I initiated a long position in Croesus Retail Trust earlier this month.
I recently added to this position as I believe that this Trust could do better in the years ahead.
However, I also decided not to increase the size of my investment portfolio as I am close to 75% invested which is not very comfortable for me. So, I had to do some portfolio balancing.
For a while now, I have been thinking of reducing my exposure to industrial properties in Singapore, given the concerns of oversupply.
I have investments in a few industrial properties S-REITs and my two largest are in AIMS AMP Capital Industrial REIT and Sabana REIT.
Of the two, after some thought, I decided to reduce my investment in Sabana REIT because, comparing them, I believe that AIMS AMP Capital Industrial REIT has done a better job of improving value for unit holders in the last two years.
Mr. George Wang regularly buys into AIMS AMP Capital Industrial REIT while in the case of Sabana REIT, the CEO has divested his direct stake completely in recent months. This gives me the impression that the insiders of AIMS AMP Capital Industrial REIT have their interests more aligned with minority unit holders'.
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Of course, Sabana REIT could still do better in future if they manage to fill up the space left vacant by the non-renewal of 4 master leases as well as the vacant space in the latest property acquired from AMD. I would be very happy if this should happen since I still retain a relatively large position in the REIT, having reduced my investment by about 24% only.
With the partial divestment of Sabana REIT, it means that AIMS AMP Capital Industrial REIT is now my largest investment in S-REITs.
Croesus Retail Trust has become a more significant investment for income in my portfolio but because it is not a REIT, my expected full year income from S-REITs in 2014 will probably see a decline, everything else remaining equal.
Related posts:
1. Croesus Retail Trust: Long position at 87c.
2. Sabana REIT: Initiated long position.