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.

Thursday, February 7, 2013

Executing FCOT CPPU Strategy

I have decided and executed my FCOT CPPU strategy which I have discussed earlier. Thus, it means that I have sold 20,000 shares of FCOT at a price of $1.33. At the same time, I have bought 28,500 shares of FCOT CPPU at a price of $1.085. With that, here is the statistics.

No. of shares of FCOT CPPU = 28,500
Conversion price = $1.1845
No .of shares of FCOT once converted = 24,060

Total amount invested = $31,027
Average price of FCOT shares once converted = $1.29
Current Price on 6th Feb 2013 = $1.33

It is great to me because I have just sold my shares at $1.33 and rebought it at a price of $1.29 which is a 4 cents difference. Thus, I am looking at a paper profit of $973 at current price which is higher than the dividends that they are distributing every quarter. Moreover, I am still entitled to 5.5% p.a. coupon which they are paying to CPPU holders every quarter. (compared to 4.75% yield currently) Here is the calculations.

Coupons received = $392
Paper Profit = $973
Losses due to odd lots = ($80) => I am assuming that the value of 60 odd shares which I will receive is zero.
Total Profit = $1,285.
Percentage to investment = 4.14%
Annualized Yield = 16.56%

The drawback is that I am stuck with FCOT CPPU till April 2013 thus I can't really sell it. To me it is ok because I am always investing for long term. If the price difference stays the same, I will be executing this strategy every quarter.


  1. hello how did the execution go?

  2. hi, the manager redeemed the shares. what would this mean for us who executed this strategy?

  3. Hi Josh and Joseph,

    I will be updating everyone soon about the status of my strategy. Thanks for asking. :-)