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3Q 2017 passive income from non-REITs.

Saturday, September 30, 2017

I continue to invest more in non-REITs, reducing my reliance on S-REITs for passive income in the process.

The largest investment in non-REITs in 3Q 2017 was in SingTel.

See: SingTel and Netlink NBN Trust.

I accumulated a relatively large investment as SingTel's share price declined to below $3.70 a share.

I am more interested in the entity's ability to pay consistent and meaningful dividends although a special dividend from the sale of Netlink NBN Trust would be a nice bonus.

In 3Q 2017, I also nibbled at the following:

1. Wilmar.

2. Tuan Sing Holdings.

3. Comfort Delgro.

As usual, there is an investing for income angle in all my investments but that is where the similarity ends for these nibbles.

Adding to my investment in Wilmar when I did was to pay a fair price investing for growth. It is important that I am paid while I wait and Wilmar pays regular dividends.

See: Accumulating Wilmar.

Tuan Sing Holdings, similar to Guocoland, is an asset play. However, the gestation period is going to be longer because their recurring income engine is yet to be completed.

See: Invested in Tuan Sing.

ComfortDelgro is the newest member of my non-REITs portfolio. Sold down terribly due to Mr. Market's intense pessimism and with so much blood on the streets, I was curious enough to take a look.

See: Analysis of ComfortDelgro.

I feel that these new investments will probably strengthen my passive income stream from non-REITs in future.

In 3Q 2017, income received from non-REITs:

$ 24,538.58

Missing Croesus Retail Trust in future will result in much reduced passive income from non-REITs as the Trust accounts for more than half of the income received in the quarter.

Other than Croesus Retail Trust, the other more significant non-REIT income contributors in my portfolio in 3Q 2017 were Centurion, VICOM and Wilmar.

In 4Q 2017, my war chest will receive a tremendous boost in the form of a final distribution from Croesus Retail Trust as the sale of the Trust is completed.

Related posts:
1. 3Q 2017 income from S-REITs.
2. 2Q 2017 income from non-REITs.


AK71 said...

From my FB wall:

Fong Sau Yee:
Ever thought of diversifying into UMS holdings ?

I have been burnt by the cyclical semi-con sector before. Concentration risk in UMS is also very high. For peace of mind, I avoid.

sleepydevil said...

Ahh. The usual midas touch, AK is here!!
Do drop by when you're free :)

AK71 said...

Hi SD,

A bit of luck helps. :)

AK71 said...

SINGTEL announced a 197.1 per cent jump in second-quarter earnings to S$2.9 billion, boosted by gains from the divestment of 75.2 per cent of its stake in NetLink Trust in July this year.

Net profit for the three months to Sept 30, 2017, came in at a record S$2.89 billion from S$972 million in the year-ago quarter after a gain from the divestment of S$2.05 billion brought exceptional items to S$1.93 billion from S$3.4 million previously.

Operating revenue for the quarter rose 6.9 per cent to S$4.37 billion from S$4.09 billion a year ago. This included revenue contributions from digital marketing company Turn which was acquired in April this year.

Earnings before interest, tax, depreciation and amortisation was up 5 per cent, which Singtel said "reflected the strong performance of its core business bolstered by higher post-paid mobile and fixed broadband customer numbers in Australia."

Underlying net profit for the quarter fell 4 per cent, impacted by Airtel, which continues to face intense price competition in India, said the telco. Excluding Airtel, underlying net profit would have risen 3 per cent.

A special dividend three Singapore cents per share will be paid out, totalling about S$500 million out of S$2.3 billion in proceeds from the divestment of NetLink Trust.
This is on top of an interim dividend of 6.8 cents per share.

"Our first half results have been achieved against a tougher business backdrop, a testament to the strength of our core and digital businesses. Digital and ICT (information and communications technology) services now account for 25 per cent of our revenue, reflecting positive momentum in our digital transformation. Our digital marketing arm Amobee has scored more customer wins and is gaining strong momentum in Asia."

AK71 said...

SingTel announced that a special dividend 3 cents per share will be paid out. This is on top of an interim dividend of 6.8 cents per share.

I continue to invest more in non-REITs, reducing my reliance on S-REITs for passive income in the process.

The largest investment in non-REITs in 3Q 2017 was in SingTel.

Chris Lim said...

Whenever you stated 'nibble', how many percentage is that of your portfolio?

AK71 said...

Hi Chris,

Pretty small. No fixed percentage but pretty small.

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