Croesus Retail Trust, HPH Trust, NBN Trust and SingTel.

Reader on HPH Trust, its decreasing NAV and distributions:
Thanks for your reply. I knew a lot of readers were asking you to talk to yourself on may things so definitely appreciate your time on this topic.

AK:
HPH Trust's land leases are decaying rapidly. I blogged about the Trust a few times before and why I avoided it.
(They were holding back much needed CAPEX to maintain DPU for a while but CAPEX could not be held back indefinitely.)

Reader:
As u know, we received the CRT scheme document and the suggestion is for us to accept.
At current price, we are looking at yield of 6.6% or slightly higher if the scheme went through. But there isn't any obvious choices (trots or trust) in the market that would match or beat that. Would like to understand what are the top few choices you would have redeploy the capital return.

AK:
If you are looking for 6.6% yield, I think it is not difficult to find but I would say yield isn't everything and it is obvious from the fact that I bought into SingTel instead of NBN Trust recently. 
See: Avoiding the instant gratification of yield.

Wondering to vote for or against the sale of Croesus Retail Trust? See related post #1 below for some of my thoughts.

Related posts:
1. Croesus Retail Trust.
2. HPH Trust.
3. SingTel or NBN Trust?

Sold DBS and want to buy back.

After re-sharing on Facebook that I was buying mostly DBS shares in 1H 2016,

Reader:
I saw your FB posts on DBS. Thanks for sharing again. I did buy some DBS shares after attending one of your talks last year. I made a bit of money. Been waiting for the price to drop. My broker told me it will go up higher. Should I buy back?





AK:
I wonder what did your broker tell you about DBS last year? Just curious.

Since you attended "Evening with AK and friends" last year, you might remember that I explained buying into DBS then was buying in at a nice discount to NAV and also at a single digit PE ratio.

Many were worried about the bank's exposure to the troubled O&G sector and I explained that only about 6% of the bank's loan book was exposed to that sector. Even if they had to write off everything, however unlikely, we would still be buying at below its NAV back then.






There was a margin of safety, I felt.

I also pointed out that the bank's CEO, Piyush Gupta, was buying more DBS shares at $13+ a share. His purchase amounted to more than $2 million. That kind of insider buying has to be a vote of confidence. I couldn't ignore that.

He is not buying more now and I believe he has, instead, cashed in not too long ago.

Why did he sell? I don't know. You have to ask him.






Looking at the numbers now, DBS is trading way above its NAV and at a double digit PE ratio. Mind you, it does not mean that its share price cannot go higher from here.

However, DBS is just no longer the bargain that it was last year.

Reader was referring to these blogs I shared on FB earlier today:
1. Wait for big crash to pick durians.
2. 2016 FY passive income (non-REITs).