$120k annual passive income from S-REITs next?

With the end of 2011 more or less in sight, I decided to take a look at how my aim to generate at least $50K in annual passive income from the stock market has fared this year. Of course, compared to the end of 2010, many things have changed. Don't they say that the only constant in life is change?

Saizen REIT was my largest investment up till early this year. The massive earthquake that struck Japan on 11 March 2011 left huge areas of the country devastated, areas which are economically important. I reduced my investment in Saizen REIT even though its buildings were largely unaffected with only a handful requiring repair work.

It was a decision premised upon possibly more difficult times that would hit the country and from a technical standpoint, further upside in its unit price could be capped. So, reading the charts back then, I waited for a rebound in the REIT's unit price and partially divested my investment in the REIT at gap resistance.

Next, I tweaked my portfolio with funds freed from the partial divestment of Saizen REIT. I further increased my investment in First REIT and initiated long positions in Sabana REIT and Cache Logistics Trust after doing the necessary due diligence.

Not long after, I reduced my investment in AIMS AMP Capital Industrial REIT, shifting the funds from that partial divestment to Sabana REIT, in the process balancing the two REITs' weight in my portfolio.

In 2011, thus far, I have received income from the following S-REITs:

1. AIMS AMP Capital Industrial REIT
2. Saizen REIT
3. First REIT
4. LMIR
5. Cache Logistics Trust
6. Sabana REIT
7. Suntec REIT
8. Cambridge Industrial Trust
9. FCOT

Total: $75,785.49.

Therefore, I have exceeded my personal target of $50k in annual passive income generated from investments in the stock market this year and this is from S-REITs alone.

At the end of this year, I will calculate the amount of passive income which S-REITs alone would have generated for me in 2011. It is quite likely that it could surprise on the high side.

Taking the cue from the blogmaster of Bully the Bear, I might have to set a higher target for myself in 2012. What about $120k next? Why not?

12 of this every year? Wah!

I will end this blog post by again saying: "If AK71 can do it, so can you."

Joi Kin! (ala "Yan can cook, so can you!")

Related posts:

1. Seven steps to creating passive income from the stock market.

2. $50k in annual passive income: Year end status (2010).

3. Sanity prevails with more good news.

First REIT: Could retest 84c high.

Just like Cache Logistics Trust, First REIT saw its unit price moving higher on the back of higher volume in the last session.

Unlike my position in Cache Logistics Trust, however, my long position in First REIT is much larger and I stand ready to sell into strength if the opportunity presents itself.

It seems to me that First REIT's unit price broke out of an ascending triangle pattern. If this pattern is a valid one, we could see the high achieved in late July earlier this year tested. This is at 84c. Before that, I expect gap filling at 81c which could offer some resistance.

In an earlier blog post, I also said the fair value of the REIT is at 80c. So, if you have guessed that I have put in sell orders at 81c and 84c, you are right.

Related post:
First REIT: XR and fair value.

Cache Logistics Trust: Further divestment at $1.

On 29 August, I mentioned that the mini double bottom, if valid, could see price go higher with a target of $1. On that same day, I partially divested my investment in the REIT as gap was filled at 96c.

On 8 September, I divested further at 98c which I thought was a rather stubborn resistance. The stochastics also showed the REIT to be very much overbought.

However, as is my usual style, recognising that TA is all about probability and never certainty, I did not divest fully. Today, my overnight sell order at $1 for Cache Logistics Trust was filled late in the afternoon.

With today's further divestment, my investment in Cache Logistics Trust is reduced to a rather small position, similar in size to my remaining investment in Suntec REIT. I would probably not do a full divestment unless Mr. Market should go crazy and give me a much higher price from here.

Technically, closing at $1.01 on the back of relatively high volume is good news for long holders and we could see the historic high of $1.02 tested next.

With Stochastics still high in the overbought region, we could see the REIT's unit price pulling back to supports. Of course, in extremely bullish circumstances, overbought conditions could persist for quite a while.

Related posts:
Cache Logistics Trust: Gap closed at 96c.
Cache Logistics Trust: Partial divestment at 98c.

Year end vacation: Great deals!

If you are still planning to go on that year end vacation and missed NATAS, never fear! There are still great deals around!

As I am also planning year end vacations, I came across a few good deals but you have to book soon as prices tend to increase towards end of the year.


Phuket (3D/2N), second half of November 2011.
Package price for 2 persons: S$584.00
(includes all taxes and fees.)
Airline: JetStar.
Hotel: Burasari Patong (4 star boutique hotel).

Bangkok (3D/2N), second half of November 2011.
Package price for 2 persons: S$647.12
(includes all taxes and fees.)
Airline: JetStar.
Hotel: Baiyoke Sky Hotel (4 star 88 storey high hotel).

Click on the banner to see more good deals!

Book online conveniently.

No service charge for credit card payment. Bon voyage!