Congratulations for clearing 2022! 2023 just started. I’ve a good feeling that this year will good to my SRS portfolio. If you need a quick recap, check out my top article for Dec 2022: what happen to the stock market from 2019 to 2022.
Disclaimer: This article is not and should not be taken as a buy/sell/hold recommendation.
My Thoughts and Consideration
SGX:HST looks like it is finally recovering. I believe this is because China is reopening on 8 Jan 2023. They are more relax when it comes to COVID-19 testing and seems like lockdowns will be unlikely. China will be living with COVID-19. While I expect there will be short-term COVID-19 spikes and some disruptions, productivity will pick up soon after. Currently, there is no intention to add more position into SGX:HST.
SGX: BTOU is the most disappointing position in the portfolio. While Manulife have pivoted and shifted into hotelised buildings and provide flex office solutions, there are several concerns to that SGX: BTOU have to address.
- There is a lower take-up at Figueroa as major tenant Quinn Emanuel downsized its space by 71k sqft effective
31 Aug 2022. They will be renewing 64k sq ft for 5.4 years from Sep 2023. They are SGX: BTOU top 10 tenant by Gross Rental Income (GRI)
- TCW (another of their top 10 tenant) will be moving in Dec 2023. This will put further pressure to Figueroa
- SGX: BTOU announced on 30 Dec 2023 that real estate valuation of the portfolio of Manulife US REIT (based on the year end 2022 valuations) has declined by 10.9% or US$237.4 million to US$1,947.0 million
- Manulife US REIT’s expected aggregate leverage will be approximately 49% which is just 1% shy away from the regulatory requirements.
I believe there will be some divesting to reduce aggregate leverage in the next few quarters. Overall, these are all bad news to SGX: BTOU. Therefore, there will be no second entry into SGX: BTOU.
SGX: ME8U is a new entry into the SRS portfolio. I have receive first dividend payout from it and looking forward to the further dividends to come.
I have also embarked into dollar cost averaging into the S&P500. More to be added into this space in the articles to come.
It isn’t all sunshine for sure. Take care and hope you are well.
Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.
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The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.