Time flies and it is time for another quarterly update.
Before I start on the update proper, I just want to say a few words about Wilmar International.
I received a few comments from readers on Wilmar and they asked if I had any updates on the business.
Some would like to know whether it is a good time to add to our investment in Wilmar.
Wilmar remains deeply undervalued and my past analyses are still valid.
Value is easy to see but where stock prices would go is much harder.
In terms of valuation, buying Wilmar today is inexpensive.
However, cheap could get cheaper and since I already have a significant investment in Wilmar, I do not feel any urgency to buy more.
I am simply waiting and if the stock price hits $3 a share, I would buy more.
That is an important support level and it is also where insiders typically add to their positions.
Undervalued could stay undervalued for a long time.
So, I like that Wilmar pays meaningful dividends while waiting for value to be unlocked.
Now, I will talk to myself about passive income received in 1Q 2024.
Like I have said before, 1Q and 4Q of the year are always weak in passive income generation as most businesses pay dividends in 2Q and 3Q of the year. 1Q 2024 is no exception.
It is even weaker this year because I received lower income from my investments in REITs which is not unexpected.
I did not take part in the rights issue to strengthen the balance sheet of AA REIT.
IREIT Global generated lower income as they their property in Darmstadt is still mostly vacant.
Sabana REIT generated lower income as they retained 10% of distributable income to cover costs of manager internalization.
Capitaland China Trust generated lower income as China struggles even as the RMB
