Thursday, January 17, 2019

Added: FIRST REIT (Jan 2019)

Bought 37,000 shares of FIRST REIT on 17 Jan at $0.99.
Total numbers of FIRST REIT shares owned increased to 52,000 shares.

Similar to Keppel Corp which i bought on 11 Dec (Link), this 37,000 shares of FIRST REIT is for short term.
One of the key reason why this is for short term only is because the source of this capital amount is obtain via selling off my Golden Goose CapitaMall Trust (Link).

First REIT had released the 4Q Financial results yesterday after market closed at $1.03

Reasons for buying:
1) Dividend remain equal at 2.15cents/shares.
    This is a juicy 8.5% dividend yield based on today closing price of $1.01
2) Trade and Receivables reduced by S$17 million. 
    Trade and Receivables refers to the cash that is owed to the REIT by its tenants. A high trade and receivables could be an early sign that its tenants are not able to pay First REIT its due (Link).
3) As a short term buyer, I do not need to scare of rights issues given that Chinese New Year is less than 3 weeks away, there is a low chance FIRST REIT will announce a rights issue soon. So, enjoy the dividend first.
4) Price of $0.99 is in CD status 
5) Net property income increased 4.5% YoY in FY 217 to FY 2018
6) Earliest lease renewal is in Aug 2021. Lease renewal is also one of the concern that cause the stock price to drop last few months. From now till Aug 2021, we are 2 years 7 months away. Take a look at your own portfolio. What is the % of your stocks in your portfolio you had hold for more than 2 years 7 months? If your answer is less than 50%, this shouldnt be one of your concern when buying into FIRST REIT. Rather, you should use this as your advantage instead to buy low sell high.
7) All other reasons as stated in my earlier buy - Dec 2018 and Aug 2018

Related post:
1) Added: FIRST REIT (Dec 2018)
2) Added: FIRST REIT (Aug 2018)

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