Tuan Sing Holdings: Transisting Towards a Singapore Commercial Developer

Currently Tuan Sing Holdings is a conglomerate operating in three business areas:

1. Hotel Property

The company owns hotel assets in Australia in Hyatt regency Perth ad Grand Hyatt Melbourne. Both are freehold assets. However, performances has been relatively muted with the company barely breaking even. This segment is not a major profit contributor to the group

2. Property Development

Tuan Sing is increasingly becoming active in this region with the recent completion of its Grade A Singapore Office at 18 Robinson Road which is a freehold land. Similarly, the group is now  redeveloping Sime Darby Centre which is a part freehold and part 999 years lease. Furthermore, Tuan Sing recently secured a low 2.80% interest on its bonds, which means its loans will be at a low interest rate.

18 Robinson Road recently started operations in 2019 and has started its leases with tenants and retail shops. Therefore, I am expecting increase in revenue recognised by the company and cashflow from rentals starting from Q4 2019. This will be further improved by the completion of Sime Darby centre in 2020. 

Next, the company is currently developing small niche high end projects such as Kandis Walk, these will be additional cashflow generated in the short run from its residential development projects. 

Tuan Sing's property development arm is likely to be cash flow accretive for a long period of time 

3. Industrial Services

Tuan Sing Holdings owns Stake in SP corporation and Gul Technologies. Profits have been relatively stable but they do not move much beyond the 1 million mark for the group.

Overall, Tuan Sing's business arm of 1) and 3) do not make much to the bottom-line. However, these two segments have been cashflow accretive and been sustaining the company's 0.6 cents dividends.

Expecting More Dividends from Tuan Sing

18 Robinson Road is a Grade A commercial office and retail development in Singapore's city centre. Following the occupancy rate of Grade A spaces, one can reasonably expect 18 Robinson to be 90% leased for both commercial and its retail spaces. The building has approximately 80,000 in square feet of commercial space for lease and about 30,000 square feet of retail.

Ignoring rental yields from its car park space and assuming current commercial rental rate of $11.30 per square foot, retail rental of $5.73 per square feet and 90% occupancy rate, one can expect $11.59 Million in annual revenue for Tuan Sing

From Capitaland Commercial Trust financial results, approximately 70% of revenue flows in as operating cashflow due to cash expenses etc, therefore one can expect 18 Robinson to yield $8.11 Million in annual cashflow

Currently Tuan Sing has 1,186 million shares in circulation, this means 18 Robinson Road is able to add another 0.68 cents in cashflow and in turn, dividends. The company currently has a sustainable dividend policy of 0.6 cents. Hence, it is quite possible for them to maintain a future dividends of 1.2 cents.

I am expecting another round of dividend increase when Sime Darby centre comes online. As both of these properties are freehold status and not 99 year leases like most of other REITs, these cashflow is perpetual in nature and only subjected to property market conditions.

Change in American Express Referral Conditions For Amex KrisFlyer Cards

To all readers, the previous content of my post which I blogged about how one could spend $50 to achieve 10,000 krisflyer miles is no longer valid because AMEX has changed their referral T&C from 10 October 2019. 

New Condition

So for those who had signed up from 10 October 2019, your Krisflyer accumulation miles are as follows:

a) Your first charge to the Krisflyer card will yield you 5,000 KrisFlyer Miles (provided this is the first time you own and have charged to an American Express cobrand Card)

b) However if you wish to accumulate the next 5,000 Krisflyer miles, you will need to spend $1,000 within the first 3 months of the date of the card approval.

This will help you earn 10,000 Krisflyer Miles in total. Please take note. Should you just wish to get part a), just charge a small amount to earn the 5,000 Krisflyer miles if you are a new cardholder to Amex. 

However, for those interested in accumulating for the $1,000 spend. I will strongly recommend using the top up of grabpay method over the span of 2-3 months. Do note your first $200 in grab top up is applicable for 3.1x Krisflyer miles on top of the bonus miles.

Hence the first $1,000 expenditure achieved by you is still worthwhile under the following method:

1st Calendar Month (e.g. 1 Nov 2019) - Top up $500 Into grabpay via your new signed up Amex Card

First $200- 630 Krisflyer Miles ($200 x 3.1)

Next $300 - 330 Kris Flyer Miles ($200 x 1.1)

2nd Calendar Month (e.g. 1 Dec 2019) - Top up $500 Into grabpay via Amex Card

First $200- 630 Krisflyer Miles ($200 x 3.1)

Next $300 - 330 Kris Flyer Miles ($200 x 1.1)

Total Points as of 2nd Month = 1,920 Kris Flyer Miles

Add $1,000 Spend =  5,000 Kris Flyer Miles

Total Airmiles Earned = 6,920 KrisFlyer Miles

Hence for $1,000 spent, you will accumulate 6,920 Air Miles (which works out to 6.9 Miles per $1 spent.

While it is weaker than the previous offer I stated where you could only spend $50 to earn the full 10k miles, the current deal is still decent in which you ear 6.9 miles per $1 up to $1,000

What To Spend on Grabpay

As mentioned by my now outdated post, the answer is to use Grabpay to pay for AXS bills via its mobile app such as income tax bills and utility. I have linked a very well-written article by Dollars and Sense which covers how AXS mobile app can now be paid using Grabpay [Link Here]

Earn 10,000 KrisFlyer Miles for Spending Just $1000 on American Express KrisFlyer Card

To all readers, the previous content of my post which I blogged about how one could spend $50 to achieve 10,000 krisflyer miles is no longer valid because AMEX has changed their referral T&C from 10 October 2019. 

New Condition

So for those who had signed up from 10 October 2019, your Krisflyer accumulation miles are as follows:

a) Your first charge to the Krisflyer card will yield you 5,000 KrisFlyer Miles (provided this is the first time you own and have charged to an American Express cobrand Card)

b) However if you wish to accumulate the next 5,000 Krisflyer miles, you will need to spend $1,000 within the first 3 months of the date of the card approval.

This will help you earn 10,000 Krisflyer Miles in total. Please take note.

However, for those interested in accumulating for the $1,000 spend. I will strongly recommend using the top up of grabpay method over the span of 2-3 months. While your first $200 in grab top up is applicable for 3.1x Krisflyer miles, the totality of the $1,000 expenditure is still worthwhile.

Below is my advised calculation

1st Calendar Month (e.g. 1 Nov 2019) - Top up $500 Into grabpay via your new signed up Amex Card

First $200- 630 Krisflyer Miles ($200 x 3.1)

Next $300 - 330 Kris Flyer Miles ($200 x 1.1)

2nd Calendar Month (e.g. 1 Dec 2019) - Top up $500 Into grabpay via Amex Card

First $200- 630 Krisflyer Miles ($200 x 3.1)

Next $300 - 330 Kris Flyer Miles ($200 x 1.1)

Total Points as of 2nd Month = 1,920 Kris Flyer Miles

Add $1,000 Spend =  5,000 Kris Flyer Miles

Total Airmiles Earned = 6,920 KrisFlyer Miles

Hence for $1,000 spent, you will accumulate 6,920 Air Miles (which works out to 6.9 Miles per $1 spent.

While it is weaker than the previous offer I stated where you could only spend $50 to earn the full 10k miles, the current deal is still decent in which you ear 6.9 miles per $1 up to $1,000

What To Spend on Grabpay

As mentioned by my now outdated post, the answer is to use Grabpay to pay for AXS bills online such as income tax bills and utility. I have linked a very well article by Dollars and Sense which covers how AXS mobile app can now be paid using Grabpay [Link Here]