AK sold SATS and Centurion? More T-bills for AK?

For readers who do not follow my YouTube channel, I produced a new video yesterday.

It was a video about investing for income.

I covered a few things in the video like what to focus on when investing for income?

I also gave a brief explanation on why I sold my investment in SATS and Centurion Corp.

You might want to subscribe to my YouTube channel for free and timely notifications.

This is the link to the said YouTube video, produced and voiced by AK himself. 

AK's YouTube video:

Do you want PASSIVE INCOME?

Another 6 months T-bill auction closed today.

Cut-off yield is 3.73% p.a.

Can't complain.

This is much higher than what DBS, OCBC and UOB are offering for their 6 months fixed deposits.

I increased the quantum in my non-competitive bid and I am pleased to get 100% of my application filled.

Getting some income from risk free and volatility free fixed income investments isn't a bad idea.

This is especially when interest rates have become much more interesting in the last year and a little more.

I am sticking to my plan to stay invested in income producing businesses while also strengthening my income producing T-bill ladder.

This way, I continue to get paid even as I wait for Mr. Market to go into another depression.

AK cannot predict when Mr. Market might go into another depression.

However, AK can certainly prepare for it, and fill up his war chest in the meantime.

If AK can do it, so can you!

Centurion Corporation: A smaller investment.

Not too long ago, I said I trimmed my position in Centurion Corp.

If you don't remember or if you missed it, see:

Reallocate as interest rate rises.

Centurion Corp. is now one of my smaller investments because I went on to trim my position further as its share price rose in recent days.

My investment in Centurion Corp. was no longer one that gave me peace of mind and, hence, the decision.

I am just being consistent as I said before that if I keep thinking about an investment and not in a good way which means I am worried, then, I am probably over invested.

I am feeling pretty good now with a smaller investment in Centurion Corp.

Source: AK asks 2 questions.

My investment thesis of so many years ago is now being brutally challenged.

In a rising interest rate environment, it makes sense to me that highly leveraged entities will find it more challenging to bring home the bacon but if they could increase their income while controlling other costs, it is not too bad.

However, if they have regulatory issues which could impact their income negatively to deal with, then, the picture becomes hazy and I feel that this might be the case with Centurion Corp.

I invested in Centurion Corp. primarily for income but with interest rate going higher and, more importantly, regulatory issues regarding PBWA capacity, it is less certain that the dividends which I expect from the investment are going to be sustainable or even forthcoming.

Already, the number of beds are reduced in certain assets and we could see the same thing happening in other assets in the not too distant future which would also require additional CAPEX when Centurion Corp. is already lacking a strong balance sheet. 

As an investor for income, if I could get a dividend yield of 4.5% or so by investing in the local banks which should also enjoy a strong tailwind from rising interest rate, the case for investing in Centurion Corp. for income weakens considerably.

Investing in Centurion Corp. for income now only becomes a superior strategy if it can pull off a Saizen REIT and long time readers of my blog would know what I am talking about.

Saizen REIT was trading at a big discount to NAV too but the REIT was also consistent in distributing meaningful income while Centurion suspended dividends for two years and could do so again.

Saizen REIT was also selling their buildings at a considerable premium to their valuations which confirmed that the REIT was truly undervalued.

Centurion Corp. could unlock value by selling some of their assets just at valuation and that would unlock lots of value since its common stock is trading at such a huge discount to its NAV per share.

As interest rate rises, cap rates should expand and that is when we could see asset valuations declining.

Still, with such a big discount to NAV and if the valuations are credible, value could be unlocked for shareholders through a partial sale of assets even at a slight discount to valuations.

If this were to happen, then, I would have made a mistake by significantly reducing my exposure to Centurion Corp. 

This is why I retain a smaller investment in Centurion Corp. so that I would suffer a weaker form of seller's remorse in such an instance.

Well, I am only human and can only do what I feel is right for me.

Don't play play and anyhow follow.

Recently published:
Trading Chinese tech stocks for pocket money.

Related post:
Saizen REIT: Deeply undervalued.

Reallocate as interest rate rises in a slowing economy.

Interest rate is rising.

PM Lee recently warned of a possible recession in the quarters ahead.

Put rising interest rate and a slowing economy together, we get a rather gloomy picture.

The evil which is inflation is preferred to the evil which is deflation.

Although inflation is the lesser evil, it isn't as benign when it is heightened which is what we are seeing now in the world.

We can reduce inflationary pressure either by increasing supply of goods and services which are in demand or tempering demand for such goods and services.

As it is difficult to increase supply right away, central banks are trying to tame inflation by increasing interest rate in an effort to reduce demand.

Increasing interest rate increases the cost of debt.

Credit is the lifeblood of commerce and most businesses are leveraged to some degree.

If the economy is healthy, businesses can pass on the higher cost of doing business to their customers and higher finance expense that comes from higher interest rates are naturally a part of such cost.

However, it becomes more difficult for many businesses to pass on such higher costs to customers if the economy is suffering from malaise.

Heightened inflation, rapidly increasing interest rates and low economic growth is not a good mix.

In such a situation, even very strong companies will not be spared a slowdown as most entities would be less ready to part with their money.

Already, we see some big name MNCs both in the old and new economies warning of very difficult quarters ahead.

Only the fittest will survive but even they might not emerge unscathed from such a toxic cocktail.

As an investor for income, I believe that businesses which are able and willing to pay a meaningful dividend should be favored.

To make sure that dividends are sustainable, these businesses should also provide necessary goods and services and have stronger balance sheets.

They too will take a few punches during hard times but they should be able to roll with the punches.

I think staying invested is still the way to go but, like I said, I should mostly be invested in businesses which are able and willing to pay dividends even during hard times.

So, with this in mind, I have taken a hard look at my largest investments since they impact the performance of my portfolio the most.

The strategy to increase my investments in DBS, OCBC and UOB during the COVID-19 induced bear market has turned out well and sticking with this strategy makes sense to me especially with interest rate rising.

I am also interested in increasing my investments in ComfortDelgro and CLCT on weakness as they seemed to have lagged in price recovery while their businesses look more attractive to me in recent times but for different reasons.

I am leaning more towards ComfortDelgro which has a stronger balance sheet and also because looking at the numbers which have improved, there is a fairly good chance that future dividends will be higher and could even go back to pre-pandemic levels.

CLCT's plan is to increase the proportion of new economy assets in their portfolio and I foresee more fund raising in the future.

So, I will increase my investment in CLCT slowly and not bulk up in a hurry.

REITs are required to pay out at least 90% of their operating cash flow to investors to enjoy tax benefits and this is a source of comfort to me.

The REITs in my portfolio are rather conservative when it comes to debt and in the case of IREIT Global, some of their rental income is linked to the German consumer price index and higher inflation could see a greater increase in income.

In my list of largest investments, the only entity which did not pay a dividend during the last bear market was Centurion Corporation.

Amongst my largest investments, Centurion Corporation also has the weakest balance sheet apart from Wilmar International.

However, Wilmar International is in the business of food production and distribution which, in my opinion, is recession proof. 

Given their size and market dominance, they should be able to charge higher prices.

Wilmar also has good options available to unlock value for shareholders and they were paying dividends even during the pandemic.

I increased my investment in Centurion Corporation as Singapore decided to live with COVID-19.

For those who are interested in my thoughts on the matter, read:

1Q 2022 passive income.

In an environment of rapidly increasing interest rate and slowing economy, however, with a rather weak balance sheet, it could be harder for Centurion Corporation to bring home the bacon.

In my original blog on why I invested in Centurion Corporation, I crunched some numbers on how rising interest rate could impact Centurion Corporation's interest cover ratio.

For those who are interested, read:

Added Centurion Corp to portfolio.

Of course, if they are able to increase asking price per bed meaningfully to balance the increase in the cost of debt, then, they should be OK.

Although they would be able to do so easily in a healthy economy, it might not be so easy during times of economic malaise.

Wait, didn't Centurion Corporation do quite well even when the economy was unhealthy?

Yes, they did but they didn't have to deal with rapidly increasing interest rates.

I don't know everything and I might be missing a few things here.

So, I have decided to only reduce my exposure to Centurion Corporation and not go to zero.

As my total passive income held up quite well during the two years when Centurion Corporation suspended dividend payouts, I doubt reducing my investment would have any meaningful impact in terms of passive income generation which makes this decision an easier one for me.

Although Centurion Corporation still looks undervalued to me as it trades at a huge discount to NAV, to be honest, this discount could reduce as valuation of their assets could take a hit.

It would be interesting to see how the management navigates the challenges ahead and how they might unlock value for shareholders.

They are trying to sell some assets in the USA now which if successful should help in reducing leverage and unlocking value.

To this end, I believe they should ramp up their effort and sell more assets.

Like Phua Chu Kang said at the onset of the COVID-19 pandemic, "Things different already."

In the grand scheme of things, this is a relatively minor shift of resources but because I am more inactive than active as an investor for income, it might seem like a big event.

Remember, mentally unstable AK is just talking to himself, as usual.

Have a plan, your own plan.

Recently published:
Avoid this in a rising interest rate environment.

Related posts:

1. Rising interest rate flashback... 

2. Largest investments 1Q 2022.

3. Investing with peace of mind.

Centurion Corp. Ltd. 1Q 2020 Business Updates.

I took some time off from Neverwinter which is doing some maintenance to look at Centurion's latest updates and decided to do a bit of talking to myself in the process.

Centurion is, of course, one of my largest investments.

It was only a few months ago in November 2019 that I published the following blog:

Centurion Corporation is still cheap and a strong BUY.

That was when Centurion caught the attention of analysts at DBS and they had a target price of 52 cents a share.

Of course, things have changed dramatically since then.

I will not talk about how most of our COVID-19 cases are foreign workers living in dormitories or how students in hostels are given the option to terminate their rental agreements early without penalty to go back home.

That is old news by now.

I am more interested in Centurion's ability to survive the crisis given the challenges and its future.

I invested in Centurion because it was trading at a big discount to NAV and I believed it was a good income generator.

Of course, as an investor for income, I like that it paid a good dividend.






Today, Centurion is still trading at a big discount to NAV but, realistically, that discount could lessen if their assets are revalued lower.

The ability of assets to generate income will affect their valuations.

The government has mandated that companies must pay the dormitories operators promptly even if their employees have been moved out of the dormitories for COVID-19 treatment.

However, will occupancy suffer a reduction like it has for the student hostels in the future?

This would depend largely on how progress in the fight against COVID-19 unfolds.

It would depend on how badly the crisis has damaged the economy and, maybe, continue to damage the economy for some time to come.

So, to be realistic, we have to expect Centurion's income to take a hit at some point and, together with higher costs, earnings to reduce.

Investors should expect a cut or a suspension of dividend payment which is, of course, bad news for income investors like me.







Some of us are familiar with the saying that Centurion is like an S-REIT.

They collect rent and distribute some of that rental income to shareholders like REITs do for their unitholders.

Centurion's gearing ratio is 50% which is relatively high compared to S-REITs but I have said before like in the instance of IREIT Global that a REIT's interest cover ratio is a better measure of risk than gearing ratio.

If we borrow little but are unable to repay, it is worse than if we borrow a lot but have no issue repaying.

Centurion's interest cover ratio is 3.4x which is higher than some S-REITs today.

In an environment where interest rates stay low for longer, Centurion could possibly refinance at lower interest rates and that would improve interest cover ratio, all else being equal.

A suspension of dividend payment might not be a bad idea if some of the money goes to reducing debt.

If this should happen, I hope that Centurion remembers to reward shareholders better when the good times return.

Short term pain for long term gain.

With a good track record and relatively large stakes in the business, I believe that there is little fear that insiders would do anything to damage minority shareholders' confidence or interests.






In fact, constant insider buying is one reason why I like Centurion as an investment.

The insiders eat their own pudding.

The last time an insider bought more was last month in early April when Mr. Han Seng Juan bought 107,800 shares at about 37 cents per share.

However, it is interesting also to note that there has been no insider buying since then.

In a business where insiders have consistently increased their stakes, it is probably a good idea to monitor their moves closely to help us decide when to buy more.

We might believe something:

"We believe the PBWA and PBSA sectors will recover fairly quickly once market normalises and we will continue with our course of expansion plans into these sectors."

However, we should not throw caution to the winds:

"Wait till the situations across our markets normalise from Covid-19 pandemic and reevaluate our expansion plans then accordingly to the market situations."

Centurion's management and insiders are staying grounded and so should we.

Stay cautious and stay safe.

We are #SGUnited.








Related post:
Largest investments updated 4Q 2019.

Recently published:
1. Buffett thinks it will get worse.
2. AA REIT FY 2020 results.

Reference:
Centurion's presentation slides.

Quek Leng Chan ups stake in Guocoland. Is AK buying? (How much exposure to property developers does AK have?)

Someone asked me if I would be increasing my investment in Guocoland recently as it is still trading at a big discount to NAV.

In fact, he also asked if I would be increasing my exposure to the property sector since interest rates look like they will stay low for some years to come.

Although I like undervalued investments, there is always the possibility of such investments staying undervalued for an extended period of time.

Some readers might have noticed that this is usually the case with property developers.






My preference is, therefore, to invest in property developers that are able and have shown a willingness to reward shareholders with meaningful dividends.

The wait can be a long one and being paid while we wait makes it more affordable for most people.

Guocoland is a pretty good fit.

Since becoming a shareholder of Guocoland, I have received three rounds of 7c DPS.

Dividend yield is about 3.8%.

That is pretty decent for a property developer.








I became a shareholder of Guocoland in 2017.

That was when I noticed persistent insider buying and decided to do an incomplete analysis.

Then, I decided to invest in Guocoland which was trading at a hefty discount to valuation. 

Well, there is more insider buying now.

Following recent purchases, Mr. Quek Leng Chan's stake in Guocoland increased to almost 72%.

Although paying a price of $2.05 a share is more than 10% higher compared to what we paid back in 2017, the price is still a big discount to the NAV of $3.47 a share.






I am quite happy to hold on to my investment in Guocoland but I won't be adding now.

Reason?

Although individually my investments in property developers are not big enough to be in my list of largest investments, collectively, they are.

So, which property developers am I invested in?

They are:

1. Guocoland
2. Ho Bee Land
3. Hock Lian Seng
4. OUE
5. Perennial Holdings
6. Tuan Sing
7. Wing Tai

(If you want to read my past blogs about these entities, click on their names above as they are hyperlinked.)






Based on market value, together, they probably account for a sizable chunk of my investment portfolio.

For a retiree like me, I feel that is enough exposure to property developers.

For sure, I do not know when value would be unlocked and this unknown makes limiting the total investment exposure to 10% of my portfolio or lower sensible.

What if value is not unlocked in my lifetime?

Hmmm...






Although I am not interested in increasing my exposure to property developers, I have increased my investment in the property sector by putting more money into the following business entities not too long ago:

1. IREIT
2. Centurion
3. Accordia Golf Trust

(If you want to read my past blogs about these entities, click on their names above as they are hyperlinked.)






It should be obvious that the ability to generate a meaningful recurring income stream has always been an important consideration for me.

It has become more so as I grow more settled into my early retirement.

Of course, I am only doing what makes sense to me.

Others have to do what makes sense to them.

Oh, totally unrelated, I watched the following video by CPFB and had a good laugh:





Related post:
Largest investments updated (4Q 2019).

Centurion Corporation is still cheap and a strong BUY.

Regular readers know that a business which I like very much as an investment for income is Centurion Corporation.

I like accumulating stocks of businesses which have a proven track record as reliable income generators.

I especially like accumulating them when they are trading at a big discount to NAV.

If they offer an attractive dividend yield with a relatively conservative payout ratio, even better.

To understand why I invested in Centurion Corporation back in early 2017,

See:
Added Centurion Corporation to my portfolio.






In fact, I like Centurion Corporation so much that I increased my investment in the business this year a few times.

I shared this in a blog in July 2019.

See:
Largest investments updated (3Q 2019).

I bought more when Mr. Market wasn't paying Centurion Corporation much, if any, attention.

Persistent insider buying, however, prevented the share price from falling below 40 cents a share.

So, I would queue to buy at 40 cents a share but often would buy at 40.5 cents a share.






On 25 October 2019, Centurion Corporation's share price closed at 43 cents a share, rising on the back of very high volume.

It broke resistance provided by the 200 days moving average (200dMA).

A bullish sign.

Question:

Could we see share price moving higher from here on?

Answer:

Your guess is as good as mine.

Well, more importantly, what is the implication for someone like me who likes the business?

I think it could be more difficult for me to accumulate closer to 40 cents a share in future.

Look at the chart again.

The 200dMA is gently turning up now and should approximate 41.5 cents soon.

The shorter term 20 days moving average (20dMA) has risen sharply and is currently providing immediate support at 42 cents a share.






Fortunately, I am cool with not buying more at higher prices because my investment in Centurion Corporation is pretty significant right now.

However, for anyone who still wants to get a bigger slice of the pie, paying a slightly higher price now is something probably worth considering.

Why do I say this?

Centurion Corporation got the attention of the analysts at DBS recently.

This reminds me of the time when analysts in UOB Kay Hian sank my plan to continue accumulating Hock Lian Seng's stock on the cheap.

Some readers might remember this blog from December 2014.

See:
Hock Lian Seng: Robust order book.

I said:

"If Hock Lian Seng should attract coverage from more analysts and if they are mostly positive about the stock like I am, I think opportunities to accumulate the stock on weakness could be harder to come by in future."

A case of deja vu?

Maybe.

Newer readers might also be interested in this blog from February 2017.

See:
Hock Lian Seng returns 100% and more.







Some points from a report by DBS earlier this month:

1. Centurion Corporation's purpose built workers accommodation (PBWA) segment is resilient and the expected increase of 3,600 beds in this segment may boost income by 11%.

2. Centurion Corporation's purpose built students accommodation (PBSA) bed count increased by 12.4% so far this year and this may improve top line by 11.2%.

3. Demand for PBWA in Singapore continues to outstrip supply by about 135,000 beds and despite a tightening on the number of foreign workers, occupancy rate rose from 96.9% to 97.4%.

4. Over in Malaysia, Centurion Corporation's PBWA occupancy rose from 90.2% to 91.2% as the Worker's Minimum Standard of Housing and Amenities (Amendment) Bill was passed in July.

5. PBSA occupancies improved from 90.3% to 91% in the UK.

6. PBSA occupancies in Australia improved from 80.7% to 89.8% in RMIT Village and from 82.1% to 93.9% in East End Adelaide.

DBS has issued a DCF based target price of 52 cents a share for Centurion Corporation.




I am more concerned with Centurion Corporation's ability to generate income for me consistently and meaningfully.

However, if DBS is worth their salt, there is more than 20% upside from Centurion Corporation's last Friday's closing price of 42 cents a share.

Time will tell.

I like being paid while I wait.

In the meantime, I will munch on an Old Chang Kee curry puff and watch the following video.





Related post:
More on Centurion Corporation.

Also see:
Centurion Corp posts 21% rise in 3Q earnings to $8.8 mil on higher revenue.

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.

3Q 2019 passive income: Numbers.

It has been a while since my last blog and I hope everyone is doing well.

So, now that 3Q 2019 has ended, an update on what I did in the quarter is due.

Well, in terms of my investments, apart from collecting dividends, regular readers know that I sold quite a big chunk of my portfolio earlier in July.

See:
Sell into the rally...

And for what it was worth, I also provided an update on the largest investments in my portfolio.

See:
Largest investments...






Then, after that, I was mostly just adventuring in Neverwinter and taking it easy in RL (which stands for "real life"), collecting dividends from my RL investments.

Although readers should hopefully be used to the rather long breaks from blogging I have been taking as I spend more time on other activities, I would like to reiterate that this is the new normal.

If you leave comments in my blog and expect a timely response, you could and very likely be disappointed.






In fact, for the whole month of October, Neverwinter will be running the Neverember Recruitment Event which will reward the leveling of any new character created during the event.

This is not only a perfect opportunity for anyone who wants to give Neverwinter a try, it is also great for veterans to create new characters (up to a maximum of two) to get their hands on the rewards which are very generous, rewards which would have cost RL money to buy otherwise.

The Level Cap in Neverwinter is 80 but to get all the rewards from the event, we only have to hit Level 59, if I understand the event correctly.

So, I will be extra busy in Neverwinter as I will level two new characters to Level 59 and still be adventuring with the three Level 80 characters I have now.

Neverwinter is free to play (F2P) and lots of fun for anyone who enjoys the High Fantasy genre and is "giam siap" (not offering a translation for this) like AK.

Can barely see the word "Shift" and the letter "W" on my keyboard. 
Bad AK! Bad AK! ;-p

Anyway, total passive income from my investments in REITs and non-REITs in 3Q 2019:

S$ 31,789.91

This amount would have been much higher if I did not reduce my investments and rather significantly too in SingTel, Wilmar and ComfortDelgro back in July.

I say this as a matter of fact to explain why the amount is smaller than what some might be expecting and not because I regret my decision to realise gains, reducing investment exposure pretty significantly in the process.

After all, the capital gains from reducing exposure to the businesses mentioned were much more than what I would have received from them in dividends otherwise.








Also, it is almost never a bad thing to have more cash as it gives us options which include the ability to pounce on opportunities when they present themselves.

As it turned out, opportunities knocked in the following months as stock prices experienced a correction.

I added to my investments in a few businesses such as:

1. DBS

2. OCBC

3. ComfortDelgro (CDG)

The list doesn't end here, of course. 





As Centurion's stock price and Accordia Golf Trust's (AGT) unit price languished, I also added to my investments in these entities as my investment theses are unchanged.

I believe that they are undervalued and it doesn't matter to me that if their share or unit price continue to move sideways as long as they keep generating meaningful income for me.

In 3Q 2019, I also took part in CRCT's rights issue, taking up my entitlement and applying for excess rights at $1.44 a unit.

This bumps up my investment in the REIT but not by much as it is a relatively small rights issue.

Finally, I substantially increased my investment in IREIT Global as its unit price declined rather significantly.





I shall not explain my decisions to increase my investments in DBS, OCBC, CDG, Centurion or AGT again.

Anyone who is interested to find out more or in having a refresher can refer to my earlier blogs on these entities.

As for CRCT, I blogged about why I thought it was a well run REIT with a relatively attractive yield before.

See:
CRCT added in Jan 2017.

My view has not changed and there is no reason why I wouldn't take part in its relatively small rights issue to help expand its AUM.





I have also blogged about IREIT Global before and why I avoided its IPO.

This was back in 2015.

See:
IREIT: What is a more realistic distribution yield?



Of course, all investments are good at the right price and I invested in IREIT later on when its unit price declined sharply.

Adding to my investment in IREIT Global in 3Q 2019 meant paying a higher price than what I paid before, however.






Still, I chose to increase my investment in IREIT Global and I will share the reasons why in my next blog as this blog has become a bit too long.

I will try to do this within the next 24 hours because if I don't, I fear I might not do it once I seriously start to power up my two new characters in Neverwinter.

Yes, I know.

Bad AK! Bad AK!




For now, I will say that I am reasonably confident that all that I did to my investment portfolio in 3Q 2019 will better reward me in future.

What I did was consistent with my belief that investing for income is enriching and, so far, it has been the case for me.

Remember, if we do the right thing, everyone's life can be and should be better.

Investing for income can help us achieve financial security and, eventually, financial freedom.

If AK can do it, so can you!




You might also want to read:
1. Retirement adequacy 101.
2. Start with a plan to retire early.