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3Q 2022 passive income: Stunned like vegetable!

Sunday, September 25, 2022

In my last quarterly passive income update, I said that I was too active as an investor for income in 2Q 2022 and that I was looking forward to being lazy again.

Did I get to be lazy in 3Q 2022?

Well, I almost did nothing until I added to my investments in IREIT Global and a Chinese tech ETF in September as their prices declined pretty dramatically.

Although Europe's economy is likely to go into a recession, IREIT Global's numbers are strong and unless we expect their tenants to default en masse, it is hard to justify such a dramatic decline in unit price.

Doing a bit of investigation told us that a substantial shareholder, AT Group, was probably responsible for bulk of the selling and Mr. Market simply could not absorb so much in such a short time.

I see a weaker Euro, higher interest rates and a longer time to backfill vacated premises as reasons for some weakness but not a 20% decline in unit price.

Mr. Market oversold.

So, I had to buy more at 50c a unit.

It was a good bargain, in my opinion.

Any price under 50c a unit would be a steal, all else being equal.

I would most likely be buying more then.




As for Lion-OCBC Hang Seng Tech ETF, regular readers would probably remember that I said it was an experiment for me. 

I am an ignoramus when it comes to tech stuff.

My position in the ETF is still less than 1% of my portfolio's market value although I bought more recently.

The position might grow a bit especially if the unit price declines to test the low of 15 March but  it is unlikely to grow much bigger.

One reason why it is likely to stay relatively small is because the ETF does not pay a dividend and I have to trade to make some money from it.

Sounds like work, doesn't it?

Too much work for me.

Yes, AK is lazy.

OK, maybe, AK being lazy is the main reason why the position is staying small.

Alamak, ownself poke ownself.




Anyway, in my 2Q 2022 passive income report, I also said that I expected my passive income in 3Q 2022 to come in weaker year on year.

The reason is simple.

In 3Q 2021, there was a pretty significant one time final distribution from Accordia Golf Trust which, of course, is no more.

That final distribution represented a big chunk of  my passive income received in 3Q 2021.

So, missing that, there was a big hole that must be filled in 3Q 2022.

Although I expected that changes I made in recent months would pick up some of the slack, I was not sure that the hole could be completely filled.

It was a case of hope for the best but prepare for the worst.

I wasn't expecting a tragic outcome but I wasn't expecting something to celebrate either.

I was crossing fingers and toes.




Then, with the weakening Euro, it became quite clear that IREIT Global's distribution would come in lower compared to 1Q 2022 and it did by about 10%.

Yikes!

Double whammy!

As if things were not looking gloomy enough already, Mr. Market poked me in the ribs.

What to do?

I was basically digging in for a weaker 3Q 2022.

So as not to set myself up for disappointment, it was the sensible thing to do.

Then, the moment of truth.

The once per quarter login to my bank account to check on the dividends received.

My jaw dropped.

OMG!



I must have done something right because 3Q 2022 passive income came in higher than in 3Q 2021!

3Q 2021 passive income:

$69,145.13

3Q 2022 passive income:

$75,989.50




I would have been quite amazed even if there had been no decline in 3Q 2022 passive income year on year. 

However, 3Q 2022 passive income increased by almost 10% year on year instead!

OMG!

Mind boggling!

I so stunned like vegetable!



When I blogged about my 2Q 2022 passive income, I titled the blog "Stronger with changes."

It seems that the changes I made have strengthened my passive income in 3Q 2022 as well.

Forget spinach, I feel like eating some broccoli now!

Eat broccoli!

Makes passive income strong!




OK, be serious, AK.

If you are new to my blog or cannot remember the changes I made to my investment portfolio, you might be interested in reading these blogs:

1. Reallocate as interest rate rises.

2. 2Q 2022 passive income: Stronger with changes.

Having read those blogs again myself, I am really glad I wasn't too lazy to do what I did. 

My full year passive income in 2021 was:

$171,854.30

I titled that blog "Don't lose hope."

See:

4Q 2021 passive income: Don't lose hope.

Passive income in the first 9 months of 2022: 

$ 180,667.92




Already 5% higher than passive income for the whole of 2021, with 3 more months to go, 2022 will probably be ending on a high note, barring unforeseen negative events.

Investing for income allows me to be lazy most of the time.

Once in a while, I have to take time off from my life in virtual worlds to work on my investment portfolio in real life.

The world is in a mess now but I am staying invested for income.




Stay on the path to financial freedom.

Mostly investing in bona fide income generating assets can only help.

Don't stray especially when things look bleak.

It is when things look bleak that people give in to despair.

Don't give up.

Never give up.

Soldier on and we will be rewarded in good time.

Of course, it is never my way or the high way.

If you like my way, then, remember, if AK can do it, so can you!

Believe it!

Gambatte!




Recently published:
1. IREIT Global: Short term pain.
2. Chinese tech, IREIT, CPF etc.





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