IREIT Global: Update and buying more?

This blog on IREIT Global will build on the blog I published on 16 Sep 22.

In the earlier blog, I said that IREIT Global was a bargain and I will say the same in this blog.

One of the biggest fears in a rising interest rate environment for REIT investors is how badly it would impact financing cost.

IREIT Global allays this fear as it has a relatively low gearing level of 30.6%.

Also, it is insulated from rising interest rate for the next 4 years as their borrowings are on fixed rates till 2026 and beyond.

The other important thing which I talked about in my blog of 16 Sep 22 was the ability of the REIT to increase asking rents.

I said that IREIT Global would be able to increase asking rents and in a timely manner too.

As reported by the REIT, a 4.2% year on year rental escalation supports this point.

I also expect rental escalations to continue in the coming months as higher inflation stays sticky.

Being able to command higher rents while keeping financing cost low for the next 4 years is something any REIT would be envious of. 

So, IREIT Global is in such a sweet spot.

The biggest bugbear now for IREIT Global is its Darmstadt property which will be vacated by the current tenant by end of this month.

It is encouraging to see that the REIT has not 1 or 2 but 12 potential tenants who have made enquiries which show how desirable the property is.

However, I am going to stay pragmatic as the leasing environment in Germany has become challenging.

Maybe, the REIT is trying to manage investors' expectations and I don't blame them because I would do the same if I were in their shoes.

As the property in question accounts for 10.5% of the REIT's income, in the most pessimistic scenario, we might see full year DPU declining from 2.8 Euro cents to 2.5 Euro cents per year.

This is pretty unlikely as positive and more rapid rental escalations in the other properties in the REIT's portfolio will pick up some of the slack in the meantime.

This is just me being a pragmatist.

The property in Darmstadt will be leased out in one way or another (i.e. master tenanted or multi-tenanted) but it might take more time compared to how quickly vacated space was backfilled before.

Investors have to be realistic and we just have to be more patient, given the circumstances.

Of course, patience is sometimes the hardest thing.

2.5 Euro cents is about 3.5 Singapore cents if we use an exchange rate of 1.4x which gives us a distribution yield of 7% at 50 cents a unit.

I would remind myself that this is the most pessimistic scenario and that such a scenario is unlikely to be durable.

IREIT Global is already trading at less than 50c a unit and I have increased the size of my investment because I eat my own pudding. 

Of course, I do not know how Mr. Market is going to react to the business update.

However, if Mr. Market should offer me a lower price, I will probably be buying more, everything else being equal.

Reference:
IREIT Global is a bargain.

Chinese tech, IREIT Global and CPF.

On 7 June, I blogged about trading Chinese tech stocks for pocket money.

Back then, Chinese tech stocks experienced uplifts in their prices and I sold some of my units in Lion-OCBC Hang Seng Tech ETF.

What?

AK invests in tech stocks?

Alamak, this must be AK's long lost evil twin blogging!

Anyway, in case you don't know, read:

Investing in Alibaba and Tencent.

I added to my position twice in the ETF in the months leading to 7 June.

The ETF does not pay a dividend and it is not a good fit for the purist income investor.

So, for me to make some money from the ETF, I have to trade which was what happened on 7 June.

See:

Trading Chinese tech stocks.

Pretty decent capital gains.

With the ETF's unit price having declined rather significantly, I decided to add to my reduced position.

I placed an overnight BUY order at a price lower than my average price and it was filled early this morning.

It was slightly lower than the price which marked the lowest point of the double bottom pattern which formed in April and May.

Technically, the ETF is oversold but it could, of course, stay oversold for a while.

I do not see a positive divergence as the MACD has not formed a higher low.

So, the ETF could see its unit price drifting lower or going sideways for a bit.

Could we see the low of 15 March retested?

If that should happen, I hope I would be brave enough to buy some.

Apart from this purchase, I also added to my investment in IREIT Global at close to 50c a unit earlier in the week.

Mr. Market seems to have taken some medication and depression has stabilized.

Still, Mr. Market could get another bout of anxiety and, everything else being equal, I will most probably get more IREIT Global on the cheap then.

The only thing holding me back now is the fact that the new year is coming in about 3 months.

I need to set aside $40,000 to make voluntary contribution and top up to my CPF account.

It might sound like I am complaining but I really am not because, to me, the CPF is a risk free and volatility free investment grade bond.

At my age, having a meaningful investment grade bond component in my investment portfolio is sensible.

My significant CPF savings provides certainty and peace of mind.

I know things are looking pretty bad in more ways than one and on many fronts.

However, we have to soldier on as even the darkest night will eventually pass.

If AK says so, it must be so. ;p

Gambatte!

Recently published:
IREIT Global is a bargain.

References:
1. Inflation, passive income and budget.
2. CPF money is not our money?
3. $1.1 million in CPF savings.

IREIT Global is a bargain: Short term pain.

This blog is my reply to a reader's comment on IREIT Global.

Unlike bonds which have fixed coupons, REITs are able to command higher rents in an inflationary environment but it is important to see if they can do this in a timely manner.

Most of IREIT Global's leases are linked to the CPI and higher inflation automatically leads to higher rental income while others are reviewed once cumulative inflation exceeds a 10% threshold.

So, IREIT Global is able to increase rental income in a timely manner.

In the meantime, higher interest rates will not impact IREIT Global's cost of doing business as their debt is fully hedged until late 2026.

Unlike most other S-REITs, IREIT Global only pays out 90% of its distributable income which is an important factor when we consider the resilience of the REIT which is reflected in its financial numbers.

So, for quite a while at least, these are not things to be concerned about.

The question to ask now is whether the backfilling at Darmstadt Campus which will be vacated by Deutsche Telekom in November 2022 is going well as that represents 10% of the REIT's income?

To be realistic, although IREIT Global has a very good track record at getting new tenants and filling vacancies, I expect the backfilling to be slower and possibly patchy in this instance with the situation in Europe the way it is.

With IREIT's relatively low gearing level of 30.8%, however, they can take temporary setbacks even of such a magnitude.

The REIT's numbers are strong and with everything else being equal, if the possibly reduced DPU of 3.5c or 3.4c which will give us a distribution yield of 6.53% to 6.73% at 52c a unit is attractive to an investor, then, it is a buy especially if it is just to get a foot in.

Personally, I am waiting to add to my position in the REIT at under 50c a unit which might or might not be rock bottom but I would consider any price under 50c to be a steal.

Of course, it might or might not happen.

I like to think that I know IREIT Global quite well.

Fear is driving people to sell at depressed prices and if it gets any worse, it is another great buying opportunity.

Short term pain for long term gain.

References:
1. What to do when down 25%?
2. Why AK invests in REITs?

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.

"Good time to buy now or should I wait?"

This blog is a reply to a reader's comment: HERE. 

Whenever readers ask me if it is a good time to buy something, I get the shivers. -.-" 

I don't know what Mr. Market might do tomorrow and, so, I don't know if the price will go up or down. 

I do not have a working crystal ball.

However, I have a very dusty bowling ball that sometimes thinks it is a crystal ball.

You want? ;p

As long as I am satisfied that something is an investment that will generate a fairly attractive and reliable income for me, I buy some. 

Past rights issue shouldn't matter to an investor today.

He should look at today's numbers and decide whether it is an investment that will deliver what he is looking for or not?

We might have different requirements and certainly different circumstances. 

So, it is probably not a good idea to ride on someone else's coattails, no matter how famous that someone is.

We can always wait for prices to plunge before buying but prices could appreciate instead. 

It might also be many years before Mr. Market goes into another depression and we would have lost many years of income.

This is why some say time in the market is more important than timing the market.

To buy now or to wait, it depends on whether you feel IREIT Global fits your plan and whether it meets your minimum requirement from an investment. 

If you are interested to get a glimpse of my investment philosophy, read this blog: 

Investment philosophy... 

"I emphasize that I will not tell anyone if they should or should not buy anything. 

"I am only sharing my philosophy and experience in my blog. 

"I am not here to make a decision for you." 

There are also some relevant ideas in these blogs: 

1. An exchange with AK on REITs. 

2. Undervalued but is it a BUY? 

3. Sell now and wait to buy lower? 

4. When to BUY, HOLD or SELL? 

5. Eagle Hospitality Trust: Extinction?

Beware of scams!

IREIT Global: 214 for 1000 rights issue.

Earlier in April, IREIT Global announced that they were looking at acquiring 27 of Decathlon's assets in France.

In reply to readers' comments, I said that it wasn't a fantastic deal but it wasn't a bad deal either as IREIT Global's relatively high distribution yield makes it harder for them to make yield accretive acquisitions.

The deal comes with a relatively long lease to a blue chip sporting goods company and that makes it more appealing with stability being the name of the game.

Lovely pun, that.

I also said that in today's very low interest rate environment, we are probably being well compensated for any risk that comes with the deal.

I would think of the rights issue as an invitation to invest in more properties in Europe which are leased to a big corporate tenant for a 7+% rental yield.

So, it should be interesting to anyone looking to increase their passive income in the form of rental income.

In April, after the intention to acquire those 27 assets was made known, I said that a rights issue was almost certain to take place.

I prefer a rights issue to a private placement because I most certainly would not get invited to participate in private placements.

I also made a guess that a rights issue would probably be relatively small and that it could be a 1 for 5 or 1 for 4 issue.

Well, a rights issue was announced yesterday.

A 214 for 1000 rights issue means it is closer to 1 for 5 than 1 for 4.

Priced at 59.5 cents per rights unit, it is a fairly good price especially when compared to the private placement price of 61.55 cents per rights unit.

The private placement being offered at a higher price although relatively small in size helps to keep the rights issue smallish.

IREIT Global's gearing level is conservative in comparison to many other S-REITs and using more debt to fund the purchase in a low interest rate environment is probably an interesting idea.

However, IREIT Global's manager might be keeping some powder dry by staying more cautious.

Whatever the case may be, I rather fancy being a landlord to Decathlon, given the numbers.

So, I will be taking part in the rights issue, taking up my entitlement and also applying for excess rights when the time comes.

This will make IREIT Global the largest investment in my portfolio.

If you are interested in my replies to comments from readers back in April, please see the blog: HERE.

See rights issue announcement: HERE.

You might also be interested in this blog:
REITs and rights issues: Dilutive or not?

IREIT's rights issue: Why did AK subscribe?

This blog is in reply to a reader's comment.

I decided to publish it as a blog as other readers might be interested in this.

"The rights issue is dilutive because it raises more money than is required to acquire the rest of the Spanish portfolio of assets.

"Also, much of the funds raised is used to reduce gearing.

"As an investor for income, it isn't something I like and I have blogged about this view before.

"However, I like IREIT Global's freehold properties, especially those in Germany.

"I like that its interest cover ratio is very high.

"I also like that it has CDL as a strategic partner.

"With the reduced gearing, I am reasonably optimistic that IREIT Global would do better in future.

"We also want to bear in mind that IREIT Global has a relatively high distribution yield and it is probably harder to make yield accretive acquisitions.

"Like I said, I don't necessarily like the rights issue but since I like the REIT for many reasons, I think of the rights issue as a necessary evil to help it to grow.

"Now, let me add a dash of speculation.

"Once the REIT is massive enough, it should attract more investors, especially the institutional investors and that is when we might see yield compressing to 5% or lower.

"Based on the DPU post rights issue, IREIT Global could trade at 90 cents a unit or higher then.

"In the meantime, I get paid while I wait.

"I like to think that patience will be rewarded."

References:

1. IREIT Global is going to Spain.

2. REITs and rights issues: Dilutive or not?

APTT: 1 for 4 rights issue at 12.8c a unit.

I am taking some time off from "Legends of Runeterra" which is a free to play game recommended by a reader, Azrael, in order to blog about APTT.

As a new player in both "Legends of Runeterra" and "Magic the Gathering: Arena", I find the former to have a better free to play model.

So, a shout out to Azrael for the recommendation.

Here is a short video on one of the regions in game:



OK, onward to victory, er, I mean APTT.

In late 2018, I increased my investment in APTT substantially as its unit price plunged.

A little more than half a year later, I sold those units as the stock market rallied, making some pocket money in the process.

I am still holding on to a legacy position in APTT which is largely free of cost by now.

At today's market price, this legacy position is a really small percentage of my portfolio.

How small?

Off the top of my head, probably less than 1% or maybe even less than 0.5% of my portfolio.

As this legacy position is largely free of cost, I am quite happy to simply hold and collect whatever money the Trust decides to distribute to me regularly.

The DPU was last fixed at 1.2 cents per annum which means a yield of 9.37% based on a unit price of 12.8 cents.

Of course, as my investment is largely free of cost, whatever income distribution I get is almost like getting free money and the yield is pretty much infinite.






Now, the proposed rights issue.

As an investor for income, the first thing I ask is what happens to the DPU after the rights issue?

With the proposed 1 for 4 rights issue, the immediate guidance is for a reduced DPU of 1 cent per annum.

This reduced DPU means a yield of 7.81% based on a unit price of 12.8 cents.

For my legacy position, I will just hold on because, like I said, it is almost like getting free money.

The question is whether should I take part in the rights issue?

Regular readers know that I like rights issues more than private placements.

I always get the option to participate in rights issues but I don't ever get invited to private placements.

Rights issues allow small investors like me to participate in the equity fund raising exercises of our businesses.

Some readers might remember my series of blogs on REITs and rights issues.

If you are new to my blog or don't remember, here are a couple of blogs from 2011 on the subject:

1. REITs and rights issues: A Singaporean tale.

2. REITs and rights issues: Dilutive or not?

Of course, to be fair, rights issues can also mean an invitation to throw good money after the bad.

So, what do I think of APTT's proposed rights issue?

Would I take part in the rights issue?






Rights issues are good if the funds raised will go towards efforts to generate more income and hopefully that means higher DPU for the investors for income like me.

Generally, I do not like rights issues which raise funds to pare down debt or to strengthen the balance sheet as it is not rewarding for me as an investor for income.

After this proposed rights issue, to reiterate, APTT's DPU will reduce to 1 cent per annum from 1.2 cent per annum.

We want to take note that this would be achieved on the back of increasing the distribution payout by 4.2% too.

Income is not increasing.

The payout is increasing.

We also want to take note that there is also no guarantee that DPU will stay at a minimum of 1 cent per annum.

Could we see further reductions in DPU in future?

It is a pertinent question.

There is a chance it could happen.





The big reduction in DPU in 2018 was necessary so that APTT would be distributing only a percentage of its earnings to their investors which allowed APTT to fund their transformation strategy without having to take on more debt.

Prior to that, APTT was funding distributions by taking on more debt.

Apparently, that big reduction in DPU in 2018 was not enough for them to pare down debt fast enough.

The management say a key focus of their strategy is to pare down debt.

So, another reduction in DPU in future is not improbable.






It is interesting to see that if no one else is interested in the rights issue, some insiders will buy all the rights units available.

It is said that it is a vote of confidence by the insiders because even the super rich would not want to lose money.

Peter Lynch would say that these insiders are buying probably because they think they will make money.

Well, to be fair, the rights issue will raise about $46 million which is a drop in the ocean for the super rich insiders like Mr. Lu Fang Ming, Mr. Hsiao Han Shen and Mr Dai Yung Huei.

When we have a lot of money, we can also be less calculative when it comes to money.

We can also afford to be more adventurous.





From all that I have said, it should be obvious that I will pass on this rights issue.

What?

My equity participation in APTT will weaken?

So be it.

I will still get free money from my legacy investment in APTT and I will keep it that way.

Simply from a distribution yield perspective, a prospective 7.8% yield isn't all that attractive when I can get a similar yield from IREIT Global which has greater clarity when it comes to income generation and it is also financially a stronger outfit, for example.

APTT could grow to be a very good investment in future and if that should be the case, I would still benefit from my existing investment.

Not participating in the proposed 1 for 4 rights issue is not going to make a big difference to me.





Till my next blog, be socially responsible and stay safe.

Things might get worse before it gets better.

When I went to the neighborhood supermarket last evening, I saw a group of elderly people lounging and chatting in public.

They were either not wearing masks or using them only to cover their chins.

In the supermarket, there was a family of four shopping.

The youngest in the family, a girl, was rollerblading in the supermarket.

Sigh.

There will always be irresponsible people amongst us.

We should stay united and do the right things.

We should be #SGUnited.

Related post:
Insider buying in APTT and Lu Fang Ming.
"The Monetary Authority of Singapore (MAS) added that the recession ahead is likely to be deeper than first thought."

Buying DBS, OCBC, UOB and cheering for IREIT Global.

The title of this blog pretty much says it all, doesn't it?

OK, end of blog.

Ouch!

Who threw a shoe at me?

Anyway, I nibbled at DBS, OCBC and UOB earlier in the day.

Why did I nibble at DBS, OCBC and UOB?

Well, fundamentally, we want to buy into stocks with strong balance sheets and which are good dividend payers.

More so during a time of crisis.

So, tell me why didn't AK think of investing in SIA instead?

Hey, AK is mental but not that mental.

Ahem.






If DBS, OCBC and UOB have strong balance sheets and are good dividend payers, why didn't AK buy 2 weeks ago when prices were about 10% lower?

Well, AK is growing older and as he grows older, he becomes more timid.

This is the honest truth.

Basically, I didn't know if stock prices were going to move much lower from there

I was waiting for the dust to settle.

So, has the dust settled now?

I am not sure that the dust has settled but I think the dust is settling.

What do I mean by that?

It means that the bottoming process seems to have started.

I wouldn't say that things are bullish and that everything will be fine and dandy from now.

However, I will say that things are looking less bearish for now.

Prices have risen from the lows formed on 23 March and have been moving sideways for a while.






Today, the stock prices of DBS, OCBC and UOB all broke the resistance provided by their declining 20 days moving averages (20d MA).

What this says to me is that they broke their downtrends.

It doesn't really say anything else to me.

For sure, it isn't saying that stock prices will only go higher from here.

Personally, I feel that there is probably more downside in the weeks or even months to come.

However, Mr. Market doesn't care what I think and how I feel.

So, I just do whatever the plan which I drew out at the start of this crisis tells me to do.

For clues as to what I am talking about, read this blog:

COVID-19 defeated by Mr. Market in 2021 or so...

Remember, have a plan, our own plan and stick to it.

What is acceptable to me might not be so for you and vice versa.

Just remember that I am only talking to myself here in ASSI about my plan or, sometimes, plans.





What is going to happen next?

That is an easy question to answer.

The market will either move higher or move lower.

Yes, I know.

Bad AK! Bad AK!

What does my plan say?

Well, if DBS, OCBC and UOB see their stock prices move higher or just move sideways in the near future, we should see their 20d MA turning up in due course.

A rising 20d MA will provide some support and I would buy more at supports.

Basically, we want to see any retreat in stock prices bouncing off the 20d MA then.

If this is just a relief rally and if DBS, OCBC and UOB should see their stock prices plunging once more, then, we could see the lows of 23 March again.

Indeed, stock prices could go even lower than those lows which would be consistent with the view that the COVID-19 crisis is as bad as the Global Financial Crisis or even worse.

In such an instance, I would have to see a positive divergence formed with a momentum oscillator, the MACD, before buying more.

That is the plan.

Just have to wait and see how things pan out.

Mr. Market cannot be rushed.

Neither am I in a rush.

Stay calm and play Neverwinter!





Before I end this blog, I just want to share a bit of good news with fellow IREIT Global unitholders.

If you don't already know, IREIT Global is seeing a huge spike in its unit price today.

It is up 20% right now as I am typing this!

Now, I wish I had bought a lot more when I did at 42c a unit.

50% capital gain!

If only I had a working crystal ball, right?

"Tikehau Capital raised its stake to 29.2 per cent from 16.64 per cent while CDL increased its stake to 20.87 per cent from 12.52 per cent.

"This brings their aggregate shareholding to over 50 per cent.

"Meanwhile, new investor AT Investments has also acquired a 5.5 per cent stake in the Reit"

Source: The Business Times.
"Tikehau Capital, CDL raise their stakes in IReit Global as strategic partners."




In closing, today is the first day of stricter measures that will last for a whole month to combat COVID-19 in Singapore.

Remember, be socially responsible.

We are #SGUnited.


References:
1. Have a plan, your own plan.
2. COVID-19 defeated already?
3. 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.