A Quick Take on the recent results of some companies I own

Quite a number of my holdings released results over the past two weeks. The companies are
Starhub, AIMSAMPIREIT, Saizen REIT, Silverlake, new purchase GLP, CitySpring, Starhill, CCT, K-Green, First REIT, GRP, ST Engg

Time is really tight for me, with family commitments due to Chinese New Year, with my recent take up of being a trainer for a sec sch's Junior Physics Olympiad team and the long hours spent on preparation of materials, with my continuous authoring of my planned A level physics guidebook, and with my engineer work.

I took a quick look at the recent results, and but I know time doesn't allow me to do and post a detailed analysis on each and every counter. The main thing I garnered was buying cheap defensive blue chips giving good dividends in a recession seldom go wrong.

My comments collated over the last few weeks:

1) Starhub
Overall, the results are in line with expectations. Dividends remain at 5c for this stable defensive counter, and intends to remain the same for FY2011.

This is one counter where I had been truly successful by being contrarian. Most of my purchases were done when they announced a loss of EPL contract to Singtel. I still remember that was the time where many analysts were calling for SELL because of the EPL loss.

Starhub was distributing 4.5cts dividends per quarter at that time, and on the following quarter, started distributing 5cts per quarter. The analysts that were calling for SELL immediately decry that this is not sustainable, and maintained SELL.

AIMSAMPIREIT Rights Issue

AIMS AMP Capital Industrial REIT announces proposed acquisition, new debt facility and fully underwritten renounceable rights issue.

Key Highlights:

• Proposed acquisition of a high-quality industrial property at 27 Penjuru Lane Singapore 609195 (the “Property”) for S$161.0 million;
• New debt facility of S$280.0 million; and
• Fully underwritten renounceable 7 for 20 rights issue to raise S$79.6 million, (collectively, the “Transactions”).

The property being bought is at 27 Penjuru Lane, Singapore 609195, a warehouse and logistics facility.

More details of the purchase can be found here

Quick updates

Rather busy, and fell ill. So I shall log down my personal quick views of some of my stocks which has just reported their results.

Starhub
5cts dividend announced.
Net profit fell, EPS drop to 3.39 cts. However, this is because Starhub does not amortize the smartphones sold over 2 years, but recognized it immediately. I expect a much higher EPS over the next few quarters because of this.

A few things to take note for the following quarter:
(i) How loss of EPL will affect its pay TV revenue
(ii) How Next Generation Network will affect Starhub
(iii) How the new law that enables M1 to join the payTV will affect Starhub.

Overall, I will treat this is neutral and within expectations.

AIMSAMPIREIT -- Extra ViewPoints

Here, I'm posting some extra viewpoints by Grandmaster89 from CNA forums:

I identified a few key risk in investing in AIMS REIT. I hope the Management can tackle proactively this year.

1) Asset valuation is still decreasing despite the slow recovery in the local economy. I guess asset valuation in industrial properties could be lagging behind the general economy since manufacturers will only recover substantially once spending power has returned back to pre-crisis levels. High unemployment levels isn't helping it at the moment. When manufacturers recover, the demand for logistic and manufacturing hubs will increase hence driving up asset valuation.

AIMSAMPIREIT 4Q2010 Results

Basically, this is another undervalued gem in my opinion, in the leagues of Saizen.
My earlier write up of this REIT is here

The results was a nice surprise for me in terms of the DPU. It was slightly above my expectations. Earlier, I bought based on a conservative estimate of 0.45 cts DPU, although my calculations showed at least 0.5 cts DPU. The surprise was that DPU came out to be 0.5376 cts, giving me a nice dividend of $241.92 for 45 lots payable in June 2010.

This works out to be about 10% yield based on my entry price of 0.215 on a low gearing of 29%, among the lowest in the industrial REIT sector.

The NAV remains at 31c. There's also no management fee bonus paid out ==> it's only paid when the DPU increases by at least 2.5%. Have to monitor to check that management does not increase gearing unnecessarily and dangerously to increase DPU so as to get fee bonus.

This is a short post to update as I'm really really tied up with work these few weeks :(

Reasons for AIMSAMPIREIT Purchase

This AIMSAMPIREIT is the former MI-REIT which almost went bankrupt and had to do placements and issue rights to finally stay above water.

So on the initial look, it might look like a shady investment in a company whose management might be extremely bad because of the saga. However, on deeper exploration, this REIT appears to be offering itself at an extremely reasonable price.