Monday, February 18, 2019

Far East Hospitality Trust Latest DPU up 3.1%

Far East Hospitality Trust should not be new to readers here as I've blogged about this stock on several occasions. I first wrote about investing in the hospitality industry back in April 2017 in this post. I went on to invest in CDL Htrust and Far East Htrust thereafter. Both have been performing well since then and providing good and stable dividends for the past few years.

Let's focus on Far East Htrust. This company has done well in its latest results which prompted CIMB, OCBC and DBS to write and cover the stock the past few days. Net property income went up 13.9% Q on Q with DPU up 3.1%. With this good set of DPU, dividend yield is now about 6.5% for this stock.

For hospitality stocks, it is important to look at the RevPAR which is the revenue per available room. For Far East Htrust hotels segment, this has gone up 7.5% due to an uptick in overall market demand, the positive impact from the addition of Oasia Hotel Downtown to the portfolio and the recent renovation of Orchard Rendezvous Hotel (formerly known as Orchard Parade Hotel). Average occupancy has also increased from 85.4% to 86.2%.

For its serviced residences segment which has not been performing that well previously, there are also signs of improvements where Revenue Per Available Unit (RevPAU) also increased 7.5% and average occupancy increased from 78.2% to 84.3%. This increase was driven by online bookings from the leisure segment.

Far East Htrust has enjoyed 4 quarters of consecutive DPU growth. It is trading at 0.8x price to book value which represents a discount of 20% to book value. I've invested additional 7000 shares in this hospitality trust at $0.61 back in December 2018. Besides the newly acquired Oasia Hotel Downtown, they also just newly opened Outpost hotel at Sentosa which will further strengthen the DPU growth in the future.

Newly opened outpost hotel Sentosa
I believe Far East Htrust will continue to do well moving forward. In fact, this is just the beginning of its growth story which I've waited 2 years for it to materialise. This stock is now the 2nd largest in my portfolio which is paying good dividends with potential for growth in the near term. Singapore Tourism board also recently released its tourism statistics which shows that visitor arrivals to Singapore has hit an all time high due to the Trump Kim Summit and the release of Hollywood movie, Crazy Rich Asians which was filmed in Singapore. This has put Singapore in a good light and attracted many tourists to come to Singapore for holidays.

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Thursday, February 7, 2019

Free Access - Asia Wealth Virtual Summit 2019

Happy Lunar New Year to all! Chinese new year holidays went pass just like that. I hope all of you had an enjoyable time getting or giving ang baos and visiting your relatives in this new year.

Chinese new year is always associated with wealth and prosperity. While it doesn't happen by chance, some knowledge on how to grow our money will help in this financial journey. Some people pay thousands of dollars just to attend seminars but actually free ones are equally good out there. In this new year, there's this wealth summit where you can learn more about finance and investments. The best thing is you can learn from the comfort of your home and its totally free with no terms and conditions attached.

Honestly, this is the first time I heard of a virtual summit with great speakers including a keynote with legendary investor Jim Rogers who will be sharing where he will be putting his money for investments in 2019. Other speakers include Alvin Chow from Dr Wealth and many other topics such as value investing, trading and economics will be covered.

If you want to learn how to make your money work harder for you this new year, click here to register and get your free access to this virtual summit happening on 23 February 2019.


Wednesday, January 30, 2019

Why I Started This Blog And What Will Happen Going Forward?

Looking back at my first post on SG Young Investment back in 2013, I was only 25 years old back then. How time flies, this is my 6th year of blogging and I'll be turning 31 this year. Till now, when I meet new people, often I'll be asked the question: "Why did I start blogging?" The answer was simple, because I was inspired by other financial blogs out there and wanted to contribute towards financial education too.

As time goes by and as life gets busier and also life changes along the way, it gets harder to blog as frequently as before with the limited time I have. As I document down my journey towards financial freedom, I also start to realise how hard it was. This is the reality of life because it is not as smooth sailing as what we would want it to be. Many ideas were written and said before but implementing it and seeing it through is another thing altogether. Many long time bloggers are not writing as frequently too and some have even taken a break indefinitely. They are all good people whom I've known for the past few years.

Blogging has enabled me to reach out to more people than I could have ever imagined. It has been an eventful 6 years where I have managed to meet many different people in the finance community. The community has evolved and the outreach is far wider now which attracts a lot of young people who are interested to manage their finances well with finance websites or groups such as Seedly, Dr Wealth, DollarsAndSense etc. They are operating full time and have much more capacity to outreach to more people as compared to part time bloggers like me who only write in their free time. We are all friends in this community.

If I look back at how many posts I have actually posted since SG Young Investment started, it stands at 483 currently. I would have covered all aspects of financial planning including personal finance, investments, housing, macroeconomics, insurance and so on. It becomes harder and harder to write new stuff and I sometimes feel I sound like a broken recorder repeating myself over and over again. Sometimes I sit in front of my computer and find that I have nothing to write or if I have ideas to write, I feel that I have not enough time to really sit down and write like how I do before. I have more important things to do in my life such as clearing my work, planning for wedding and most important resting and leisure as work is tiring enough for the week.

I have significantly reduced the amount of times I post articles for the past 1 year and I would think this would be the case going forward too. I do not think I know a lot in terms of investing and my philosophy for investing is very simple, to make it as fuss free as possible. Throughout the years, I've built up a rather passive portfolio which I don't really need to monitor at all and it still continues growing. It becomes really boring and there is nothing much to write about on investments when a portfolio is like that. I just do the same old thing over and over again and make sure I don't make stupid mistakes which I did just recently on an investment in Hyflux which I most likely have to write off . Still, life goes on and the portfolio will continue itself just that I have to remind myself to make it boring and not look for shortcuts and become greedy again.

I thank all readers who have supported me and many of you have been really kind to leave encouraging comments and even emails to me to say how my blog has inspired you. While in blogging there will always be negative comments too, I really appreciate the people who have encouraged me to continue writing. I may be blogging lesser but I will still continue to write.

Chinese new year is coming in just 1 week's time. Here's wishing everyone Gong Xi Fa Cai and happy CNY in advance!