I wanted to take this time to quickly update on my latest position. 

After the recent run-up to most of the S-Reits which I believe is near valuation peak over the past 10 years (apart from 2015), I have decided to lock in my gains and divested Frasers Logistic Trust (FLT) yesterday at a price of $1.14. 

This divestment gave me a very decent return in terms of both dividend and capital appreciation for the past couple of years I had them. Other than the dividends I have been getting over these years, I have also participated in their rights last year which brings down my average price further.

At $1.14, and assuming 1.78 cents/quarter annualized for the full year, it represents a dividend yield of 6.2% currently, which I think is a bit heavy (expensive) from a valuation perspective. Still, in a yield hungry world, the yield may continue to compress further, but I think as investors our role is to always assess if the risk of valuation is running ahead than fundamentals.

Operationally, their AUD is performing better so if AUD appreciates this year, we should be looking at higher yield than what it was in 2018.

Do also note that this is one of FLT's running peak post rights adjustments which they did last year. 

If we were to adjust this to pre-rights adjustment, the back then peak of $1.19 would have translated into $1.14 of today [(1,520,617,000 x $1.14) + (345,800,000 x $0.987) + (152,200,000 x $0.967) divided by 2,018,617,000]. 

I believe this is the level where the management gets an easier job looking for yield accretive acquisitions.

Having a pile of cash from this divestment, I needed to find a place to park these funds with a similar profile yields and it is not easy to find them in today's rising bullish environment. 

My criteria is straightforward. 

I needed to find a 6% yielder that the company can pay out of their free cash flow, some levels of cashflow predictability and a low semi-variance profile that can ride against the market tide. 

The focus doesn't have to be long term because they are just funds that I can park when the general valuations are getting higher and these will be rotated/rebalanced once the market shows some vulnerability. 

The 6% yield is my criteria for having to wait in the game and be in the market.

Vicom would have been a perfect example in this case and I would have put more stake in Vicom if not because I have already plenty of it in my portfolio, so I tend to digress to diversify a little bit further. 

Some of the corporate bonds such as the Astrea Bond would have been a solid alternative, but their yield to maturity have dropped significantly since they initially launched. 

The Singapore savings bond at the moment is a bit too conservative for my portfolio and I would consider them to be a drag if timing is not done correctly to rebalance them. 

I'll continue to keep a lookout on any opportunities and welcome any views on suggestion ideas.

Thanks for reading.