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The last time I had a blog on this topic was in April 2020.
Back then, Mr. Market suffered a dramatic breakdown and took quite a long time to recover.
After almost 2 years, it still looks like it will be a while more before we are out of the woods, no thanks to the new Omicron variant of COVID-19.
The world is the way it is because there are too many greedy people, too many selfish people, too many ignorant people and too many malicious people.
Very unfortunate but very often bad things happen because of irresponsible human behavior.
If we are not careful, we might see Singapore becoming a "true democracy" with people against vaccination marching in the streets which, of course, would give the virus opportunities to infect even more people and possibly mutate again.
I feel that having a choice is a good thing but social responsibility is more important because we live in a society.
If we are not part of any society, if we live all alone on an island, then, we are free from social responsibility.
Personal freedom of choice is plain rubbish if we choose to put everyone else at risk.
It is similar to what I said before in many blogs in the past about being financially responsible because we shouldn't be a burden to society.
Some readers might remember my blogs on those protestors in Hong Lim Park asking for their CPF money to be "returned" to them.
See:
CPF: So near and yet so far?
Anyway, before I digress further which I am inclined to do, here is the update.
Largest REIT investments (each $100,000 or larger in market value.)
My largest investment in a REIT used to be AIMS APAC REIT (formerly AIMS AMP Capital Industrial REIT.)
It has been overtaken by my investment in IREIT Global which used to be smaller in size.
IREIT Global is now my largest investment in a REIT as I added to my investment several times when Mr. Market went into a depression because of the COVID-19 pandemic and also due to rights issues to help the REIT fund acquisitions.
Just like AIMS APAC REIT, I believe IREIT Global to be well run.
Recently, for example, they were able to quickly fill up all 5 floors of a property which were being given up by an existing tenant.
I also like that the REIT's insiders have a big stake in the REIT.
So, it is unlikely that they would do anything to hurt unitholders' interest.
See:
IREIT: Good time to buy now?
My second largest investment in a REIT and probably my oldest is AIMS APAC REIT.
Most institutional investors would gravitate towards bigger names with a pedigree such as Ascendas and Mapletree when it comes to industrial REITs.
However, I am a retiree and distribution yield is an important consideration as I am very much interested in cash flow but I try to be careful not to be blinded by high yields.
I have been invested in AIMS APAC REIT since the Global Financial Crisis and, looking back, it has been good to me as an investment for income.
Just like IREIT Global, insiders have a meaningful stake in AIMS APAC REIT and it is unlikely that Mr. George Wang would do anything to hurt unitholders' interest.
There is talk that ESR which has been gobbling up REITs in Singapore is planning to gobble up AIMS APAC REIT as well, having grown their stake in the REIT.
However, unlike ARA Logos, I doubt Mr. George Wang would consider a deal that is less than fair to AIMS APAC REIT if such a deal should ever be proposed.
See:
Should we invest in AIMS APAC REIT?
ESR-REIT gives ARA Logos short end of the stick?
My third largest investment in a REIT was Ascott REIT-BT and that was due to my earlier investment in Ascendas Hospitality Trust.
As I expected the COVID-19 pandemic to have a rather long lasting impact on the hospitality sector, I decided to sell down my stake significantly some time back.
For many months after that, I did not have a 3rd REIT which was greater than $100,000 in market value in my portfolio.
Of course, that changed when I significantly increased my investment in Sabana REIT after ESR's low ball offer to take over the REIT failed.
Sabana REIT is now my third largest investment in a REIT, making a comeback after many years of absence.
See:
AA REIT, IREIT and Ascott REIT-BT.
AHT's investors getting a bad deal?
I do have investments in other REITs but my investments in IREIT Global, AIMS APAC REIT and Sabana REIT are my largest now, being the only ones which are above $100,000 in market value.
Together, I estimate that they generate a bit more than S$70,000 in passive income annually for me.
I have been saying for quite a while that I want a more resilient income generating portfolio and to be less reliant on REITs for income.
However, for income investors, REITs remain a relevant tool and this blog shows my continuing reliance on REITs for income.
Still, I like to think that I have a more resilient income generating portfolio now as I increased my investment in the local banks so that together they were at one time larger than my investments in IREIT Global and AIMS APAC REIT combined.
Since I increased my investment in IREIT Global due to its rights issues, my investment in the local banks together have become smaller than my investments in IREIT Global and AIMS APAC REIT combined but probably not by very much.
Anyway, I get the feeling that I could ramble on and, so, I should really end the blog.
Till the next blog, remember to stay vigilant and be socially responsible as we try not to give COVID-19 any room to grow.
Related posts:
1. Sabana and IREIT to the rescue.
2. Dividends from DBS, OCBC and UOB.
3. Largest REIT investments, April 2020.
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