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1Q 2016 income from non-REITs.

Monday, April 18, 2016

This blog post almost did not get written. Thanks to this reader, it did:

"Hi AK,


"I read your blog on you first quarter income this year from reits. I am very inspired. I have been waiting for your blog on your first quarter income from non-reits. Please inspire me again. Many thanks!!"

Well, actually, I did receive a couple of emails before this asking me about what I did in the non-REITs space in 1Q 2016 but I really didn't do much. So, no blog post.

However, inspiring? Hmmm...

If blogging about my 1Q 2016 income from non-REITs will inspire more to think about investing for income to become more secure financially, OK.


Like I said, I didn't do much in 1Q 2016 in the non-REITs space.

Looking at my records, I bought DBS shares, DBS shares and more DBS shares as its share price plunged. The last time I bought any was at $13.45 a share in late February 2016.

In 1Q 2016, I received income from:

1. APTT
2. Tai Sin
3. Croesus Retail Trust


Fuji Grand Natalie inHatsukaichi City, Hiroshima Prefecture, Japan.

Total income received from non-REITs in 1Q: 

S$ 12,181.34

That works out to be about S$ 4,060.45 a month.

Of the 3 stocks, Croesus Retail Trust is my largest investment. It has also been rather busy 

See: 
Private Placement of 70,000,000 new units at 75c a unit. (March 2016)

See: 
Issuance of $60,000,000 5% fixed rate notes due 2020. (April 2016)

See: 
Completion of Acquisition of Fuji Grand Natalie. (April 2016)

As long as the management is able to make good use of the funds raised to improve DPU, I am happy. 

Most of the money raised in the private placement has gone to the acquisition of Fuji Grand Natalie (a freehold property that enjoys 100% occupancy) which was purchased at a 6% discount to valuation.

7 reasons to acquire Fuji Grand Natalie:





See: Presentation slides.

Seems to me that all is well, for now.

Investing for income is about investing in undervalued or fairly valued assets which are able to provide visible and meaningful income generation which should ideally be sustainable.

If AK can do it, so can you!

Related posts:
1. 2015 full year income from non-REITs.

2. 1Q 2016 income from S-REITs.

5 comments:

vicster said...

Hi!

Is APPT worth accumulating? I have some bought at current prices of about 58-59c.

AK71 said...

Hi vicster,

You might want to refer to related post number 1 for my view on this. :)

AK71 said...

DBS Group Holdings, Singapore's biggest lender, posted a 6 per cent rise in quarterly profit, slightly above forecasts, helped by higher interest rate margins which boosted net interest income by 8 per cent.

DBS's net profit came in at S$1.2 billion in the three months ended March, compared with a S$1.13 billion core profit a year earlier, and compared with an average forecast of S$1.017 billion from five analysts polled by Reuters.

Net profit was down 5 per cent from last year's overall first quarter net profit of S$1.269 billion, which included a one-time gain from a property disposal.

Singapore lenders' profits are under pressure due to slowing Asian economies, particularly China, and weak commodity prices that have boosted provisions on loans to energy services firms.


Source: CNA

Capricon said...

Hi Ak
Any thoughts about the internalisation of the manager for Croesus retail?

Though they mention that will reduce cost for acquisition. I am not a tad concern on the preference shares placement, BTW is there a difference of preference share and the regular share we are holding?

Thanks

AK71 said...

Hi Capricon,

All else remaining equal, this is a good thing in the long run because profits generated by the external manager will go to the Trust once the manager is internalised. So, unit holders will get to enjoy a higher DPU.

Of course, the Trust cannot have this for free and must pay for it. This will be paid for in 3 ways and a preferential offering is one. The offer is not of preference shares but regular shares offered at a discount. Hence, preferential offering. ;)

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