My Portfolio of Business Trust

Hi all,

This financial crisis has swamped round the whole world, no one is being spared of this.

I took a long term view on this and purchase some Business Trust.

Babcock $0.625
Cambridge Industrial $0.40
Fraser Commercial Trust $0.285
First Shipping Lease Trust $0.40
IndiaBulls $0.15
Lippo Maple $0.675
Macq Infra Industrial Fund $0.33

I am now building a portfolio of regular distribution.
I have purchased Babcock and Lippo Mapple too early this year. I will look to ave down in coming mths.

Why Inveset in REITs?

Who Invests in REITs?

-Individual investors of all legal ages can invest in REITs directly or through REIT mutual funds. -Other typical buyers of REITs are exchange traded funds, pension funds, endowments.


Why Should I Invest in REITs?

REITs are total return investments.

They typically provide high dividends plus the potential for moderate, long-term capital appreciation.
Long-term total returns of REIT stocks are likely to be somewhat less than the returns of higher risk, high-growth stocks and somewhat more than the returns of lower risk bonds.


REITs are required by law to distribute each year to their shareholders at least 90 percent of their taxable income. Thus, REITs tend to be among those companies paying the highest dividends.
The dividends come primarily from the relatively stable and predictable stream of contractual rents paid by the tenants who occupy the REIT’s properties. Because rental rates tend to rise during periods of inflation, REIT dividends tend to be protected from the long-term corrosive effect of rising prices.

In SUmmary,

REITs offer investors:
• Portfolio diversification, which reduces risk
• Current, stable dividend income
• High dividend yields
• Dividend growth that has consistently exceeded the rate of consumer price inflation
• Liquidity: shares of publicly traded REITs are readily converted into cash because they are traded on the major stock exchanges
• Professional management: REIT managers are skilled, experienced real estate professionals
• Oversight: Independent directors of the REIT, independent analysts, independent auditors, and the business and financial media monitor a publicly traded REIT’s financial reporting on a regular basis. This provides investors with a measure of protection and more than one barometer of the REIT’s financial condition.
• Disclosure obligations: REITs whose securities are registered with
the authorities are required to make regular disclosures, including
quarterly and yearly financial reports.

FAQ on REITS

THE BASICS OF REITS

1) What is a REIT?

A REIT is a company that mainly owns, and in most cases, operates
income-producing real estate such as apartments, shopping centers,
offices, hotels and warehouses. Some REITs also engage in financing
real estate. The shares of many REITs are traded on major stock
exchanges.

To qualify as a REIT, a company must have most of its assets and
income tied to real estate investment and must distribute at least 90
percent of its taxable income to its shareholders annually. A company
that qualifies as a REIT is permitted to deduct dividends paid to its
shareholders from its corporate taxable income. As a result, most
REITs remit at least 100 percent of their taxable income to their
shareholders and therefore owe no corporate tax.


2) Why were REITs Created?

Congress created REITs in 1960 to make investments in large-scale,
income-producing real estate accessible to average investors.
Congress decided that a way for average investors to invest in large
scale commercial properties was the same way they invest in other
industries — through the purchase of equity. In the same way
shareholders benefit by owning stocks of other corporations, the
stockholders of a REIT earn a pro-rata share of the economic
benefits that are derived from the production of income through
commercial real estate ownership. REITs offer distinct advantages for
investors: portfolio diversification, strong and reliable dividends,
liquidity, solid long-term performance and transparency.

3) How Does a Company Qualify as a REIT?

REIT must:
• Be an entity that is taxable as a corporation
• Be managed by a board of directors or trustees
• Have shares that are fully transferable
• Have a minimum of 100 shareholders
• Have no more than 50 percent of its shares held by five
or fewer individuals during the last half of the taxable year
• Invest at least 75 percent of its total assets in real estate assets
• Derive at least 75 percent of its gross income from rents
from real property or interest on mortgages financing real property
• Have no more than 20 percent of its assets consist of
stocks in taxable REIT subsidiaries
• Pay annually at least 90 percent of its taxable income in
the form of shareholder dividends


* Information taken from:
National Association of Real Estate Investment Trusts®
REITs: Building Dividends and Diversification®

Property Counters dip a fair bit

Well, due to sub prime , property counters have came down quite a lot.

Counter that are on my watch list:

1) Heeton
2) Hongfok
3) Singapore Land
4) Superbowl
5) Capitaland

Courts Singapore to Privatise???

On 7th June 07, Singapore Retail Group Limited has acquired 54.16% in Courts Singapore from Courts Group International Limited for S$0.645. This trigger a general takeover by SRG at S$0.645 (inclusive of dividend payable), else it will be S$0.608.

The offer ended on 16th Aug 07, with SRG acquiring a total stake of 69.07% stake in Courts Singapore.

From that day onwards, SRG has been buying stake from other shareholders and open market, and increased its stake to 86.99% as of 29th May 08.

So, what is the next move?

My guess is that

A privatization exercise will take place to delist Courts Singapore. Asia Retail Group Limited being the ultimate shareholder of Courts Singapore will benefit synergy economics of scale, by merging the business if they are able to take Courts private. To take Courts private, with only 3.01% more to hit the trash-hold of 90%, Asia Retail Group will attempt to take Courts private.
NTA of Courts is $0.7057, my take is that any attempt will be offering a price near to its NTA.

Babcock n Brown Infrastructure Fund

Above is the FY07 results for Babcock & Brown Infrastructure Fund.
The board provided a guidance for dividend for 1H08 of 5.2cts
Based on current share price of 63cts, this represent a return of about 8% semi annually.
2H08 has yet to announced the dividend guidance.

Last yr , it gave a total of 10.2 cts of dividend, which represent a div of about 15% annually.

I would recommend investors to consider picking this up on a long term investment horizon.

BACKGROUND

Babcock & Brown Structured Finance Fund Limited is a mutual fund company incorporated in Bermuda on 24 April 2006 and managed by Babcock & Brown Structured Finance Management Pty Ltd. The Company’s key investment objective is to invest in a portfolio of assets and economic exposures which provide its Shareholders with an attractive yield and a competitive rate of return by paying regular dividends and achieving capital growth. The Company plans to achieve its investment objectives and policies through further acquisitions, active portfolio management as well as financing and risk management. The Company provides investors with the ability to invest, through the Company, in asset classes which are not readily accessible to most investors in a listed form.

The Company invests in assets in three target sectors: -
Operating Lease Assets;
Loan Portfolio and Securitisation Assets; and
Alternative Assets.

The Company intends to invest in assets in three target sectors to create a portfolio with predictable cash flows, potential for long term capital growth and diversity across each target sector and across geographies and currencies.

Fortress Financial Group

Fortress Financial Group, Inc. - Update on Gold InterestsFriday January 11, 10:44 am ET
Company Confirms Transaction in Respect of Its Remaining Two Gold Mining & Exploration Projects

NEW YORK--(BUSINESS WIRE)--Fortress Financial Group, Inc. (PINKSHEETS: FFGO - News) is now in a position to confirm that it will be disposing of its interests in its two remaining Gold Mining & Exploration interests, those being Bouse Mining Holding Holdings plc (“the “Bouse Project”) and Copperstone Mining Holdings plc (“the South Copperstone Project”).
Fortress Financial Group, Inc. holds approximately 48% of these two Gold Mining & Exploration companies with the majority of the remaining outstanding shares being held by eligible Fortress Financial Group, Inc. (formerly Great West Gold, Inc.) stockholders.

Those eligible stockholders being “Stockholders on Record” on the below-mentioned dates:
Bouse Mining Holdings plc on November 7, 2005

Copperstone Mining Holdings plc on December 2, 2005
These stockholders will receive their “free trading” shares in the new USA quoted Gold Mining & Exploration Company; upon completion of this transaction.
It is expected that this transaction will complete; including the share issues; by no later than mid February 2008.

Fortress Financial Group, Inc. and the other stockholders in Bouse Mining Holdings plc and in Copperstone Mining Holdings plc will receive stock, in exchange for their stockholdings in both “Bouse” and “South Copperstone”; in a USA quoted Gold Mining & Exploration Company, with an existing Gold Mining portfolio; and with a very experienced and capable Management Team.
It is expected that Fortress Financial Group, Inc. will receive and retain close to 20% of this Company. Fortress Financial Group, Inc. has not sought, nor will it will receive Board representation in this Company.

Fortress Financial Group, Inc. will retain its stock in this Company, as a portfolio interest alongside its interest in Hunt Gold Corporation (HGLC.PK). It is intended to distribute a large portion of these two quoted stockholdings to Fortress Financial Group, Inc. stockholders; in the future.

Fortress Financial Group, Inc. will retain a significant but passive investment holding in the Gold Sector, the Company’s Management being of the opinion that the Gold price will continue to rise, given the underlying fundamental demand and supply globally, for the metal.

Upon the completion of this transaction, Fortress Financial Group’s direct interest in this Company and in Hunt Gold Corporation; will be valued at circa US$1billion. Needless to say, this creates an enormous strong foundation for the Company, to very rapidly expand its financial service interests.

Alan Santini, the Chief Executive Officer of Fortress Financial Group, Inc. commented “that given the explosive growth and activity in the Company’s MasterCard business, coupled with the Company’s Investment portfolio being exclusively in Gold Assets, with the Gold price at a new Record High, he was extremely optimistic that the Company would grow from strength to strength”. He added that “the strength of the Company’s Balance Sheet with no debt whatsoever, would enable the Company to expand at a far more rapid pace that was ever envisaged by the Company’s Management”. Alan Santini pointed out “that should the Gold price continue its upwards trend, as expected, the Company’s indirect passive investments in the Gold Sector could prove to be a huge unforeseen bonus in respect of our stockholder value.”
About Fortress Financial Group, Inc.

Fortress Financial Group, Inc. is now primarily engaged in the issuing and marketing of prepaid debit and credit card and related payment solution activities. It has just announced the acquisition of Moneyworx, Inc., a reseller of MasterCard prepaid USA Domestic and International Prepaid Debit Cards.

Fortress Financial Group, Inc. will be launching its own label “Fortress” International Debit Card in the first quarter of 2008.

Fortress Financial Group, Inc. (formerly Great West Gold, Inc.), was a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company has disposed of its interests in the “Ambassador”, “Golden Eagle” and “Mockingbird” Gold Mining Exploration properties to Hunt Gold Corporation (PINKSHEETS : HGLC - News); and holds approximately 48% of Hunt Gold Corporation shares of outstanding Common Stock, as an investment.

The Company is now disposing of its interests in the “South Copperstone”, and “Bouse” Gold Mining Exploration properties, in exchange for shares of Common Stock in a USA Gold Mining & Exploration Company, in and during February 2008.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.