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?
FAKE ASSI AK71 IN HWZ.
This guy has 800K in his CPF. (AK responds to HWZ Forum.)
A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que...
Archives
"E-book" by AK
Second "e-book".
Another free "e-book".
4th free "e-book".
Pageviews since Dec'09
Recent Comments
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
- 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
- UOB Gold & Silver
- Wealth Buch
- Wealth Journey
- What's behind the numbers?
Monthly Popular Posts
-
A reader pointed me to a thread in HWZ Forum which discussed about my CPF savings being more than $800K. He wanted to clarify certain que... -
The plan was to blog about this together with my quarterly passive income report (4Q 2018) but I decided to take some time off from Neverwin...
-
Reader says: hi ak. did something happen to your Facebook page? only can see posts from 2018 haha AK says... I also dunno why but FB re... -
I just received a letter from LTA that my car is due for an inspection. Wow! Has it really been three years? Time really flies. ...
-
When I blogged about my decision to take a long break from public appearances, I also said that I would continue blogging but less frequentl... -
Reader says... AK sifu.. Wah next year MA up to 57200... Excited siah.. Can top up again to get tax relief. Can I ask u if the i...
-
Readers know that I have been spending a lot of time in Neverwinter and it will continue to be so as Neverwinter is launching Mod 16 a few w...
-
It is my year! Yes! AK is a pig! Oink! Oink! We are very lucky that in Singapore financial freedom is not a dream ... -
Reader says... I'm thankful for the positive impact u have on my life, up there with Warren Buffett and rich dad . I hope in time I...
-
It has been a pretty long break since my last blog. I have also been spending a lot less time engaging readers both in my blog and on Face...
Bloggy Award
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