Recent Purchases and Sales; Thoughts on CICT

Sales

Link Reit: Increase my position. Purchase price is $36.50 before ex-dividend. Dividend yield is around 7.x%

I bought too early, as the share price dropped to $33.x after ex-dividend. Nonetheless, Link Reit has solid management whose incentives are aligned with shareholders. 

Interactive Brokers (IBKR): Sold whole position in two batches at $170 and $192. I felt that the valuation at these prices are too high. At $192, it's trading at 30x PE and 5x book.

Will look to buy back IBKR at around 3.5x book.

Oiltek: Sold half of my position at $0.66, which is around 15x PE based on its 1H 2024 results.

I sold too early, as share price rose to above $1 after it announced great 3Q 2024 earnings.

Currently, it trades at around $0.88. 

Purchases

Sketchers: Bought a small stake at $60, as my sold put options on it expired and was exercised. 

Subsequently, I sold Dec put options at $57.50 on it. I don't mind adding at $57.50 share price. 

Currently, it's trading around $62. 

Thoughts on CapitaLand Integrated Commerial Trust (CICT)

I looked at CICT recently. 

CICT bought 50% Orchard ION for $1.1 billion at 2.7% net yield. Thereafter, it sold Collyer Quay property at $688 million at below 3.5% yield. 

While Orchard ION is of higher quality at Collyer Quay, this seems that the management is buying high and selling low at the expenses of increasing AUM (asset under management).

Given the above, I decided CICT is not for me, as the management's incentives seems not aligned with the shareholders'. 

Disappointed with SReits / Thoughs on T-Bill bought using CPF-OA

 Link Reit (listed in HK) released its 1H results recently. Its DPU rose 3.7%. 

Better than most SReits:

- Mapletree Pan Asia Commercial Trust (MPACT) DPU dropped 11.6%

- Fraser Centrepoint Trust (FCT) DPU dropped 1%

- CapitaLand Integrated Commercial Trust (CICT) DPU rose 2.5%.

Most SReits have this syndrome of 'overseas acquisitions' to increase their AUM and fees for their reit manager. End of day, their overseas assets under-performed  compared to their SG assets. Not sure if this is SREIT's tuition expenses for their lack of competency / knowledge in overseas conditions.

A few weeks ago, I bought FCT at $2.28 using CPF-OA funds*, after a T-bill (bought using CPF-OA funds) matured. Now, it's trading at $2.11. On hindsight, I should be more patient and waited for lower share price. Nonetheless, I will keep the FCT shares, since I am buying it for dividend purpose. As long as FCT's DPU is stable (i.e. did not decline much), I will continue to hold it. 

*CPF-OA funds have restrictions in buying shares. It can only buy certain stocks listed in SGX. It cannot be used for buying shares in overseas markets. 

I have some T-Bills, that are bought using CPF-OA, maturing in Nov and Dec. After maturing, the funds will be shifted back to CPF-OA (which gives 2.5% interest). They will be my warchest to buy index ETFs, when there is a market crash (i.e. 20% or more drop) in future.