Still making money in Croesus Retail Trust. Peace.

Hi AK,

I wrote to you a few months ago and told you a prominent blogger sold all his investment in Croesus. I asked you if you would be selling too. You gave me one of your typical AK answers. Now, a few months later, I am kicking myself because I sold half of my investment since I was not sure if I should stay fully invested. It was my biggest investment. If I had your conviction, I would have avoided this loss...

Hi R,

I have the feeling that you might not have understood the investment enough to give you the conviction to hold on to a substantial position in Croesus Retail Trust.

Your position could have been too big and peace of mind eluded you.

Money not made is not the same as money lost. By holding on to half of your original investment, you are still making money. Lesser by half but you are still making money.




Peace of mind is priceless. By reducing your investment by 50% when you did, know it or not, that was what you were after. 

Now, please don't lose something precious like this by saying you should not have sold.

Best wishes,
AK
Related post:
History with Croesus Retail Trust.

Accordia Golf Trust and lower DPU.

Reader:
Hey AK, what do you make of Accordia Golf Trust latest results? Looks pretty dismal, all important numbers are down. Any positives to it at all?

AK:
eh... you say leh?

Reader:
From the numbers I don't see anything good. But management says that tourism may have a positive impact in mid to long term
And they said there was bad weather, maybe the weather might improve. That's about all the good I could see from the report

AK:
I would ask if the dip in results is due to something more enduring.
If so, the decline would become a trend.

Reader:
True. But difficult to say how much is due to earthquake and bad weather. And how much due to fundamentals. 

AK:
You will have to make a judgement call 😉

Reader:
I have small position only so I think I'll hold for now , at least the dividend is good

AK:
If we are investing for income and if we got in at a lower price, this fits. 🙂


...unfavorable conditions during the year resulting in lesser operating days as
compared to previous year:
• 1H FY16/17: Earthquake in Kyushu (April 2016); Typhoon (August and September 2016);
Heavier rains (June 2016)
• 2H FY16/17: More snowfalls (February 2017)

See presentation:
http://accordiagolftrust.listedcompany.com/newsroom/20170525_183557_ADQU_RRL9A22VE4KR13RC.2.pdf

When we invest in Accordia Golf Trust, we have to be prepared for some possible fluctuation in revenue and I said this in 2015 too: 
http://singaporeanstocksinvestor.blogspot.sg/2015/11/accordia-golf-trust-dpu-of-232c-and.html

Sino Grandness and rights issue.

Reader:
Just checking can you comment on SINO GRANDNESS rights issue?
Is it worth subscribing to the rights?
Thanks

AK:
Always ask what is the reason for issuing rights. It seems like they have trouble repaying debt and, hence, the rights issue. If so, the rights issue does not add value for investors.
Subscribe if you believe that the company is able to do much better in future.

Reader:
ok thanks for the advise.

AK:
If you are putting in more money but the performance declines, it is a bad deal.

Reader:
yeah



Remember, not all rights issues are created equal. Some will enrich investors and some will impoverish them. 

In general, I do not like rights issues which happen because the balance sheet needs strengthening. They weaken our own balance sheet and do nothing to improve our cash flow.

Related post:
A lesson on rights issue from 2011.

Buying a freehold property in Singapore is still worthwhile.

Reader:
Hi AK,

        Hello! I only found out about your blog in Jan this year and have benefitted a lot from your analysis and sharing. 

        I have been reading your recent posts about upgrading to private housing. I happen to work in a landuse planning agency, hence i would like to share my views. 





While i agree that one should not upgrade to a condo if it means overstretching your finances, i think getting a freehold property might be the only way to preserve the value of your property. 

For 99 year leasehold properties, they would eventually need to be returned to the state, and the value of the flats will depreciate after it hits around its half life. 





From the capital preservation point of view, especially for couples who have kids and intend to pass down their properties to their kids, wouldn’t it still be worthwhile upgrading to a freehold property? 

The truth is that freehold land is scarce. 

        Was wondering when you bought your freehold condo, was the lease a major consideration? Would like to hear your thoughts on this 😊 Thanks!

My reply:
Hi,

Welcome to my blog. :)

You started reading my blog in January this year. So, you might have missed this:
http://singaporeanstocksinvestor.blogspot.sg/2016/12/buy-99-years-leasehold-or-freehold.html

I have friends who also work in the landuse planning agency here and when we talk about land leases in Singapore, they share our sentiments.





I won't say anything about myself but if legacy is a consideration, then, buying FH or 999 years leasehold makes more sense than a 99 years leasehold property here.

Oh, I don't mean buying a FH property in JB is better than buying a 99 years leasehold property in Singapore hor. That is not an apple with apple comparison. 

Sorry, I couldn't resist that.





Related posts:
1. Flat is 37 years old and son is 8.
2. When the lease on HDB flat ends.
(Do read the comments section too.)