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...

Old Blog Post Revisited - DYODD

Recently there are several visitors to my blog that asked me what to buy now?

I am neither a qualified Financial advisor, nor do I have the knowledge or guts to advise, given the current bearish market environment.

I do not know you, your available capital to invest, your financial situation, your risk tolerance level, etc etc...     

Although I shared my portfolio on my blog, this is for my own record of my journey.  I do not expect others to follow as I have said earlier winner for one person could be a loser for another person.  

a.  Do Your Own Due Diligence

And I have not showed my CDP statement, everything could be just my fantasy. All fellow investors need DYODD before parting with your own hard earned money.  Do not believe anything blindly on Internet.

I may buy certain stocks rationally or irrationally. Do not ask me to justify why I buy certain stocks.  As I have mentioned before, I have close to 50% holdings starting with the letter "S", so I may buy something simply because it starts with the letter "S".

b. Risk Tolerance Level

Everyone has different risk tolerance level.  After suffered 100% loss on my investment, I have always think that we should invest the money we can afford to lose.

Hence, I am numb to short-term market fluctuations and did not lose any sleep when Capitaland fell 50% from my initial investment amount or when SIA Engg fell from $5+ to $3+.

c. Singapore Savings Bonds

SSB offer higher returns than bank interests.  SSB are backed by the Singapore Government.  The principal is guaranteed and investors will always get their investment amount back in full, even if they redeem SSB early.  SSB is one additional option not available to investors at the time of my old post.   

Wishing everyone a Happy Mid-Autumn Festival.

My Stock Portfolio @ end Aug 2015

No.	STOCK NAME	No.of SHARES	PORTFOLIO%	MARKET $
1	SGX	4,000	17.04	7.26
2	Starhub	6,700	14.39	3.66
3	SPH	5,000	11.56	3.94
4	SATS	3,000	6.27	3.56
5	SingTel	2,190	4.81	3.74
6	CapitaMall Trust	4,000	4.51	1.92
7	Suntec Reit	4,900	4.40	1.53
8	OCBC Bank	804	4.21	8.93
9	AIMS AMPI Reit	5,000	4.11	1.40
10	Keppel Corp	1,000	4.01	6.84
11	Starhill Global	8,000	3.61	0.77
12	CapitaLand	2,000	3.31	2.82
13	SPH Reit	5,800	3.27	0.96
14	CDL HTrust	3,000	2.32	1.32
15	FCT	2,000	2.28	1.945
16	SIA Engg	1,000	2.05	3.50
17	Sembcorp Ind	1,000	2.01	3.42
18	Keppel InfraTr	6,000	1.67	0.475
19	HPH Trust	3,000	1.27	0.525
20	FCOT	1,000	0.82	1.39
21	MapletreeCom	900	0.70	1.32
22	Keppel DC Reit	900	0.54	1.03
23	Boustead	1,000	0.50	0.845
24	FE HTrust	1,000	0.37	0.625

Movement in my portfolio in August:-
Sold:- Nil.
Bought:- OCBC Bank, MapletreeCom.

Dividends collected in August: $1,748.71
2015 avg dividends/month: $743.20 [49.32% up at this stage cf. 2014]

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

Back to society: Made a contribution to charity.

Comments:
1. Finally start growing a maple tree in my plantation.  I visit Vivocity often and now the visits will mean watering this maple tree.  The tree will bear dividend fruits for my not so productive months too.

2. August was a volatile month, and I am expecting more stormy weather and rough going for the journey ahead.

3.  I am optimistic in nature and I will hold tight, collect dividends and ride it out, just the same as in the GFC.  After all, my portfolio is still in positive territory.

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

Snowballing of dividends - Super August

Despite the stock market roller coaster ride in August, it is still a good month for dividends as many companies are paying dividends in August.  15 of my 23 counters paid dividends in August and produced the second highest monthly dividend harvest record for me (highest is in May 2015). 

Dividends collected in August:
1. Starhub: $335
2. SATS: $270
3. SingTel: $234.33
4. CDLHT: $140.70
5. Suntec Reit: $122.50
6. Keppel Corp: $120
7. CMT: $108.40
8. Starhill Global: $103.20
9. SIA Engg: $85
10. SPH Reit: $78.30
11. Frasers CT: $60.72
12. Keppel DC Reit: $32.04
13. FCOT: $23.52
14. Boustead: $20
15. Keppel InfraTr: $15
Total: $1,748.71

This shows that this dividend investing strategy is working for me, and my snowball is getting bigger as it rolls down the hill.

We can be considered Financial Free when the dividends collected exceed the monthly expenditures.  This is in fact the second time that my dividends are more than my monthly expenditures.

Next, my third best month of the year will probably be November. 

So, just keep calm, buckle up the seat belt, relax and enjoy the journey.