Added more Croesus Retail Trust and reduced Sabana REIT.

I initiated a long position in Croesus Retail Trust earlier this month.

I recently added to this position as I believe that this Trust could do better in the years ahead.

However, I also decided not to increase the size of my investment portfolio as I am close to 75% invested which is not very comfortable for me. So, I had to do some portfolio balancing.

For a while now, I have been thinking of reducing my exposure to industrial properties in Singapore, given the concerns of oversupply.

I have investments in a few industrial properties S-REITs and my two largest are in AIMS AMP Capital Industrial REIT and Sabana REIT.

Of the two, after some thought, I decided to reduce my investment in Sabana REIT because, comparing them, I believe that AIMS AMP Capital Industrial REIT has done a better job of improving value for unit holders in the last two years.

Mr. George Wang regularly buys into AIMS AMP Capital Industrial REIT while in the case of Sabana REIT, the CEO has divested his direct stake completely in recent months. This gives me the impression that the insiders of AIMS AMP Capital Industrial REIT have their interests more aligned with minority unit holders'.



508 Chai Chee Lane

Sabana REIT's recent purchase of a half vacant building in the midst of softening prospects did not inspire much confidence in Mr. Market who has shown his displeasure in the usual way. This compared with AIMS AMP Capital Industrial REIT's development of certain properties to max out plot ratios while securing tenants in advance tells a contrasting story of performance and, perhaps, competence.

Of course, Sabana REIT could still do better in future if they manage to fill up the space left vacant by the non-renewal of 4 master leases as well as the vacant space in the latest property acquired from AMD. I would be very happy if this should happen since I still retain a relatively large position in the REIT, having reduced my investment by about 24% only.

With the partial divestment of Sabana REIT, it means that AIMS AMP Capital Industrial REIT is now my largest investment in S-REITs.

Croesus Retail Trust has become a more significant investment for income in my portfolio but because it is not a REIT, my expected full year income from S-REITs in 2014 will probably see a decline, everything else remaining equal.

Related posts:
1. Croesus Retail Trust: Long position at 87c.
2. Sabana REIT: Initiated long position.

How I earned $9,216 with a mug? (Or $32,000?)

Reader:
I used to buy a Mocha Frap every day at work. About a year ago, after reading your blog, I challenged myself to stop. 

For each day I didn't buy a Mocha Frap, I put aside $10. 





I am pleased to report I have managed to put aside more than $2,000 so far. 

The secret is in your blog. 

I got myself a mug and I will earn more than $32,000 with my mug in 16 years! 





If AK can do it, I can do better!

-----------------------
I was making a cup of hot Milo in the office pantry like I sometimes do and the sight of my mug suddenly gave me a warm fuzzy feeling. 

No, it was not from the hot water or the steam.

Nice? 

Got a bit chipped over the years but still nice.

I bought this not long after I started work. 

I needed a mug to use for my tea breaks.

It must have been 15 or 16 years ago by now. 





How much money have I saved in those years by not buying coffee or tea or Milo from the coffee shop (or from Starbucks) on work days?

Conservatively, $288 x 2 x 16 years? 

$9,216? 

Not bad.





Gives a new flavour to the phrase "old is gold". 

OK, who threw something at me? 

Who? Who?




Related post:
Tea with AK71: Some of my stuff (Part 3).