Saizen REIT - Dividends Declared But What Lies Ahead

So Saizen REIT has declared a half yearly distribution of 0.66 cents.  Based on its share price of 19 cents, it gives a pretty good yield of close to 7%.  Yes, this is a pretty high yield compared to other REITs listed on the Singapore stock exchange.  You probably can't find yields like those in the US stock market too unless they are mortgage REITs.

Anyway, if you read one of my previous posts, you should know that Saizen is on my watchlist.  (Okay, it is actually already in my stock portfolio but I am watching it to see if I should buy more).

Found this good video on Saizen.  Any investor who wants to invest in Saizen should watch this video first as it gives a good overview of Saizen and its business and also explains why it probably trades at a discount to its net asset value.  Here Mark Laudi interviews Raymond Wong (Executive Director at Saizen REIT).  He asks him some tough questions that any investor should be asking.

Let me know what you all think about Saizen REIT..

Ascott REIT Dividends

Ascott REIT has gone cum dividend and will be paying out an advanced distribution or dividends per unit of 0.59 cents to 0.63 cents.  The book closure date is on 5 Feb 2013.  This advance distribution is to account for the private placement of shares.

In addition to the advance distribution, there is its normal distribution with book closure date on 5 Feb 2013 too.  Each unit is entitled to 4.238 cents.

Based on both announcements of the distribution payments, Ascott REIT's dividends should range from 4.828 to 4.868 Singapore cents.  Ascott REIT pays out its dividends on a semi-annual basis.

The yield is roughly around 6.2% if you ignore the dilutive effects of the private placement.  OCBC has a HOLD call on this REIT with a fair value price of $1.36.  Lim & Tan maintains its BUY call on this REIT.

 I sold my entire holdings in Ascott REIT recently.  Ascott REIT's price at closing today was $1.375.

Added Starhill Global REIT to Portfolio

Have added a small amount of Starhill Global REIT  that is traded on the SGX into my portfolio.  Bought them at 82.5 cents.  This is just part of my diversification strategy as I have found my REITs holdings to be heavily weighted towards one single REIT.

Starhill Global REIT owns various retail/office properties in Singapore, Malaysia, Australia, China and Japan.  Its distribution yield is slightly over 5% and various analysts have chosen it as one of their top picks with a target price of around 85 cents.  I am also expecting the REIT to pay out its distributions in Feb or Mar 2013.

For newbie investors, S-REITs have actually risen quite a fair bit over the year and now trade at a premium to book value.  For quite a long time, S-REITs have been trading at a discount to book value.  Most analysts are perhaps NEUTRAL on S-REITs right now given how much they have appreciated over the past one year.

Why Invest in REITs

The growth of the real estate securities market around the world has led to a discrete asset class known as real estate investment trusts (or REITs).  While the United States was probably the first country to introduce such an asset class, REITs  are fast catching on in various European and Asia Pacific countries.  There are over 20 REITs listed on the Singapore stock exchange today.  And REITs do make a compelling asset class of their own.  Today, let's look at some of the reasons to invest in REITs.

Diversification Benefits

REITs are known to have a low correlation with stocks and bonds.  This means that it does not move in tandem with other investments and can thus be used to reduce an overall portfolio's risk.  Portfolios that contain a small allocation of REITs have higher returns and lower risks compared to a portfolio that contains only a mixture of stocks and bonds.

Apart from diversifying away from stocks and bonds, REITs also allow real estate investors to diversify away from just the domestic real estate market.  Besides this, investors also have a wide range of different kinds of properties to invest in.  This includes industrial, residential, retail, office and even hospitals.  So apart from allowing a property investor to diversify across different countries, REITs also allows one to diversify across different property types.

Liquidity Benefits

Besides diversification, REITs also offers liquidity.  Not only can investors own a small piece of real estate with a small capital outlay, this asset class is also traded on the stock market where one's investment can easily change hands.  An investor thus does not have to worry that he or she might not be able to sell the investment.  And with the market price known, an investor will always know how much their investment is worth.

Income Benefits

With many baby boomers hitting retirement age, they seek out a portfolio that will give them investment income similar to bonds.  REITs allow them to collect income via the distributions that are paid out.  This dividends or distributions makes it an attractive asset since it literally puts money into one's pockets.  In today's low interest rate environment, REITs often trade more than 2-3 percentage points above the risk free rate that one can get from holding AAA government bonds.

Conclusion

REITs as an asset class is increasingly gaining popularity.  They provide diversification, liquidity and income benefits while allowing investors to be exposed to the real estate market with very little capital outlay.  Why do you invest in REITs?

What are REITs?

 

 Real Estate Investment Trusts or REITs can be a corporation, business trust or association that acts as an investment agent that acquires or provides financing for the acquisition of real estate or real estate mortgages or even a combination of both.  It basically combines the capital of many investors to purchase any form of income producing real estate.  In most countries, REITs are often accorded special tax breaks where they are not required to pay any corporate income tax if it distributes the majority (usually 90% to 95%) of its taxable income to shareholders each year.

Unlike property stocks, REITs is akin to holding personal property where the taxation of income takes place at the investor level rather than at the company level.  In certain countries, dividends or distributions are also not taxed.  So there is an added advantage for investors to own it. REITs are usually traded just like any stock or share on the stock exchange.  They are easily liquidated compared to owning a real property.

Different type of REITs

REITs can be classified as equity REITs, mortgage REITs or Hybrid REITs.  Mortgage REITs are more common in the United States compared to the Asia Pacific region where most of the REITs are equity REITs.

Equity REITs invest in and own usually immovable properties with revenues and income derived mainly from the rental income of these properties.  Most equity REITs are spun off by property developers who aim to free up capital for their core business of property developing which gives them a better return of investment compared to owning property just for rental yield of less than 10%.

Mortgage REITs invests in loans that are secured by real estate or mortgage backed securities.  Their revenues and income are usually derived from the interest paid for the mortgage loans or the difference in rates at which they borrow and lend out money.

There are some REITs that are also a hybrid of both equity REITs and mortgage REITs.

REITs Trading Below NAV (Net Asset Value)

Net Asset Value or NAV is one of the factors to consider when investing in REITs.  The NAV is basically the sum of all the REITs' assets (usually property and cash) minus away its liabilities (e.g. bank loans).  Investors often look at the price of the REIT and its NAV to see whether a bargain exists when a REIT is trading at significant discount to its NAV.

Should a REIT trade above NAV or below NAV?

A common argument is that REITs should actually trade above their NAV.  Why so?   There are a few reasons given:

• A REIT is more liquid that a property itself.  As such, a "premium" or value should be placed on this added liquidity as compared to a real property.  An investor in a REIT can basically liquidate his holdings in the stock market as compared to holding a real property which requires time and effort to get rid of.  
• Smaller upfront capital required as compared to a real property.  
• Professional management without hassle of being a landlord yourself
• Divesification into various properties
• NAV was determined sometime back and it is likely that today's NAV of the property is higher

However, it is not uncommon to find certain REITs that actually trade at a discount to their NAV.  Many reasons are given for this discount.  The most common answer that links the reason for this discount is that of RISK.  This could be due to:

• Foreign Exchange risk
• Drop in property value 
• Potential drop in distributions
• Country Risk
• Uncertainty about the future outlook of the REIT
• NAV was determined sometime back and it is likely that today's NAV of the property is lower

Just a few years back, when the market sentiment was weaker, most Singapore REITs were trading at significant discount to their NAV.  At the end of 2012,  REITs that are trading at discount to their NAV are much fewer. These include Fortune REIT, Suntec REIT, Frasers Commerical Trust, Saizen, LippoMalls Indonesia Retail Trust, Ascott and Starhill Global.

Singapore REITs - History and Regulations

Singapore has probably done more than any other Asian country to grow and foster its Real Estate Investment Trust (REIT) market.  Since the first REIT was listed till now in 2012, the number of listed REITs in Singapore has grown and looks set to surpass Japan for the top spot in terms of market capitalisation in the next 5 years.  Its foundation was not without trouble though.

In the beginning....

The first REIT to be listed in Singapore did not take off.  Its public offering took place in November 2001.  The developer was Capitaland and the REIT was SingMall Property Trust.  Offered at S$1.00 each with a forecasted earnings yield of 5.75% for 2002 and 6.05% for 2003, it was scrapped when the issue was only 80% subscribed.  The cause for the weak market sentiment was probably due to the aftermath of Sept 2011  and the uncertainty that was around.  Poor understanding of what a REIT was could also be a contributing factor.

A year later (July 2002), the original three major shopping centres/malls of Junction 8, Tampines Mall and Funan the IT Mall were repackaged into CapitaMall Trust.  The yield offered was 7.1% this time and investors were hooked.  This ushered in the start of the REIT market in Singapore.

The next few REITs to be listed on the Singapore stock exchange (SGX) were Ascendas REIT ( November 2002) and Fortune REIT (October 2003).

Today, there are around 20 REITs listed in Singapore covering various property types like commercial, residential, hospitality, hospitals, industrial, and retails.  Many of these are also cross-border REITs and own properties outside of Singapore.  These include CapitaRetail China Trust, First REIT, Frasers Commerical Trust (previously known as Allco REIT), Ascott REIT, LippoMall Indonesia Retail Trust, etc.

With many sponsors being developers too, it is highly likely that these sponsors will also inject future properties into the trusts already established.

Friendly Regulations played a part

Regulatory changes probably played an important role in fuelling investors' enthusiasm for REITs.  Withholding tax was set at 10% while there was full tax exemption for local and foreign individual investors.

The gearing limit (i.e. amount of debt the REIT could raise), was also increase from 25% to 35% and went up to 60% (on the condition that the trust received a rating from a credit rating agency).  Of course, some analysts have commented that the 60% gearing is not conditional on any rating the trust receives as long as a rating is obtained.  Through borrowing, a trust could potentially fund new purchases using cheap debt while increasing the amount of distributions to unit holders.  And that probably explains the acquisitions that followed for SREITs after the gearing level was increased.

REITs listed on SGX

Do note that some trusts are listed on the SGX too and these are not to be confused with REITs.  REITs are required to pay out 90% of their profit as distribution to enjoy tax incentives. Trusts do not have to do that.  So there is certainly less certainty on the distributions that one obtains from trusts as compared to a REIT.

Most of the REITs (if not all of them) are equity REITs in the sense that they hold real immovable properties unlike some of the mortgage REITs listed in the US stock exchange.

Here is the list of REITs listed on SGX:

1. CapitaMall Trust
2. MapleTree Industrial 
3. Ascendas REIT
4. CapitaCommerical 
5. Suntec REIT
6. Mapletree Logistics
7. Mapletree Commercial
8. Saizen
9. First REIT
10. Cambridge REIT
11. LippoMalls Indonesian Retail Trust
12. Cache
13. Starhill Global
14. CapitaRetail China
15. Sabana
16. Ascott
17. Fortune REIT (HK$)
18. Frasers Centrepoint Trust
19. Frasers Commercial Trust 
20. Keppel REIT

Lippo Malls Indonesia Retail Trust (LMIR Trust) to Acquire Pejaten Village and Binjai Supermall

Just received a circular dated 26 Nov 2012 from Lippo Malls Indonesia Retail Trust (or LMIR Trust) that states : "This circular is important and requires your immediate attention".  Okay.  All circulars come with that label but even though it requires my immediate attention, I am way to busy to flip through a thick circular at the end of a typical work day.

Well, I finally got some time to flip through the circular and realised that it was in relation to the following 3 items:

• Proposed acquisition of Pejaten Village from an Interested Person;
• Proposed acquisition of Binjai Supermall from an Interested Person; and
• The Whitewash Resolution

Just by reading the title, a few questions started popping in my head.  They are basically:

• Who is this Interested Person?
• How much do these acquisitions cost and are they yield accretive?
• What is the Whitewash Resolution?  (it almost sounds like some top secret codename for something).

A quick flip through the circular has given me the answers.

Who is this Interested Person?

Firstly, an "Interested Person Transaction" is defined in the footnotes as "a transaction between an entity at risk and an Interested Person". The properties are owned by Lippo Karawachi's subsidiaries (?).  Actually, after flipping through the document and taking a quick glance, I am not certain whether this is explicitly stated inside the document or that as an investor, I am supposed to derive that companies like Sea Pejaten Pte. Ltd is a subsidiary of LMIR's sponsor.  Or perhaps, I am just not familiar enough with legal terms like "Interested Person".  Does "Interested Person" in LMIR Trust's case specifically only referring to one single entity (i.e. Lippo Karawachi) ?

How much do these acquisitions cost and are they yield accretive?

Pejaten Village = S$95.1 million

Binjai Supermall = S$30.2 million

The average of independent valuations for Pejaten Village and Binjai Supermall are S$108.8 million and S$31.8million respectively.  So LMIR Trust is buying these two properties at a discount.  The occupancy rates of both the malls look strong at 96.3% and 91.2% respectively.

I was looking for the word "yield accretive" in the document but could not find it.  It does however state that it expects a 16.3% increase in LMIR Trust's Net Property Income.  Also, based on the pro-forma DPU and financial effects, it seems that the distribution yield will actually go down.  So these acquisitions are probably not yield accretive.  Hopefully, LMIR Trust will be able to carry out some asset enhancement initiatives to improve the yield of these properties.

On the plus side, the acquisitions are at a discount, will help enhance the earnings of LMIR Trust, are at locations with sustainable retail traffic, will increase economies of scale, and also diversify the portfolio to minimise concentration risks.

What is the Whitewash Resolution? 

The Whitewash Resolution is perhaps the most important resolution to be passed at the EGM since the purchase of the properties are conditional on this Whitewash Resolution. 

Basically, the manager is seeking approval from Independent Unitholders for a waiver their rights to receive a Mandatory Offer from the Sponsor and parties.  This is simply because the acquisition fees to be paid out the manager could possibly result in the number units held by the Sponsor and parties acting in concert with it to be above 30%.

What this means is that the Sponsor and the parties are not interested in taking over LMIR and thus do not want to make a mandatory offer as required under regulation

Investments and Dividends for November

Made quite a few investments this month.  Bought into a few stocks/REITs:

• 50,000 shares of Thakral
• 10,000 shares of LMIR
• 20,000 shares of Saizen

Dividends/passive income for November was quite okay.  Roughly $250.  Most of it were contributed by Gamco Global Gold and Natural Trust (GGN) and Armour Residential REIT (ARR). ARR is a mortgage REIT.  Both stock prices hve declined quite a fair bit but I will like to think that my strategy is one where I will diversify a bit into other stocks rather than focusing on just these two stocks.

I also bought some shares of the Coca Cola Company (KO).  

Ascott REIT - Presentation by CEO Tay Boon Hwee

CEO Tay Boon Hwee of Ascott REIT gives a presentation and gives a good detailed explanation of Ascott REIT's business and how it differs from a hotel and a normal condominium.  Here are the few points that were made during the video:

• Sponsor of Ascott REIT is Ascott Limited.  Ascott Ltd is o world's largest serviced residences owner and operator.
• 7260 units across 24 cities in 12 countries in Asia Pacific and Europe
• Operates under the brands of The Ascott Residence, Citadines and Somerset Residence
• $2.9bil portfolio
• Major shareholder is Capitaland which owns 49% of Ascott REIT

What is a serviced residence?

A hybrid between hotel and apartment.  Provides the comforts of an apartment and essential services one will expect to see at a hotel. like laundry, daily housekeeping and limited F&B services.  

Key differences  lies in the lease structure.  Hotels cater for short term stay ranging from one day to one or two weeks.  Target audience is also the leisure market and the corporate market. Apartment for rents on the otherhand are typically rented out for at least one year.  Serviced residence thus are able to capitalise on the gap, focusing on the long stay segment,  looking at between stays of 1 month to 1 year stay.  The focus is also on the corporate market and not the leisure market.

Ascott REIT's weighted average length of stay is 4 to 5 months.  This provides stability to the REIT.  It is also less affected by the seasonal demands one would expect arising from tourists.

Serviced residences also only cater 1-2 F&B facilities to the guests and not to the public.  They also do not include banquet halls or function room.

Serviced residence comprises studio apartments, 1/2/3 bedroom.  This can be from 30 sqm to even 100 over sqm.  All apartment units come with fully equipped kitchen facilities.

Hotel staff to room ratio is around 1:1

Serviced Residence staff to room ration is around 0.3~0.5: 1

Sources of Income for Ascott

Broadly classified into 3 categories.

Firstly, properties under management contract.  Ascott REIT enters into a management contract with the operator (Ascott) to maange and operate the property on its behalf. A property management fee is paid in return to Ascott. which is tied to gross revenue and gross operating profit.  18 of its properties (mainly located in Asia Pacific) are under this arrangement.

Secondly, are properties on master leases.  Ascott REIT enters into a master lease agreement with the lesse regardless of the performance of the property.  A fixed rental income is given and this provides stability.  This is mainly in Europe (France & Germany), Philippines and Singapore.

Thirdly, are properties on management contract with minimum income.  Similar to the first category except that a minimum income is guaranteed.

[Disclaimer:  Writer owns shares in Ascott REIT]

Dynasty REIT IPO

Dynasty REIT is the first RMB denominated REIT to debut on SGX. The sponsor is ARA Asset Management Ltd and its estimated yield will be around 7%.  The IPO price range is from SGD0.86 to SGD0.94 with expected listing date on SGX on 30 Oct 2012.

Dynasty REIT holds commercial properties in Nanjing, Dalian and Shanghai.

Given that this year seems to be bumper year for IPO, I think it one should proceed with caution.  Singapore REITs are trading at a high price now and Mr Li Ka Shing is probably a good market timer when it comes to cashing out of the property market.  As the saying goes, buy low sell high.

I am not vested and will probably not be subscribing for the IPO.  I don't usually subscribe for IPOs anyway.

Anchor Point and FCT

I visit Anchor Point from time to time and have always wondered whether I should be investing in Frasers Centrepoint Trust.  OCBC recently maintained a buy rating on FCT. On one hand, I am tempted to buy but on the other, I am a little skeptical since many of FCT's assets are in suburban areas.  Having witnessed the shoppers and traffic flow at Anchor Point, I am not so certain whether tenants there are profitable or not.  Have also seen the bookshop change hands a few times over the past years. The crowd on weekends are good but nothing fantastic.

Will probably just continue to monitor this before making any decision.  Not vested yet.

Armour Residential REIT

Have bought 500 shares of ARMOUR Residential REIT (ARR). ARR pays out US$0.10 per month in dividends. Its current share price is around US$7.00

Investing in things I use - Mapletree Commercial Trust and Breadtalk

It is always good to have some insider insight to stocks that one will like to invest in.  One simple way to do that is to invest in retail REITs.  There are many REITs in the retail/commercial sector and many of them own shopping malls in Singapore.  Just take a walk at one of the malls and it might give you a good sense of how business might actually be doing for the REIT, whether there is potential for rent increase, whether asset enhancement initiatives are ongoing, etc, etc.  It is almost like an insider's view of the business.

Mapletree Commercial Trust

One of the properties owned by Mapletree Commercial Trust (listed on the Singapore stock exchange) is Vivocity.  To those who are not familiar with Vivocity (or Singapore), it is one of the largest malls around located at the southern tip of Singapore just at the entrance to Sentosa (where one of the integrated resorts - Resorts World - is located at).

Vivocity has 1,038,000 sq ft of net lettable area and 2,179 carpark lots. The occupancy rate stands at slightly above 98% and has 300 over tenants.  More recently in the news, PageOne bookshop closed citing high rental costs.  When PageOne moved out, the space was quickly taken up by two other retail outlets - Franc Franc and Cotton On.

Just walking around Vivocity, you will be quite amazed at the shoppers who are there.  Families, teenagers, tourists, office workers, etc.  One would expect it to be less crowded during the weekdays but it is not.  Sited just beside harbourfront, tourists from cruise ships often go there to shop.  Not to mention that Sentosa is just conveniently located by a monorail from Vivocity to Resorts World.  

The shops are also wide and varied.  There is Giant and Cold Storage (supermarkets) for those who want to do grocery shopping, a cinema, many food outlets and restaurants and lots of retail shops.  The shops cater to a wide mix of shoppers whether they are shopping for electronic products, home furniture, clothes, luxury goods, etc, etc

I think Vivocity will continue to do well but I am not certain what the impact of the new cruise terminal at Marina will have on the business it gets from tourists. Nevertheless, since it is conveniently located at the doorstep of Sentosa, I am certain it will continue to get lots of business from travellers who are staying at Sentosa.

BreadTalk

Well, it is easy to analyse a business if you can see how many customers there are.  Breadtalk is one of those business that has been expanding abroad.  While I am not too certain how the overseas outlets are doing, I can say that the outlets in Singapore are doing pretty well.  Breadtalk sells bread and together with many of the Breadtalk shops are Toast Box (basically a cafe like shop that rivals another famous Singapore brand Ya Kun).  

Anyway, let us focus on Breadtalk first.  Many of its outlets are conveniently located where there are office crowds.  Just walk into a Breadtalk outlet in the morning and you will be surprised to see the number of people queuing up to buy breakfast back to eat in office.  I figure that a typical Breadtalk shop can easily have more than 200 customers just during a one-hour window in the morning peak hour where office workers are streaming to the office and need to grab some food to eat.  Each customer probably spends $3 to $4 on their breakfast.  Many of them are repeat customers.

Conclusion

So there you have it.  Two businesses that are listed in the Singapore stock exchange that you can easily observe to determine how well they are doing.  At my writing, Mapletree Commercial Trust was trading at S$0.965 and Breadtalk was trading at S$0.50.

Cambridge Industrial Trust - I could Do With Some

Bought 5 lots of Cambridge Industrial Trust today at $0.515.  Have been eyeing it for some time and decided that I couldn't wait any longer.  So clicked a few buttons, it was in the queue list, and after that, got it.  Just part of my effort to diversify my holdings in reits to cover office, residential/hospitality and industrial.

First REIT - Sold Off Again

I bought First REIT just recently.  After the share price rose by more than 10 cents in the last month or so, I decided that it was a good time to lock in some profits or more than a thousand dollars.  Just sold off the 10 lots that I owned at 89.5 cents a share.  Most of the time, First REIT trades at sub-80 cents level and I guess that is where the price is probably headed to.  If so, I will probably pick it up again when it reaches my desired buy price.

Fortune REIT

Bought Fortune REIT some days back.  Cannot remember when.  First time I have entered into this .  I like the brand name behind the REIT that's all.  The exposure to retail malls in Hong Kong was also a factor.  Just wanted to diversify out of my Ascott REIT, First REIT, etc holdings that I have.  Well, Li Ka Shing owns Cheung Kong which listed Fortune REIT.  So that is a plus point for just owning a small investment in Fortune REIT.

Also collected my first cheque for Gamco Global Gold Trust.  After deducting withholding tax and stuff, I only pocketed slightly over S$30.  Bleah..

First REIT and Ascott REIT Declare Dividends

First REIT just declared distribution/dividends of 1.93 cents per share.  A quick look at First REIT's dividend history gives me some sort of confidence to enter this REIT again.  I had previously sold off my entire shareholdings in it but have recently entered into it again buying 10 lots of it recently.  Since the distribution is paid quarterly, it looks like I will be receiving a small bonus every 3 months.  Not too bad for some passive income.  Based on my 10,000 shares, I figure that I will be receiving around $193 for Feb 2012.

Ascott REIT had also declared their semi annual dividends of slightly over 4 cents per share.  I currently hold 15 lots in Ascott REIT so that should also provide me with a neat sum of around $600 for Feb 2012.

I am also still waiting for my dividends from Gamco Global Gold Trust (GGN).  This is a monthly dividend stock and though the dividend is paid on 24 Jan, I figure that I will only receive the cheque in late Jan or early Feb.

What Should I Do With My Annual Bonus?

The Sunday newspaper carried an article on how people were intending to spend their annual bonuses.  While most have or were planning to spend it on holidays, clothes and IT gadgets, others were thinking about saving or investing a part of it.

The article got me thinking on what I ought to do with my annual bonus.  Currently, it is seating in the bank and I realised that it is not being put to good use.  One idea that I have been toying with is to pay off my car loan which is still outstanding.  The idea of being a little closer to being debt free is just so appealing right now.  By paying off my car loan, I will just be left with my housing mortgage loan.

Another idea will be to invest that sum of money in a mixture of REITs as well as monthly dividend stocks like Gamco Global Gold & Natural Resources Trust (GGN).  This will serve as a passive income flow for me.

For REITs, I am choosing between Suntec REIT, Sabana REIT and LMIR Trust.

Any ideas or suggestions from anyone?

Investment Thoughts for 2012

Today is the 10th day into 2012 and I realised that I have not thought out my investment plan, made any resolutions or done anything fruitful in the past 10 days!  And there has been this constant nagging in my head that tells me that I ought to focus my attention on a few things and try not to spread out my efforts too thinly.  So perhaps now is a good time to update on what are some of my thoughts for 2012.  This includes some of my personal reflections and does not constitute any investment advice.

Passive Income - Monthly Dividend Stocks and Real Estate Investment Trusts (REITs)

High on my list is perhaps creating a passive flow of income for myself either through stocks that provide monthly dividends or REITs which either provide quarterly or half-yearly distributions. For monthly dividend stocks, one has to turn to the US market.  One of the monthly dividend stocks that I have bought into is Gamco Global Gold (GGN).  REITs on the other hand are easily available on the Singapore Stock Exchange or SGX.  I am looking at diversifying my REITs holding as I am currently heavily invested in Ascott REIT.

Gold is Money and Nothing Else


For those of you who have been following me, you are perhaps aware that I have been looking towards silver both as a means to hedge against inflation as well as just for collecting purposes.  Buying silver in Singapore is still limited to only a few shops but hopefully this certain industry/sector will slowly develop.

Investing in this Site


I have also decided that I ought to invest a bit more time and money on this site.  This includes some facebook advertising as well as my plan to work on a eBook.

These are all still works in progress but I certainly hope that the perfectionist in me does not cause me to procrastinate or be paralysed such that I do nothing at the end of the year.  It has been my longest desire to write a book and an eBook might just serve that purpose.