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3Q 2021 passive income: Better days ahead?

Wednesday, October 6, 2021

Time flies and it is time for another quarterly passive income update.

Usually, I publish a quarterly update on the last day of the quarter or within the first couple of days of the new quarter.

However, this quarterly update took a bit longer than usual to produce because I was caught up in some stuff happening in Black Desert Online and Neverwinter. 

In case some think that I was joking, I really wasn't.

Divdends and virtual worlds.

However, this blog also took a few more days to publish because there were quite a few things I would like to talk to myself about.

So, I took some time off from adventuring in the virtual worlds to blog in the real world.

Anyway, this is going to be a slightly longer blog by ASSI's standards.

For readers who are used to my shorter (and maybe sweeter) blogs especially the more recent ones, you have been warned.

OK, I think we shall start with Tuan Sing Holdings.

I invested in Tuan Sing Holdings about 4 years ago at 33 cents a share because, after doing some research, I believed that it was very undervalued. 

As I like being paid while I wait for value to be unlocked, being rewarded with a dividend yield of about 1.5% while waiting wasn't too bad a deal.

In 3Q 2021, Tuan Sing Holding's share price shot up and the hefty discount to NAV vanished.

Together with this, the chart showed a very overbought picture and the upward movement in price was losing strength.

So, I decided it was time to enjoy the harvest and sold my smallish investment in Tuan Sing Holdings.

The substantial capital gains together with dividends received over the years made this a very good investment.

The money received mostly went to filling my war chest which was drained significantly by IREIT Global's most recent rights issue.

Readers who are interested in why I invested in Tuan Sing Holdings four years ago might want to read this blog:
Invested in Tuan Sing Holdings.

What surprised me in 3Q 2021 was Keppel Corp's move to take over SPH.

Totally unexpected.

Each share of SPH would receive $0.668 cash, 0.596 unit of Keppel REIT and 0.782 unit of SPH REIT.

It looked rather messy to me and I would have preferred an all cash deal.

As I already have a relatively large exposure to REITs in my portfolio, I am not too enthusiastic about this unsolicited increase in exposure to REITs.

Anyway, after so many years, it seems that my storied journey with SPH has come to an end.

Investment in SPH is larger now.

I also added to my investment in Wilmar as its share price softened in 3Q 2021.

As Wilmar's share price formed lower lows, the MACD, a momentum oscillator formed higher lows which gave us a positive divergence which is forward looking.

It suggested that smart money was accumulating on price weakness.

I also reminded myself that earlier in the year, Mr. Kuok paid $4.33 a share and increased exposure by some $10 million.

Of course, in any case, a positive divergence in the chart does not tell us that a strengthening of share price is imminent.

Indeed, we could see a positive divergence dragging out with lower lows in share price and higher lows in the momentum oscillator.

What the positive divergence told us was that shares were changing hands from weaker to stronger holders and that downside risk was reducing as selling pressure was probably easing.

If the positive divergence continues, I would likely add to my investment in Wilmar if its stock should see further weakness in price.

Wilmar was $7.11 a share.

Passive income in 3Q 2021 also benefitted from Accordia Golf Trust's final distribution.

It was the distribution of residual funds in the Trust before it headed for delisting.

The distribution was relatively small compared to what was distributed after the sale of its assets, of course, but as a proportion of my passive income in 3Q 2021, it was pretty significant.

This is a one off event and 3Q 2022's passive income will be relatively lower, all else being equal.

Feeling a little nostalgic as Accordia Golf Trust is removed from my portfolio.

See: Accordia Golf Trust: 73.2c offer.

In 3Q 2021, King Wan Corp. announced a 1 for 1 rights issue at 2c per rights share.

In reply to a reader's comment on the rights issue, I said that King Wan Corp. increasingly looked like a lemon to me as it had not been able do better after so many years.

The rights issue was proposed to strengthen the company's balance sheet and regular readers would know that I generally do not like such rights issues.

I have written off my smallish investment in King Wan Corp. and, therefore, did not participate in the rights issue.

Of course, this is not the first time I have done something like this.

This is another reminder that, as investors, we make some and we lose some.

As long as we make more than we lose over time, we should do well enough.


Have a plan, your own plan. 


Getting it right 6x out of 10.

How much did I receive in passive income from my investments in the stock market in 3Q 2021?


The largest passive income contributor for me in 3Q 2021 was IREIT Global which is, of course, the largest investment in my portfolio as I increased exposure to the REIT during the most recent bear market and participated in its recent rights issues.

Other relatively significant contributors to my passive income in 3Q 2021 were Accordia Golf Trust, AIMS APAC REIT, Sabana REIT, CRCT, Starhill Global REIT, ComfortDelgro, VICOM, OCBC, UOB, DBS and Wilmar.

You might find these blogs interesting:

1. AA REIT and Woolworths' HQ.

2. Investing with common sense. 

3. Sabana REIT and Wilmar. 

4. DBS, OCBC and UOB.

5. Should we invest in AA REIT? 

Finally, for those who might have missed it, I said this with regards to SembMarine's latest round of fund raising back in July:

"I am less inclined to pump in my own money at this point into SembCorp Marine as it is anyone's guess how many years it is going to take for them to generate an income for me. 

"In my retirement, I cannot afford to be too adventurous with my money and I decided to let go of my free shares in SembCorp Marine."

2Q 2021 passive income.

This article in The Business Times might also be of interest to some readers as it once again reminds us that no one cares more about our money than we do and we should never ask barbers if we need a haircut:

Sembmarine revised statement on directors' intent to subscribe for rights issue after EGM. Shifting disclosure of directors is a bigger issue than some directors not fully taking up their rights shares.

Until my next blog, stay safe and do the right things to help keep all of us safe from COVID-19.

No one cares more about our money...

Recently published:
HDB BTO projects delayed...


us said...

Hi AK,

Thanks for the update. Just curious as to why you do not like Keppel Reit now, remembered you used to have it many years ago?

Prices seemed to have come down, yield is okay and P/BV is attractive too. Thanks for sharing your thoughts!

AK71 said...

Hi us,

Oh, I still have units in Keppel REIT from the days when it was known as K-REIT.

It is a very small legacy investment which isn't doing very much for me.

I had the impression that Keppel Corp used Keppel REIT to unload assets at inflated prices.

The sale of Ocean Financial Centre (OFC) in 2011 stuck out like a sore thumb and is hard to forget.

OFC was relatively new and was sold at the height of the Euro crisis with rental support which probably led to higher valuation of the property.

That led to the REIT's unitholders having to bear the huge cost and the higher risk.

I believe that leopards don't change their spots.

Anyway, it was so long ago and my memory is probably patchy.

Still, the impression stayed with me and I have avoided the REIT since.

Maybe, investing in Keppel Corp is a better idea. ;)

Fortunately, I blogged about it back then and I am able to pull it out for you.

I was more diplomatic in the way I blogged back in those days but, reading between the lines, it should be clear that I wasn't happy.

K-REIT: 17 for 20 rights issue.

us said...

Thank you, never wrong to call a spade a spade. Definitely help the rest of us make a more informed decision. More huatness to you!


AK71 said...

Hi Wei,

Well, to be fair, things might have changed at Keppel REIT since then.

I haven't paid much attention to the REIT in recent years, after all.

So, if you have researched the REIT and feel comfortable enough to invest in it, you might want to take my decade old bad experience with the REIT with a big pinch of salt. ;)

David said...

Hi AK,
Thank you for your 3Q sharings.
AIMS CEO will be Keppel REIT CEO.
Maybe Keppel REIT will be better in future:-)

Must congras you on AIMS REIT, Wilmar etc.
Both have shot up.


laurence said...

Wow, AK is one of the few retail tycoons who made as much (if not more) profits during this pandemic compared to pre-covid !!!
It's testament that following AK our Oracle is the right choice !! 0:)

AK71 said...

Hi David,

Things can always improve, of course. :)

For the sake of my tiny investment in Keppel REIT, I shall be crossing fingers. ;)

Thank you for the kind words and good luck to all of us. :D

AK71 said...

Hi Laurence,

Retail tycoon?

Nah, I have been called a "peasant millionaire" but "tycoon" is a hat too big for my head.

I rather like being called a peasant because it shows that common people can achieve what I have achieved. :)

1. To be a happy peasant.
2. Building an income portfolio is like building a house.

garudadri said...

Inspirational! That is my only comment looking at that passive income figure!
Food inflation might be a mixed bag for Wilmar and I was waiting for 4$ to buy. Came close but not yet, will wait again
With your added bank shares from this pandemic meltdown, I forecast your quarterly income averaging out to 75000$😊, next year at the minimum
I added the banks and more recently REITS and am fairly confident about next year

AK71 said...

Hi Garudadri,

I am glad you have found my blog inspirational as that is what ASSI mainly aims to be. :D

All of us have different circumstances and we should not blindly follow another person's strategy.

We should all have our own plan as we pursue financial freedom :)

Averaging $75,000 in passive income per quarter means an annual passive income of $300,000 which I feel might be overly optimistic.

I do wish you are right, of course. ;)

What could boost my passive income in 2022, all else being equal, are possibly higher dividends from ComfortDelgro and Ascott Residence Trust as well as a resumption of dividends from Centurion Corporation.

Crossing fingers. :)

Journey to financial freedom is not a race.

Krishna said...

Hi AK,

Thank your for sharing!

Please advise your thoughts on glove counters - Top glove, riverstone, UG healthcare and why you are not investing in these counters. Macros indicate that there will be demand for these products in future.



AK71 said...

Hi Krishna,

My plate is quite full and I don't have any inclination to look at anything new, especially stuff that is probably not within my circle of competence.

I only have so much time, after all.

Financial freedom or freedom in retirement?

suresh said...

Hi AK-
Can you share your thoughts on Maxi-cash


AK71 said...

Hi Suresh,

My thoughts on Maxi-cash?

I hope I never have to visit any of its outlets. ;)

Just being cheeky here but I haven't looked at anything other than what I already have in my portfolio as my plate is already rather full.

You are welcome to share your thoughts here with us, of course. :)

C said...

Hi AK Shifu, could you please talk to yourself about Sabana Shariah REIT at $0.43 ? Donkey years back it IPO at more than double the price, and in current day context, wonder if there is still upside from the upcoming value unlocking activities ? My sincere thanks

AK71 said...

Hi C,

I don't know if you have been following my more recent blogs on Sabana REIT but I added to my investment in the REIT aggressively towards the end of last year, making it one of my largest investments again after selling it down a few years ago.

History with Sabana REIT.

and also

4Q 2020 passive income.

I did more buying in January this year as I revealed in another blog.

1Q 2021 passive income.

The purchases were all done between 35 cents to 36 cents a unit.

If I did not add to my investment so many months ago, would I buy today at 43 cents a unit?

I probably would buy some simply because I feel that Sabana REIT is worth more than 43 cents a unit and there is a better chance of value being unlocked now than before.

If you read the blogs I have hyperlinked above, you will get an idea why I say this.

Good luck to us all. :)

C said...

Thank you Shifu for talking to yourself. :)

AK71 said...

Hi C,

I was absolutely talking to myself. ;)

Kingsley said...

Parkway life reit is on a downtrend which might signal a good time to nibble. But it seems like a long overdue price drop for its crazy ascend. Being a reit, it provides the lowest dividend yield at current price but this reit has deified odds for longest of time. Confused or I think too much? Lol

AK71 said...

Hi Kingsley,

Parkway Life REIT just feels very pricey to me.

It has a good track record but with it priced the way it is, it leaves very little room for error.

When we remember that REITs do not pay dividends from profits but actually distribute their operational cash flow to investors, we would not be wrong to ask if Parkway Life REIT is a better investment for income than the local banks, for example?

Still, there is a price we have to pay for good pedigree but we have to ask if we are paying too high a price.

The following blog is probably an interesting read for some readers:
Is investing in REITs right for you?

PL said...

Hi AK,

So your short journey with SPH has ended? Please correct me if I have misunderstood.



Unknown said...

Hi AK, I'm a regular quiet reader of your blog and got loads of inspiration. First time posting here. Could you talk to yourself about QAF and CDG?thanks in advance.

AK71 said...

Hi PL,

Eh, my journey with SPH was a long one and it was also storied.

It has come to an end.

1. Sizing my investment in SPH.
2. Investment in SPH is larger now.

AK71 said...

Hi Unknown,

Welcome to ASSI. :)

Don't have anything new to say about QAF and CDG.

You might be interested in the following blogs:
1. Investment in ComfortDelgro is larger now.
2. QAF.

Not expecting anything earth shattering from QAF and CDG.

The businesses are chugging along and will probably continue to pay dividends which is primarily what I am looking for.

Kingsley said...

Parkway life reit definitely loses out to local banks at current price. That I daresay, given dividends and how our banks here managed/managing the covid crisis.

Agree that one shd put one's money in where it is working harder. Local banks prices are stagnant now, isn't it? A sign of consolidation already?

David said...

Hi AK,
Good Day.
Thank you for the sharing.
After ~1yr, I bought abit of Hock Liang Seng, 23.5c.
Net Proft Margin ~10%. NO debt. Divident yield only 1%
Lian Beng & ChipEngSeng are bigger & have slightly higher dividend yield.

Yes, Construction coy will not do well & its cyclical.
But with covid, now, most construction coys are at near its lowest point.

Hope its a good investment for us:-)

Best Rgds

AK71 said...

Hi Kingsley,

I don't know if share prices are consolidating or not, but I do feel that the local banks are more reasonably priced than Parkway Life REIT at the moment.

So, that is something we agree on. ;)

I don't understand the fascination some people have with Parkway Life REIT as an investment for income because it really isn't that attractive; well, not right now anyway.

Higher dividends from local banks.

AK71 said...

Hi David,

Being cyclical, it will have its ups and downs.

I am feeling quite Zen about Hock Lian Seng probably because my investment has been free of cost for some time by now.

Of course, I am still receiving dividends which makes me happy.

I could be bias but I feel that Hock Lian Seng is a rock solid investment if we are interested in the local construction sector.

Hock Lian Seng returns 100% and more.

And if we believe what some brokerages said before, then, when the boom times return, Hock Lian Seng could trade at 69 cents a share.

I would take this with a big pinch of salt. ;p

Hock Lian Seng should be 69c a share.

CupcakedCrusader said...
This comment has been removed by the author.
CupcakedCrusader said...

Hi Ak,

Would you be looking at Capitaland China Trust (previously CRCT) but renamed after they started diversifying into business parks.

At current valuation, P/B is at the lower side of 0.8x and if dividends resume to 2019 level of 9.9c, it would be ~7.9% yield.

However, some concerns would be a relatively low gearing ratio of 4.4x, foreign currency impact due to rmb and the lease policy.

Appreciate if you could to yourself on this, thank you!

AK71 said...

Hi CupcakedCrusader,

I invested in CRCT in 2017 and I have also taken part in all its rights issues since.

CRCT added in Jan 2017.

I would buy some if I wasn't already invested.

The China plus Capitaland equation seems like a reliable income generation formula.

It should be relatively safe since it is relatively boring unlike the stuff (e.g. Alibaba) which the Chinese government is tightening control over. ;)

The last time I commented on CRCT was in this blog:
Wuhan coronavirus and our REIT investments.

Finally, I like to think that the world will conquer COVID-19 one day and not the other way round. :)

laurence said...

Wow, AK laughing to the bank yet again after AA Reit declares 18.8% rise in H1 DPU to S$0.0475 !!!!!

Aims Apac Reit posts 18.8% rise in H1 DPU to S$0.0475

Verseun said...

Hi AK ,

Do you think you can talk to yourself on your position on Centurion. I feel its still an undervalued recovery play (but the receive dividends while you wait part has been cut off) while insiders have not made any subsequent purchases since last year.

AK71 said...

Hi Laurence,

Thanks for sharing the good news. :D

AK71 said...

Hi Verseun,

I am still holding on to my investment in Centurion Corp.

At the current price, it is trading at a huge discount to NAV and I am OK with the lack of dividends as the management is being prudent by paying down debt more rapidly.

There is light at the end of the tunnel and I hope to be rewarded when the time comes. ;)

AK71 said...

CapitaLand China Trust (CLCT) has announced that it will spend S$297.7 million to acquire 4 assets in Shanghai, Kunshan, Wuhan and Chengdu, in its first foray into the China logistics sector.

In a briefing on Tuesday (Oct 12) following the announcement, Tan Tze Wooi, chief executive officer of CLCT's manager, hailed the entry into the "resilient" logistics sector as a step towards increasing the real estate investment trust's (Reit) exposure to "new economy" assets such as business parks, logistics and data centres.

The addition of the 4 prime logistics assets will push CLCT's new economy assets to 21.4 per cent of its assets under management. This is up from the 15.3 per cent currently, after the Reit in the first half of this year completed the acquisition of five business park properties in Suzhou, Xian and Hangzhou.

Based on pro-forma estimates, the manager expects the acquisition to raise CLCT's net property income by 12.8 per cent to S$152.6 million and distribution per unit by 3.5 per cent to 6.57 Singapore cents. This is assuming the proposed deals were completed on Jan 1, 2020 and CLCT had held and operated the properties for the financial year ended Dec 31, 2020.

To partially fund the acquisition, the Reit manager has proposed a S$120 million private placement of about 103 million new units at an issue price of between S$1.165 and S$1.199 per new unit, with an option to raise an additional S$30 million.

The remaining 60 per cent of the total acquisition cost will be funded via debt financing. Post-transaction, CLCT's gearing ratio is expected to rise to 38.2 per cent, from 35.9 per cent currently.

Read full article here:
The Business Times dated 12 Oct 21.

CupcakedCrusader said...

Seems like the marker did not react well to the news. Dropped ~2%.

Gearing ratio will increase to 38% would that be a concern with them being on a buying spree.

AK71 said...

Hi CupcakedCrusader,

That is one way REITs grow.

If the unit price declines to $1.16 or lower, it is probably a buying opportunity for anyone waiting to get in.

I like paying a lower price than the institutional investors. ;p

Rellangis said...

Hi AK,

I bought Sabana way back at around $1+ and am still holding on to it... I doubt it will ever breach $1 again.

I got some Wilmar shares today @$4.4.. intend to keep them for the long term too. Hoping it will not be like Sabana !


AK71 said...

Hi Rellangis,

All of us including Warren Buffett have opened cans of worms before.

So, we are in good company. ;p

I doubt very much that Wilmar will go the way of Sabana REIT but they are different animals, of course. ;)

laurence said...

AK71, help us !!!!!!
The Big Bad Wolf of SGX has struck again !!!!!
AK71, you're our Only Hope !!!!!

"The proposed merger, which will result in the merged entity being named ESR-Logos Reit, will be effected by way of a trust scheme of arrangement. ARA Logos unitholders will receive a scheme consideration of S$0.95 per ARA Logos unit - comprising S$0.095 in cash and 1.6765 new ESR-Reit units, to be issued at S$0.51 apiece."

AK71 said...

Hi Laurence,

ESR REIT is up to their tricks again.

Considering the fact that units in ESR REIT were trading at around 46 cents a unit, issuing new units at 51 cents a unit to ARA Logos unitholders is just cheap.

We should all say "NO" to such schemes.

I don't have an interest in either REIT.

So, I will just get some popcorn and watch the drama unfold. ;p

Blkh said...

Hi AK, I have been reading your posts for a long time.
Thank you for sharing.

Can you share with us what / which annuity you have bought for yourself using cash or SRS.

People like me with limited money to spare I worry I buy the wrong ones.

Thank you once again.

AK71 said...

Hi Bern,

Unfortunately, the insurance products I bought with my SRS money are no longer available.

If you are still interested, you can search my past blogs on endowment products.

However, if you have yet to max out your CPF, you might want to consider that avenue.

CPF LIFE is the only annuity I will have.

1. CPF is all we need unless we are very rich.
2. Insure against longevity risk but not like this.
3. CPF LIFE is not commercially viable.
4. When to get a private annuity?
5. Retire with an investment grade bond and an annuity.

kenji tay said...

I gonna comment not about investing...

Taking break from virtual world sounds not bad lolz. Remember to exercise a bit even if not outdoors. Health is impt and balance is key.

Stay safe!

AK71 said...

Hi Kenji,

Thanks for the reminder.

There is so much to do in the virtual worlds and so little time.

I suppose exercising in the virtual worlds does not count?

Bad AK! Bad AK! ;p

john said...

Can u talk to yourself about cpf careshield life? Not in elder shield currently but careshield look interesting.

AK71 said...

Hi John,

To me, Careshield is just another form of Eldershield.

The thing to ask when it comes to insurance is whether we need it?

So, this old blog is probably still relevant if we think of it as a parallel:
Eldershield: Is it really necessary?

For our purpose here, it is probably the only useful blog amongst the so many blogs I have on Eldershield. ;p

csky said...

Congrats AK!! I can only look from far far behind 🤪🤪

I have a technical analysis question and greatly appreciate some tips from you.

You mentioned you got in Wilmar when there's a divergence between price and MACD. When the price went from $4.80 to ~$4.50, there was also a divergence between price and MACD. Would you have gone in at $4.50 or were there other indicators that indicate that price might go down further? Or am I reading the divergence wrongly?

Thank you!

AK71 said...

Hi csky,

Divergences are forward looking while most TA tools require confirmation and need something that has already happened as confirmation.

Without the need for confirmation, divergences tell of something that will happen in the future but it just cannot say when.

So, I will couple that with price supports, preferably those which have been tested more than once to decide when to buy.

Of course, even then, divergences could go on as supports could be broken and it is, therefore, important to pace our purchases.

In the case of Wilmar, we also have a useful indicator from insider buying and I always like to pay a lower price than what insiders paid. ;p

I have used divergences many times before and this was a blog in the case of Hock Lian Seng:
Hock Lian Seng: Buying on weakness.

Usually, I use a combination of indicators and they can also be a mix of TA and FA.

Gambatte! :)

Kingsley said...

It's probably them in medical field with portfolio in aging population / rich countries. If solely on investment for income, local banks are all good, yet the monopoly NetLink NBN should not be forgotten. Recurring income on whole of SG (almost). Only fearing complacency by management.

AK71 said...

Hi Kinsgley,

There is some truth and also some hype but I don't know the exact percentage of the mix in the case of Parkway Life REIT. ;p

As for NetLink NBN, I looked at it a long time ago and I remember being concerned about CAPEX and OPEX.

My memory is very patchy by now but because the Trust pays out all its operational cashflow, I was concerned that it would have to claw back quite a bit from its investors at some point, especially when its big CAPEX needs hit.

I wasn't comfortable with the idea and avoided the Trust but, as usual, I could be wrong. :)

Increasing my investment in the local banks which pay only a fraction of their profits as dividends gives me greater peace of mind. :)

It wasn't so long ago when my passive income from non-REITs was mostly from Business Trusts.

Things started changing in 2016, if I remember correctly.

Anyway, time will tell.

Good luck to us all. :D

1. Full year 2018 passive income.
2. Buying DBS, OCBC, UOB...
3. Higher dividends from DBS, OCBC and UOB.

Kent said...

Hi AK, I've been quietly following your blog for a number of years and would like to thank you for your sincere and selfless sharing of knowledge. Your passive income from REITs used to dwarf that from non-REITs. However, with your accumulation of shares in our local banks when their prices were depressed last year despite their strong balance sheets, so as to generate additional and sustainable passive income, will you update what is now roughly the percentage of your 3Q21 passive income originating from the combined dividend from these banks? Thanks!

Rellangis said...

Hi AK,

Would you mind talking to yourself as to what Sabana fair value price ought to be?

AK71 said...

Hi Kent,

I am glad that you have enjoyed my blog.

As for the breakdown of my passive income, I don't feel that it is useful to share.

I feel what is more illuminating is my philosophy and not my portfolio per se. :)

My investment portfolio or my investment philosophy?

AK71 said...

Hi Rellangis,

I blogged about this some time ago.

You will find the information about halfway through this blog:
4Q 2020 passive income.

AK is being lazy again, I know. ;p

Kingsley said...

This year's AGM, Netlink boss said the algorithm has included CAPEX, OPEX and dividends as part of the formula. You're right that when a huge CAPEX is needed (something I forgot about haha!), things got to change and local banks giving dividends from a portion of their profits sits better with me too.

So I guess sticking to your grounds in investment matter more; something all of us need a reminder on :)

AK71 said...

Hi Kingsley,

There is a bit of a deja vu and it makes me think of 2014 when I published this blog:
Bonds, REITs and the instant gratification of yield.

Back then, I didn't have exposure to the local banks.

I like to think I have a more resilient portfolio of income generating investments now.

Of course, we are all wired differently and it is never my way or the highway. :)

Why do we soldier on?

AK71 said...

Sabana REIT has reported that its occupancy rate has increased in 3QFY2021 to its highest level since 2018, at 85.3%

The REIT says excluding 1 Tuas Avenue 4, which is held for divestment, portfolio occupancy would have been 88.3%.

Meanwhile, occupancy for multi-tenanted properties stood at 90.7%, the highest in nearly eight years.

It renewed 59,729 sq ft of leases with positive rental reversion, standing at +7.8% for 3QFY2021, and rental reversion averaged +11% for the first nine months of 2021.

“This is the sixth time we have achieved positive reversion in the past seven quarters,” Sabana REIT said in an investor presentation.

Full article: The EDGE, 21 Oct 2021.

KC said...

Dear AK, would you be talking to yourself about the upcoming Daiwa House Logistic Trust?

AK71 said...

Hi KC,

Just talking to myself:
Daiwa House Logistics Trust: Good or not?

AK71 said...

Media Release

IREIT to fill all five floors of office space at Münster Campus

New tenant is a German federal municipal association operating special schools and clinics and is one of Germany's largest associations offering aid to people with disabilities

Quality five-year lease with prolongation options reflects the strong attributes of the property and will strengthen IREIT's income certainty

Manager to continue implementing its multi-let strategy to diversify IREIT's tenant base and enhance its lease profile


Verseun said...

This definitely seems like a high quality tenant. Also their ability to fill up their spaces so quickly show the expertise of their leasing team and desirability of their spaces.

AK71 said...

Hi Verseun,

Vote of confidence there.

With a combined stake of about 50% in the IREIT, the insiders are eating a big chunk of their own pudding.

They have a strong motivation to make sure the REIT does well which is good for us.

This is one reason why I like IREIT as the managers are not simply in it for the fees.

1. Passive income and IREIT Global.
2. IREIT's rights issue: Why did AK subscribe?
3. IREIT Global: 214 for 1000 rights issue.

AK71 said...

Quarz Capital ASIA bought 100,000 units of Sabana REIT on 1 December.

Unit price: 43.5c.

This brings their stake in the REIT to slightly more than 12%.

john said...

Latest business update from IREIT

AK71 said...

Hi John,

Thanks for sharing the update.

IREIT Global is looking good. :D

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