income before making any further decisions.
Keywords: NPI, distributable income, property yield (cap rate), gearing, interest coverage ratio, occupancy rate, shopper traffic & tenants’ sales, FFO & AFFO.
Keywords: valuations, price-to-FFO ratio, cap rate, price-to-book ratio.
Raffles Medical (for consideration)
Ascendas REIT (for consideration)