Here are some of the updates that I have for my portfolio.
Ascendas Hospitality Trust
With the recent rise in prices, I felt that Ascendas Hospitality Trust is no longer attractive, yielding at around 7.5%. So I sold it for $0.715. The price now is still around $0.72 currently. With that, I was able to make a small profit considering interest, dividends and capital appreciation. Not a lot though.
I bought another 20,000 shares of Sabana REIT at $0.535 which is giving me a yield of 9% and with a price-to-NAV at a low of 0.616 which means I am buying at 38% discount. They just announced their results which is a drop in their yield to 9%. Well, their margin of safety which is the price-to-NAV is still good so I entered again. With this entry, it becomes one of my major investments.
I am pretty new to REITS investing and I would like to know why would you sell a REIT once the yield starts to drop? Wouldn't your yield be constant assuming dividends didn't change as it would be against your cost price of the purchase?
Or is it the case where you use the yield to identify when a REIT is becoming over valued?
Thanks in advance, great blog by the way!
Hi, I just notice that Sabana REIT DPU have reduced by about 25% at Q1. So does the yield still have 9% / annual ?ReplyDelete
There is just few investment blog out there and I find this blog helpful in a way that it gives me some background on what REIT is all about and how am I to invest it correctly. How to look for a proper real state through mortgage and stocks as well.ReplyDelete
Your portfolio stocks - some were bought at a price that were above the prevailing closing price. You may have accumulated dividends to close the gap but be watchful as the price may fall further and dividends reduced at the same time. I suggest you factor in principal loss/gain into your P&L computation.ReplyDelete
what platform do you use to trade?ReplyDelete
I think you heavily bought Sabana Reit because of its undervalue if compare to its NAV. But the situation is really tough for Sabana. All the best to you!ReplyDelete
I read this article. I think You put a lot of effort to create this article. I appreciate your work.ReplyDelete
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