Cory Diary : Equity Allocation April Review

DBS

Did a couple of key trades recently. One of them is partial sell off of DBS which enjoyed sizeable runs up that also push up STI Index. This is after I have cleared my OCBC after a period. DBS now is less than 10% of my allocated pie in which I still have quite significant exposure. I wouldn't want to sell all because there is good possibilities that it could hit 30 with recovering market in which I am generally positive on the banks. While some other fallen counters recovered in reasonable tandem as well I view them as fundamentally much weaker. So far sale of Bank stocks are more of mitigation moves. If there is fire sales, I would be back at reasonable level. Digital Banking and Blockchain do pose a torn that we have to live with in this investment. This is traded off with potential dividend cap release which might provide a boost to dividend.

ASCENDAS REIT

Ascendas recently weakness provided some opportunity for me to push it slightly above 10%. I am happy with the current yield primarily and of course the recent DCs acquisition. This provide a new dimension or growth opportunities after KDC and then MINT. And only with the backing of strong sponsor do we get to see such opportunity. The only misgiving I have is the merger into CPL as we need to absorb the culture or management which may not be align to Ascendas past glory. So we have to see before any plan to move the allocation further up.

MINT

Continue to pile on this counter on recent weakness as well and together with Ascendas has seen some recovery in prices. Current allocation still has room for more but I won't be increasing much with recent run-up. Is in a sizeable sweet spot in my portfolio allocation above Elite, Cromwell and Aims Apac Reit which are higher yield riskier asset class.

IREIT Global

There is an update few days ago with Deutsche Telekom subsidiary.  At Münster Campus, key tenant will consolidate its operations at Münster North building from 2022 onwards with additional one year lease. Münster South building 4 floors released. The "Pain of Expansion" of footprint into Spain has reduced reliance on key tenants in Germany. Glad that this is done early and not procrastinated. That's what manager is for. We will see how the rest of properties pan out. So far has been positive and I have further increased my allocation into this Reit as their sponsors are more stable. And for the matter, this is also in AK portfolio and my ride with him on AGT feels good. 

Frasers CPT

Have been adding monthly on FCT. Quite positive on suburban mall relevancy to town design. So far their operation is nothing but impressive. Any weakness is good for collection especially in recovering Covid period. If we are to look back at this period in good economic times, the current price will be cheap.

In addition I am also looking into expanding below counters with increasing cash level to increase my current dividend theoretical max of 56k.

Namely,

Elite Commercial Reit - Waiting for opportunity to increase allocation slightly

Vicom - Review next Q report on next more. Potentially increase in allocation

Cory

2021-0402

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.