"What is the interest rate risk of REIT investments? Interest rates only represent a portion of the overall equation."
Time flies. It is time for another quarterly update.
In 1Q 2017, I received income from the following S-REITs:
1. AA REIT
1. AA REIT
2. First REIT
3. IREIT
4. CRCT
5. Soilbuild REIT
6. Cache Log Trust
7. K-REIT
8. FCOT
9. Suntec REIT
10. LMIR
11. CIT
12. Sabana REIT
My largest investments in the S-REITs universe are still in AA REIT and First REIT. The others are relatively small investments with IREIT and Soilbuild REIT being slightly larger.
In 1Q 2017, I made the following changes to my S-REITs portfolio:
1. Invested in Frasers L&I Trust (FLT).
2. Invested in CapitaRetail China Trust (CRCT).
3. Took part in Sabana REIT's rights issue.
See: History with Sabana REIT.
4. Invested in Starhill Global REIT (SGR).
4. Invested in Starhill Global REIT (SGR).
See: Online shopping and SGR.
5. Added to my investment in IREIT.
5. Added to my investment in IREIT.
Everything remaining equal, I don't think I will be making new investments or adding to any investment in the S-REITs space. I am pretty comfortable with what I have now.
So, how much income did I receive in 1Q 2017?
$ 21,477.10
This gives me about $7,159.00 a month which is a big reduction from a year ago.
Of course, what is missing is the income distribution from Saizen REIT.
Full year income, although reduced, from S-REITs should still be quite comfortable due to expected contributions from new investments in FLT, CRCT and SGR as well as a larger investment in IREIT.
I will be sharing the numbers for investments in non-REITs in my next blog.
I will be sharing the numbers for investments in non-REITs in my next blog.
Hi AK,
ReplyDeleteCache Log Trust has been underperforming in recent years. It lost several master lessee and had to go for multi-tenanted which contracted earnings. Having said that, the Singapore overall portfolio for land leasehold is pretty long.
Gearing is now over 43% and I am sure an impending rights issue or private placement will come soon to bring it down.
Hi Kevin,
ReplyDeleteI bought into Cache Log Trust during the Global Financial Crisis. It was pretty promising back then. I still have a small legacy position which I don't mind holding on to. :)