Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Tuesday, April 25, 2017

Updates on Current Investments - Quite major rebalancing

Hi everyone,

It has been a while since I blog. Has been very busy with work. But I did made some trades over the last week for the rebalancing.

Sabana REIT

I have sold off most of my holdings (229,000 shares) due to the uncertainty of the REIT currently. What I worry is that it will trigger defaults of the loans which lead to forced sale of assets. I decided that it is not worth the risk and sold off at $0.465. On the hindsight, I should have sold off earlier as the metrics are not looking good after the rally. But I have made money which is beyond my expectations.

Global Investments Limited

With this money, I have bought 250,000 shares of Global Investment Limited and increased my holdings to over one million shares. Their yield of excess 10% and price-to book value of 0.72 is still appealing and attractive. I still don't see any reason not to buy into it. Thus I have increased my holdings. With over one million shares worth $147,000, this is one of my anchor investments I am watching closely. Very stable and enjoying the dividends.

Soilbuild Business Space REIT

I have bought another 100,000 shares of Soilbuild Business Space REIT at $0.665. Their 9% yield and about 8% discount to NAV seems fair enough for me to enter. It will be better than Sabana REIT which is yielding at around 7.5% so I am getting more recurring income using the same funds. Of course, the discount to NAV is lesser but I mitigate with another purchase.

Far East Hospitality Trust

I have bought another 100,000 shares of Far East Hospitality Trust at $0.61. Has been waiting for it to drop but it doesn't seem to fall. So I guess I am taking a bigger risk here. The yield is modest 7.4% but I am buying at 33% discount which is huge. I am not sure why there is such a big discount but it is attractive to me. So I have bought into it.

With all these purchases, here is the portfolio that I have and I have increased my recurring income to $4,200 per month. Very good for me and my family. But I will need to watch carefully.

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