Nov 22, 2018

Cory Diary : Reits 2018-1122

Reits have been stable as a rock generally despite increasing rate. However, not so this week for First Reit. If we remembered, I have cut First Reit exposure twice. If I remember correctly, once before and after a Guru posted on his sales.

First Reit

However I still hold some significant amount of First Reit for diversity of income from Reits. One of the main reason it was sold down is due to rating issue. However my thought is that Lippo is not fly by night company. Secondly on a quick glance, the hospitals are doing financially ok ( Sorry if I am wrong. Still a novice in reading report so DYODD). So chances are they have no issue paying up the rental. On top of that, there is advance payment mechanism in place. Thirdly, you can't just shift hospital operation like food stalls. That could be large impact I think.

Having said all that, I am still a retail investor and no match for expert opinion which is rare in my opinion to be seen. It went as low as 0.92 two days ago and is way oversold, As I do not have a god father who can support me when I am wrong, it doesn't make sense for me to average down. And therefore for prudence and risk mitigation, I have to right size my investment earlier to sleep well.

CapitaMall Trust

As I have blogged many times earlier, CMT is a strong reit. Even when market crashes to dust, this fellow will give good dividend yields. Investors will just have to wait it out and the price logically should return. We also has lesser issue with rights issue as they rarely tap on shareholders for fund. Today hits 2.22. I took some profit immediately for trade as it hits resistance level. I could be wrong and will logically be still very happy.

Parkway Life Reit

The yield looks much better with recent correction. I decide to average down as my exposure to this quality Hospital Properties are low and appear there is a support at this level. This will help improve my income for 2019.

Finally, my dividends have hit above target (updated for privacy)  for this year collection, and this is before Singtel Dividends.



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