I will not attend Multiple Streams of Income Seminar.

After sending out multiple emails, I have not received any reply from the organisers of Multiple Streams of Income seminar by Robert G. Allen. I have, therefore, concluded that they are ignoring me and are not going to do the right thing as per my suggestion.

So, I am proceeding to blog about the whole matter here in my blog for all to see and for readers to decide for themselves if the people organising the event are fair and honest. If they are not fair and honest, then, can we logically question if a product or service offered by them has any hidden agenda?

I was first introduced to Robert G. Allen's books by a reader of my blog. He goes by the initials "SC". Then, recently, he asked if I would like to help promote an upcoming seminar by Robert G. Allen.

To be fair to myself and other advertisers in my blog, I told him that I can help him spread the word but there would be a one time advertising fee. He said that he was only helping the organiser of the event and had to check with the organiser. He came back to say that the organiser offered to pay me for every ticket I sold in my blog and to make it more attractive, my readers will get a discount off the official price of $64 per ticket. A "discount code" or "promotion code" was created for this purpose.

Now, Robert G. Allen's books are interesting and while not revolutionary, I believe that they will benefit people who are thinking of creating more income streams on their journey to financial freedom. So, there was no reason not to accept an advertorial offer to promote a seminar by the same person.

The nightmare started after a reader told me that another blog is selling the ticket at $57.00 without having to apply any discount code. So, I wrote an email to SC regarding this. His name is Swee Chye, by the way:

Hi Swee Chye,

Something just came to my attention and I am not too happy.

A reader just told me that he saw the tickets going for sale in a another blog for only $57 and I am saying in my blog that the regular price is $64 and that my readers get a special price if they use the discount code I have provided in my blog.

I clicked on the link provided by the reader and it really says $57.00. This is in Greatsage's blog. This is on Facebook too.

You have put me in a very difficult position.

My blog has a reputation which I put on the line when I do this. If I do not get a satisfactory answer, I will have to blog about this to clarify the matter and salvage the situation.

I look forward to your prompt reply as to how to remedy the situation.

Best wishes,
AK

I got a rather prompt reply from SC:

Dear AK,

 

I've checked with the organizer and he came back and clarify that the other blog link was at the net discounted price as it has already factor in the discount. This was a tie up with the other blogger.

 

I went to check myself and yes there is no promotional code area to enter for the other link, and it is at net $57.

 

So maybe you can explain to the reader that the official price is at $64, and that is why you manage to get a special price if they use the discount code, which can't be used in another link or page.

 

Hope this helps to explain the discrepancies.

 

Let me know if there are any other clarification to be made.

 

Regards,

Swee Chye

To which I replied:

Hi Swee Chye,

This is not a satisfactory answer.

If readers can buy the tickets at S$57 elsewhere without applying any discount code, why do they have to do it in my blog?

It gives the impression that my blog raised the price and then provide a discount to give an impression that it I am offering a better deal!

I get the feeling that you are also a business professional. How would you feel?

This is not just a matter of 1 reader raising the issue. How many more will there be? How many more will talk about this without telling me? It is my blog's reputation which is at stake here.

I suggest that the discount for my readers be raised to 15% to remedy the situation. For those readers who already bought their tickets and I last counted the number to be 3, you guys could give them some token for the additional 5% discount at the venue.

The current arrangement puts me in an awkward position and I am sure you can appreciate this. I cannot accept it.

I hope that the organiser agrees to my suggestion. Failing this, I will have to take matters into my own hands.

Best wishes,
AK

And this was the remedy they offered:

Dear AK,

 

I've convey your message to the organizer.

 

This is what he came back with.

 

As a special appreciation and token for your readers, those who have signed up, and those intending to sign up will get a complementary ticket to "The_Secret_Of_Success" seminar on 18Aug itself.

 

This complementary ticket is value at $57 as well.

 

The session will be in Mandarin, focusing on the "Secret to Success".

 

Maybe, you can include some add on in the blog post on the special gift only for your readers, but not the poster.

 

For those who have signed up, they will be informed and given the special complementary ticket.

 

This is subjected to the first 100 sign ups only.

 

So for those already sign up or intend to sign up for Robert's session on Monday - the tickets will be complimentary,   i.e. you buy one ticket, and get to attend both sessions, subjected to the first 100 sign ups only..

 

All guests attending this event are encourage to meet Ben Lai and Jane for discussions.

This is a special arrangement just for your reader and clarification to the discrepancy, which the other blogger will not get.

 

Is this ok for you?

 

Let me know.

 

Regards,

Swee Chye

Of course, this missed the point I was making totally and I told SC so:

Hi Swee Chye,

Please tell the organiser that I am promoting Robert G Allen's seminar and not some other seminar. This is in part due to your prior good recommendation to read his books which are interesting.

I don't even know who are the people conducting "The Secret of Success" seminar. Furthermore, it is in Mandarin! My blog is in English! How many of my readers are like me and have difficulty with Chinese?

A bundle offer is not the original intention of our agreement. A special price for my readers is supposedly the offer. This special price is now discovered to be not special at all.

So, I am asking the organiser to deliver on the promise of a special price for Robert G Allen's seminar for my readers and nothing else. A 15% discount should do it.

If the organisers cannot agree to an extra 5% discount, I will simply state my views on the matter in my blog matter of factly and let readers form their own conclusion. I will still fulfil my end of the agreement but I will have to do so giving readers full knowledge.

You might know this but the organiser might not: I am not a blogger who is blogging for money. I care about my blog's reputation more than anything else.

I look forward to your prompt response. Thank you.

Best wishes,
AK

SC did not send a reply to the above email and I followed up with another email at night after publishing a Part 2 to the advertorial in my blog:

Hi Swee Chye,

I have not received any reply regarding the proposed 15% discount for my readers. So, I assume that the answer is "no".

Anyway, I have updated my readers regarding the situation in my blog and if they still want to buy tickets to the event from my blog, they are now doing so knowing fully well that the tickets are available in another blog for $57.00 each without having to apply any discount code.

I am always above board with my readers. That is the reason why they trust me and why they keep coming back.

Readers who buy tickets from my blog, I will send them tokens of appreciation at my own cost.

I have to say that I am disappointed with how this has turned out but I know you are just the middle man and you don't have a say in how things work.

Thank you for helping me pass the messages. :)

Best wishes,
AK

As anyone can see, I was still very cordial, believing that SC, a reader of my blog, was just helping out the organiser and that he was not in the know.

However, when a reader showed me that the forum at kiasuparents.com is selling the tickets at only $30.00 each and that $57.00 could get three tickets, I was really upset:

Hi Swee Chye,

A reader just told me that the forum at kiasuparents.com is selling the tickets for $30 each and $57 for 3 tickets! What is going on?

I clicked on the link provided and it brought me to:http://www.eventbee.com/event?eid=102104202

Please find out from the organiser what is going on. This is just getting worse! It is terrible!

How well do you know these people?

Best wishes,
AK

As you can see, I still believed SC! Then, I looked at the nickname of the person posting in kiasuparents.com. It says "scang". I put two and two together.  SC's email address says anselmang@gmail.com:

Swee Chye,

The person posting in kiasuparents.com has the nickname "scang". That is you, isn't it? You knew all along about the special prices and you didn't tell me?

I entered into this arrangement in good faith! How is this fair to me and my readers! I hope you are going to tell me "scang" is not you.

If I do not hear from you by 8am tomorrow, I am going to publish our correspondence on my blog for all to see.

I DO NOT APPRECIATE BEING TREATED THIS WAY!

I want you to offer a FULL REFUND to all my readers who have bought tickets to the event through my blog if they wish it.

There is a total lack of fairness on your part in this entire exercise! You have omitted important information which could have influenced my decision on whether to promote the event! This is MISREPRESENTATION BY OMISSION!

TREAT THIS AS VERY SERIOUS!

AK

Now, not many people have seen me furious but I was SO furious and still am.

Then, something struck me. I went to the three ticketing sites and everyone had this in the header:

What or who is ARIIX? I did an online search and I think this is an MLM company. If the seminar is just a front to promote some MLM effort, then, the organiser has truly been dishonest with me. If I knew it was an MLM effort, I would never have agreed to this. My fury went up a level because it makes me an unknowing partner to a possible deception.

I did an online search on Ang Swee Chye. He has a linkedin account: http://sg.linkedin.com/in/scang

The last piece of the puzzle has fallen into place.

In my life, I have come across many dishonest and unfair people. People would sometimes withhold vital information, putting others at a disadvantage while promoting their own agenda.

I have been a victim before and I have developed a defence mechanism over time but not to the point of being cynical or overly suspicious. I still like to believe in the goodness of people. I still believe in fair play.

A total of 6 tickets were sold through my blog. Of course, I can say that I am lucky that I discovered the shenanigans quite quickly. However, to the people who bought the 6 tickets, I am truly sorry.

I went and bought inspirational bookmarks last night to send to them as a token of appreciation because they could have bought tickets at $57 each from the other blog instead of my blog. Now, these bookmarks seem grossly inadequate.

I don't know what else to say and for someone who talks a lot, this is saying something. I am very sorry.

Related post:
Create multiple income streams with Robert G. Allen.

Create multiple income streams with Robert G. Allen (Part 2).

I have just sent a very stern email to the organiser. I will strongly suggest that readers do not buy tickets to the event at any price. Tell everyone you know about this. I am very upset now and I have not been so upset in a LONG time.  (11.30PM, 31 July 2013)

Read this: I will not attend the seminar.
....................
Just last evening, I blogged about a seminar by Robert G. Allen which is happening on 19 August 2013. This afternoon, I updated the blog post asking readers not to buy the tickets from my blog yet, pending an announcement. At that point in time, 3 tickets were already sold.

I just got home a while ago and checked. The tally is now 6 tickets sold despite my afternoon update.

Anyway, if you have bought your tickets and are feeling worried, wondering why did I update the blog the way I did this afternoon, don't worry.

The reason for the afternoon update was because I received reliable information that the tickets are being sold in another blog for only S$57.00 without having to apply any discount code. So, I sought clarification from the organiser and was also trying hard to negotiate for a higher discount for readers of ASSI. I was pushing for a 15% discount instead of the original 10%.

Although several emails were exchanged, unfortunately, I have not received any agreement from the organiser regarding the proposed 15% discount.

I feel bad about the whole thing because I was under the impression that S$64.00 is the official price and readers of ASSI will get a special price by applying the discount code I was given. The special price has turned out to be a non-event.

I want to apologise to readers who, given the same impression, have bought tickets from my blog and I want to let other readers who might be thinking of buying the tickets from my blog to have full knowledge before making their decision.

If you have bought tickets to the seminar from my blog, please send me your first name and address by email and I will send you a little token of appreciation by snail mail.

Thank you all for believing in AK71. This, I value more than anything else.

Please note that this blog post is not a statement about the seminar. Its core purpose is to provide disclosure of my discovery and what I tried to negotiate with the organiser for my readers.

Related post:
Create multiple income streams with Robert G. Allen.

Create multiple income streams with Robert G. Allen.

PLEASE READ THIS BLOG POST FIRST:
Follow this link: Create multiple income streams with Robert G. Allen (Part 2).

I have just sent a very stern email to the organiser. I will strongly suggest that readers do not buy tickets to the event at any price. Tell everyone you know about this. I am very upset now and I have not been so upset in a LONG time. (11.30PM, 31 July 2013)

UPDATE (1.54pm, 31 July 2013):
I know 3 readers have bought their tickets to the event. For those who are thinking of buying tickets, pending an announcement, please do not purchase the tickets through my blog yet.

...........................................................

“Never depend on single income. Make investment to create a second source.”

Who said this? Warren Buffett, of course. Does anyone disagree with him? I don't think so. This is good advice.

Then, can we create multiple income streams?

A reader, SC, recommended that we pay attention to Robert G. Allen if we are interested in creating multiple income streams.

That was when I blogged about Robert G. Allen and how he charges US$10k to US$25k for personalised coaching. That is a lot of money and I recommended that we buy his books for much, much less instead.

However, there is now an amazing opportunity for anyone who is interested in listening to the man himself because Robert G. Allen is coming to Singapore to conduct a seminar!

It is not going to cost thousands or even hundreds of dollars to attend the seminar. It will cost only S$64.00 per person!

People know that AK71 likes to find good deals for his readers. So, the organisers are offering limited number of tickets at a 10% discount to readers of ASSI!

Simply enter the promotional code: AK71-MSOI when you buy your tickets at: ttp://www.eventbrite.sg/event/7661797643

The seminar is taking place on 19 August 2013 (Monday) in the evening from 7pm to 10pm at:

Nexus Auditorium
5 Koek Road, #05-07,
Cuppage Plaza (near Somerset MRT Exit B),
Singapore 228796.

 

I always try to keep an open mind and decide for myself what suits me. It was also with that philosophy that I attended Value Investing Summit 2013 earlier this year. Some readers might remember that.

So, if you have the time and if a ticket is not going to blow your monthly budget, why not keep an open mind and attend Robert G. Allen's seminar?

We could, of course, choose to get his books instead. Free shipping worldwide, as usual.

In his book, Multiple Streams of Income, Robert explains how to achieve financial independence in three phases:

1. Control personal cash flow with good habits.

2. Develop and grow a portfolio of income streams from various sources.

3. Apply strategies to retain wealth and pass it on as a legacy.

See it here at: Multiple Streams of Income.

If you decide to attend the seminar, remember to get your 10% discount with the promotional code. AK71-MSOI.
Tickets are sold at: ttp://www.eventbrite.sg/event/7661797643

Tea with AK71: Mind your language.

Once upon a time, I was a teacher but I had never seen anything like these:



Click to enlarge image.

So, which one tickled you the most?

Inflation: What to do?

Know anyone who stayed 100% in cash?

"For the individual, staying in cash has proven to be painful even if he is spared market volatility. Thanks to inflation, $1 million in 2008 would have shrunk to $854,000 in 2013." Patrick Brenner, Schroder.

Staying 100% in cash today is still a bad idea. Inflation is not going to let up and this is something I blog about quite a bit. See: Inflation is not going away.

If you are a squirrel and save a lot, good for you but don't stop there. See: Double whammy.

So, what do we have to do to protect our wealth from being eroded by inflation? Quite simply, invest for returns higher than the inflation rate.

Don't dump money into bonds. See: Beating the Street with value deals.

Don't dump money into fancy (and misleading) products. See: Inflation adjusted retirement income plan.

Saving money is crucial, of course, but a necessary second step is investing and these might provide food for thought:

1. Grow your wealth and beat inflation.
2. Motivations and methods in investing.
3. Warren Buffett, the greatest money maker.

Get on top of your finances.

When we say we want to get on top of things, it means that we want to be in a position of control.

So, when I say I am on top of my finances, it means that I don't have a financial burden on my shoulders and I don't owe anyone any money. I am not chained down by anyone over finances.

So, I couldn't help but frown when I saw this:

What kind of brochure is this?
See top left corner for a clue.

Well, if we are borrowing for an investment that will generate a higher return (ROI) than the cost of debt, I guess it might be a good idea to borrow. However, look at the effective interest rates per annum:

15.44% for 12 months
13.44% for 24 months
16.11% for 36 months

How confident are we of getting a ROI higher than these interest rates?

Of course, if we are borrowing to fund consumption, heavens forbid!

If we need to borrow to fund our lifestyle, obviously, we cannot afford our lifestyle.

How to get on top of our finances? For a start, don't get into debt!

Related post:
The secret to avoiding financial ruin.

Tea with AK71: Car is SO big again!

Again.

One day, someone might do something more drastic than just taking photos like I did.

Related post:
Wah! Your car is SO big!

Warren Buffett: An Illustrated Biography of the World's Most Successful Investor.

As I promised Endrene, I am recommending a book which I am sure will appeal to her boys as it has a much lower lexical density. It is undemanding and it will get the uninitiated quickly interested in Warren Buffett and his approach to investing.

I got my copy of the book almost 10 years ago when it was first published and, honestly, it was my first Warren Buffett book. So, if you had thought of AK71 as a scholarly person, banish that thought!

Buy the book here and help support literacy programs for the poor and underprivileged:

Warren Buffett: An Illustrated Biography of the World's Most Successful Investor
Price: US$ 18.45. Free shipping worldwide.

For people who prefer ebooks, it costs US$ 15.40.
See it here: Warren Buffett

For people who do not particularly enjoy reading, this book will do the trick. Confirm and double confirm!

Related post:
The Little Book That Beats The Market.

A drawing of AK71 by a talented artist.

A reader asked her 7 year old niece to visualise and draw a picture of AK71 and this was the result:

I think I might disappoint the reader and her niece because this is more handsome than the real me.

Thank you, little artist. You have put a smile on AK71's face.

AK71's self portrait.

Related post:
Really Follow AK71 on Facebook.

It is important to protect your PC.

I am not IT savvy but I always make sure that the anti-virus and firewall software are up to date on my PC. I know it costs money but it is money well spent.

Of course, there are legal and illegal ways of getting protection. Some people have told me about the latter but I am not interested.

I think the engineers, I call them computer virus fighters, deserve to be paid for the work they do like any of us. Software piracy is theft.

Anyway, I am writing this because I found a good deal for anyone who is shopping around for an up to date anti-virus and firewall program.

If we were to buy Trend Micro Maximum Security from their Singapore website, it will cost S$99.00. However if we were to buy this from USA, it will cost only US$44.95 and this is licensed for use on 3 devices.

After conversion, the cost is about S$59.00 (less than S$20.00 per device).

Check out the Limited Time Special Offers:

Save 50% on Trend Micro Titanium Maximum Security

If anyone is looking for a good deal in online security, I believe that this is a very decent offer.

The Little Book That Beats The Market.

Thanks to a reader, Solace, for highlighting this great deal on a great little book:

"Being interested in finance at an early age is pretty difficult for me because of all of the complex terminology and concepts. My brother, who is in finance, suggested this for me because it is easy to understand. He was completely right, Greenblatt was able to explain market analysis so well a 10 year old could go out tomorrow and be able to choose stocks well."

"It is written for the non-financial professional, but all could learn from this simple, but powerful concept. Basic concept is to buy good businesses at attractive valuations. Unlike most investment books, however, it actually tells you how to identify a good business and what an attractive valuation is. It also does not promise this strategy will work in all markets, but if you stick with it over a 5 to 10 year period you will be very happy with the results. If you want to dabble in buying individual stocks, you should read this book!"

Buy this hardcover pre-owned at US$6.48.
Free shipping worldwide: 

Little Book That Beats The Market.


This book is from the same series as another book I recommended some time back:
Little Book of Value Investing.

Related post:
"Beating the Street" with value deals.

First REIT: Revelation. (Part 2- DPU increased 16.4%).

Now, many readers are curious to know how much have I invested in REITs but I have always been reserved for good reasons, as you can imagine. That has not stopped some readers from becoming more creative in their questions.

A reader lately suggested that I could reveal details for a small portion of my portfolio which might not cause too much personal discomfort and I think this is acceptable. 

Personally, I think it will also serve another purpose which is to show that I do not have as much invested in REITs as some might think.

So, let us start with when was the last time I did something to my investment in First REIT. It might come as a surprise but I haven't done anything to my investment in First REIT in a long time. 

The last time I bought more was in March 2011 at 73c a unit. It has been pretty much a buy and hold strategy for me although I did trade around my investment from time to time.

I have never bothered to really keep track of exact numbers but a back of the envelope calculation shows that I received more than $15,000.00 in income from First REIT in the last 12 months. I estimate the distribution yield to be about 10% on cost. 

At the moment, although it is not as important a consideration to me, there is also a paper gain of more than 70%.

So, you might agree that this has been a pretty good investment for income for me.

Some might wonder why I invest for income? 

Well, a big purpose of investing for income is so that our investments could help to pay for some of our expenses in life. 

Of course, the ideal situation is for them to pay for all our expenses in life.

For example, the largest expense item in my life really is my car and the income I receive from First REIT more or less pays for this including the car's depreciation which is more than $500 a month.

So, imagine if I did not put my money to work by investing in First REIT or some other investments which generate income, that money would probably have sat in my bank account collecting 0.125% per annum in interest in the last few years. 

Utterly miserable and the interest payments would probably not even be enough to pay for transportation by bus and the MRT for a year!

It is, therefore, not surprising that I still feel my investment in First REIT is for keeps although some might say that I should sell to lock in capital gains. Well, maybe if future conditions suggest that it could be a good idea to do so. 

For now, I will just sit back and relax.

Related posts:

1. First REIT: DPU increased 16.4% (Part 1).
2. First REIT: This one is for keeps.
3. The mystical art of wealth accumulation.
4. Secrets of millionaire investors.
5. Little Book of Value Investing.
(Patience is sometimes the hardest part...)

First REIT: DPU increased 16.4% (Part 1).

First REIT declared a DPU of 0.86c. This is for the period of 22 May to 30 June 2013. This will be paid on 29 August 2013.

Including 0.99c paid for the period of 1 April to 21 May 2013, the total DPU for the quarter is 1.85c.

Gearing ratio: 33.4%

No debt will be due until 2016 once a fixed rate loan is finalised next month.

NAV/unit: 89.65c

Unit holders have to be prepared for more private placements as the REIT's managers have stated their intention to keep gearing at 30% even as they embark on future acquisitions and AEIs.

With unit price way above the NAV/unit, it is less expensive for the REIT to raise funds through issuing more equity now. As long as they are able to grow DPU in spite of a larger number of units in issue, I don't have a big issue (pardon the pun).

Like what the management has stated, despite a larger number of units in issue, DPU has grown 16.4% year on year. This means that without me having to invest more money, I am getting significantly more income from my investment in First REIT now.

Therefore, it would not be wrong to say that my investment in the REIT has been quietly growing a passive income stream for me without additional cost to me. 

This makes me happy.

See presentation slides: here.

"Beating the Street" with value deals!

A reader sent me an email to say that he missed out on both value for money deals on "Buffettology" which I blogged about yesterday. Is there another book I would recommend that is being offered at a special price?

Consider this:

"Whereas companies routinely reward their shareholders with higher dividends, no company in the history of finance, going back as far as the Medicis, has rewarded its bondholders by raising the interest rate on a bond. Bondholders aren't invited to annual meetings to see the slide shows, eat hors d'oeuvres, and get their questions answered, and they don't get bonuses when the issuers of the bonds have a good year. The most a bondholder can expect to get is his or her principal back, after its value has been shrunk by inflation." - Peter Lynch.

Get the book here:



Beating the Street

Pre-owned copies at US$7.48 each.
Free shipping worldwide.
(New at US$19.66 each.)

Related post:
Good deal on "Buffettology" (hardcover).

Will CapitaLand build "almost inhuman" size apartments?

The statement by former CEO of CapitaLand, Liew Mun Leong, regarding shoebox apartments being “almost inhuman” is one of those things which will be remembered for a long, long time.

Now, in a bid to sell more apartments in rather challenging circumstances, will CapitaLand build smaller and smaller apartments including those which are "almost inhuman"?



"Almost inhuman" size apartments in Japan.

CapitaLand, Singapore’s biggest developer, may alter the size of its apartments as it seeks to improve affordability to combat government measures aimed at curbing speculation and lowering prices.

The developer sold 139 residential units in the island- state in the three months ended June, 31% fewer than in the same period last year, it said yesterday as it forecast “headwinds” in the near term with the housing curbs. (Source: Bloomberg)

Tough times for property developers in Singapore and, with interest rates set to rise, it seems that it will only get tougher.

Related post:
To rent or to buy: Rule of 15.

Has it become too expensive to keep that car?

If you are a car owner, you must have felt at some point that it is rather expensive to keep a car, especially if you are a regular guy like I am.

Is there some way to avoid the high cost of keeping your car? Oh, why not try destroying it? What?



This is pure madness. I don't understand.

Good deal on "Buffettology" (hardcover).

My blog post this afternoon regarding a good deal on "Buffettology" was an unexpected success because all three copies of the book were sold in just a couple of hours. I didn't expect readers to be so enthusiastic during working hours.

I think I know who got the last copy of that special deal as I saw this on my Facebook wall:

董奕华: Left with last piece!!!

董奕华: AK sell you US$14. You want :)

Gunning for a 100% gain! Very enterprising!

Anyway, for those who missed out on that deal, here is another one. It is the hardcover version and only at US$3.00 more. Yup, the price is US$9.98 only. Free shipping worldwide.

This is a steal since a new paperback sells for more than US$20.00 a copy.

You got to be fast. Only three copies are available and I don't know how quickly this one will sell out:


Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the Worlds

Related posts:
1. Good deal on "Buffettology".
2. Warren Buffett: The world's greatest money maker.

AIMS AMP Capital Industrial REIT: Higher DPU in future.

The numbers for 1Q FY2014:

DPU: 2.5c (payable on 20 Sep)

NAV/unit: $1.50

Leverage: 25.4%

Interest cover ratio: 5x.

The DPU of 2.5c represents 99.4% of distributable income per unit. DPU would have been 2.78c if the share placement at $1.60 a unit did not take place in May 2013. Bummer.

However, the share placement resulted in a stronger balance sheet which is prudent as the REIT embarks on redeveloping 103 Defu Lane 10 and Phase 2E & 3 of 20 Gul Way.

As a result of having more cash, higher property valuations and much lower debt of $279.0m which is reduced from $359.3m three months ago, leverage lowered from 34% to 25.4%.

Without asking unit holders for more money, the REIT's DPU is expected to increase in the next two years as:

1. Phase 2 of 20 Gul Way was completed seven months ahead of schedule and will contribute to income starting this quarter.

2. 103 Defu Lane 10 and Phase 2E & 3 of 20 Gul Way are likely to be completed in 2014.

OSK DMG estimates that DPU in 2015 upon completion of the projects mentioned will approximate 13.3c, everything else remaining equal.

See presentation: here.

Related post:
AIMS AMP Capital Industrial REIT: Interview with CEO.

Good deal on "Buffettology".

An example of what we will learn from this book:
Look for businesses with recurring revenues.  Having repeat customers means that long-term capital expenditures can profitably return capital. Invest in manufacturers! For example, if we want to buy a can of Coca Cola, we wouldn’t care where we buy it from.

Buy "Buffettology" pre-owned.

Only 3 copies available at US$6.98 each.

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Buffettology: The Previously Unexplained Techniques That Have Made Warren Buffett the World's Most Famous Investor

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Recommended books for FA and TA.