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K-Green Trust: DPU of 3.13c.

Tuesday, July 17, 2012

I am still holding on to a small investment in K-Green Trust. I will be getting some money for the 5th time in the form of income distribution soon.

The Trust distributes income half yearly and a payout of 3.13c has been declared. Date payable: 16 August 2012.

Mr Thomas Pang, CEO of Keppel Infrastructure Fund Management Pte Ltd, the Trustee-Manager of K-Green Trust, said, "K-Green Trust continues to perform well in this period and remains committed to deliver stable, predictable and reliable distributions to the Unitholders."

Well, stable distributions are nice but what I am more interested is in seeing the Trust gear up to deliver growing distributions to Unitholders.

See announcement: here.

Related post:
1. K-Green Trust: Results for year ended Dec 2010.


FoodieFC said...

Hi AK71

Could I pick some of your brains? Any idea how come STI has been looming upwards?

To me, it should clearly be downward.My thoughts:

China economy is slowing down. US is also slowing down / not growing. Euro still in crisis and look set to cont for a long long time.

SG recent quarter negative growth. High chance of technical recession as SG currency continues to appreciate. Our export will be affected as we are an export driven economy. And the appreciation of currency will only make our goods more expensive. Moreover, foreign labour tightens, cost of manufacturing in SG will go up. Inflation on set to cont upwards.

The two conclusions I have are that
a) the bad news have been hovering for over a year. pple are used to hearing bad news.
b) cash rich pple in SG and world wide needs to put their money somewhere.

Ray said...

hi AK,

The magic question: Worth buying at current price?

AK71 said...

Hi FoodieFC,

When there is a disconnect between prices and news flow, it gets interesting. ;)

The view that the very low interest rate environment pushes people to take on more risk has been well publicised. A proponent of this view is Dr Marc Faber.

The conclusions you have drawn are sensible ones too.

I can only share my experience here and from past experience, when prices move up despite a host of bad news, the worst could be behind us. The stock market is forward looking and is a 6 to 9 months precursor of the economy (supposedly).

However, bearing in mind that Mr. Market could be perverse, we should not throw in everything including the kitchen sink. Always have a war chest ready.

Have our investable wealth 100% in cash? Not me. ;)

AK71 said...

Hi Ray,

There is nothing magical in what I will say though.

I have blogged about K-Green Trust and whether it is a good investment before. Click on the label "KGT" and read my past blog posts. What do you think?

The allure of this Trust is its gearing or, rather, the lack of it. I would dump CitySpring in favour of this and I did. However, the lack of action by K-Green Trust to gear up and to improve DPU has been somewhat irritating. I was going to say frustrating but I realised it would be an overstatement. Haha..

You decide, my friend. :)

Jay said...

Hi AK and all,

I did the same thing: pick K-Green over CitySpring (never bought the latter), mainly driven by the impression that CitySpring management not up to standard.. utility investments should be straight-forward.. Personally I'm ok with stable distributions as long as stable is actually stable. Last half year distribution was 4c+ (first time I got money from this investment), so I hope they are just being conservative with distributing only 3.13 in 1H2012, and will distribute more in 2H2012.

Buying at current level? Not for me (true for KGT and many others), better wait for the next wave of market scare and buy a bit cheaper...


AK71 said...

Hi Jay,

I can only hope that K-Green Trust would do better. The lack of meaningful action by the Trust's management has left me wondering.

I guess you got in at a pretty good price since this is only the second time you would be receiving income from the Trust. ;)

Unknown said...


From SGX website, I noticed that K-Green announced on 16 Jun 2012 that that:
EPS 1.25cent
DPU 3.13cent
NAV has been reduced from $1.10(Dec 2011)to 1.06(Jun 2012).

Is it mean that K-Green is using the cash reserve to top up the current dividend and bring down the NAV?

Is it not a good sign?

Please discuss. Thank you

Unknown said...

AK 17

From SGX web site, I found K-Green announced on 16 Jun 2012 that:
EPS 1.25 cent
DPU 3.13 cent
NAV $1.10(Dec 2012)/ $1.06(Jun 2012)

Is it mean that K-Green has used its cash reserve of 1.88 cent to top up the DPU (EPS 1.25 cent + 1.88 cent= 3.13 cent), and this contributed to the decrease of $0.04 in NAV?

Is it not a good sign?

Please discuss. Thank you

AK71 said...

Hi Unknown,

As a Trust, it distributes its income to unitholders. It does not function like a company which pays a percentage of its earnings as dividends. This is the same with REITs.

Cash build up over time contributes to its NAV. So, when it does an income distribution, its NAV would reduce.

To help you understand K-Green Trust better and whether it is an investment you would be comfortable with, you might want to read some of my earlier blog posts on the Trust. :)

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