AIMS APAC REIT or IREIT Global?

This is a short blog in reply to a reader's comment in my last blog which was about my largest REIT investments. 

Read the reader's comment: HERE. 

My reply: 

When it comes to AA REIT's unit price, I can only say that Mr. Market will do what it wants to do. 

I do not know why the unit price is where it is but I do know that AA REIT should continue to generate stable income for me. 

If there is a dip in DPU, it is probably going to be temporary, everything else being equal. 

In the grand scheme of things, over a longer period of time, inflation should see prices including asking rent going up. 

As an investor for income, I do not usually invest in REITs for a few months only or even for just a couple of years unless I find out it was a mistake which has not been the case for AA REIT. 

Why did I add to my investment in IREIT Global and not AA REIT? 

You are right in your suggestion that it was due to IREIT Global's rights issues and the fact that my resources are limited. 

Also, I want to add that price is not the same as value. 

At $1.60 a unit, AA REIT was trading at a big premium to NAV but its unit price has retraced to a level that is closer to its NAV which means it is a better time to buy now than it was before. 

However, IREIT Global is still trading at a pretty big discount to its NAV which helps to make it a more compelling buy.

Warren Buffett famously said that whether socks or stocks, he likes buying quality merchandise when it is marked down.

Could be the case here.

Source: IREIT Global.

When we take into consideration that IREIT Global holds freehold assets while many of AA REIT's assets are in Singapore with relatively short land leases, the value that IREIT Global brings to the table now shines brighter. 

Having said this, it is important to bear in mind that AA REIT and IREIT Global might both own buildings but they are in different sectors. 

They are also in different parts of the world. 

Not putting all our eggs in one basket is probably a good idea.

Of course, AK is just talking to himself here and, depending on our motivations, it might or might not be relevant to us. 

Related post: 

Largest REIT investments updated, December 2021.

AIMS APAC REIT to buy Woolworths' HQ.

It is confirmed. 

AIMS APAC REIT is going to buy Woolworths' HQ in Sydney. 

The price tag? 

Around S$454 million. 

This is going to increase the REIT's portfolio value by more than 26%.


As a long time investor of AIMS APAC REIT, I like the purchase for the following reasons: 

1. The asset will increase the number of freehold assets held by the REIT. 

2. The purchase will increase income visibility as there is a 10 years lease to Woolworths with annual rental escalation of 2.75%. 

3. There is room to build more rentable space as the asset's plot ratio has yet to be maxed out which will allow for more organic growth in the future (and this is probably a big push for the REIT to make the purchase if we look at their commendable record in maxing out plot ratios of some of their assets in Singapore.) 

4. The purchase is likely to be DPU accretive because it is going to be 60% financed by debt (which is likely to be competitively priced given the current low interest rate environment) and net proceeds raised from the recent S$250 million in perpetual bond issue will also be utilized.


A question on many unit holders' minds is probably will there be a rights issue? 

The REIT manager has said that they could issue new equity. 

Personally, I think that it is a forgone conclusion because when we compare the price tag of S$454 million and what we know in point number 4 above, there is a shortfall of some tens of millions of dollars. 

Equity issuance could take the form of private share placements or a rights issue, of course.


As a long time unit holder, I hope that any equity fund raising is going to be a rights issue. 

This is so that I can increase my investment in the REIT probably at a discounted price. 

After all, I never get invited to take part in private placements. 

I suppose I will just have to wait and see. 

Woolworths’ Full Year Result 26 Aug 21: Woolworths’ earnings led higher by Australian Food business.


References: 

1. AIMS APAC REIT and perpetuals. 

2. AA REIT: A private tour.

AIMS APAC REIT and perpetual bonds.

This very short blog is in reply to a reader's comment on a topic which other readers might find interesting. 

AIMS APAC REIT is well run and it has been very rewarding as an investment for income. 

A perpetual bond is a good thing for the REIT because it does not add to the REIT's gearing while giving it more funds. 

A coupon of above 5% is also pretty attractive to anyone interested in lending money which is what we are doing when we buy bonds. 

Personally, I rather be invested in AIMS APAC REIT than to lend money to them because I think it is more rewarding to invest in the REIT. 

I would suggest that readers interested in the perpetual bonds read these blogs: 

1. Why have bonds in our portfolio and which ones? 

2. Bonds, REITs and the instant gratification of yield.

Should we invest in AIMS APAC REIT in 2021?

Readers left me a few comments on AIMS APAC REIT (formerly AIMS AMP Capital Industrial REIT) recently and I decided to do a quick blog on one of my largest investments. 

Let us start with my reply to the latest comment: 

"I get palpitations when people ask me if something is safe to invest in. ;p 

"The one place where I would say our money is safe is the CPF which is risk free and volatility free. 

"Having said that, I have been invested in AA REIT for more than 10 years and it has been good to me. 

"You might want to read this and my other blogs on AA REIT for an idea: 

AIMS AMP Capital Industrial REIT: An opinion. 

"OK, maybe, this one too: 

AIMS AMP Capital Industrial REIT and free money for AK."


I should have said this earlier but if you are interesed, read Egg's comment in the comments section of this blog: HERE. 

I also posted a couple of replies to another reader's comments on AIMS APAC REIT in another blog. 

See the comments section here for Blur Sotong's comments and my replies: 

Largest REIT investments updated. 

For anyone interested in investing in REITs, maybe, read this too: 

Is investing in REITs right for you? 

Oh, if you are wondering where I got the inspiration for the title of this blog:

Neverwinter for the win!

Sneaky AK!

Bad AK! Bad AK! 

Hopefully, 2021 will be a better year than 2020.

Till the next blog, everybody stay safe!

Worried as dividends and interest income reduced.

Regular readers know that I am a worrier.

Yes, it is true that I am somewhat mental.

As my parents are not financially savvy, I worry about them constantly.

This is one enduring worry which has only become worse over time.

I am more worried about my dad than I am about my mom because he spends money too freely.

There is no point in nagging at him which was something I was prone to doing in my younger days.

I remember when I told him to sell two of his club memberships away some 20 plus years ago, he got angry with me and yelled that he wanted a lifestyle in retirement.

Well, he is trapped into paying $500 each month in club subscriptions even though he hardly visits the clubs.

It is worse than buying insurance policies which he doesn't need because there is no way to terminate these memberships other than to sell them away.

Of course, club memberships are not as popular as they were once upon a time and it would be harder to sell them even if he wants to do so now.

If my dad regrets not listening to me donkey years ago, he hasn't told me.

All of us have pride which can be a good thing but it can also be a bad thing.

My dad is in his mid seventies and it is too hard for him to change his ways.






I blog about my parents from time to time.

The last time I did this was in October last year when I talked about how much passive income I needed?

In that blog, I talked about my decision to double financial support for my parents to about $40,000 a year.

With dividends from my investments reduced this year, I might have to dip into my emergency fund to keep the promise.

Of course, we would know for sure by the end of the year when I calculate my total dividends for the full year.

It is my responsibility to make sure that my parents don't have to worry about money.

If our government is right about the negative economic impact of the COVID-19 pandemic lingering on for years to come, I must be prepared that I might have to continue dipping into my emergency fund as my dividend income falls short.






Adding to this development, lately, I have been wondering if I must give even more financial support to my parents?

This happened after a recent visit back home and a conversation I had with my parents.

My dad complained about the paltry interest rates when he renewed his fixed deposits.

Banks' shrinking interest rates on my dad's shrinking savings.

My dad complained about the former while my mom complained about the latter.

Uh oh.

I don't know if some of you might be familiar with such a scene or something similar to such a scene.

Well, as expected, in my case, it quickly escalated into a yelling competition.

When two people who have been married to each other for half a century fight, oh, they have so much material to draw on.

All that baggage.

I will not share the details.

Too much and, really, what's past is past.

Also, we have to accept that no one is perfect and if we cannot look past that and see the good in each other, life becomes almost unbearable.

Of course, when emotions run high, people become unreasonable but the problem is that they think they are reasonable.

OK, you get the picture.






Anyway, to help address my mom's complaint about my dad's shrinking savings and also to help address my dad's concern about shrinking interest income, I made my dad an offer.

I told my dad that at his age, it is about not taking on too much risk while trying to make his savings last longer.

I know he doesn't want to be reminded of the bigger financial support I am giving them.

Old man has pride.

Of course, as children, we should want our parents to age with dignity too.

So, I made him an offer that I felt he would respond well to.

I introduced him to AA REIT which, of course, I increased exposure to more than a month ago.

I took him through the pros and cons of the investment and offered to let him take over my recent investment in the REIT at $1.15 a unit which was what I paid.

I told him that, conservatively, it could give him a return of 7% per year at that price.

He took the offer and somehow managed to make it looked like he was helping me out.

Like I said, old man has pride and if it makes him feels good about himself, so be it.

That was how I partially diffused the tension that day.

Only partially but I shan't bore you with everything else.

家家有本难念的经.






If AA REIT's unit price should plunge below $1.15 for some reason and if my dad should decide to sell, I would still pay him $1.15 a unit.

So, his investment in AA REIT is like a risk free fixed deposit but with some upside.

I am sure I do not have the right answer to every problem.

I also do not have unlimited financial resources but I will always put my parents' interests before my own.

We are not perfect but this imperfect son will do his best for his imperfect parents.

This is as close to perfect as is humanly possible.






Related posts:
1. Improving retirement funding adequacy for my dad.
2. Retirement adequacy for late bloomers.
3. How much passive income do I need?
4. The most dangerous crisis and what should we do?
5. AIMS APAC REIT investment is larger now.
6. Dad's whole life insurance policy.

Buffett thinks it is going to get worse.

This is another blog that started out as a reply to a reader's comment: HERE.

During the Global Financial Crisis (GFC), I believe the lowest price I paid for AIMS APAC REIT (then AIMS AMP Capital Industrial REIT) was about 17c a unit. 

Or was it 13c a unit?

Anyway, at 17c a unit, after a 5 to 1 consolidation that took place some time later, that would be 85c a unit.

If it was 13c a unit, that would be 65c a unit.

Things were pretty bad during the GFC.

Back then, AA REIT was surely trading at a big discount to NAV and there would have been some negative rental reversions too.

However, now, things look like they are worse than what they were during the GFC.

During the GFC, we didn't have forced shutdown of economies which resulted in record unemployment.

The kind of monetary rescue packages thrown at the economy by the central banks in response to this crisis dwarf whatever they did during the GFC.

I know some countries call them "stimulus" packages but they are really "rescue" packages.

There is nothing to stimulate but plenty to rescue.






A couple of months ago, in a blog, I said I paid attention when PM Lee said that the negative effects of this crisis could be worse than what we saw during the GFC.

I am more cautious during this stock market crash compared to the crash caused by the GFC.

With the ramifications that this pandemic has and we have yet to discover all of them, I feel that it isn't a bad thing for anyone to be more cautious with money this time round.

There is no certainty that it will happen but, increasingly, chances are a second wave or even a third wave of COVID-19 might hit us.

More shutdowns to come?

Maybe.

In a recent blog, I said I watched a documentary on the Spanish flu and how that health crisis took two years to resolve as the virus attacked in waves.

The Spanish flu crisis changed the way people behaved for a long time and it was bad news for the economy for a long time.

During the GFC, people were not dropping like flies like they were during the Spanish flu crisis and also this crisis.

This crisis caused by COVID-19 will not only be remembered for a long time but it will also change the way people behave for a long time to come.

For many businesses, more enduring behavioral changes caused by the COVID-19 crisis will continue to be negative for them and the effects will ripple through the economy. 






Mr. Market could sink again into a depression as economies reopen to a new reality of probably reduced confidence and much slower growth.

Things could get worse before they get better.

When we have a safe and effective vaccine, things should get better.

Having said this, to get back to where we were before the pandemic hit us would surely take quite a bit of time.

With that belief, I am still staying invested, adding to my investments from time to time but not throwing in everything including the kitchen sink.

There could come a time when I throw in everything BUT the kitchen sink but even if I don't do so, it is OK to me.

I rather make sure that I am ready for a relatively long and bumpy ride which could be in store for us in the weeks or months ahead.






I would like to end this blog by sharing a video I found on some things Warren Buffett said at Berkshire Hathaway's 2020 annual meeting for shareholders.

Why has Warren Buffett not bought anything yet during this market crash?

Take a leaf from Warren Buffett's book.

Have a war chest or two ready.

Also, make sure to have an emergency fund and an adequate one at that.

You might want to start watching from 4:48.







"Federal Reserve Chair Jerome Powell says the U.S. economy faces unprecedented downside risks." 13 May 2020.

Related posts:
1. Market sways between hope and worry.
2. Survivability and opportunity in times of distress.

AIMS APAC REIT FY2020 results.

This blog started as a reply to a reader's comment and it became quite long.

So, I decided to publish it as a blog because I think many readers are probably interested in hearing me talk to myself on AIMS APAC REIT's performance.

AIMS APAC REIT (AA REIT) is retaining some income instead of distributing 100% of their distributable income.

We are living in extraordinary times and this is an extraordinary move.

I remember when I was given a tour of some of their properties in the western part of Singapore, they told me that they preferred to distribute all their distributable income to investors because they would have to pay a tax on whatever income they retained.

If you are new to my blog or if you cannot remember, see:

A private tour of AA REIT's properties.

In that blog, I shared 5 questions which I asked and the answers I received from the CEO then.

Question number 4 was on if AA REIT thought of retaining some income.






Anyway, although it is an extraordinary move, I am glad they made it because things could get worse before they get better.

As for AA REIT's lowering DPU starting from FY2016, things have been pretty challenging for local industrial properties landlords in recent years.

That prompted me to blog about the situation in 2017:

AA REIT challenged?

At the time, AA REIT was trading at a premium to NAV.

Many REITs have Master Leases and these usually give an illusion of higher occupancy and also higher income.

I am not being critical here but just saying that this happens in the natural course of business for REITs.

When Master Leases expire and if they are not renewed, usually we see income for the REIT takes a hit.

This has happened to AA REIT in the past and it has happened again to AA REIT recently.

The important thing is whether we have an honest and competent manager in place to mitigate the effects and I think AA REIT has such a management.






The oversupply of industrial properties in Singapore which was partly a result of overbuilding meant negative rental reversions over the years and it has impacted DPU.

Unfortunately, being a smaller REIT, AA REIT does not have the financial muscle nor flexibility to acquire yield accretive assets as rapidly and, of course, it is also more difficult for them to do so when they offer a relatively high distribution yield.

This is why AA REIT's strategy has been predominantly the redevelopment of their assets on hand as many assets have not maxed out their plot ratios.

Of course, when assets are being redeveloped (i.e. torn down and rebuilt), they don't generate any income.

We should expect this to continue as the REIT has many more assets in Singapore which have not fully utilised their plot ratios.





AA REIT's portfolio occupancy has declined from 91% in 2017 to 89.4% now.

Their overall revenue has also reduced from $120.11 million in 2017 to $118.86 million now.

However, it is interesting to note that their NPI or net property income has gone up from $79.4 million in 2017 to $89 million now.

This is achieved on the back of gearing ratio declining from 36.4% to 34.8% too.

All in all, for an industrial properties S-REIT of this size, I feel that AA REIT has done pretty well.

To reiterate, the lower quarterly DPU of 2 cents announced today is due to the management being prudent in not distributing 100% of the REIT's distributable income due to economic uncertainties created by the COVID-19 crisis.

Having said this, like I said before, if the crisis were to drag on for many more months, it would be unrealistic to think that AA REIT's income would not be negatively impacted.

I increased my investment in AA REIT last week because I felt that things were more settled and not because I thought that the bull would come charging back soon.

I try to remind myself that bona fide investments with the ability to generate a relatively attractive and reliable income should form the bulk of my investment portfolio.

Of course, there are many investments for income available out there and we invest in what make sense for us.

AA REIT makes sense for me.




Related post:
AA REIT investment is larger now.
Reference:
AA REIT FY2020 presentation.

AIMS APAC REIT investment is larger now.

When I blogged about AIMS APAC REIT (AA REIT), formerly AIMS AMP Capital Industrial REIT, last month in April, I said:

"I have not done anything to my investment in AIMS APAC REIT for many years."

Well, I can't say that now because I just added to my investment in AA REIT.

I spent a few hours in the last few days reading, crunching some numbers and looking at the chart before deciding to buy some.

The dust seems to have settled for AA REIT at least for now.

Volatility has reduced tremendously and the unit price seems to have found a floor at about $1.15 a unit.

Looking at the chart, the rising 20 days moving average (20d MA) provides immediate support at $1.14 a unit.

However, the 50 days moving average (50d MA) is still declining and is currently at about $1.16 a unit.





The 50d MA has been providing resistance which has kept a lid on the unit price.

It is the proverbial tug of war between the bulls and the bears.

One side is unwilling to pay a higher price while the other side is unwilling to sell at a lower price.

The result is a reduction in price volatility and we see some kind of an equilibrium or stalemate as neither party is able to claim victory.

The rising 20d MA and the declining 50d MA are just about to form a bullish crossover, a golden cross, which the textbooks would say is a bullish signal.

The way things look now, the golden cross might happen in the next two or three sessions but, of course, if AA REIT's unit price suddenly plunges, it might not happen.

Of course, I always say there is no certainty in such things, only probability.

I am inclined to think that, at the moment, the only certainty we have is that things are looking relatively more settled now.

Any unwinding of such a situation could see unit price move either way and sometimes quite violently too.

Which direction?

Your guess is as good as mine.






Now, a bit of FA to provide some padding for TA is in order.

At $1.15 a unit and a DPU of 10 cents, we are looking at a distribution yield of about 8.7% which is a big increase over a distribution yield of about 6.9% when AA REIT was trading at about $1.45 a unit before the crash caused by the COVID-19 crisis.

The distribution yield looks relatively attractive but how realistic is it?

I always say that AA REIT is one of the better run industrial properties REITs in Singapore and I still think it is the case.

Of course, no matter how well run a business is, if it is up against an insurmountable external crisis, it is still toast which was why I kept saying it was better to err on the side of caution and wait for the dust to settle before deciding whether to buy more.

Very early into the crisis when the air was very dusty and the visibility was very poor, a friend decided to buy shares of SIA when it fell to $8 a share because he thought the blue chip was already very cheap at that price.

That blue chip is now a blue black chip.

Together with Temasek Holdings, my friend is performing National Service as he chips in to save the blue chip.

He is coughing (probably because of all the dust he inhaled) up more money to keep SIA alive while he has to live with the very real possibility of getting zero income from the investment for the next many years.






Anyway, back to AA REIT.

With gearing level at 35% and an interest cover ratio of more than 5x, AA REIT will probably be able to weather this storm pretty well now that we have a better idea how the COVID-19 situation might evolve and also how we could keep it better under control until a safe and effective vaccine becomes available to the world.

Of course, to be sure, there is always the possibility things could go awry.

In my blog on my largest investments in REITs last month, I said that if the crisis were to drag on for much longer, then, we could see tenants defaulting on rents.

For sure, it is possible that we could see a 10% or even a 20% reduction in AA REIT's income if the bad situation the world is in now were to worsen.

So, trading at $1.15 a unit which is about a 20% reduction from $1.45 a unit before the crash shows that Mr. Market is cognizant of the risks AA REIT must face.

Talking about this has a mildly speculative flavor, of course, but I remind myself not to be overly optimistic thinking that 8.7% yield is a definite thing as I could be setting myself up for disappointment.

We should be prepared for the possibility of bad news from AA REIT when they release results and maybe provide guidance next week.

Don't throw in everything including the kitchen sink.

I don't know about you but I need my sink in the kitchen.






While we are on the subject of speculation, it is also interesting to note that ESR Cayman and ESR HK have both been increasing their investments in AA REIT.

Their most recent purchase happened earlier this year in March and that was worth more than $2 million, if I remember correctly.

Of course, there has been talk about ESR harboring thoughts of a takeover of AA REIT for some time now.

Although I hope it isn't the case and it doesn't happen, it is a definite possibility.

If you are interested in this possibility, I blogged about it initially in 2018:

2Q 2018 passive income from S-REITs.

At that time, DBS said AA REIT "could be a target for takeover and suggested a target price of $1.55 to $1.65 per unit."

More recently, there were articles in The Business Times (November 2019):

ESR Cayman Ltd (ESR) acquired 26,827,400 units in AIMS APAC Reit (AA Reit) for a consideration of S$37,290,086 at S$1.39 per unit.

and also The EDGE (December 2019):

3 potential S-REIT mergers to watch out for.






Previously, when AA REIT's unit price was averaging $1.45 a unit which was a premium to its NAV, a takeover might have been seen as too demanding or too pricey.

With unit price now at $1.15 a unit which is a discount to its NAV, a takeover is probably more palatable and also more feasible.

To me, ESR accumulating units at $1.30+ a unit continually and in pretty large chunks up until middle of March this year tells me what ESR was thinking about AA REIT as a value for money investment at that price level.

What will their next move be?

You tell me.

Yes, I know.

Bad AK! Bad AK!

I will stop here.

Time for me to move from this world of imagination to another world of imagination.

Till my next blog, be socially responsible and do the right things.

We are #SGUnited.

You might be interested in the following video on AA REIT's portfolio of properties:





Related post:
Largest REIT investments updated.

Largest REIT investments updated: COVID-19 meltdown (April 2020).

This started as a reply to a reader's comment: HERE.

I actually spent more than an hour typing the reply and it became quite long.

So, I decided to publish the reply as a blog instead so that more get to hear me talking to myself.

Here is my reply to Unknown:

There are quite a number of REITs in my portfolio, as you probably know.

In 4Q 2019, three of them made it to my list of largest investments which were investments each with a market value of $100,000 or more.

The three were:

1. AIMS APAC REIT. (formerly AIMS AMP Cap. Ind. REIT.)

2. IREIT Global.

3. Ascendas Hospitality Trust. (now Ascott REIT-BT.)

In the last few weeks, the market values of the trio have plunged, of course.

I will look at each of them briefly.






1. AIMS APAC REIT.

This has always been a well run industrial S-REIT.

Being a landlord of industrial properties and business parks, the REIT is probably better insulated from the negative economic impacts of the COVID-19 crisis compared to retail and hospitality REITs.

However, if the crisis drags on for a year or two, then, we could see tenants default becoming a major problem.

Even so, industrial REITs usually collect many months of rent in advance and this provides some insurance.

Long time readers of my blog know the story of my investment in AIMS APAC REIT.

I have not done anything to my investment in AIMS APAC REIT for many years.

I thought my investment in the REIT would have fallen below $350,000 in market value by now but even with the big plunge in unit price, it remains above this number.

Pleasantly surprised.

Reference:
AA REIT and free money for me.






2. IREIT Global.

I increased my investment in IREIT Global very significantly only a few months ago.

Only belatedly, I realised that after I blogged about it, the unit price rose significantly.

I like to think that Mr. Market is always right and my decision to increase my investment in IREIT Global significantly when I did was probably a good one.

However, as the COVID-19 global pandemic moved to infect Europe, IREIT Global was not spared the wrath of the bear either.

Spain is now the most infected country in Europe, surpassing Italy.

Of course, unfortunately, IREIT Global very recently bought some properties in Spain.

Having said this, I believe most of IREIT Global's income is safe.

In a reply to another reader, I said:

"Deutsche Telekom and Europe’s largest pension fund, Deutsche Rentenversicherung (DRV) account for about 77% of IREIT Global's rental income.

"Even if all the other tenants go bust, these two won't.

"I am very simple minded and use this as the worst case scenario."

This knowledge gave me the confidence to add to my investment in IREIT Global as its unit price declined.

The lowest price I paid Mr. Market for this was 42 cents a unit.

In fact, I nibbled so much that together the nibbles might be considered a gobble.

Due to these nibbles, my investment in IREIT Global remains above $200,000 in market value.

Reference:
IREIT Global is going to Spain.






3. Ascott REIT-BT.

Of the three, the most vulnerable to the economic recession that will be created by the COVID-19 crisis is probably Ascott REIT-BT.

The airlines and hospitality industries are the first to feel the heat and will continue to feel the heat for some time to come.

Even after the COVID-19 crisis has abated, it is possible that people might take a while to warm up to the idea of travelling again.

I watched a documentary on the Spanish Flu and it was said that people who survived that global pandemic were so scarred that they did not even want to leave their homes unless they had to.

That went on for a long time after the crisis was over.

So, compared to industrial and commercial S-REITs or even retail S-REITs, hospitality S-REITs could take a longer time to recover from the COVID-19 crisis.

Due purely to the plunge in its unit price, the market value of my investment in Ascott REIT-BT is now much lower than $100,000.

Reference:
Ascendas Hospitality Trust getting a bad deal?






I said in a recent blog that we have to be prepared for a reduction or even a suspension of dividend payout in some instances.

This is true for investors of these REITs too as their incomes could be compromised.

In closing, tougher measures will be implemented in Singapore for a whole month starting next Tuesday, 7 April 2020, in the fight against COVID-19.

Let us all be socially responsible and remind each other to do the right things.

We owe it to ourselves, our family and friends, to do our part in the fight against COVID-19.

We are #SGUnited.

For a summary of the stricter measures, watch this 10 minutes video:






Together with this blog post, I am trying out a mobile version of ASSI.

So, for those of you who read ASSI using mobile phones, you will notice a difference.

With this new look on mobile, several things will be lost.

The disclaimer at the end of the blog is not visible on the mobile version and this has been my main reason for not having a mobile version of ASSI for the longest time.

Tags or labels at the end of each blog are also missing which means that if I acknowledge that a blog is an advertorial it would not show which was another reason for resisting the new mobile version.

With this new mobile version, there are no left and right sidebars which might be a big disadvantage to new readers and an inconvenience to old readers who might want to read older blogs or have access to resources and comments listed in those sidebars.

Readers who want to access whatever is lost in the mobile version will have to click on the "View web version" option at the end of the page.


Anyway, let me know what you think and I will see whether to keep this or to go back to the old way.

Further reading:
1. Largest investments updated.
2. 1Q 2020 passive income: COVID-19 crisis.
3. Survivability and opportunity in times of distress.

Largest investments updated (4Q 2019).

From my last couple of blogs, readers would be able to get an idea of what might have changed in my portfolio.


Since the last blog, however, I have made another significant investment or, more accurately, reinvestment.

What am I talking about?


Clue:

Some readers might remember that I reduced my investment in Wilmar significantly in 3Q 2019 in the month of July, booking a pretty decent capital gain in the process.

Wilmar lost its position as one of my largest investments in 3Q 2019 as a result of that move.


I explained that the move was based on technical analysis (TA) and not because I thought Wilmar was no longer a fundamentally good investment.

That meant I would be building up my investment in Wilmar again when the time is right.

I still like Wilmar as an investment today and if you are curious as to the reasons, you might want to read the following:

1. 3Q 2018 passive income: Wilmar.

2. Accumulating Wilmar...

My investment thesis remains, more or less, unchanged.

Wilmar is an amazing business that has gone unappreciated for a long time.

With the IPO of its Chinese subsidiary in the works, Mr. Market is beginning to appreciate the value that is locked within Wilmar.

Since reducing my investment significantly in July, I have been waiting to increase my investment in Wilmar again. 

Although I wondered if we could see $3.10 or even $3.00 a share again, using TA, I decided that buying at $3.60 a share or lower might be a good idea.








This is because even though Wilmar's share price has retreated, the 200 days moving average (200dMA) in its chart is still rising.

The 200dMA is a long term moving average and as it is rising, it should provide a stronger support.

The rising 200dMA is at $3.54, approximately.

Of course, TA simply shows us where supports could be found.






TA cannot tell us if the supports would be tested or not.

So, what to do?

Start buying at $3.60 a share, maybe.

TA also cannot tell us if the supports would hold or not.

So, what to do?

Make sure we don't throw in everything including the kitchen sink.

Anyway, informed by some simple TA, making use of Mr. Market's current depression, I significantly increased my investment in Wilmar so that it is again one of my largest investments.

So, together with Wilmar, what are my largest investments now?







$500,000 or more:
*CPF.

If you are laughing, I hope it is for the right reason.

Read:
Largest investments updated (3Q 2019).

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

Nothing has changed here.

Yes, AK is so boring.





From $200,000 to $349,999:
*ComfortDelgro.
*Centurion Corporation Ltd.
*Accordia Golf Trust.
*Development Bank of Singapore.
*OCBC Bank.
*IREIT Global.

So, from having only two members, this group's membership has tripled in size, now boasting six members.

Increasing my investments in Accordia Golf Trust, DBS and OCBC meaningfully moved them up from the lower bracket.

The fourth new member, IREIT Global, made the biggest jump as it makes its first appearance in this list by skipping the lower bracket altogether.

Read related posts at the end of this blog if all these sound new to you.

From $100,000 to $199,000:
*Ascendas H-Trust.
*Wilmar International.

Wilmar returns as one of my largest investments by joining the lowest bracket in the list.

If Mr. Market continues to feel depressed about Wilmar, I would probably be buying more.



Now, remember, when we invest, we have to take into consideration our circumstances and not "suka suka" ride on other's coattails.

What?

Cannot find AK's coattails?

That is because AK doesn't wear a coat lah.

La la la la... lah. ;p

On a serious note, remember to "eat bread with ink slowly."

Don't know how?

Read:
How to have peace of mind as an investor?

Yes, peace of mind is priceless.





Related posts:
1. 3Q 2019 passive income: Numbers.
2. 3Q 2019 passive income: IREIT.