In conversation with AK 2019 (Part 2).

Reader #1 says...
Do you feel that there’s a REIT in Singapore which we could buy and hold forever?

AK says...
I thought I could hold First REIT forever.

I changed my mind. 😜

Now, I wonder if I could hold AA REIT forever?

I think we have to be prepared for changes because they do happen.

Related post:
Largest investments updated (3Q 2019).

Reader #2 says...
I noticed that you hardly talked about Forex Trading.

May I know if you could share your thoughts on it?

Actually I’m asking this because one of my friends is doing it and he advertised it on his Facebook recently

AK says...
FOREX trading.

Hmm.

I dunno anything about trading in currencies.

It isn't something I can value.

I made a mention of this in my blogs on Bitcoin.

Bad AK! Bad AK! 😛


Related post:
My final word on Bitcoin and friends.





Reader #3 says...
Now lippo seems to hv "fixed" the mess.

U think for ppl like me who never get (First REIT), can consider?

Can heal?

AK says...
Bandaged :p

You see my blog on why I sold and you decide for yourself. 😉

Related post:
Sold First REIT.






Reader #4 says...
AK, I want to show my friend your $1m CPF meme but the link is gone. 
Send it to me ok?

AK says...
Sure. 
Hope you song song gao Jurong. ;p

See:
This guy has $800K in his CPF (AK responds to HWZ forum).




Been a while since I took a photo of my breakfast.

Two hard boiled eggs eaten with a sprinkling of salt and black pepper.

A glass of warm water infused with ginseng roots.

New readers might want to read:
You are not successful in Singapore unless you do this!

Largest investments updated (3Q 2019).

It has been almost a year since my last blog on the largest investments in my portfolio.

Since then, in the following months, I added to some of my investments such as 

1. OCBC at under $11.00 a share, 

2. ComfortDelgro at under $2.20 a share 

and 

3. SingTel at under $3.00 a share.





Not much activity on my part, really.

Most of the time, I was just collecting dividends while waiting for Mr. Market to recover from his depression.

When Mr. Market did recover, I waited to see how euphoric he could get.

(To be totally honest, mostly, I was adventuring in Neverwinter but you know that, of course.)

After my recent blog on selling into the rally while staying invested, a reader asked if I could do an update on my largest investments.

I suppose I could.





$500,000 or more:
CPF.

Do I hear laughter?

While the CPF is not an equity and isn't a bond in the purest form, I do consider it an essential part of my portfolio.

I consider it essential as it is the risk free and volatility free component of my investment portfolio which pays a relatively attractive coupon.

I decided to include my CPF savings to remind readers that I am able to take a bit of risk in the way I invest because my CPF savings is a very significant safety net.

Well, for me, it is very significant.

When we invest, remember, we have to take into consideration our personal financial circumstances and not simply ride on other's coattails.

I hope that you had a good laugh.

More importantly, I hope you are also aware that this isn't all a joke.







From $350,000 to $499,999:
AIMS APAC REIT
(formerly 
AIMS AMP Cap. Ind. REIT)

This should not come as a surprise, of course.

My investment in this REIT is already free of cost and there is no compelling reason for me to fiddle with something that has worked so well for so many years.

There has been talk of a takeover of this REIT and, to be honest, I hope it never happens.

Many good income producing investments in my portfolio have been taken away from me and it is difficult to find equivalent replacements.





From $200,000 to $349,999:
ComfortDelgro
Centurion Corporation Ltd.

From being unloved, ComfortDelgro has become much desired by Mr. Market.

I like ComfortDelgro too. 

Even after trimming my investment in this rally by more than 20%, ComfortDegro still stays in the same bracket because the market value of my investment has gone up by more than 30%.

As an investment for income, ComfortDelgro is probably more reliable than Wilmar and its dividend is probably more sustainable than SingTel's.

Having said this, if Mr. Market should have a feverish desire to pay a much higher price for ComfortDelgro, everything else remaining equal, I would probably accept the offer.





Centurion Corporation Ltd. moved into the same bracket as ComfortDelgro because I added to my investment as its share price languished at about 40c a share.

Centurion Corporation Ltd. is undervalued and there continues to be persistent insider buying.

Peter Lynch said that there are many reasons why insiders sell but there is only one reason why they buy.

I like being paid while I wait and a dividend yield of almost 5% is not too shabby.





From $100,000 to $199,000:
Ascendas H-Trust
Accordia Golf Trust
Development Bank of Singapore
OCBC Bank

Ascendas H-Trust will probably be replaced by a new entity and I shared my view about the proposed combination with Ascott Residence Trust in two separate blog posts earlier this month.

As for Accordia Golf Trust, it still has the potential to increase DPU significantly in the next few years and I blogged about this before. 

I am quite happy to be paid while I wait, as usual.

Development Bank of Singapore is doing well and I would like to build a larger position if there is a meaningful correction in its share price.

New addition to the list is OCBC Bank.

This is the result of several rounds of accumulation at under $11.00 a share as I felt it offered relatively good value for money.





As for SingTel and Wilmar, after reducing my exposure significantly, my positions in SingTel and Wilmar are now worth less than $100,000 each.

Not part of my largest investments now, SingTel and Wilmar have been removed from the list here.

If Mr. Market should tempt me with better offers, I am likely to give in to temptation and sell what remains.

Remember, I am just doing what makes sense to me.

Remember, you have to do what makes sense to you.

Have a plan, your own plan.

"We must understand our motivations for investing in the stocks we are invested in.

"The tools we employ and the attitude we have must be appropriate to our motivations.

"That way, we will stand a good chance of doing better with a consistent strategy and this is so both financially and emotionally!"
From: 
Rules for investing in difficult times.




Recently published:
Sell into the rally and stay invested.

Related post:
Largest investments in 2018 (Part 2).

Special dividend from VICOM and financial freedom.

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.

This is something older people feel more keenly than the younger ones.





The younger ones think that they still have time to plan for retirement and they are probably right.

However, if they think that they can kick the can down the road, this could result in them regretting when they are older.

Many older people do regret not planning earlier for retirement.

Time and tide wait for no man. 

Before we know it, we are 55 years old.





We have but one life to live.

Take ownership.

Don't blame the system.

Don't blame fate.

Don't blame anyone else.

We should only blame ourselves if we cannot retire well in Singapore.





Anyway, when I was making payment to have my car inspected in VICOM, I noticed that the price has gone up but I was quite ZEN about it.

Why?

VICOM is paying for my inspection, after all.

I know.

Bad AK! Bad AK!





Regular readers know that I have a larger smaller investment in VICOM ($50,000 to $100,000) and receive regular dividends.

The fact that VICOM declared a final dividend of 23.17 cents and a special dividend of 8.62 cents means more passive income for me.

However, it is also good on another level as the largest shareholder of VICOM is ComfortDelgro and I have a relatively large investment in ComfortDelgro which also pays me dividends.





VICOM and ComfortDelgro together are probably bigger than my investment in AIMS AMP Capital Industrial REIT or similar in size.

They are all important passive income generators in my investment portfolio and they are pretty predictable ones too.

To all my readers on the investing for income path, keep at it because financial freedom is not a dream.

If AK can do it, so can you!

However, only Mr. Bean can do this.






Related posts:
1. Invested in ComfortDelgro.
2. Invested in VICOM.
3. Passive income all gone!

Sold First REIT to raise funds.

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 Neverwinter to do this earlier.

I have been invested in First REIT since before the Global Financial Crisis and, increasing my investment during the crisis and Mr. Market's bouts of depression, it became a rather significant investment in my portfolio.

First REIT has been an amply rewarding investment for income as I did nothing but received income distributions in the following 10 years and more, enjoying yield very much in excess of 10% per year.

As an investment for income, First REIT's performance has been stellar.

Why then did I decide to sell my investment in the REIT?

I said in my last blog on First REIT that if we feel that the REIT's income stream is in peril or if we are not ready for rights issues, we should not invest in the REIT.

The concern that LPKR (which accounts for more than 80% of the REIT's income) might default is a reasonable one as they are struggling with a weak Rupiah.

Although I do not feel that there is any risk of an imminent default and LPKR has also announced plans to improve its financial health which includes sale of assets, realistically, LPKR must negotiate to pay a lower rent to First REIT as long as the Rupiah remains weak.

Naturally, everything else remaining equal, when this happens, it should translate to a lower DPU.

Don't ask me when it might happen or how much the reduction might be but investors should be prepared for the eventuality.

As for rights issues, investors in First REIT should be prepared too because OUE's strategy is to go asset light and OUE Lippo Healthcare's relatively big portfolio of assets in Malaysia, China and Japan will eventually be sold to First REIT.

Although First REIT's current gearing level is relatively healthy and it will be able to take on more debt for acquisitions, it will still need to do some equity fund raising which means either private placements or rights issues.

Yes, in the plural.

In my last blog on First REIT, I said I was not adding to my investment in the REIT but I was quite happy to hold on to my investment.

My investment in First REIT has been free of cost for quite a while now and a lower DPU does not really worry me.

I am always ready for rights issues and the prospect of a rights issue or a few does not worry me either.

However, recently, Mr. Market made me too many tempting offers in the non-REITs space and unwilling to dig deeper into my war chest, I decided to sell my investment in First REIT to raise funds instead.

Why not reduce my investment in AIMS AMP Capital Industrial REIT which is quite a bit larger than my investment in First REIT?

Well, if I must choose, I would always choose to sell what I feel is a more uncertain investment and First REIT's future income seems less certain compared to AIMS AMP Capital Industrial REIT's.

What have I been buying recently?

Hint.






Back to Neverwinter for me now.

Related post:
Why First REIT and why worry?

3Q 2018 passive income (S-REITs).

In 2Q 2018, there was a bit of action in the S-REITs space for me and one of the things I did was to add to my investment in Starhill Global REIT at 64c a piece.

In 3Q 2018, I was ready to add to my investment in Starhill Global REIT if Mr. Market's pessimism should worsen.

However, Mr. Market felt better about the REIT's prospects and the unit price rebounded.






To understand why I bought more of Starhill Global REIT when I did and how it became one of my larger smaller investments, go to the related post at the end of this blog.

The top 3 income contributors from my investments in S-REITs in 3Q 2018 were:

1. AIMS AMP Capital Industrial REIT

2. First REIT

3. IREIT Global

I often get asked whether we should continue investing in S-REITs since interest rates are on the rise.

I am aware that this is really another way of asking what is going to happen to the unit prices of S-REITs in future.

I don't know how the prices will move in future.

I only know that investing in bona fide income producing assets has been rewarding and it should continue to be rewarding.






If we believe that real estate has intrinsic value, then, buying at a discount to valuation, we should have some margin of safety.

Also, we have to ask whether the management is honest and capable enough to unlock value for shareholders too.

Of course, S-REITs are not perfect nor are they the only tool available to investors for income.

We also want to be careful not to be overly reliant on S-REITs as the higher yield comes at a price.

Remember, S-REITs pay out 100% of their cash flow most of the time and have no retained earnings.

So, investing in S-REITs, we have to be prepared for the possibility of rights issues.

Those who are fully invested and dependent on S-REITs for income should beware.





This is especially if the dependence on S-REITs for passive income is absolute and critical.

"Absolute" means that these investors have no other sources of passive income.

"Critical" means that any reduction in passive income from S-REITs would be a life altering event for these investors.





Remember, how we invest and what we invest in should depend on our personal circumstances and what we hope to achieve.

It is never my way or the highway.

You should have a plan, your own plan.

However, to have a plan that works for you, you must know what you want and what you are capable of and willing to do.




For example, in middle of September this year, a reader asked me about investing in Soilbuild REIT again.

blazingruby60 said...
I remembered you mentioned that all investment is good investment at the right price.

looking at soilbuild i have sold after reading this article here and wondering would you consider buying soilbuild again at 58 cents?

considering soilbuild has ventured overseas to australia to acquire some properties and all.

thanks n cheers.






AK said... 
I was thinking about it but I decided not to invest in Soilbuild REIT now because

1. I already have a pretty large exposure to industrial property S-REITs which also have exposure to the Australian economy (AIMS AMP Capital Industrial REIT and Fraser Logistics Trust).

2. I would like to have a much bigger percentage of my portfolio in non-REITs to reduce reliance on S-REITs for income.

Of course, things could change in future. :)

Investing in S-REITs for income, we have to take in a bigger picture and, to be realistic, your picture could be quite different from mine.

My total 3Q 2018 passive income from S-REITs was:

S$ 19,884.80

AA REIT 10-year Anniversary 
- Celebrating 10 years of Partnership!

On a per month basis, it works out to be about S$6,628.00 a month.

Related post:
2Q 2018 passive income from S-REITs.

AIMS AMP Capital Industrial REIT challenged.

I have said before that AA REIT is not unique in the industrial REIT space. All industrial landlords in Singapore are facing difficulties presented by over supply and weaker demand. 

From the latest results presented by AA REIT, it is obvious that the difficult environment is not letting up anytime soon.

1. New and renewed leases are at a weighted average rental decrease of 4.3%.

2. Portfolio occupancy has declined from 94.6% to 91.0%.

Things are admittedly difficult but they are far from grim.



103 Defu Lane 10.





A competent management has kept gearing manageable at 36.3% and also managed to reduce overall blended funding cost to 3.6%.

Interest cover ratio is healthy at 4.9x and NAV per unit stands at $1.39.

We tend to be a bit less cautious when the stock market is doing better but it pays to go back to the fundamentals. Just two days ago:

http://singaporeanstocksinvestor.blogspot.sg/2017/03/aims-amp-capital-industrial-reit-is.html

Remember, price is what we pay and value is what we get.

Also, try to put things in perspective. This is hardly a crisis.

http://singaporeanstocksinvestor.blogspot.sg/2017/03/aims-amp-capital-industrial-reit-levels.html

Things would probably look up when 2 development projects (51 Marsiling Road and 8 Tuas Ave 20) are completed in 2H 2017.

30 Tuas West Road. Published on 20 July 2017.
Slides presentation: HERE

AIMS AMP Capital Industrial REIT is a fine investment for income.

30 & 32 Tuas West Road





This was a recent chat with a reader:

Reader:
http://www.commercialguru.com.sg/property-management-news/2016/9/136176/the-future-of-tuas
30 32 tuas west road and 8 10 tuas ave 20 are so close to the upcoming tuas west road MRT station!

AK:
Yes! I saw it for myself 🙂





Reader:
u took a look during your site visit?

AK:
During the tour they gave me 🙂

Reader:
haha. hard to get the shares cheaply though.






AK:
Now, too many people want in.
It is now a fair price

Today, the price is S$ 1.38 a unit.

In early September 2015, I had a chat with another reader who had reservations about investing in AIMS AMP Capital Industrial REIT (AA REIT) for income.

See the chat:
http://singaporeanstocksinvestor.blogspot.sg/2015/09/a-chit-chat-session-with-ak-on-reits.html

What was the unit price back then? $1.35 a unit.

How much income did AA REIT distribute from then to now?

23 Dec 15: 2.8c

23 Mar 16: 2.85c

22 Jun 16: 2.95c

22 Sep 16: 2.75c

22 Dec 16: 2.75c

23 Mar 17: 2.77c

Total DPU: 16.87c





Now, don't ask me how much have I received over the years. 

I am too lazy to find out.

Some ask me if this is a good time to invest in the REIT. 

Basically, they want to know if the REIT's unit price is going to fall in future. 

They don't want to buy and end up losing money.

I would tell them it depends on what they are after. 





If they want to invest in real estate for a constant stream of income, AA REIT is a good enough choice. 

If they are looking for capital appreciation, then, they might want to look elsewhere.

Related post:
AA REIT levels up.

AA REIT, Soilbuild REIT and VIVA Industrial Trust.

Reader:
may I check with you about AIMS AMP. Its DPU for last 2 quarters have been dropping. But you seem very optimistic about it. Do you think things will get better?


AK:
Management is very important.
There is little they can do about headwinds
But you have to compare it against other industrial REITs and you will see it shines


Rather than acquiring more properties to boost DPU, AA REIT focused on extracting maximum value from their assets.


Reader:
Oh. How would it fare against soilbuild?

AK:
Soilbuild had a stroke of bad luck
Very unfortunate

Reader:
The technics offshore company who vacated the place?

AK:
I like the Biz Parks they own
yup

Reader:
Ok, thank you. Will read more on ur posts of aims amp before deciding

AK:
Unlike very short lease biz park owned by VIVA in Chai Chee, Soilbuild's biz park have relatively long leases.

Reader:
Since Keppel D.C. Reit seems unpromising, I might just switch to AA

AK:
If the management sama sama as Keppel REIT, cham

Reader:
Yes.... I think I'm quite clueless as a industrial reit investor. When I read the viva report, I was quite impressed by it

AK:
People tell us good things only

Reader:
Only heard the other side of the story when I saw your post, even though you kena hantum by that one reader. Haha

AK:
I should talk less. 😞

Reader:
Haha no la. Should talk more. For the greater good
May I check if you've written any articles on assessing industrial reits? I mean, I know the usual of NPI, DPU, gearing, occupancy etc. But the short lease part is something that's new (but makes sense) to me

AK
Er... maybe. I cannot remember liao. Too much talking to myself until I blur.

Reader:
Haha. It's ok! Thank you. I'll search through your trains of thought via your articles

Related posts:
1. AA REIT levels up.
2. VIVA Industrial Trust.
3. Soilbuild REIT.

AIMS AMP Capital Industrial REIT levels up.

UPDATED JULY 2018

DPU of 2.5c declared for quarter ending June 2018 to be paid on 20 Sep 18.

Refinancing in July 2018, weighted average debt maturity lengthened to 3.1 year, with interest savings of about $0.7 million per annum.

88.1% of interest rate fixed with interest rate swaps and fixed rate notes.

Overall blended funding cost of 3.8%





..........
AIMS AMP Capital Industrial REIT (AA REIT) is probably one of the better run REITs in Singapore, creating value for unit holders in a sustainable manner and their recent action reaffirms my view.





Most REITs are leveraged to some degree. Although leverage could magnify gains, in an environment of lacklustre growth and rising interest rates, too much leverage could spell trouble.


I remember putting forth my concern on rising interest rate to AA REIT's CEO when I was invited to tour some of the REIT's properties. 

I wondered if it was possible to issue longer term bonds to lock in lower interest rates.






Mr. Koh Wee Lih told me that issuing longer term bonds could mean paying a higher coupon which made perfect sense, of course. 

So, if AA REIT should be able to issue bonds without shortening their tenors and enjoy paying lower coupons, what does that tell us?





AIMS AMP Capital Industrial REIT (AA REIT) announced it will be issuing S$50 million Fixed Rate Notes as part of its Medium Term Notes (MTN) Programme.

The 5-year Notes will bear interest at a fixed rate of 3.60 per cent per annum payable semi-annually in arrear, until maturity on 22 March 2022. The Notes are expected to be issued on 22 March 2017.

“The net proceeds from the issue will be used to partially repay the revolving credit facility due in November 2017 which was used to fund ongoing developments. This also enables us to diversify our funding sources and free up more undrawn available facilities for potential further growth.”

This is the fourth time the Manager has used its MTN programme to raise debt. 

AA REIT raised S$100 million with the four-year 4.90 per cent Fixed Rate Notes issue in August 2012 , S$30 million with the seven-year 4.35 per cent Fixed Rate Notes issue in December 2012 and S$50 million with the five-year 3.80 per cent Fixed Notes bond issue in May 2014. 

Mr. Market demands higher returns for junk bonds but accepts lower returns from investment grade bonds. 

I like the direction AA REIT is heading. Good job!





Related post:
A tour of AA REIT's properties.

Sabana REIT could see a change for the better.

As we grow older, feelings of deja vu might become a bit more common. It is probably due to accumulated life experience or maybe the mind is just degenerating.

Anyway, when I read that e-Shang Redwood Ltd (ESR) became a substantial unitholder in Sabana REIT about a week ago, I got a feeling of deja vu.

ESR are the people who bought a majority stake in the manager of Cambridge Industrial Trust (CIT) not too long ago and they also own 12% of CIT.

e-Shang Redwood is a pan Asian logistics entity. Don't play, play.

This reminds me of the time when CIT tried to take over the distressed MacArthurCook Industrial REIT (MI-REIT). Chris Calvert, the CEO of CIT, who was then formerly the CEO of MI-REIT used CIT's resources to buy into MI-REIT.

There was a big fight over MI-REIT with the team led by George Wang. Fortunately, George Wang et. al. won the fight and AIMS AMP Capital Industrial REIT was formed.

In my opinion, Chris Calvert did a poor job of running MI-REIT which led to a need for massive re-capitalisation. If CIT had taken over MI-REIT, with CIT's lacklustre performance and controversy over the years, I think MI-REIT would not have done any better.

It is one thing having good assets and another having a good manager. If we have both in a REIT, we have a clear winner. However, if I must choose, I will choose a good manager because a bad one will just squander away good assets.

With Sabana REIT, I have shared how its numbers were really good at IPO and it just went downhill 3 years later. The manager has constantly struck me as self serving and mediocre and this is putting it mildly.

So, in Sabana REIT's case, a change is needed. Some might say any manager is better than the current one but, more accurately, I would say that it is difficult to do worse than the current manager.

When CIT bought a big stake in MI-REIT years ago, it was with the intention of taking over MI-REIT. Now, I believe that ESR has the intention of taking over Sabana REIT one way or another.

I am holding on to a legacy investment in Sabana REIT that is free of cost as well as units from the recent deeply discounted rights issue. So, I am very much in the black. If ESR is going to bring change to the REIT, even better.

Related post:
History with Sabana REIT.

Reference:
Sabana REIT and ESR.

VIVA Industrial Trust more attractive with 9% yield?

Reader:
Any latest thoughts on Viva. The high yield attractive enough now?




AK:
You should question why is the yield relatively higher for VIT?

In my last blog on VIT, I mentioned the very short lease for their Chai Chee property as a concern. Of course, we know that they went ahead and bought another property in Toa Payoh with an even shorter lease. Alamak.

If we look at VIT's total gross floor area or total GFA (i.e. all their properties put together), 2.22 million square feet or 62% of total GFA have about 20 years or less to their land leases left. 






Will the land leases be extended and if extended, at what cost to unitholders? If you are thinking about investing in VIT or are already invested, this has to be a pertinent question.

If you think 20 years sounds like a relatively long time, take a closer look and you will see that of the 2.22 million square feet of GFA, almost 88% have about 14 years or less to their land leases left!

To be more exact, 1.95 million square feet have about 14 years or less to their land leases left! That is 54% of the REIT's total GFA!

How is that for a wake up call?





This means that 13 to 14 years from now, we could see half of VIT's distributable income vanishing into thin air. 

What would the 9% distribution yield or so at 77c a unit become then?

Cash flow would almost definitely take a plunge while we have to remember that the REIT's borrowings will probably stay the same since they are not amortized.

VIT's current gearing level is almost 40% and their interest cover ratio is about 4x. We don't even need rising interest rates to wreak havoc on VIT's numbers. If operational cash flow reduces by half or more, the REIT's interest cover ratio is in jeopardy.






I would rather sacrifice 1% yield and invest in AIMS AMP Capital Industrial REIT for a slightly lower 8% yield if I want exposure to Industrial S-REITs. Peace of mind is priceless.

AIMS AMP Capital Industrial REIT's current gearing level is about 35% and their interest cover ratio is about 5x. Stronger numbers? You bet.

I shared this during a workshop last year and again at a private event recently.

A REIT should think about improving the attributes of its assets which includes having longer land leases. 

Recycling capital by selling assets with shorter remaining land leases into assets with longer land leases, all else remaining equal, for example, is a sensible thing to do.





A good example would be the recent divestment of a property with a remaining land lease of 17 years by Cache Logistics Trust which used the proceeds to buy a freehold industrial property in Australia with a Net Property Income (NPI) yield of 7.4% with yearly rental escalation built in.

Being attracted by high yields could be like a moth being attracted to a candle flame if we are not careful.





Related post:
VIVA Industrial Trust not in my shopping list.

AIMS AMP Capital Industrial REIT and free money for AK (3Q FY2017).

Many years ago when I decided to reduce my investment in industrial S-REITs, I was faced with the choice of reducing my stake in either Sabana REIT or AIMS AMP Capital Industrial REIT as both were the largest investments in my S-REITs portfolio. 

Yes, they were both about the same size.  

I decided that AIMS AMP Capital Industrial REIT was better run. 

So, Sabana REIT was given the boot.





Today, AIMS AMP Capital Industrial REIT is my largest investment in the S-REITs universe and a rough back of the envelope calculation tells me that with all the distributions collected over the years, my investment in the REIT is going to be free of cost very soon. 

Free? 

Yes, free!

This is massive for me not only because I like free things but because it is such a massive investment in my portfolio.





If an investment is 2% of our portfolio and it has become free of cost (like Sabana REIT is for me), ho hum. 

If an investment is 20% of our portfolio and it is going to become free of cost soon, it isn't ho hum x 10, is it? 

It is like my position in Sabana REIT x 10 being free of cost. 

OK, somehow, using Sabana REIT as an example doesn't seem very appealing but I am sure you get the idea.





Although doing well now, AIMS AMP Capital Industrial REIT is facing headwinds and things might get tougher in the next year or two but it has a competent manager that is focused on improving value for stakeholders. 

That is very comforting.

On hindsight, I am glad I decided to get on board with Mr. George Wang so many years ago and I look forward to receiving soon to be free money every quarter for many more years to come.

·         DPU of 2.77 cents per unit for the quarter (increase of 0.7 per cent from last quarter);

·         Increased gross revenue and net property income for 3Q FY2017 by 1.5 per cent and 2.7 per cent respectively q-o-q;

·         Executed 19 new and renewal leases in 3Q FY2017, representing 82,149.3 sqm (13.1 per cent of net lettable area);

·         Portfolio occupancy of 94.0 per cent, above the industrial average of 89.5 per cent;

·         Achieved TOP of third redevelopment property at 30 Tuas West Road on 27 December 2016, on time and below budget, delivering better financial returns than previously announced. Partial income contribution from the property will commence in March 2017 quarter, with full quarter income contribution in 1Q FY2018;

·         Increased Net Asset Value per Unit to S$1.48 from S$1.47 in the preceding quarter mainly due to recognition of the development profit of 30 Tuas West Road.

·         84.0 per cent of the portfolio’s interest rate is fixed taking into account interest rate swap contracts and fixed rate notes with weighted average debt maturity of 2.1 years;

·         Reduced overall blended funding cost (including funding of the Australian asset with Australian dollar loan) of 3.7 per cent from 4.2 per cent a year ago;

·         Aggregate leverage as at 31 December 2016 is at 34.6 per cent.

Related posts:
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2. My history with Sabana REIT.