Liquidated Ascott REIT, Sabana REIT and Cross Timbers Royalty Trust

Liquidated my entire holdings in Ascott REIT, Sabana REIT and Cross Timbers Royalty Trust since they have all appreciated. Most of them were sold for a profit though I have held on to some for a few years while others were just bought recently.

• Ascott REIT sold 15 lots at $1.415
• Sabana REIT sold 2 lots at $1.18
• Cross TImbers Royalty Trust sold 100 shares at US$30.789 

My sense is that the REIT market in Singapore is already fairly valued and there are perhaps little opportunities for further increase.  I could be wrong but thought it will be better to sit on some cash and await further opportunities.

Portfolio Additions and Dividends Received

Wow!  We are already half a month into the new year and I have yet to make any new year resolutions (not that they matter, I break most of my resolutions anyway).  Have also been making some additions to my portfolio.

I bought more of The Coca Cola Company (NYSE: KO) and Cross Timbers Royalty Trust (NYSE: CRT).  Warren Buffet owns shares in Coca Cola so I guess it is a pretty safe bet.  After all, Coke is a product that is probably not going to disappear in the next few years.  The business is stable and of course, Warren Buffet owns it.  So have added a bit more of the stock into my portfolio.

Also added Cross Timbers Royalty Trust which pays a monthly dividend.  This is a bit like tabasco to one's portfolio.  Not for the faint hearted.  But the price has gone up quite a fair bit since I bought it so I am happy with the results.

Dividends I have received this month and last month include:

• $48.41 from Armour Residential REIT (another tabasco addition to my portfolio)
• $45.74 from GAMCO Gold & Natural Resources
• $4.36 from The Coca Cola Company.

Have also made some voluntary contributions into my spouse's CPF Special Account.  The CPF-SA pays a 4% interest.  The first $60,000 combined in the various CPF accounts also earns 1% additional interest. Much better than the interest rates one gets from the bank.  Of course, you are not allowed to withdraw it like a bank account.  But for the long term, it is good enough for me.

Cross Timbers Royalty Trust

I had read about Cross Timbers Royalty Trust (listed on the US stock exchange) many years ago and had placed it in my stock watchlist but never got the chance to look at it.  All along, I thought this monthly dividend paying stock was involved in timbers or harvesting of logs.  And so I was a little hesitant to invest in it.

To my surprise, Cross Timbers Royalty Trust (or CRT as per its ticker symbol on NYSE) has nothing to do with timbers.  One wonders why they give such a name to this trust anyway. As I speak, it is currently trading at US$26.37 and pays out a regular monthly dividend.  The last dividend paid out was in October at around 18.62 cents per share.  Of course, as a foreigner, one will probably incur some kind of withholding tax.

A little about CRT.  It is an express trust and the principal asset of the trust is the net profit interests.  I guess this means it does not hold any physical assets and that the only thing it has is derived from the interests in profits it obtains from various royalty interest properties (oil and gas) located in Texas, Oklahoma and New Mexico.  Its website is also pretty simple and sparse with little information.  All the properties are owned by XTO Energy Inc. Bank of America, N.A. is the trustee.

This monthly dividend paying stock is trading near its  52 week low probably because of a steady decline in its dividends.  DPU for the 3rd Quarter of 2012 was $0.544601 as compared to 3Q2011 of  $0.860987.  The lower distributions have been attributed to lower gas prices, decreased oil/gas production and increased development costs.

Not yet vested but watching it closely.