Skip to main content

Market on sale again - what are you buying?

Feeling a bit like Moses every morning when I log into my trading account and review my watchlist.

Huge sea of red.

Only difference being, I cannot part a road through it with a wave of my staff.

Ascendas HTrust

I sold all of my ascendas htrust on 25 July @ 1.05.  Happy to take the money off the table basically. And certainly, did not think that Ascott BT REIT is worth the 1.30 issue price. I was up about 53k on capital gains alone, not including dividends received since 2017. So I am rather pleased with the outcome.

As a result, I am looking at the red sea with a tiny bit of cheer. Well at least I may not have a problem finding a new home for the recycled capital.

Eagle HTrust

Just days before my sale of AHT, I also initiated a small position in Eagle Htrust. Just so I still retain some hospitality-related REIT in my portfolio. Being a new REIT with no track record, I am careful to size my position appropriately.  Bought about 21 lots at USD 0.685. So far so good. Holding up. I thought the dumping was a bit overdone and 0.685 entry gave me a margin of safety (and close to 8% yield if the forecast in the prospectus is worth the paper it was printed on).

CRCT

CRCT intends to raise funds for buying three new properties via a private placement and a preferential offering to existing shareholders. The preferential offering is a 87 shares per 1000 shares held, priced at 1.42-1.44.  A bit non-plussed to be honest. With CRCT trading at 1.52 right now, it is barely any discount. Unless I cannot find other places to park my funds, I do not think I will apply for any excess beyond my allotment.


I am now on the prowl for good deals. The usual suspects are the three banks, although i have a preference for DBS and OCBC.  Both offer >4% yields now and may be considered defensive plays. I am just hoping there is more depth to the current correction (GO DONALD AND XI!) and hopefully I can pick DBS up below 24 or OCBC below 10.


All the REITs still look very richly priced to me at this time, except one or two which I am monitoring very closely. Heh. Better not disclose which REITs these are until I manage to lay my hands on them. HAHA.

Onward to FI my friends.




Comments

Post a Comment

Popular posts from this blog

As a Dividend Investor - I am having fun staying poor

Recently, there was a self-styled "master" who went around dissing dividend investing, saying things like REITS will chibaboom (his words not mine). Ironically, the master also invested into "growth stocks" like BABA and notably SE before its recent implosion.  Masterstrokes indeed. Dividend/income investors have borne the brunt of "have fun staying poor" taunts since the dawn of time.  Previously from the crypto bros and then from the growth investors. This is nothing new.  Every growth investor likes to talk about Tesla. But where are the ARK ETF investors? Where are the NIO bulls? Where are the BABA fanatics? Even a broken clock is right twice a day.   Good luck to those who retired on a portfolio of "growth stocks", hoping to spend 4% annually on an expected annualized portfolio growth rate of 10%.  Without dividends, one would have no choice but to liquidate part of the portfolio for meeting expenditures.  The damage done might never be reco...
13 comments
Read more

Is it finally the end of the tunnel for REITs

General Mood Market is expecting interest rates to hold after US CPI data came out on 14 November and pointed to softening prices across the board. Oil has also retreated nearly 20% since its recent peak in Sep 2023.  Are we finally reaching the end of the tunnel for battered REIT assets?  My gut tells me that we are at early stages of recovery although we may possibly still see a couple more rate hikes in 2024.  Nonetheless, barring further escalation of global military conflicts and an unmitigated collapse of the Chinese housing market, both of which seem unlikely but can never be completely ruled out, we may start to see a gradual recovery in DPU for REITs (as rental reversions go up but interest expenses stay constant or go down).    What I did in 2023 (Not to be construed as recommendations or investment advice.) Throughout 2023, I have continued to load up on REITs which (i feel) have:      i. Good sponsors (Capland, Frasers, Maple family) ...
2 comments
Read more

FIRE by 2020 has officially failed

Back in 2015, I never thought I would have to work past 2020.   The idea was that I would have accumulated at least 1.7 M by Jan 2021 and would be comfortably returning 110k a year in passive income based on a 6.5% yield.  How laughably naive. The optimism is commendable but misguided.  Covid struck hard.   Several terrible decisions were made. EHT is bankrupt. A 50k write off.  Ouch is right. First REIT is trading around 20% of my cost price. Never again Riady. Never again. Yields have been severely compressed  with "quality" REITS, e.g., MINT, PLife, Ascendas REIT all returning paltry yields of 3-4% or, gasps, less.   With the view of improving portfolio resilience, I made a conscious decision to rebalance my portfolio to go REIT-lite (well, lighter) and increased my holdings in DBS, UOB, OCBC.  The MAS cap on banks' dividends does mean that these companies are returning 3% or less per annum.   Sigh.  All in all, pr...
4 comments
Read more