Income Portfolio
| |||||
Counters
|
Units
|
Market Price (SGD)
|
Overall Value based on market price (SGD)
|
Allocation
| |
1
|
Cromwell European REIT
|
3000
|
0.772(1)
|
2316.42
|
46.19%
|
2
|
Prime US REIT
|
1000
|
1.296(2)
|
1296.26
|
25.85%
|
3
|
Lendlease GCREIT
|
1500
|
0.935
|
1402.5
|
27.97%
|
Growth Portfolio
| |||||
Counters
|
Units
|
Market Price (SGD)
|
Overall Value based on market price (SGD)
|
Allocation
| |
4
|
Alita Resources(3)
|
50000
|
0
|
0
|
0.00%
|
Cash and other Assets
| |||||
Counters
|
Units
|
Market Price (SGD)
|
Overall Value based on market price (SGD)
|
Allocation
| |
5
|
Warchest
|
1
|
0
|
0
|
0.00%
|
Total SGD
|
4947.86
|
100.00%
|
Note 1:EUR/SGD of 1.51
Note 2: USD/SGD of 1.38
Note 3: Alliance Mineral Assets Limited is now known as Alita Resources.
There are 3 major things done to my portfolio since the last quarterly update.
(1) Write-down of Alita Resources (SGX: 40F / ASX: A40)
Things went downhill ("Bald Hill" Geddit? geddit?) for my position here and it is currently in Voluntary Administration (VA). The worst case scenario here, which is quite a high chance of, is the stock losing all its value and I thought it will be most prudent to write down my investment here to 0 at this point.
I knew and accepted the risk I was getting myself into when I bought in - nevertheless I will recover from this and come back stronger and more knowledgeable as an investor from this.
Having said that, there is still chances of Alita Resources, no matter how remote, depending on how the VA plays out. If it comes back from the dead, the portfolio will once again reflect its market value.
(2) Addition of Lendlease Global Commercial REIT (SGX: JYEU)
I have been eyeing Lendlease Global Commercial REIT (LGC-REIT) ever since its planned listing came out on the news few months back.
Unfortunately I did not get any units from LGC-REIT's IPO. I foresaw this given the hot reception and my history of unsuccessful balloting for hot IPOs.
Nevertheless I decided to nibble a bit on the open market - paid a little more than I would have liked but this is fine as I am looking further ahead. It is considered part of my positioning to prepare for any rights issue. I am just keeping my fingers crossed it will not happen so soon while I rally my resources.
Given its current valuation and its gearing ratio, I believe management will be prudent and any injection of properties will likely need to be supplemented from rights issue or private placement.
It was also highlighted that Forever 21, a tenant of 313@Somerset has declared bankruptcy. I believe that in the grander scheme of things, this is nothing and people are blowing the matter out of proportions. Some other tenants will just take over in due time if they are gone.
(3) Addition of Prime US REIT
Got a small parcel (1000 units) from Prime's IPO earlier on. I wrote about this sometime back here.
My reasons here are two-fold. Aside from compounding my dividend gains, it is also to put myself in a position to subscribe to any rights issue as I also expect prudence from the management not to over-gear and supplement acquisition with rights issue and/or private placements. This is similar to my taking up of position in LGC-REIT in this sense.
Closing thoughts
My purchase of LGC-REIT is expected to be my last adding of position for the year, barring any rights issue relating to my REIT holdings.
My resources will continue to be tight until the end of next year and I hope any rights issue does not happen until we are at least a few months into 2020. Keeping my fingers crossed.
Lastly, I am working on a reflection relating to my investment in Alita Resources and my directions with investment moving forward but I will be taking my time before it is published. Probably a few weeks time?
Thanks for reading. You can also access to my Portfolio and past portfolio updates here.
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