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A replacement for Croesus Retail Trust.

Monday, August 28, 2017

Reader:
Just wanna seek ur views with regards to Croesus retail trust as it's most likely soon going to be delisted.

Thereafter, I'm thinking of recycling funds into AimsAMP cap Reit to replace CRT to generate high dividend.

Recently, the share price of AimsAMP went down quite a bit and make it rather attractive to purchase. This dividend income is important to me as I use it to pay for the living expenses n accommodation for my child's overseas uni education for 2 more years. Hope u can talk to yourself

AK:
Er... See my latest blog post





Reader:
Thanks, noted n seen. Due to my needs to find dividend income replacement after CRT, do u think AimsAMP at current P/B at 1.0 and it's NAV is equivalent to current trading price at $1.385/unit provides a fare price to buy in? I'm rather attracted to 7.8% annually and hopefully this is sustainable for the next few years at least.


AK:
Actually, do you really need to hunt for replacement dividend income? The capital gain from the sale of CRT would provide more than 2 years of "dividends" in advance, more than enough to fund your child's expenses. That is the point I am trying to make in my blog.

I don't know if it is a good idea to buy more of AA REIT especially if AA REIT is already a big investment in your portfolio.

Apart from concentration risk, being hasty to deploy the funds might not be a good idea.



Croesus Retail Trust is quite different from AA REIT. So, when we are thinking of replacing one with the other, it shouldn't just be because their yields are comparable.

When I got into Croesus Retail Trust, partly, it was because I was looking to reduce concentration in industrial S-REITs which have most of their assets in Singapore. So, it was to reduce sectoral and also geographical concentration risk.

So, it wasn't a simple case of getting a comparable or higher yield.

Of course, it is about what gives me peace of mind. It could be that I think too much.



Reader:
Wow, AK..very thankful for your fast reply and details ๐Ÿ™๐Ÿ™๐Ÿ™
Noted your pointers and I'll keep them in mind.
Currently my AA REIT is not as large as my CRT investment ( really thank u very much as I read n focus in this Reit). Hopefully if AA REIT price weaken further, then I'll look into it.

AK:
I am sure you will do what is right for you. ๐Ÿ™‚
Take your time. I think there is no hurry to redeploy the funds from CRT.

That is the beauty of buying into an income generating asset at below fair value. We could see its value unlocked and while waiting, we get paid. That was the case with Saizen REIT too ๐Ÿ˜‰



Reader:
No lal, AK... definitely u r not thinking too much, ๅฐๅฟƒ้ฉถๅพ—ไธ‡ๅนด่ˆน!
u r definitely doing the right thing n doing things right ๐Ÿ’ช๐Ÿผ๐Ÿ‘๐Ÿผ
It's really great to know you since 7 yrs ago ๐Ÿ‘๐Ÿผ
Even though I missed the Saizen REIT, but there will always be more of other good dividend income stocks along the way, I'm sure ๐Ÿ˜Š Just continue to read ur blog ✌๐Ÿผ

Related post:
How to deploy Croesus Retail Trust money?

8 comments:

Laurence said...

AK is now a highly sought-after Oracle of REITs. In South Korea, their President seek advise from Shaman Adviser. Lol.

jojo said...

Not just REIT ... non-REIT as well!
Hmmm, AK ... the Oracle of Singapore.
Now you know why there is a black market for tickets to your concert!
Now jokes aside, your readers kowtow to you because your blog has substance. And you are so real. I mean, you have skin in the game in the shares you blog about, and it's specific, not vague, so readers believe you. But more important, trust you because we know you are not given to excesses, not showy, not boastful and are honest and helpful.

AK71 said...

Hi Laurence and jojo,

Alamak. Don't like that say.

I am mostly reclusive or what the Japanese call a "shut in" but I still go out from time to time. Later, my head too big for me to go out the door. Very cham.

Although I appreciate the kind words, I am as fallible as anyone else. I am no Oracle.

AK71 said...

Reader says:
Croesus sale just got me 100 k which I wish to reinvest
Would lippo malls tst be a safe counter to invest in. I am looking for a reliable reit which gives great dividends. My other alternatives are either Mapletree Industrial or Ascendas reit. Your input will be valuable, thanks.

AK says:
Read this ;p

Potatoish said...

Hi AK,

In general, The reader could consider FIRST REIT. If my memory doesn't fail me, the Rentals are in SGD :)

And Medical REITS are stable also due to the long WALE!

I want to add extra but it has ran up quite abit :(

What say you AK?

JQ

AK71 said...

Hi JQ,

First REIT is my second largest investment in REITs. I like it very much but not at the current price. :)

K said...

Hi AK,

I dont really see any value REITs in the market at this moment (do you?).. all moved up... :(

AK71 said...

Hi K,

Mr. Market seems to be feeling more optimistic.

I will wait for some pessimism to return. ;)

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