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You know what they say about how things just seem to happen all at once sometimes? It never rains, it pours.
What are the chances of getting three strikes in a row? A turkey! That certainly got my bowling ball excited.
Just a few days ago, we heard news that Saizen REIT received a firm offer for their assets and this could well lead to the REIT being delisted if the offer is accepted.
On my FB wall and here in ASSI, various discussions went on as to how much the offer could be and what could we do to fill the hole in our passive income if Saizen REIT were to be delisted.
Well, we might have more to ponder over after a friend shared this with me:
Lippo Group plans to shift two real estate investment trusts (Reits) with 35 trillion rupiah (S$3.63 billion) in assets from Singapore to Indonesia in order to benefit from tax breaks offered by Jakarta, its chief executive said.
The property-to-retail group's two Singapore-listed Reits are Lippo Malls Indonesia Retail Trust and First Real Estate Investment Trust.
Source: The Business Times
Source: The Business Times
Saizen REIT and First REIT are two of my biggest investments in S-REITs. My largest investment in S-REITs is, of course, AIMS AMP Capital Industrial REIT. Together, these three REITs account for the majority of my passive income from S-REITs this year.
Although I sold off a large portion of my investment in LMRT (formerly LMIR) some time ago, I still have a meaningful investment in the REIT. Several percentage points might not be a big deal by themselves but add them to what I might be losing from Saizen REIT and First REIT, they become quite significant.
I could be realising significant capital gains but losing a big percentage of passive income from S-REITs in the not too distant future. It is not a tragedy, for sure, but it still creates a problem for me.
I will have to carefully consider how to make the best use of the money if the delisting of these three REITs should really happen.
Related posts:
1. Saizen REIT: Received a firm offer.
2. 9M 2015 passive income from S-REITs.
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