This week investment writers have been invited to a session with Keppel Pacific Oak REIT to have a discussion on their latest results. I don't want to steal the thunder away from writers who might discuss the details, I will just share some points that were not discussed that day:
- I have a decent amount of Keppel Pacific Oak and this is still one of my more profitable holdings as I bought a position when there was uncertainty over taxation rules of US REITS listed in Singapore.
- Keppel Pacific Oak continues to be shortlisted in my factor models, but my students have decided not to pick it up in the last round early this month.
- I actually disagreed with my student's analysis after this pleasant luncheon and consequently supported the counter when I sent my research to iFast for clients of their Introducer service. If anything, it will boost the yield of the portfolio substantially.
One point discussed quite fervently was the food delivered to us for the talk. I had a fairly large portion of Nasi Lemak that not only had a drumstick but also a sausage. I found the meal disappointing as the sambal was so-so, the achar too tart, and ikan bilis a little too soggy after delivery. I had an opportunity to swap it for the beef bourguinon but was too late for my email but it seems folks who ordered the beef were not too impressed with it.
Another interesting point of discussion is US Politics.
When I meet the CEO of a US REIT, everything is already in their latest quarterly results, so I prefer to talk about generic US politics and I find a discussion with David Snyder really enlightening.
( I do the same when I meet Europeans who run the REITs I own, enquiring about fertility rates in Poland and how popular right-winged parties are in Eastern Europe. )
From my discussions with business people from the US, they always give me the impression that they lean Republican. The first time I had a luncheon with KepPacOak, I asked them about the odds of Elizabeth Warren becoming US President and they told me that no way in hell it was going to happen so it allayed my fears.
This time around, I asked them whether the exodus of tech talent into Republican states will swing the states towards the Democrats.
Shockingly the answer is yes. I was told that tech workers actually succeeded in "defunding the police" in blue dominant counties in Texas even though it is largely a Republican stronghold.
You can imagine the incredulity of the businessmen in Republican states, angry Americans are fleeing California because of high taxes and once they get to their destination, they are bringing their progressive values to end the friendly regimes of their adopted new homes!
Anyway, I hope to get more luncheons in the future, I don't think I need to speak any more about the REIT given that my personal ownership speaks for itself.
If anything, I will order beef anytime and avoid the default option in future.
Just wondering about the trends.
ReplyDeleteWFH has been proven to be quite effective for many industries and probably becoming an expectation among the younger folks. I wouldnt go for office reits personally but admittedly , just an opinoin, havnt deep dive into Keppel oak
Landlords are shifting to hybrid models as the new model. In the meantime, there office REIT holders are rewarded with higher yields. No pain, no gain.
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