Car rental: GetGo review

 

Ever since my most favorite Smove car rental company wind up in 2020, I had not rent a car till now.

Recently, I came across a car rental company named GetGo, due to its striking car decal spotted in many carparks (over 900+ locations) and on the roads. 

The WOW portion of GetGo

1. From registration to drive off within 20mins or less
• Yes, sounds insane but it is possible. All you need is download GetGo apps, register via Singpass and book your car 
2. No deposit if you register via Singpass
3. No documents to upload if you register via Singpass
4. No monthly membership fees
5. Pay per use
6. Many locations (over 900++ carparks)
7. Only require apps (Booking is contactless and available 24 x 7)
8. 5% of total rental cost for optional Collision Damage Waiver
9. You receive $5 credit if you sign up via my ref code (KQ67GPSU) or click here
10. You receive $6 credit if you help to top up their petrol from 1/4 tank to full tank
• No payment required for petrol top up at all Esso station as car equip with Esso card
11. FAQ & Live chat options available within apps
12. Simple apps UI interface
13. Community car
• You cannot book GetGo to drive Grab. 
• If you living in a good and social responsible community, the car condition should be good.

What can be improved:

1. Currently Getgo is a Point A to Point A rental services
• If they can return the car to diff location from collection, it will be awesome
2. It require bluetooth to "connect" to your car currently
• In order to lock your car or start/end your booking, you need to turn on your phone bluetooth. 
• Connecting to the car via bluetooth require around 5 secs

Signing up? :) :) :)

You receive $5 credit if you sign up via my ref code (KQ67GPSU) or click here

Related post:

1) Car Rental: Smove vs Tribecar (2018 Dec Edition) 

2) Life as a 1 week Uber driver during company forced leave (Part 1)

3) Life as a 1 week Uber driver during company forced leave (Part 2)

Added: Keppel DC Reit

 

Bought 17,500 shares of Keppel DC REIT at $2.28 on 20 Jan.

Reason for buying:

1) 52w low

Past 1 year, KDC share price is ugly (1 way down). 

In term of fundamental, I don't think there is much different except on 28 Apr, KDC announced that they will not be pure DC play anymore (Expansion of Investment Mandate).  

However, KDC had state that at least 90% of AUM will continue to be data centres.

This is similar to you would like to allocate max 10% of your portfolio to cryptocurrency.  Sounds fine and good with me.

2) Premium to NAV dropped to +85% as compare to +101.6% 3 months ago

3) >$2b potential DC asset from sponsor pipeline

This is important to ensure there will be growth in AUM & dividend payout.

4) M1 NetCo Bonds and Preference shares

I am not sure why some shareholders doesn't like this M1 opportunity. I think it is alot better than the Mapletree merger (My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)).

M1 is the second largest mobile operator after Singtel. I am M1 customer (both mobile and fibre) for more than 10 years. 

I actually quite like this as it provide stable cashflow for KDC for next 15 years ($11m/yr) at 9.17%pa with NO operational management risks or capex obligations in the future.

In comparison:

• Invest in KDC, get 4+% dividend per annum (pa). 
• Top up money in CPF SA at 4%pa with lockup for XX years (depending on your age)
• Put in Singapore Saving Bond (SSB) for 10years only get average 1.64%pa

Aside from the cashflow, it is also DPU accretive and increase AUM. REITs nowadays are trying hard to enlarge their AUM.

5) Divestment

Aside from the acquisition, the ability in good divestment outcome is important too.

 

6) Lower than the Private Placement (PP) price of $2.522 in Aug 2021

7) Complement with Mapletree Industrial Trust (MIT) DC portfolio

I added MIT few days ago (link).

MIT have 49.4% of its DC AUM in North America and 3.5% in Singapore while KDC did not have any DC in America.

Related post:

1) Added: Mapletree Industrial Trust

2) My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)

Frasers Centrepoint Trust (FCT) AGM 2022

 

Frasers Centrepoint Trust (FCT) held their AGM today at 10am and it ended at 10.47am.

Shareholders questions were answered before the actual AGM. You can view FCT responses Part 1 and Part 2.

I like this approach as this can allow unsatisfactory answer to be raised again (if any) during the live AGM. This also show confidence of FCT Management. 

There are less than 10 questions submitted during the live AGM session and below are the summary:

1) How will the interest rate hike impact FCT?

FCT debt are quite evenly spread out, thus will not have any huge impact to FCT in any particular year

2)   Is FCT looking to expand oversea?

FCT main focus now is still in Singapore. 

3) How do FCT ensure DPU grow year on year?

Via the Growth strategies slide the 3 engines

4) Hektar REIT Malaysia performance concern

FCT purchase Hektar REIT many years ago and have been enjoying some good payout for past few years. The performance concern is due to COVID and hopefully Malaysia retail will pick up soon.

5) Will SG GST hike affect DPU payout?

Should not have much effect as 54.4% of FCT portfolio are essential services. DPU payout largely depend on the rental collected.

There is not much surprise element in FCT AGM 2022.

Related post:

1) Added: Frasers Centrepoint Trust (Jan 2022)

2) Added: Frasers Centrepoint Trust (Sep 2021)

3) ComfortDelGro AGM 2021

4) First REIT AGM 2020

5) MM2 AGM 2019

6) Perennial AGM 2019

SOLD: HongKongLand (worth more than USD100K)

 

Sold 15,900 shares of HongKongLand (HKL) on 4 Jan and another 5,300 shares on 11 Jan with average price at USD5.38

Total profit, including dividend is S$11,571.16 (7.6%) in 2 years 5 months.

Reason for selling: 

1) HKL is an unlove gems

HKL doesn't seem to get much analysts coverage attention.

Therefore despite having good quality properties portfolio, the share price remain super low (PB0.37).

If not for the USD500M shares buyback initiates by HKL itself, I doubt the price will cross above USD5 anytime soon.

As such, this is a very boring stock and it will take long time for Mr Market to reflect its worth.

2) Zero COVID policy

As the world starts to shift from "zero covid policy" to "living with covid", China and Hong Kong are the last few remaining countries on "zero covid policy". 

China economy still can self sustain itself with "zero covid policy", but Hong Kong economy will struggle with this. Especially when Covid hit the country right after their protests.

HKL profit contributor rely heavily on Hong Kong, followed by China.

  

3) Bearish on Commerical Office sector

Post covid, in the new normal, WFH is getting more and more common and in years to come, it might be the preferred choice for company to implement this.

Hot desking, virtual meeting, work from anywhere are the trend moving forward.

This result in reducing office space needs.

4) Share price is pushed up by USD500M shares buyback

I had been monitoring the share buyback activity daily.

The highest price of share buyback is usually the highest day range, if not, just a few cents different.

When there is no share buyback for that day, HKL share price mostly are moving sideway or downward.

As of 15 Jan, almost 42% of the USD500M budget had been spent on share buyback.

If HKL were to execute not more than 400,000 shares per day, the share price will be few cents different from the previous day close price.

Since HKL had until end of 2022 to execute the share buyback budget, it make sense for HKL to take it slowly so that it will not cause a sudden spike in its share price. This method is the best value for money approach to take.

Once this whole share buyback exercise completed, the NAV and dividends % should increase as all these number of shares are cancel out. Likely need to wait for the effect to take place in 2023.

5) Diversification

REITs share price have been trending downward recently, likely due to FED signal in increasing interest rate 4 times in 2022 and reducing their bonds purchases. 

You can refer back to similar exercise in Dec 2015 (Finally! Fed raises interest rates) and 2016 (Finally: Fed raises rates for first time in 2016) to see how REITS share price performed to prepare yourself mentally.

I had used HKL capital to purchase Frasers Centrepoint Trust (Link) and Mapletree Industrial Trust (Link) so far. Still had enough firepower to purchase 1 more stock soon.

Related post:

1) HongKongLand: Invested more than USD100k into this stock (Part 7)

2) HongKongLand: Invested more than USD100k into this stock (Part 6)

3) HongKongLand: Invested more than USD100k into this stock (Part 5)

4) HongKongLand: Invested more than USD100k into this stock (Part 4)

5) HongKongLand: Invested more than USD100k into this stock (Part 3)

6) HongKongLand: Invested more than USD100k into this stock (Part 2) 

7) HongKongLand: Invested more than USD100k into this stock 

8) Added: HongKong Land USD (Aug 2020)

9) Added: HongKong Land USD (May 2020)

10) Added: HongKong Land USD (Mar 2020)

11) Added: HongKong Land USD (Feb 2020)

12) Added: HongKong Land USD (Crisis is also a time of opportunity)

13) Added: HongKong Land USD (Aug 2019)

Added: Mapletree Industrial Trust

 

Bought 21,000 shares of Mapletree Industrial Trust at $2.59 on 12 Jan.

Reason for buying:

1) Dividend 5.2%

2) Quarterly dividend payout

3) PB 1.37

Although the PB is above 1.0 (not really my style to buy REIT above PB 1.0), however given that the Data Centres portfolio is 53% of the AUM, I find this PB1.37 is justifiable.  

For comparison, although not apple to apple, Keppel DC Reit PB at 2.0 / Digital Core Reit PB at 1.42 / Ascendas Reit PB at 1.22

4) Data centres portfolio

Post covid, there are even more activities that will be conducted virtually (Eg Zoom, Metaverse virtual world) and with 5G adoption picking up, result in more Internet of Things and Driverless car, the demand for data centres will be super high. 

MIT also have the Right of first refusal (ROFR) to 50% interest of Mapletree Rosewood Data Centre Trust (MRODCT) from sponsor. 

5) 

6) Strong sponsor

Mapletree branding was consider top tier along with CapitaLand.

However, its branding suffer abit due to the MCT x MNACT merger saga (My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese) ).

Hope that Management gain some learning experience from this merger.

Related post:

1) My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)

HongKongLand: Invested more than USD100k into this stock (Part 7)

 

Recap on background

HKL announced share buyback programme on 06 Sep 2021 (Link).

HKL planned to invest up to USD500M till 31 Dec 2022 and shares purchased under in this programme will be cancelled.

HKL share price was USD4.20 on 06 Sep before the announcement was made.

How many % of the USD500M used to date?

40% already

Note: You can refer back to my old post for share buyback before 29 Nov.

HKL hit 52w high USD5.80 on 19 Nov and despite using more than 10+% of the share buyback budget since 19 Nov till now, it still cant create another new 52w high.

There is 249 working days in total in 2022 to utilize the remaining 60% (USD300M).

Related post: 

1) HongKongLand: Invested more than USD100k into this stock (Part 6)

2) HongKongLand: Invested more than USD100k into this stock (Part 5)

3) HongKongLand: Invested more than USD100k into this stock (Part 4)

4) HongKongLand: Invested more than USD100k into this stock (Part 3)

5) HongKongLand: Invested more than USD100k into this stock (Part 2) 

6) HongKongLand: Invested more than USD100k into this stock 

7) Added: HongKong Land USD (Aug 2020)

8) Added: HongKong Land USD (May 2020)

9) Added: HongKong Land USD (Mar 2020)

10) Added: HongKong Land USD (Feb 2020)

11) Added: HongKong Land USD (Crisis is also a time of opportunity)

12) Added: HongKong Land USD (Aug 2019)

Added: Frasers Centrepoint Trust (Jan 2022)

 

Bought 25,000 shares of Frasers Centrepoint Trust (FCT) at $2.28 on 6 Jan.

This bring my total number of FCT shares to 29,100.

Reason for buying:

1) Pure play King of Suburban retail mall

With MCT merging with MNACT to become MPACT and CapitaLand Integrated Commercial Trust (CICT), we only have very limited pure play good quality Singapore retail REIT left.

Out of the 9 properties, Changi City Point is the only concern property given its location rely on Singapore Expo and Changi Business Park. 

2) Dividend 5.3%

3) PB 1

4) Last mile requirement = Resilient

5) Living with COVID 

WFH partially will be the new norms and with high vaccination rate, it is unlikely we will go into lockdown mode. Singaporean love F&B and the aircon in retail mall. 

Related post:

1) Added: Frasers Centrepoint Trust (Sep 2021)

2) My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)

My thoughts on MCT (Ketchup) x MNACT (Chili) = MPACT (Nacho cheese)

I am neither the shareholder of Mapletree Commerical Trust (MCT) nor Mapletree North Asia Commerical Trust (MNACT) at this moment. 

I also did not purchase MCT or MNACT before.

But MCT have been in my watchlist for the last few years.

The reasons why I didn't add MCT into my portfolio is due to premium price (Above 1.0 PB) and low dividend rate (Less than 5%).

So I will provide my thoughts from potential MCT shareholders perspective. 

When I finished reading the announcement of the merger powerpoint slide, my thought is it is not worth paying MNACT at $1.1949.

As per the slide title, Attractive Finance Returns for MNACT Unitholders.

A fair value, in my opinion, for MCT to pay for MNACT is 0.7PB ($0.84), max 0.8PB ($0.96) given it is Mapletree branding.

Reason being:

1) Festival Walk (Hong Kong)

     1.1) Average Rental Reversion is NEGATIVE 30%

MNACT 1H FY21/22 Slide 16

       1.2) 2nd largest contributor to NPI post merger at 22% (Largest is MBC 1 & 2 at 24%)

Merger slide 18

        1.3) 25 more years of lease left

Just on this Festival Walk property alone, will you pay 1.0PB ($1.1949) for MNACT? 

 

2) Gateway Plaza (China)

      2.1) Average Rental Reversion is NEGATIVE 24%

MNACT 1H FY21/22 Slide 22

       2.2) Together with Sandhill Plaza, contributor to NPI post merger at 12%

Merger slide 18

 

3) Seiko (Japan)

Source: https://www.mapletreenorthasiacommercialtrust.com/~/media/MNACT/Newsroom/Announcements/2021/Dec/1_MNACT_ValuationofProperties_31Dec2021.pdf

MNACT 1H FY21/22 Slide 14

I believe majority of people agreed that this is a bad merger for MCT, thus the share price reflected it accordingly.

From $2 on 3 Jan Open till $1.82 on 4 Jan Close (- 9%)

I feel that shareholder for MCT vs MNACT are belong to 2 different groups (Ketchup vs Chili).

MCT shareholder love the quality and stability of MCT properties, thus don't mind to pay premium and its low dividend % (Ketchup).

MNACT shareholder is ok to take a higher risk to get a higher dividend % (Chili).

Suddenly you ask Ketchup lover to add Chili into their dish, it is hard for them to swallow the food.

Mapletree need to turn the chili into sweet chili so that existing MCT shareholder can accept it better.

For new potential MCT shareholders like myself, I hope that MPACT will become the most lovable Nacho cheese in the future if the merger were to go through.

Shall monitor the share price of MCT before deciding to onboard or continue staying sideline.