Reader:
"I read your analysis of IREIT and how your strategy turned out in August 2015. You said that you wanted a minimum of 8% yield to invest in IREIT. So, you waited. At today's price, you would get more than 8%. Would you invest in it today?"
The reader was referring to a blog dated 14 August 2015. If anyone is interested in the background which led to this blog, please read:
How did IREIT Global's rights issue turn out for AK?
AK:
"Wow! You read that recently? You must be combing my blog's archives! Gambatte!
"Anyway, back then, my average price was about 66c and, estimating a DPU of 6c today is not unrealistic. So, conservatively, I am getting a 9.1% distribution yield for that investment.
"Actually, as things turned out, less than a week after I published that blog, I increased my investment in IREIT a lot more at 66c and 65.5c.
"On hindsight, I didn't have to go through all that trouble to get IREIT at a lower price during its rights issue but who could have known that Mr. Market would go into a mild depression later in August 2015? I am not saying that it was a bad thing, of course.
"I added to my investment in IREIT again in mid-2016 at 71c a unit which was 7.5% higher than 66c. Even though it was a higher price, I still found the REIT attractive as an investment for income. More recently, I added a bit more to my investment last month, paying 72.5c a unit."
Now, would you invest in IREIT Global today? It depends on what you are after and whether IREIT Global does the job for you.
Related posts:
1. FLT and CRCT added.
2. Projected yield of 8% safe?
Featured blog.
1M50 CPF millionaire in 2021!
Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...


Past blog posts now load week by week. The old style created a problem for some as the system would load 50 blog posts each time. Hope the new style is better. Search archives in box below.

ASSI's Guest bloggers
- boon sun (1)
- Elsie (1)
- Elvin H. Liang (1)
- ENZA (3)
- EY (7)
- FunShine (5)
- Invest Apprentice (2)
- Jean (1)
- JK (2)
- Kai Xiang (1)
- Kenji FX (2)
- Klein (2)
- LS (2)
- Matt (3)
- Matthew Seah (18)
- Mike (6)
- Ms. Y (2)
- Raymond Ng (1)
- Ryan (1)
- Serejouir (1)
- skipper (1)
- Solace (13)
- Song StoneCold (2)
- STE (7)
- TheMinimalist (4)
- Vic (1)

Resources & Blogs.
- 5WAVES
- AlpacaInvestments
- Bf Gf Money Blog
- Bully the Bear
- Cheaponana
- Clueless Punter
- Consumer Alerts
- Dividend simpleton
- Financial Freedom
- Forever Financial Freedom
- GH Chua Investments
- Help your own money.
- Ideas on investing in SG.
- Invest Properly Leh
- Investment Moats
- Investopedia
- JK Fund
- MoneySense (MAS)
- Next Insight
- Oddball teen's mind.
- Propwise.sg - Property
- Scg8866t Stockinvesting
- SG Man of Leisure
- SG Young Investment
- Sillyinvestor.
- SimplyJesMe
- Singapore Exchange
- Singapore IPOs
- STE's Investing Journey
- STI - Stocks Info
- T.U.B. Investing
- The Sleepy Devil
- The Tale of Azrael
- TheFinance
- Turtle Investor
- UOB Gold & Silver
- Wealth Buch
- Wealth Journey
- What's behind the numbers?

Would AK invest in IREIT Global today?
Sunday, February 5, 2017
Subscribe to:
Post Comments (Atom)
Monthly Popular Blog Posts
-
Readers left me a few comments on AIMS APAC REIT (formerly AIMS AMP Capital Industrial REIT) recently and I decided to do a quick blog on on...
-
Back in 2018, when I announced that I was taking a long break from public appearances, I said it would last, maybe, two or three years. Well...
-
This blog is actually the second reply to a reader, csky, who is interested in knowing how much have I invested in DBS, OCBC and UOB, amongs...
-
This blog is in response to questions by readers, csky and linus . On Wilmar, DBS, OCBC and UOB: That price target of $5 for Wilmar which I...
-
Another quarter has come to a close and with the end of the final quarter of 2020, a rather terrible year has ended too. It is probably a ye...
-
Ever since the CPFB introduced a colorful pie chart of our CPF savings a few years ago, I would look forward to mine every year like a teena...
-
This started as a reply to a reader's comment: HERE . I actually spent more than an hour typing the reply and it became quite long. ...
-
It has been a long time since I blogged about AIMS AMP Capital Industrial REIT which, till today, is still my largest investment in the S-RE...
-
This blog was inspired by a comment from a reader. Read SnOOpy168's comment: HERE . Over the weekend, when I was spending time with my p...
-
Reader said... I am 56 and I started investing last year. I invested heavily in reits because of the higher yields and belief that they...

4 comments:
Recorded a 20.8% year on year increase in DPU to 6.33c for FY2016.
At 75 cents per unit, distribution yield is 8.44%.
Hi AK,
IREIT’s distribution policy : To distribute 100% of annual distributable income from IPO to end
FY2016 and thereafter, at least 90% for each financial year.
Should I expect the DPU to be decreased for FY2017, aka 90% of 6.33c which is 5.7c?
Hi AK82,
Building that expectation into your investment thesis is a good idea. ;)
“The affirmed (‘BB’ rating with a stable outlook) reflected IREIT's relatively small scale and concentrated lease expiry profile compared with rated peers”, said S&P.
“These risks are balanced by a stable portfolio of quality assets with high occupancy rates and strong tenants."
S&P also expects the REIT’s gearing to remain at about 40%, which allows limited financial flexibility given the 45% limit.
“We do not view the recent change in ownership and control as having a significant effect on the business or financial prospects”, said S&P, in reference to the Tikehau Investment Management’s acquisition of an 80% stake in the REIT’s manager.
Tikehau has also said that it will expand the REIT’s investment mandate beyond German office properties.
“In addition, any risks due to property type or geographical location are likely to be offset by increases in scale and diversity”, said S&P, adding that it expects Tikehau’s network in Europe to be beneficial for potential acquisition deals.
Source: https://www.reitsweek.com/2017/03/sp-affirms-but-withdraws-bb-rating-on-ireit-global-upon-request.html
AK says:
"I took advantage of recent price weakness to add to my investment in IREIT Global at 71.5c per unit."
Post a Comment