I get asked from time to time why I invest in First REIT and not Parkway Life REIT?
Actually, more accurately, people should ask why did I invest in First REIT and not Parkway Life REIT?
Yes, asking when a decision was made matters.
When I was deciding between First REIT and Parkway Life REIT, the choice was a much simpler one.
First REIT was trading at a big discount to NAV and its distribution yield was much higher compared to Parkway Life REIT.
Money should go to where it is treated best, I told myself then.
So, if you guess my entry prices were very low, you are right.
Actually, no need to guess because I have blogged about this before.
As First REIT's unit price has been declining, many readers have asked me if it is a good time to buy more.
My response was rather predictable.
"I don't know if it is a good time to buy more for you.
"I only know it is not a good time to buy more for me.
"Have a plan, your own plan."
It does not fit into my plan to buy more First REIT but I am more than happy to hold on to what I have.
Even if First REIT should see a 20% decline in unit price or even a 30% in unit price today, it would still be higher than my entry prices.
However, for someone who decides to invest in First REIT today, surely, he would not feel indifferent if such big declines in the REIT's unit price should happen.
A big decline in unit price could happen if First REIT's largest tenant, LPKR, which is feeling the strain of a falling Rupiah, should default on rental payment
For sure, I do not know if this is going to happen.
I do know that investing in First REIT, more than ever, investors have to be ready for rights issues with a new pipeline of assets in Japan, China and Malaysia from OUE Lippo Healthcare which is taking over the management of the REIT.
If we believe that First REIT's income stream is in peril and if we do not like the idea of a big rights issue, then, we should not be investing in First REIT.
Why worry?
Related post:
Free income producing assets.
FAKE ASSI AK71 IN HWZ.
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...
"E-book" by AK
Second "e-book".
Another free "e-book".
4th free "e-book".
Financially free and Facebook free!
Subscribe To ASSI
Posts
Comments
Monthly Popular Blog Posts
-
In recent times, I have found it much easier to talk to myself on YouTube. It is faster than blogging. This explains the greater number of v...
-
For those of you who follow me in my YouTube channel, you would know that something unfortunate happened recently to my father. So, I expect...
-
Another quarter has gone by and it is time for another update. For a change, I will reveal the numbers first. 3Q 2024 passive income: $85.2...
-
It has been more than a week since my last blog post. Things have settled into a new normal for me. In this new normal, my expenses have inc...
-
With DBS, OCBC and UOB doing so well in 3Q 2024, I had to take time off from gaming to produce a series of videos. For those of you who do n...
All time ASSI most popular!
-
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... 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...
-
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...
-
I thought of not blogging about my 2Q 2020 passive income till a couple of weeks later because Mod 19 of Neverwinter, Avernus, just went liv...
Bloggy Award
7 comments:
Reader says...
Hi AK, do u have any insights of 1st reit? Most articles talked about how OUE will benefit but not about 1st reit. It will be helpful if u can give some comments. 1st reit share price has been dropping. Wonder if it's a gd time to accumulate. Thanks.
AK says...
Do what you feel is right for you 🙂
For me, I think the deal is neutral for First REIT.
Reader says...
I see. The price seems to be attractive but I worry whether there are some risks which I may not be aware. 😅
AK says...
I always worry. 😞
Reader says...
Do u think the price drop recently is due to forex concerns? 😂
AK says...
I really have no clue 😛
Reader says...
👌if u don't know, means safe. 😝
AK thinks...
(Alamak.)
someone with nick assiak71 posted in hardwarezone that it is the end for first reit.
Hi Laiye,
There was a fake Warren Buffett Twitter account at one time.
Now, there is a fake ASSI AK71 HWZ account.
Alamak.
Hi AK,
You should be happy (perversely) that there is a fake Warren Buffett account, and now a fake ASSIAK71 account. People impersonate only those who have some credibility.
: )
So, you should continue to blog actively and educate folks like us.
Hi SkinnyOldMan,
A friend of mine in the USA was a victim of identity theft.
It was a terrible 2 years for her.
-.-"
Hi AK
What's holding you back from buying more First REIT?
Hi NerdLibrarian,
I could be suffering from an "anchoring effect". ;p
You might want to read this blog for some clues as well:
3Q 2018 Passive Income (S-REITs).
Post a Comment