I have been thinking of taking another long break from social media to focus on other things in life.
Tentatively, I am thinking of coming back in June.
So, this might be my last blog until then.
1. AIMS APAC REIT
This is probably my most rewarding investment for income.
I have been holding to the relatively large investments made during the Global Financial Crisis till today, enjoying a distribution yield in excess of 10% on my cost.
The price appreciation is nothing to shout about but as an investment for income, it has been very good to me.
I would liken it to a bond that has been paying me a very good coupon.
As at 31 March 2024, the REIT has a gearing level of 32.6% which is on the low side.
However, I am mindful of the fact that it has some perpetual bonds which are due for a relook next year and those would likely increase in financing cost.
This is because interest rates and yields are significantly higher now than a few years ago.
This is a good reason to stay cautious if we are thinking of plonking more money in the REIT.
Offering a 7.4% distribution yield, it isn’t much higher than what our local banks offer in dividend yields.
The REIT also has to distribute all its income in order to achieve this.
I simply will continue to hold on to my investment since it is already free of cost.
I am partial to receiving “free” money.
2. T-bill
The latest 6 months T-bill auction had a cut-off yield of 3.7% p.a. which wasn’t too bad.
I made a video about why CPF OA money should go into T-bills, especially those with auctions in the first half of the month.
Someone told me it was all my fault that non-competitive bids were only 80% filled this