IREIT and plan for refunded money.

I don't think my application for excess rights would be fully filled.

So, I am waiting for some money to be refunded.

I have also received some money from a 6 months T-bill which has matured.

The next 6 months T-bill will see its auction happening on 20 July or next Thursday.

Instead of simply recycling money from the matured T-bill, I plan to increase the quantum by using some of the money I expect to be refunded from my application for excess rights.

Judging by the increased interest in non-competitive bidding in the last 6 months T-bill auction, it is possible that my non-competitive bids would only be partially filled in future auctions.

So, given this consideration, increasing the application quantum in future makes sense too.

With interest rates offered by the banks for 6 months fixed deposits having declined pretty significantly, it is only natural that interest in 6 months T-bills should pick up.

Adding exposure to 6 months T-bills while the front end of the yield curve remains elevated will generate relatively attractive passive income for me safely.

It would also help to strengthen the fixed income component of my portfolio which is something I have been doing for quite a while now.

The money in my T-bill ladder can also be deployed in the next significant stock market correction which might happen if the much talked about economic recession takes place.

Just talking to myself, as usual.

If AK can do it, so can you!

Recently published:
IREIT's rights issue oversubscribed.
(Read the comments section too.)

IREIT's rights issue 134.7% subscribed.

Results are out.

As expected, the rights issue was oversubscribed.

At 40.8c per rights unit, it was just too cheap to ignore.

With DPU expected to be at 2.31 Euro cents, we are looking at 3.42 Singapore cents using the prevailing exchange rate.

At the moment, 1 Euro = S$1.48.

This gives a distribution yield of almost 8.4%.

This is very attractive to me, especially when I remind myself that IREIT Global retains 10% of its distributable income.

There is also the fact that IREIT Global's gearing ratio is only 33% and that almost 100% of its debt is fixed until 2026.

This gives me peace of mind.

Although its Berlin asset will see its Master Lease expiring middle of next year, I am not too worried.

This is because the office market in Berlin is relatively resilient with vacancy rate at only around 5%.

There is also the fact that IREIT Global's Berlin asset is significantly under rented and I believe it should not have great difficulty getting the lease renewed or, failing that, getting new tenants.

IREIT Global's unit price closed at 42.5c today.

At this price, the distribution yield is 8.05% which is still very attractive.

Looking at the chart, I see the declining 200 days moving average at 50 cents.

This should be the resistance to watch.

Having said that, as an investor for income, I am more interested in receiving passive income.

Although with the rights issue oversubscribed, I do not expect my application for excess rights to be fully filled, I still expect IREIT Global to continue generating meaningful income for me.

As IREIT Global was already one of my largest investments, this rights issue has served to further enlarge my investment. 

This should have an outsized impact on my passive income in future, all else being equal.

If AK can do it, so can you!

Related post:
T-bills, DBS, OCBC and IREIT.