AIMS AMP Capital Industrial REIT: $1.425.

There is no accounting for Mr. Market's behaviour and the recent strength in the unit price of AIMS AMP Capital Industrial REIT is, to me, inexplicable.

At a pre-rights unit price of $1.415, the REIT was trading at a discount to NAV which was at $1.52 per unit. Post rights, however, the NAV is closer to $1.29 a unit. So, the recent high of $1.43 is actually a 10.85% premium to NAV.

Of course, with the funds raised from the rights issue not being used for yield accretive purposes, I also expect a 15% dilution to DPU in the near term. Not very supportive of a higher unit price, wouldn't you say? Eventually, DPU should recover but probably not to the pre-rights level and not in a jiffy.

Having given due consideration to all the above reasons, I decided to reduce the size of my long position in the REIT which is now larger after the recent rights issue. How big was the divestment? Not a big one but a rather small 14% or so. Who knows? Unit price could go higher.

The units divested are those I bought in late 2009 and mid 2010. Time really flies.

I estimate the return on investment, including income distributions over the years, to be about 17% to 18% per annum.

With this divestment, I have taken back the money I used to participate in the recent rights issue (at $1.08 per rights unit) and a bit more. A bit more? With a theoretical ex-rights price (TERP) of $1.365 then, it means that my partial divestment has a nice little capital gain to boot.

After this, my war chest will be beefed up but, everything else remaining equal, my passive income from S-REITs this year will be lower. I will have to wait patiently for opportunities.

ERRATA:
Post recent rights issue, NAV/unit should be about $1.45. A thousand apologies. My brain no good. Thanks to Louis and Capricon for the nudge. So, it means that at $1.43, there is still a 1.5% discount to NAV.

Related posts:
AIMS AMP Capital Industrial REIT: Rights.
AIMS AMP Capital Industrial REIT: Good price?

Save money by having restaurant quality ramen at home!

This blog post is dedicated to a kindred spirit, SMOL.

I love eating Japanese style ramen. A bowl with hot soup is to die for.

However, it is not cheap to have a bowl of Japanese style ramen in Singapore and I am sure a huge portion of what we pay goes to rents and salaries. This is especially obvious when I found that I could have 4 bowls of restaurant quality ramen for only $3.85. Yes, not 1 but 4 bowls!



They come in packs of 4. There are 2 flavours. I prefer this one.

Recently, I bought more because there was a special offer in NTUC Fairprice. $3.35 per pack of 4.

Here is AK in action:



I tried this flavour for dinner recently.

Cook for 4 minutes, stirring often. Then, turn off the fire and add seasoning. Mix well.

Restaurant quality ramen at less than $1 a bowl. Really, really good!

If you are thinking of going out for a bowl of good quality ramen at Ajisen Ramen, for example, think again.

Think of how much money you could save by cooking at home. The taste of this instant ramen is really authentic and the money you save is very real too.

If you like ramen but have always hated instant noodles, this will change your mind. I am sure.

Oishi and in more ways than one too!

Related posts:
1. Korean noodles for lunch.
2. AK brand cup ramen!