On 15 September 2013, when I reported 9M income from my investments in S-REITs, I mentioned that full year 2013 will probably see lower income compared to full year 2012.
This is mainly because I sold approximately half of my investment in LMIR (Lippo Malls) earlier this year and I have not made any substantial acquisitions in S-REITs since.
LMIR: Divested 42.5% at 52.5c.
In fact, I recently divested about a quarter of my position in Sabana REIT as I moved funds into Croesus Retail Trust. Wondering why I did this?
Added Croesus Retail Trust and reduced Sabana REIT.
|Luz Shinsaibashi. |
Taken with my little IXUS from my hotel room using 32x zoom!
For reasons I mentioned in my blog post of 15 September 2013, I will continue to be very cautious in adding to my positions in S-REITs. Definitely, if I feel that they are undervalued, I would buy more. Could this happen? Of course it could. Remember Saizen REIT in the middle of last year when its warrants were set to expire?
Saizen REIT: Why did I buy? Would I buy more?
We might also get a hint that a REIT is undervalued if insiders suddenly become active in buying too. This happened with AIMS AMP Capital Industrial REIT earlier this year when its unit price declined enough to offer an approximately 10% discount to NAV.
AIMS AMP Capital Industrial REIT: Nibbling with George Wang.
There could be opportunities for relatively compelling buys again in future. If they should present themselves, I hope I am lucky enough to spot them and brave enough to buy some. Until then, my portfolio of S-REITs might not grow.
Although it would be nice to grow my income from S-REITs, it should not be growth at all costs.
|An apartment building in Japan.|
So, my strategy for S-REITs is to stay largely invested for income while waiting for Mr. Market to make me offers I cannot refuse. This way, my war chest continues to grow and I will have the resources to do business with Mr. Market when he suffers from manic depression which he does from time to time.
So, what is my full year 2013 income from S-REITs?
Total: S$ 118,081.02
This is some 2% lower than the year before and I expect income from my portfolio of S-REITs in 2014 to be at least marginally lower due to the partial divestment in Sabana REIT this quarter.
1. 9M 2013 income from S-REITs and more.
2. 2012 full year income from S-REITs.