Sunday, July 27, 2014

Jersey Boys

Synopsis: The film tells the story of four young men from the wrong side of the tracks in New Jersey who came together to form the iconic 1960s rock group The Four Seasons. The story of their trials and triumphs are accompanied by the songs that influenced a generation, including “Sherry,” “Big Girls Don’t Cry,” “Walk Like a Man,” “Dawn,” “Rag Doll,” “Bye Bye Baby,” “Who Loves You,” and many more. [Source: Cathay Cineplexes]




Nice vocals and get ready to immerse yourself in the music of The Four Seasons! The movie tells the story of the entire life journey of the band, from its rise to eventually its fall. It also showcases hits from the band that are still very well known today. Not a bad movie to catch for the long weekend holiday.

Rate: 7/10

Thursday, July 24, 2014

Accordia Golf Trust


Short Summary:
AG Trust is the first business trust comprising investments in golf course assets in Japan to be listed on the SGX-ST. The Trustee-Manager’s key objectives are to invest in golf courses, driving ranges and golf course related assets that are able to generate long-term, stable cash flows, while paying continuous distributions to Unitholders and maximising long-term investment returns of Unitholders by generating long-term capital value growth through future acquisitions. AG Trust’s initial portfolio (the “Initial Portfolio”) will comprise 89 golf courses (including the golf course related assets relating to such golf courses) located across Japan (the “Initial Portfolio Golf Courses”), with 86.4% of the Initial Portfolio Golf Courses, based on their appraised values as at 30 September 2013, located in the three largest metropolitan areas in Japan, namely, the Greater Tokyo Region, the Greater Nagoya Region and the Greater Osaka Region.

The Deal:
Offering Price: S$0.97 - $1.00
The Offering: 782,025,000 Shares (Include 41,163,000 Offering Shares to Singapore Public)
Cornerstone Investors:
275,880,000 (25%) Accordia Golf Co., Ltd.
 
Forecast Dividend Yield:
2015: 9.10% (Including non-recurring items from restructuring)
2016: 7.00% (Excluding non-recurring items from restructuring)
*Based on issue price of $0.97, 1,099,122,000 units after IPO.
 
 
Dividend Policy:
AG Trust has adopted the following policy in respect of distributions to be made to Unitholders out of Distributable Income:
(i) in respect of Forecast Year 2015, the Trustee-Manager shall make distributions of 100.0% of Distributable Income to Unitholders; and
(ii) in respect of FY2016 onwards, the Trustee-Manager shall make distributions of at least 90.0% of Distributable Income to Unitholders.
AG Trust will make distributions to Unitholders on a semi-annual basis, with the amount calculated as at 31 March and 30 September each year for the six-month period ending on each of the said dates
 
Strength
- A unique opportunity to invest in the first SGX-ST listed business trust with an initial portfolio comprising golf course assets located in Japan
- Access and exposure to the golf course industry in Japan
- Quality initial portfolio of golf courses to provide stable and attractive yield
- Strong growth opportunities
- Sponsor’s comprehensive support under the Sponsor Support Agreement
 
Weakness
- The financial performance of AG Trust is dependent on the condition and outlook of the golf course and golf course related industries, which are in turn susceptible to cyclicality and other factors outside the control of AG Trust or the Trustee-Manager
- Future acquisition of golf courses by AG Trust (through New SPC or otherwise) may not provide the anticipated benefits and may ultimately fail
- New SPC and/or AG Trust may not be able to divest under performing golf courses on a timely basis and on acceptable terms in order to optimize its portfolio
- The performance, commercial viability and profitability of the Initial Portfolio Golf Courses are or will be dependent upon weather conditions and seasonality factors
- Further decline in the golfing population in Japan may adversely and materially affect the golf course business and operations of AG Trust
- AG Trust’s business is subject to fluctuations in Japan’s overall demographics and economic environment
- Average gearing of 35%
 

An interesting business trust IPO that sells golf courses to retail investors. On the whole, the yield by itself doesn't look particularly attractive. With recurring yield forecast at 7.0%, I can easily get better deals elsewhere. Personally, I do not agree with some of the strengths that the sponsor is promoting. For example "Strong growth opportunities" that is mentioned in the prospectus, does it really have "strong growth" opportunities? In the information disclosed, the sponsor has put in the below graphs:
 

As we can see, the total number of golfers is on a downward trend even though Japan's population are aging. With the overall reduction in golfers, how is it possible for the trust to sustain strong growth opportunities?

 
Golf revenues, like what the prospectus has indicated, are highly cyclical. Since the financial crisis hit in 2009, golfing industry has drastically declined and has yet to recover to the pre-crisis level. From the trend, it looks unlikely that the trust will be able to deliver stellar results in the coming few years. Given the available information, I will give this IPO a miss.
 
Some useful information:
[21 Jul 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[24 Jul 2014], [4,00 p.m.] : Closing date and time for the Public Offer.
[25 Jul 2014]: Balloting of applications under the Public Offer, if necessary.
[01 Aug 2014], [2,00 p.m.]: Commence trading on a “ready” basis.
 
Rating for investment: 1.5/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment. 

Monday, July 14, 2014

Commencement 2014

 
Officially graduated from NUS again with M.Sc (SHE Tech). Thanks *mds* for your support all these while~

Monday, July 07, 2014

Transformers: Age of Extinction

Synopsis: TRANSFORMERS: AGE OF EXTINCTION begins after an epic battle left a great city torn, but with the world saved. As humanity picks up the pieces, a shadowy group reveals itself in an attempt to control the direction of history…while an ancient, powerful new menace sets Earth in its crosshairs. With help from a new cast of humans (led by Mark Wahlberg), Optimus Prime and the Autobots rise to meet their most fearsome challenge yet. In an incredible adventure, they are swept up in a war of good and evil, ultimately leading to a climactic battle across the world. [Source: Cathay Cineplexes]

 
The highly anticipated Transformer sequel is finally here. This time, a new cast is assembled as well as a new species of transformer called the Dinobots are introduced. As usual, there are lots of actions and fighting scenes but the number of autobots transformers on screen seems to have dropped to just a pathetic four. Overall, the movie is pretty average but I still highly recommend to catch it in IMAX. One bad point of this movie is that I feel that sponsors for this movie seems to have a larger say. The brand exposure in the movie seems to have gone overboard, so much so that scenes and actions are being forced into the movie just for the one or two seconds branding exposure. In summary, being a transformers movie, it is still a good catch.
 
Rate: 7.5/10

Monday, June 23, 2014

FRASERS HOSPITALITY TRUST

Short Summary:
FHT is a hospitality stapled group comprising FH-REIT and FH-BT. FH-REIT is a Singapore-based real estate investment trust (“REIT”) established with the principal investment strategy of investing on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate located anywhere in the world except Thailand, which is used primarily for hospitality and/or hospitality-related purposes, whether wholly or partially, as well as real estate-related assets in connection to the foregoing. This includes hotels, serviced residences, resorts and other lodging facilities, whether in existence by themselves as a whole or as part of larger mixed-use developments, and the term “serviced residences” means apartments with full or partial services.

The initial portfolio consists of the following:

The Deal:
Offering Price: S$0.88
The Offering: 182,099,000 Shares (Include 45,454,000 Offering Shares to Singapore Public)
Cornerstone Investors:
509,915,000 (43%) TCC Hospitality
260,887,000 (22%) Frasers Centrepoint Limited
56,818,000 (4.8%) Wealthy Fountains Holdings Inc
 
Forecast Dividend Yield:
2014: 3.05%
2015: 6.27%
*Based on issue price of $0.88, 1,185,850,000 units after IPO.
 
 
Dividend Policy:
Distributions from FHT comprise distributions from FH-REIT and FH-BT. FH-REIT’s distribution policy is to distribute 100.0% of FHREIT’s Distributable Income for the Forecast Period 2014 and Projection Year 2015 and at least 90.0% of its Distributable Income thereafter. The distribution will be made on a semiannual basis for the six-month periods ending 31 March, and 30 September. Distributions, when paid, will be in Singapore dollars. FH-BT will be dormant as at the Listing Date and no distributions will be made during the period that FH-BT remains dormant. It is assumed that FH-BT will have no revenue for the Forecast Period 2014 and Projection Year 2015. In the event that FH-BT becomes active and profitable, FH-BT’s distribution policy will be to distribute as much of its income as practicable, and the declaration and payment of distributions by FH-BT will be at the sole discretion of the Trustee-Manager Board. There is no assurance that FH-BT would make any distributions to Stapled Security holders.

Strength
- Exposure to the first SGX-ST listed global hotel and serviced residence stapled group with diversified portfolio across Asia, Australia and the United Kingdom
- Positioned to benefit from favourable demand drivers that will boost the hospitality sector of the various jurisdictions (Example: Singapore F1)
- Committed and reputable Sponsor with strong network and branding
- Well-positioned to capitalise on growth opportunities
- Experienced board and management team with proven track record
- Downside protection through Master Lease and Tenancy Agreements and Sponsor’s Corporate Guarantee, with potential to benefit from future rental growth

Business Strategies and Future Plans

Potential Audition pipeline as below:
 

Weakness
- The loss of a Master Lessee or Tenant, a down-turn in the business of a Master Lessee or Tenant or any breach by a Master Lessee or Tenant or the Corporate Guarantors of their respective obligations under the relevant Master Lease and Tenancy Agreement and the Corporate Guarantee could have an adverse effect on the financial condition, results of operations and prospects of FHT.
- There is no assurance that the level of Distributable Income attributable to InterContinental Singapore and Fraser Suites Singapore can be sustained at the forecast and projected levels once the payment top-up arrangement entered into (in respect of InterContinental Singapore) with the vendor and (in respect of Fraser Suites Singapore) with River Valley Apartments Pte Ltd expires.
- Renovation work, repair and maintenance or physical damage to the Properties may disrupt FH-REIT’s operations.
- FHT may be involved in disputes arising from boundary disputes which may result in costs and require payments.
- FHT may be required by relevant authorities to demolish certain wooden balconies at the rear of Best Western Cromwell London.
- Acts of God, wars, terrorist attacks, riots, civil commotions, widespread communicable diseases (such as the human avian flu and severe acute respiratory syndrome (“SARS”)) and other events beyond the control of FHT may adversely affect the business, financial condition, results of operations and prospects of FHT.
- High gearing of 40.98%

Finally, after a long hiatus, there is an IPO in Singapore market! Personally, I do not really like REITS that is hospitality in nature as they really depend on customers which can easily be affected by environmental events. The recent SARS and political turmoil perfectly taught us well just how easy a country's tourism industry can collapse. Need more example? Take a look at Greece and Thailand! As soon as people sense something amiss, they will stay away. Although their property are situated in countries such as Singapore, Malaysia, England and Australia, but still, anything can happen. Further more, I do not really like the idea that there is a vendor top-up component that sweetens the deal. What will happen when the top up period expires? The yield will not be as good as before, isn't it? In addition, if you take a look at the prospectus, there is a potential that FHT will need to fork out more money due to some land rights and permits issue with some of their property. All in all, I will give this a miss.

Some useful information:
[01 Jul 2014], [9.00 a.m.] : Opening date and time for the Public Offer.
[10 Jul 2014], [12,00 noon] : Closing date and time for the Public Offer.
[11 Jul 2014]: Balloting of applications under the Public Offer, if necessary.
[14 Jul 2014], [2,00 p.m.]: Commence trading on a “ready” basis.
 
Rating for investment: 3.0/10

Disclaimer: You may use the above information as a guide, but please invest based on your own judgment.

Wednesday, June 11, 2014

Maleficent

 
Synopsis: From Disney comes “Maleficent”—the untold story of Disney’s most iconic villain from the 1959 classic “Sleeping Beauty.” A beautiful, pure-hearted young woman, Maleficent has an idyllic life growing up in a peaceable forest kingdom, until one day when an invading army threatens the harmony of the land. Maleficent rises to be the land’s fiercest protector, but she ultimately suffers a ruthless betrayal—an act that begins to turn her pure heart to stone. Bent on revenge, Maleficent faces an epic battle with the invading king’s successor and, as a result, places a curse upon his newborn infant Aurora. As the child grows, Maleficent realizes that Aurora holds the key to peace in the kingdom—and perhaps to Maleficent’s true happiness as well. [Source: Cathay Cineplexes]


 
The original Sleeping Beauty story re-told, which cast the witch, which is now termed "fairy Godmother" in a rather good light. Interesting storyline talking about the betrayal of human for their own greed and ultimately turning the witch into who she is. Overall, Angelina Jolie put up a rather good show casting as the which, especially her high cheek bone which further protrude the evil and menacing feature of her character. A good show to catch for the weekend.
 
Rate: 8/10

Monday, June 09, 2014

X-Men: Days of Future Past

Synopsis: The ultimate X-Men ensemble fights a war for the survival of the species across two time periods in X-MEN: DAYS OF FUTURE PAST. The beloved characters from the original “X-Men” film trilogy join forces with their younger selves from “X-Men: First Class,” in an epic battle that must change the past – to save our future. [Source: Cathay Cineplexes]

 
It is kind of weird to see Magneto and Professor X working side by side during the opening to fight together for the mutants survival, but with this movie, history will be re-written altogether. With the usual Marvel's movie, viewers are guaranteed lots of fighting and special effects. Length of the movie is good too, not to short and not too long. Do stay till the after credits to have a preview clip on the next X-men villain. Overall, a good movie to catch at the cinema.
 
Rate: 7/10