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Far East Hospitality Trust ("FEHT") & Perennial China Retail Trust ("PRCT")

Let's take a quick look at 2 companies in my Starfish SRS portfolio. Both FEHT and PRCT announced Q1 results in the last 2 days.


FEHT announced Q1 results that were "above expectation" in terms of DPU but not in terms of revenue and net property income. With  a DPU of about 1.38 cents per unit, my SRS portfolio of 
5,000 units will receive a quarterly distribution of $69 on 14 June. The presentation slides are here.

The tourism sector in Singapore is experiencing some "bumps" due to high SGD rates vis-a-vis other currencies and that has created some "downward" pressure. 

Having said that, Q1 is traditionally the slowest period of the year and we can expect better quarters ahead for FEHT.

Chart wise, the counter appears to be consolidating sideways.


PRCT also announced its Q1 results where things appear to be ramping up nicely. The presentation slides are here and you can see some nice pictures of the properties under development. PRCT announced a Q1 DPU of 0.95 Singapore cents mainly from the earned out arrangement. That will translate into $95 for my 10,000 shares (payment date not announced). The NAV per share of the Group is around $0.71 as of 31 March 2013. In this regard, the current price of PRCT is still trading below book value and i expect the gap to narrow as the development pans out. The gearing is at a comfortable 23%.

Shengyang Assets

I will expect the occupancy rates to gradually improve as the properties get completed and developed.

In any case, things appears to be looking up in the coming quarters. We shall see if PRCT is able to deliver.

Chart wise, the share price appears to be "looking up" as well and will probably resume its upward trend if the properties are able to launch as planned. A break above 66 cents will be extremely bullish.

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