tag:blogger.com,1999:blog-7944902213075756335.post2388842739451438507..comments2024-03-28T10:39:01.047+08:00Comments on A Singaporean Stocks Investor (ASSI): HPH Trust: 2011 Interim Financial Results.AK71http://www.blogger.com/profile/16832145412062954289noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-7944902213075756335.post-83044362962831242802012-04-17T11:23:27.311+08:002012-04-17T11:23:27.311+08:00Hi Ah John,
I don't think I know HPH Trust we...Hi Ah John,<br /><br />I don't think I know HPH Trust well enough to favour or not to favour. ;p<br /><br />AIMS AMP Capital Industrial REIT, Sabana REIT, LMIR and First REIT probably form some 90% of my total investment in REITs. This is just off the top of my head. I am not sure if it is accurate.<br /><br />I am not a big fan of diversification and I don't really think about it. If I AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-71361301990320291092012-04-14T22:58:27.042+08:002012-04-14T22:58:27.042+08:00Hi Ak, no more post after this, I think you really...Hi Ak, no more post after this, I think you really don't favor HPH Trust. Will diversification be your consideration when choosing REITs? Now HPH div yield increase to 8% plus again.AhJohnhttps://www.blogger.com/profile/07927395374670213105noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-10762603952471712192011-08-05T12:22:57.639+08:002011-08-05T12:22:57.639+08:00Hi Marti,
Yes, that is how business trusts and RE...Hi Marti,<br /><br />Yes, that is how business trusts and REITs work. They distribute their income to unitholders, not earnings. So, chances are unitholders would end up with nothing once the leases expire or they would have to cough up more funds to renew the leases. So, distribution yields must be attractive enough to cover these eventualities.<br /><br />As for pushing up prices to account forAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-67235699944277828332011-08-05T12:01:20.319+08:002011-08-05T12:01:20.319+08:00Actually after digging around for a while it seems...Actually after digging around for a while it seems trusts are allowed to distribute more than their net profit (at least in some jurisdictions). So the reported net profit properly accounts for the loss of value of concessions or leases (with proper depreciations), but the distribution to unit holders might actually be higher so long as the cashflow allows it. In that case you might indeed own Martihttp://www.randominvestor.comnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-16670887928115514812011-08-05T10:02:45.251+08:002011-08-05T10:02:45.251+08:00Hi Marti,
Thank you very much for the explanation...Hi Marti,<br /><br />Thank you very much for the explanation. You could be right, of course. Perhaps, you might want to seek clarification from HPH Trust's managers.<br /><br />Yes, I quite understand your point on income. I like income in RMB (Yuan) but I am somewhat less attracted to income in HK$ (which is pegged to the US$). This is about value but when we buy a stock, we have to look at AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-90759354749893485902011-08-04T23:00:54.572+08:002011-08-04T23:00:54.572+08:00Yes the concession is worth zero when it expires, ...Yes the concession is worth zero when it expires, however if the business accounts for that depreciation in its accounting (as it should) then you are not left with nothing at the end of it.<br /><br />For example the raw yield (cash flow) of the concession could be 8% but if 3% is put into depreciations, you'll only see a 5% operating profit. However the reality is that there's 3% cash Martihttp://www.randominvestor.comnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-88502193537209574252011-08-04T22:39:27.843+08:002011-08-04T22:39:27.843+08:00Hi SnOOpy168,
Yup, something like this.
So, alt...Hi SnOOpy168,<br /><br />Yup, something like this. <br /><br />So, although in US$ terms, everything might look OK but once converted to S$, it might not look so good. ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-41530619756067024322011-08-04T22:33:46.703+08:002011-08-04T22:33:46.703+08:00In short, 8% yield with the risk of a depreciating...In short, 8% yield with the risk of a depreciating USD. Nah. I will pass.<br /><br />SnOOpy168Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-88799743048998792562011-08-04T22:01:52.057+08:002011-08-04T22:01:52.057+08:00Hi Marti,
Concessions are for fixed periods. At t...Hi Marti,<br /><br />Concessions are for fixed periods. At the end of the concessionary period, the government takes back everything (if the concession is not renewed). Unitholders will be left with nothing. That is the way it works.<br /><br />So, the idea is to work the assets as hard as possible and to get as much out of them as possible during the period of the concession.<br /><br />Imagine AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-48216286398538519862011-08-04T18:27:24.156+08:002011-08-04T18:27:24.156+08:00I might be wrong there (my accounting knowledge is...I might be wrong there (my accounting knowledge is limited, feel free to correct me here) but it seems the net profit takes into account depreciation for the lease. So even if they are not renewed the unit holders will not own nothing at the end of it.Martihttp://www.randominvestor.comnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-84971894505679965102011-08-04T16:03:11.497+08:002011-08-04T16:03:11.497+08:00Hi Marti,
I am not sure that HPH Trust does not r...Hi Marti,<br /><br />I am not sure that HPH Trust does not require extra investments. <br /><br />The 30 years concession from the Chinese government will expire. At that point in time, unit holders will end up with nothing if there is no renewal. If there should be a renewal of concession, there will be costs involved, surely. <br /><br />This leads some to question what is the real yield of HPHAK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-62963503766481737352011-08-04T15:50:55.351+08:002011-08-04T15:50:55.351+08:00Hi financialray,
Yes, of course, the US president...Hi financialray,<br /><br />Yes, of course, the US presidential election, no Singapore's. Haha... ;)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-75322310226086186872011-08-04T15:32:24.337+08:002011-08-04T15:32:24.337+08:00The USD isn't necessarily such a big issue bec...The USD isn't necessarily such a big issue because not matter what currency HPH trades in, you are actually buying a piece of HK&China harbors. I would expect their value to be more connected to the RMB and HKD than the USD.<br /><br />Also, Chinese harbors activities and profits should naturally grow along the Chinese economy. REITs growth on the other hand is more limited, or require Martihttp://www.randominvestor.comnoreply@blogger.comtag:blogger.com,1999:blog-7944902213075756335.post-75975376026029944042011-08-04T15:09:49.488+08:002011-08-04T15:09:49.488+08:00I share the exact sentiment as you.
Its definitely...I share the exact sentiment as you.<br />Its definitely not wishful thinking. Someone needs to justify why QE3 is necessary when presidential election is coming. The US president of course, not Singapore president hor.financialraynoreply@blogger.com