Saizen Reit: Welcome and Goodbye

For a long time, I have been monitoring and contemplating adding Saizen Reit to my "S" counters.  

Even though Saizen Reit is well below its NAV, it is the smallest Reit and also had an old debt default episode years ago.  So, due to my inaction and procrastination, I did not buy into Saizen Reit early enough.

I looked at Saizen Reit again when it was announced that there is a firm offer to acquire Saizen Reit.  The stock value has already crept up from $0.80+ to $0.90+.

I have not experience an acquisition before.  I was at the other side of the deal when Capitland and Keppel Corp took over CMA and Keppel Land respectively.     

As Saizen Reit's NAV is $1.13, I think it makes no sense to the owner to sell too much below the NAV.  So, I decided to buy an experience.

It was announced today that the offer acquisition price for Saizen Reit is $1.17. 

So, welcome and goodbye to Saizen Reit.  And some coffee money for my very brief acquaintance with Saizen Reit.

Meeting My 9K Dividend Stretch Target

I did a dividend projection in December 2014 for 2015 based on my holdings at that time, and the projected value was 7.8K.

http://passiveincomefarmer.blogspot.sg/2014/12/looking-ahead-to-2015-dividends.html

With small monthly cash and dividends injections into the portfolio, I was thinking that perhaps an 8K dividend target was just too simple for me.

Therefore, I gave myself a stretch target of 9K.  I knew that a 9K target may be a bit overstretching without receiving help from some counters via special dividends.

My wish was granted as Boustead and Keppel InfraTrust both gave special dividends. (I treated the free Boustead Proj shares as special dividend from Boustead).

As of October, the total dividends collected for 2015 stands at $6,970.  Now, I may be counting chickens before they are hatched.  But as November and December are my 3rd and 4th best months (after May and August), I will be meeting my stretch target of 9K.

From the modest $3K+ dividends in 2012 to just slightly over $9K in 2015, this shows that this strategy is working for me.

150,000 and 180,000 Milestones

I have written a similar post on the 4th day of the Goat Year in February 2015. 

At that point in time, the page view on my blog has crossed "100,000" and my total portfolio value has crossed "170,000".

As many of my counters were at or near 52 weeks high then, I thought it would be just be "a piece of cake" crossing 180K.

How wrong was I? A mini-bear attack lasting from July to September.  STI retracted more than 20% from 2015's high.  My troops barely holding the fortress during the Bear Army attack.

Finally come October and the initial sign does look like the bear attack is over.  However, it is too early for the usual end-of-year rally or window dressing.  So, we do not yet know if it is a real recovery or possibly the Bear Army may be just re-organising and waiting for reinforcement out of sight just behind the hill.

On the bright side, my total portfolio value has returned to positive territory even without counting the dividends received.  With a small injection in capital from my warchest and re-invested the dividends received, the total portfolio value has finally crossed the "180,000" milestone in the past week.  Getting from 170K to 180K took me 8 long months.

I started this humble blog as a personal tracking on my investment and also as a logbook for my small boat on the journey to Financial Free Kingdom.  The page view counter on my blog has crossed "150,000".  Thanks everyone for the encouragement and support!

Lastly, the volatility of the stock market serves a strong reminder that we should always invest with that "extra" money that we do not lose sleep on in stormy weather.

My Stock Portfolio @ end Sep 2015

No.	STOCK NAME	No.of SHARES	PORTFOLIO%	MARKET $
1	SGX	4,000	16.70	7.03
2	Starhub	6,700	13.77	3.46
3	SPH	5,000	11.40	3.84
4	SATS	3,000	6.82	3.83
5	SingTel	2,190	4.68	3.60
6	CapitaMall Trust	4,000	4.51	1.90
7	Suntec Reit	4,900	4.37	1.50
8	OCBC Bank	815	4.25	8.79
9	Keppel Corp	1,000	4.03	6.78
10	AIMS AMPI Reit	5,000	4.02	1.355
11	Starhill Global	8,000	3.59	0.755
12	SPH Reit	5,800	3.22	0.935
13	CapitaLand	2,000	3.18	2.68
14	CDL HTrust	3,000	2.32	1.30
15	FCT	2,000	2.26	1.905
16	SIA Engg	1,000	2.19	3.68
17	Sembcorp Ind	1,000	2.05	3.46
18	Keppel InfraTr	6,000	1.87	0.525
19	HPH Trust	3,000	1.38	0.55
20	Keppel DC Reit	1,800	1.09	1.02
21	FCOT	1,000	0.79	1.33
22	MapletreeCom	900	0.67	1.255
23	Boustead	1,000	0.45	0.75
24	FE HTrust	1,000	0.38	0.645

Movement in my portfolio in September:-
Sold:- Nil.
Bought:- Keppel DC Reit, OCBC Bank (DRIP).

Dividends collected in September: $375.87
2015 avg dividends/month: $702.38 [50.07% up at this stage cf. 2014]

Boring process of building up my passive income portfolio brick-by-brick (bit-by-bit).


Comments:
1. September, though less volatile than August, still signal uncertainty and I expect rough going for my journey ahead.

2. Second time DRIP from OCBC Bank through its dividend reinvestment program.  Few more drips than the first time.  I plan to hold OCBC for long and do not mind holding odd lots.  Furthermore, the value of the drips actually worth more than if I am to receive the dividend in cash.  The comforting thought is there will be more drips the next time.

3. The risk ahead is significantly higher. But risk also means opportunity. 有危才有机。

4. Hmm, searching for the key to my locked warchest...