Cory Diary : Frasers Cpt 1H2021

FCT has solid properties mainly in key locations next to MRT. Their returns grow with the Singapore economy and the mass population reside near to their malls.  The remarkable ones are Northpoint north wing and Waterway point which have Condo residences above their malls in Integrated concept to transport hub and community services. See below. Basically community revolves around this malls. They are basic necessity and which benefits further from WFH. Both malls are huge and for new comers therefore getting lost in there is normal.

In last week half year report, 1st half DPU 5.996 cents. In which 0.132 cents already distributed last year. If we annualized the result, is about 4.9% at $2.45.

If we roll back to year 2019, FCT hits 5.7% annualized at today price. DPU 14 cents. This is pre-covid. Logically speaking 2nd half will also see better result unless macro factor or .... . So it looks like a given in next half yearly amid expectation will be smaller increase.

Interestingly, the stock price did not manage to held up and fall back to $2.45 last week. We are talking about 28.4% dpu increase compared to last year where retail was in deep covid. Now with Vaccine deploying to masses and we getting to new normal, is not unreasonable to see stable 5% yield returns. That's like 12.5 cents of DPU annual. So if the market further corrects to $2.33 roughly a support point, that's will almost be a full year dpu. This will certainly make it easier to meet pre-covid yield LOL.

Question will be what will you do as a dividend player on a well established businesses ? Uncle Cory will have his grenades ready. Bazooka will probably be next.

Cory

2021-0426

PS. Current Bank loan rate is roughly 1.5%. FCT giving out stable 5%. Make sense to max out your home loan ?  There is always risk so DYODD.

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.

Cory Diary : What keeps me worry at night

Beside money, yes besides money ... Is Not Investing Enough. If one has done their Maths, they will know that to meet specific lifestyle, how much is needed to grow our asset financially to achieve prudently and lasting our lifetime. Of course one could live like a "Beggar" but this is after we failed to achieve the goals we want and still shout out that we are still financially free because we can live within our means.

However do not need to be too perturbed about the use of word "Beggar" as in context is meant to not meeting the level of standard deep down in our heart we hope to have but likely much further from our dream. Now, to throw our weight or asset into investments, we need to look further ahead. How far depends on one attributes. I would say after investing for more than a decade, 6 months are pretty good estimate of where we going to be. Is still not 100%. Maybe 7 our of 10 will be a good number that we will be ok if we are to use number of stocks as measure. Which means ... we need to diversify.

A month ago I sold some of my DBS shares before Ex-dividend. A small bet that I am able to get it back cheaper. Do this a few rounds. The last one waited past Ex-dividends. And I manage to buy most of it back yesterday. Phew. This keeps me awake at night for kopi money.

Next, are you a dooms day person even when we are on recovery path ? I happen to read some articles while walking home. In year 1918 pandemic, the world recovered in about 2 years without vaccine. Basically stronger strain dies off and population immunity. Probably 100 Millions died. Will this be a good estimation for Lesser Devil Covid 19 ? 

With all the printing to support Covid Packages around the world, will there be a bubble ? I think we have not seen Euphoria yet despite US market reaching ATH due to K Recovery, and market steering to businesses that do well during this pandemic. Maybe Crypto will ignite it. Maybe SPAC will. Maybe WFH will. Maybe .... Blockchain will ... ... . By now you know all this doesn't keep me awake at night.

thank you for reading. Good night.

Cory

2021-0422

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.

Cory Diary : Growing Kiddo Wealth

One of the famous concept today movement I heard past months is 1M65. And if we are to inject 65k into our baby account and let it compound for 65 years, the account will grow to 1M. 

From Mr Loo,

"To make baby millionaires, you first need quite a sum of money: S$64,350 to be exact for each baby at birth, to be contributed into their CPF SA."

For Cory that will be 130k. Ahem ! Even for a millionaire, to cough out this sum is not like a walk in the park. This sounds more like headline grabbing rather than practicality riches of wealth. After 65 years, $1M probably be good enough after inflation, if we still have the purchasing power to pay full for a 2 room BTO if such unit still exist.

I could also use that money to pay for the down payment for another investment property increasing my alternative income. However in this environment, the idea of ABSD, TDSR... etc will kill it.

Maybe it will be way faster if I spend the money now on 1 BTC which could grow to 1M in 2 years if BTC supporters expectations are met. Or it could go to zero if the governments start to ban them. Turkey ban moves shade few percentage off BTC value just this week. Imagine this is by EU or US.

On another perspective, 1M65 looks like modern way of saving for children. If 4% compounded is not sufficient to attract my money which is almost riskless, not many investment could anyway. One thing likely could happen is my vote will be biased against any political party that try to rock my Kiddo 1M65 boat for the next 65 years. LOL.

If we take this movement as an idea, 1M is just Mr Loo idea of compounded saving. We need not necessary have to narrow the concept and kill ourselves. We can start with any amount and build it up over their years and have it topped up as kiddo grows up. For a start on accountability, after talking to my wife, we have their Ang Pao money thrown inside matched 1 to 1 by their father. It takes some work to tear up their packets .... but topping up SA for the kids are a walk in the park through PayNow. They now have 1K each.

Cory : "Honey, there is some anypao money I forgot to top up into their SA accounts. Anyway I have done 1 on 1 matching. I should keep this balances."

Bee : " What you matched is theirs. The balances is still theirs."

Cory : " ... ... ... "

Cheers

Cory

2021-0418

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.