Nov 6, 2019

Cory Diary : Ascendas Reit gets even better with Rights !

Ascendas Reit

This Reit comes into Cory portfolio pretty late. In the initial positions in 2017 there were quite a number of trading activities. Make some kopi money.  Investment only get significant in 2018 which interestingly registered a net loss position by year end. Today, Ascendas Reit is Cory largest position after STI ETF.

So one may ask why so late in the game on this one. The key reason is Ascendas is expensive relative to itself. The chart is ever growing so stock price continues to climb year after year. So Cory keep postponing and finally one day strike his head that if one day it does really get cheap enough, he may not want to buy any ! So that's the 2nd Enlightenment !

Strong Reit is sort after because they perform consistently or should I say grow continuously in DPU. What this mean is for every share invested, the dividend returns are more each year. To top it up, the capital gain as well. So if one try to wait, this may never comes. We can miss this gem completely but Cory prefers to be late than never. This year for some period Ascendas Reit is Cory top performer registering strong returns before being overtaken by little brother Ascendas-h Tr, and Mapletree Ind Tr later.

When the News is out on the large acquisition, Cory is bewildered. Most people would automatically expect stock price to be lowered on the next trading session but not Cory when he regains his composure and who then secretly wish for price gains (link). Indeed, it does and Cory managed to sell some lots at $3.19. The many reasons Cory has provided in the link. However, the price come down later to $3.12 which is still respectable considering the huge Rights discount. The reason for the sale is more on re-balance rationale and taking some profit off the table.

Will the price comes back up is anybody guess. However in Cory heart l, it easily could. And considering the size and yields, it gets more attractive than before. If the price fall significant enough, getting more lots would be very tempting for a stake in the biggest Reit in town. Cory almost want to say Ah Gong throw money to investor to take. LOL

There is one saying. If you visit China but did not climb the Great Wall, you aren't a MAN (“不到长城非好汉”). Cory like to add, if you do not have Ascendas Reit in your portfolio, you aren't a dividend player either. (joking ... don't kill me .. is late). And as usual disclaimers .... for errors and not a stock pick recommendation. Is just a diary of what Cory is thinking and he could be very very wrong.


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