They chose financial independence over home ownership.

This is somewhat extreme but watch how this Canadian couple chose financial independence over home ownership.  They are in their 30s and,...

Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.


"E-book" by AK

Second "e-book".

Another free "e-book".

Pageviews since Dec'09


Recent Comments

ASSI's Guest bloggers

Treasury China Trust: A chat with Nick.

Friday, September 3, 2010

While chatting with Nick earlier this evening in LP's cbox, he said that he is looking at Treasury China Trust (TCT). A trust to consider for passive income plus growth, perhaps? The following exchange is reproduced with Nick's permission:

Nick @ Home: Treasury China Trust is an interesting company to ride the property boom in China. I must study it more
Nick @ Home: Trading at 70% discount to its NAV......
AK71 @ home: 70% discount to NAV?!
Nick @ Home: Yea...despite owning 3 high quality assets
AK71 @ home: what's the gearing?
Nick @ Home: 35%
Nick @ Home: Debt: S$658 million. Asset: $1.94 billion
AK71 @ home: debt profile?
Nick @ Home: Debts was recently refinanced...mature in 2015
Nick @ Home: Interest expense will be halved
AK71 @ home: hmmm... nice yield?
Nick @ Home: DPU forecast is $0.05. They will use equity (profits earned from property sales last year) to fund dividend payout near term. Once their development projects come online, they expect cash-flow to triple.
Nick @ Home: From now to 2012, dividend payout ratio will be 80% after which it will drop to 50% to fund more development projects
AK71 @ home: very promising... sounds tempting
Nick @ Home: This year yield will be around 3%...I guess with the rising rentals and lower interest expense, DPU can rise in 2012, its development projects come online and DPU should increase significantly
Nick @ Home: But being a development trust, it has a growth element inside unlike a REIT
Nick @ Home: So its yield won't be high but it more growth potential since they can build and sell assets to other REITs haha
AK71 @ home: huge interest in the last 2 sessions
Nick @ Home: Yea...they announced that they renew their lease at over 8% higher rates
AK71 @ home: short term overbought but very strong momentum...
AK71 @ home: $1.60 is resistance turned support... can consider
Nick @ Home:
Nick @ Home: JP Morgan gave a very bullish report on 16 August
Nick @ Home: available in the tct website

JP Morgan's report at this link:


Monthly Popular Posts

Bloggy Award