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(29-11-2012, 05:45 PM)Kelvin Wrote: (29-11-2012, 05:10 PM)money Wrote: (28-10-2012, 07:43 AM)tanjm Wrote: Just to note that Indian Government Bonds currently yield in the region of 8%.
As compared to religare, investing in indian govt bonds seems to make more sense, dont have to worry about operational risk. by the way, tanjm, are you familiar with how to invest in overseas bonds?
but rupee is dropping about the same rate against sgd.
When you invest in Religare you also have fx risk (i recall that they said they hedge their cashflows about 1-2 years, but you still have rollover and you still have fx risk on book value).
Having said that, the rupee may be near bottom now.
The problem is that access to India bonds may be tough for a overseas investor. I'm not aware of any access to a retail investor at present.
On the other hand (slightly out of topic), I believe Indonesia govt bonds may be open to retail investors and they also pay a fairly high coupon.
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(29-11-2012, 08:48 PM)tanjm Wrote: (29-11-2012, 05:45 PM)Kelvin Wrote: (29-11-2012, 05:10 PM)money Wrote: (28-10-2012, 07:43 AM)tanjm Wrote: Just to note that Indian Government Bonds currently yield in the region of 8%.
As compared to religare, investing in indian govt bonds seems to make more sense, dont have to worry about operational risk. by the way, tanjm, are you familiar with how to invest in overseas bonds?
but rupee is dropping about the same rate against sgd.
When you invest in Religare you also have fx risk (i recall that they said they hedge their cashflows about 1-2 years, but you still have rollover and you still have fx risk on book value).
Having said that, the rupee may be near bottom now.
The problem is that access to India bonds may be tough for a overseas investor. I'm not aware of any access to a retail investor at present.
On the other hand (slightly out of topic), I believe Indonesia govt bonds may be open to retail investors and they also pay a fairly high coupon.
okay thanks, i have also tried to do some research on buying overseas bonds but dont seem quite retail-friendly.. i guess only when we are rich, then the private bankers will help us in such areas. haha
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11-06-2013, 10:28 PM
(This post was last modified: 12-06-2013, 08:35 AM by Stockerman.)
Did they set aside enough EPS to replace future assets (taking into account inflation)?
(depreciation is not enough since it is based on historical book value)
For the Greenfield hospitals, how much more capex would need to be incurred? When will these hospitals start to be EPS-accretive?
Else, over the next few years, the DPU will pare down...??
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RHT released results yesterday. 1HFY14F DPU of 4.05c - i.e. >10% on annualised basis - slightly above expectations it seems.
Looking to acquire a asset but terms of deal not out yet. Should be accretive if fully debt funded (which is possble as they have debt headroom and bankers seem happy to lend them at cheap rates)
Fx remains (more of) a medium term risk as their fx hedge falls off mid next yr.
Caveat Emptor
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(13-11-2013, 02:34 AM)ARC Wrote: RHT released results yesterday. 1HFY14F DPU of 4.05c - i.e. >10% on annualised basis - slightly above expectations it seems.
Dear Sir
Although RHT pays 4.05 cts a unit for 1H14, BUT it's NAV per share fell from S$0.906 to S$0.795. Post distribution, the NAV would look more like $0.775?.. that appears to be the more troubling issue...
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Sure there are issues.
But specifically on the issue of NAV, the drop in NAV doesnt translate to a change in the earnings power of the assets, imo. The earnings power of the assets and what I can receive in my pocket is what interest me. As a result, this is how I choose to look at it for the moment.
Impact of NAV reduction
The NAV reduction is due to the translation effect of weaker rupee on the asset value. The tangible impact is not on distribution but potentially on the reduction of potential debt headroom and ammo to acquire more assets.
However, if one think about it a bit more, perhaps there is no change in purchasing power of its 'reduced' ammo since the Indian assets have all gotten cheaper too on the weaker rupee? As such, changes in NAV seems immaterial, imo.
The key problem: fx
The weaker rupee which drove NAV down might potentially drive distribution down. But only when the fx hedge runs out. So what will rupee in 2014? Is that risk worth taking? How long do you want to underwrite that risk for? I think that's the key issue at hand.
So there are risks, fx being one of the most obvious ones. But (almost) everything has value at a certain price. Whether the risk/reward is attractive now...well, that's clearly debatable.
Caveat emptor
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A little puzzling :
Net S & H income is down
Actual's 15,394 vs forecast's 16,531,
yet income available for distribution is higher than forecast.
Income available for distribution (S$'000)
Actual 11,719 vs forecast 11,656
Digging into the cash box to look good ? I seriously don't mind for for how long is this sustainable ?
Vested.
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(13-11-2013, 01:31 PM)Snoopy168 Wrote: A little puzzling :
Net S & H income is down
Actual's 15,394 vs forecast's 16,531,
yet income available for distribution is higher than forecast.
Income available for distribution (S$'000)
Actual 11,719 vs forecast 11,656
Digging into the cash box to look good ? I seriously don't mind for for how long is this sustainable ?
Vested.
Its a result of the non cash adjustments - the main difference came from depreciation, fx and deferred tax, straight lining.
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Thanks ARC.
I hoped that they are paying the dividends out of positive cash flows, not loans, cash reserves or unused IPO proceeds.
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