1Q 2016 income from non-REITs.

This blog post almost did not get written. Thanks to this reader, it did:

"Hi AK,

"I read your blog on you first quarter income this year from reits. I am very inspired. I have been waiting for your blog on your first quarter income from non-reits. Please inspire me again. Many thanks!!"

Well, actually, I did receive a couple of emails before this asking me about what I did in the non-REITs space in 1Q 2016 but I really didn't do much. So, no blog post.

However, inspiring? Hmmm...

If blogging about my 1Q 2016 income from non-REITs will inspire more to think about investing for income to become more secure financially, OK.

Like I said, I didn't do much in 1Q 2016 in the non-REITs space.

Looking at my records, I bought DBS shares, DBS shares and more DBS shares as its share price plunged. The last time I bought any was at $13.45 a share in late February 2016.

In 1Q 2016, I received income from:

1. APTT
2. Tai Sin
3. Croesus Retail Trust

Fuji Grand Natalie inHatsukaichi City, Hiroshima Prefecture, Japan.

Total income received from non-REITs in 1Q: 

S$ 12,181.34

That works out to be about S$ 4,060.45 a month.

Of the 3 stocks, Croesus Retail Trust is my largest investment. It has also been rather busy 

See: 
Private Placement of 70,000,000 new units at 75c a unit. (March 2016)

See: 
Issuance of $60,000,000 5% fixed rate notes due 2020. (April 2016)

See: 
Completion of Acquisition of Fuji Grand Natalie. (April 2016)

As long as the management is able to make good use of the funds raised to improve DPU, I am happy. 

Most of the money raised in the private placement has gone to the acquisition of Fuji Grand Natalie (a freehold property that enjoys 100% occupancy) which was purchased at a 6% discount to valuation.

7 reasons to acquire Fuji Grand Natalie:

See: Presentation slides.

Seems to me that all is well, for now.

Investing for income is about investing in undervalued or fairly valued assets which are able to provide visible and meaningful income generation which should ideally be sustainable.

If AK can do it, so can you!

Related posts:
1. 2015 full year income from non-REITs.
2. 1Q 2016 income from S-REITs.

Tai Sin Electric: Nibbling for a 6.3% to 6.5% yield.

I was first introduced to Tai Sin Electric by a guest panelist, Paul Chen, at the third "Evening with AK and friends". This was sometime at the end of March. I did some research into the company and also came across a well written article dated 24 Sep 2014 by Sean Seah. 

Since Sean's publication of his article, Tai Sin has paid dividend twice, 1.5c a share on 6 November 2014 and 0.75c a share on 25 March 2015. Having paid 2.25c a share in yearly dividends in the prior 2 years as well, it would seem that this could be the norm for Tai Sin Electric in the coming years, conditions permitting.

Looking at their half yearly results announcement on 11 Feb 2015, the EPS was 2.44c and if we were to expect similar performance in the following 6 months, then, full year EPS would be 4.88c. With a DPS of 2.25c, the pay-out ratio is 46%. This is pretty comfortable.

NAV per share has also grown as Tai Sin Electric retains a relatively big portion of earnings. NAV per share at the end of 2014 was 33.46c. This could possibly grow to 36c or so by middle of this year as I do not expect another dividend to be announced in that time, based on the timing of past pay-outs.

Visit Tai Sin Electric's newsroom: here.

Tai Sin Electric's share price has declined in the last few months since touching a high of 40c in September 2014. Looking at the charts, it seems that 34.5c could be the support to watch as the downtrend was broken in the second half of January 2015 and the share price could stay range bound for months until the next dividend announcement later in the year.

I believe that paying 34.5c to 35.5c a share for Tai Sin Electric is to pay a fair price to be a shareholder of a business that provides a combination of growth and income. If the support identified at 34.5c should break, then, the next band of supports are found at 32.5c, 32c and 31c. If they should be tested, I would probably be accumulating.