2023 passive income. Banks & REITs.

I keep a written record of my passive income.

It isn't an Excel sheet as I still very much enjoy using pen and paper.

I spend so much time on the computer daily that spending some time writing on paper is a nice break from staring at the computer screen.

Anyway, I recently published my passive income figure for 3Q 2023.

That came in some 12% higher compared to a year ago.

Thus far, passive income this year has come in relatively strong.

I have said that increasing exposure to the banks since 2016 has been a good move.

For readers who do not follow me on YouTube, I produced some videos recently on investing in banks and REITs.

Here are the links:

Should I invest in REITs now?

This REIT is a MUST BUY but...

Key RISK for Singapore banks!

Remember that AK is not a guru and I am just talking to myself as usual.

All of us have our own beliefs and circumstances.

We should have our own plan.

Do what we are able and willing to do.

As long as we are moving in the right direction, we should do alright.

At our own pace and all in good time.

I am just here to inspire.

I am not here to instruct.

Having said this, I decided to see how much passive income I have received so far in 2023 from my investment portfolio.

$206,645.75

This is slightly higher than full year 2022's passive income received which came in at 

$205,999.73

So, even if I do not receive any passive income in 4Q 2023, I will be OK.

I remind myself that as an investor for income, I should aim for reliable and meaningful passive income generation.

Preferably, income generating tools should generate predictable passive income too.

Always be prudent and stay pragmatic.

This was a recent video on reducing risk without reducing income:

Respect what we don't know!

Not everyone is rich but everyone can be richer.

If AK can do it, so can you!

3Q 2023 passive income: Stronger yet again!

For readers who have been following my blog consistently, the title of this blog post might invoke a feeling of deja vu.

It is rather similar to the title of my blog post 3 months ago in which I shared my 2Q 2023 results.

That said "Stronger again!"

This says "Stronger yet again!"

AK is so creative!

Well, jokes aside, I really couldn't think of anything more impactful and accurate at the same time.

For those who follow my YouTube channel, this video might look familiar:

Yes, for the first time in a long time, I shared some numbers before the quarter was up.

With that kind of number after only 2 months into the quarter, I could tell that 3Q 2023 would probably beat my passive income received in 2Q 2023.

In the third month of 3Q 2023, income distributions from my investments in many REITs came in.

Although there was a decline in income received from REITs as a whole which was not unexpected given that three of my largest investments in S-REITs paid less, overall passive income for 3Q 2023 still came in higher.

This is thanks in a large part to the much higher dividends paid out by DBS, OCBC and UOB which are all in my list of largest investments in my portfolio.

Decision to increase exposure to OCBC and UOB from time to time since the pandemic has been very rewarding while the decision to stay invested in IREIT Global has not been as rewarding.

Still, I am of the opinion that IREIT Global has room to grow its revenue and that the REIT is in the process of transformation.

There could be some bumps ahead and investors might want to buckle up.

IREIT Global is undervalued if the 6 months lease extension at a 45% higher asking rent for its Berlin asset is anything to go by.

Unlike some REITs like Manulife US REIT, IREIT Global is not in distress even though its unit price suggests that it could be so.

Unfortunately, the aggressive and rapid hikes in interest rates are not friendly to REITs, especially with the "higher for longer" narrative gaining traction.

Still, with a relatively strong balance sheet, substantial sponsor interest and a capable management, I am willing to wait while I am being paid.

This will be short blog post as I do not want to rehash stuff I have said about my investments before.

Oops.

I almost forgot.

So, what is my 3Q 2023 passive income?

In the video I shared at the beginning of this blog post, I said that 3Q 2023 passive income would probably exceed $80,000.

The actual number is:

S$ 84,942.36

This is almost 12% higher than the $75,989.50 in 3Q 2022.

I think I have beaten inflation in 3Q 2023.

Back in 3Q 2022, I said I was stunned like vegetable, and I feel the same way one year later.

What am I doing, going forward?

The next 6 months will see much lower passive income being received without contributions from OCBC, UOB and many other investments.

So, I am going to be extra careful with money.

What about the investment front?

I am staying invested because I cannot tell if the market is going up or down.

Staying invested in bona fide income producing assets means being paid while I wait.

Filling up my war chest for when Mr. Market becomes depressed again.

This is even as my war chest will grow much slower than before as more of my passive income will be consumed from this year on.

I cannot predict but I can most certainly prepare.

If AK can do it, so can you!

References:
1. 2Q 2023 passive income.
2. 3Q 2022 passive income.