I took some more look at the returns of the assets of the concessions under K-Green trust as a follow-up to my previous K-Green Post to accumulate more shares.
The returns on second looks very bad.
From this table we approximate based on 2011 dividends per share. On current yield its 6.98%. That looks good.
However, the yields over the concession years looks like those of SGS bonds.
The yield on Senoko is 2.883% and the yield on NEWater looks close to 0.971%!
If we factor in an inflation growth of 3%, the yield goes up to 3.4%, 2.57% and 1.21%.
Even then, a total return after god know, 25 years its 24% or 65% looks really medicore.
Now this is on top of the NAV going down to zero. All in all this is starting to look like a very bad proposition.
I am gonna seriously evaluate my investments. I have sent some enquiries to K-Green. lets see how responsive their investor relations is.
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John
Monday 17th of September 2012
Tks Drizzt for yr suggestn. I had yrs ago deliberately avoided REIT (wrong move) and think now too late to go into REIT. Will stick with KGT esp with the Fed's QE3 & int rate wud be v.low till mid 2015 thus feel quite safe for 1-2 yrs more, and probably KGT acquired some Keppel's infrt assets by then.
John
Friday 14th of September 2012
I think so long as interest rates of Fixed Deposit is so low, still OK to stick with KGT. When FD rates start to rise, then time to offload and hopefully by then KGT contributions or dividends collected till then justify the investment
Drizzt
Saturday 15th of September 2012
Hi John I have not studied K-Green for some time. The last time i taken a look, it is still a self liquidating trust. if you are looking for a home that is > 1%, compare the alternatives. A Plife REIT or Frasers Centerpoint althought expensive may be more sturdy with longer lease so to say.
This is not an advice to sell or buy. I can't really help here unless i take a closer look at it.
John
Friday 14th of September 2012
I have some KGT and am interested in any analysis or comments of this or related infrastructural trusts
WealthBuch
Monday 1st of November 2010
I'll be waiting for the management's reply too!
Drizzt
Thursday 28th of October 2010
yeah AK71,i know who Nick is lol.