November is a month of gains. Mainly from Centurion, Wee Hur , Haw Par and China Sunsine
Centurion: I have mentioned briefly from my facebook post. I think that the rental revision for SG Worker Dorms is likely to have peaked and it is unlikely to see sudden 10% increase in price per bed quarter on quarter or year on year moving forwards. Any increase in demand will likely be from the increase in beds.
For the msia side, there has been some articles with regards to the RTS Link and construction activities which might bring a boom to the Msia Dorms. This is one area worth monitoring.
1 aspect analyst has mentioned would be the 'potential value unlocking' which was mentioned in the results presentation slides. It remains interesting and to be seen which unlocking is done if any.
The share price briefly tanked after the 3Q Business Update but then rised again to a higher level afterwards.
Haw Par: I think this is in-line with the movement of bank stocks so there is nothing much to talk about. A beneficiary of 'Higher for Longer' that is for sure.
China Sunsine: Results Stable. At 6 PE, this is rather acceptable. We are not in a peak chemicals price so it is worth to just hold on, wait for the company to expand productions and be ready again for the upswing.
Wee Hur: The australia univeristy cap is not implemented. In most reports i read, it seems like international students are not a large driver of the rent increases ....therefore i have never really regarded it as something good or bad.
I think rates going up are good but if it is unsustainable, then it results in lower demand or larger unpleasure sentiments which will affect policies moving forwards.
Fortuntately, from Centurion's slides, it mentions that 'occupancies and rental revisions expected to remain at healthy levels'
1 of the main detractors would be Straco
Straco: Disappointing 3Q as it is weaker than last year. The 3Q travel momentum did not seem to bring a boom this time around and as such it has been rotated out.
Is it time for Powermatic Data?
No. I think that a better gauge would be at the AGM in 2025.
I would reallocate the Straco Stake back into Wee Hur.
At 1H 2024, its new PBSA, Y Suites on Regent, had 55% occupancy rate. At a recent pulse check, the rooms that are remaining are studio/ensuite premium. The chances of occupancy rate picking up in 2H 2024 remains high.
Furthermore, a new PBSA will come into operations in 2025. The contribution is likely to be more than 10% of current revenue as it is at Sydney (where rentals are in 700s compared to other areas 300s 400s) despite only adding 409 to the current 5662 beds (7%)
As such, the portfolio would look like this
I apologize if the font used is different from usual. I did this post while i am overseas and not on my usual working pc.
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