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Dark side of Ascott REIT

As a hospitality S-Reit heavyweight, Ascott REIT offers a form of passive income stream and exposure to a geographically diversified portfolio. Henceforth, for a period of time, I was very tempted to invest in this REIT supremo as revenue for Ascott REIT surged from $357 million in FY2014 to $496 million. Net income powered from $122 million to $214 million in the same period.

Indeed, it appears to me that investing Ascott REIT is an absolute safe bet. But certain aspect of its business strategies made me changed my mind. In this article, I will share my insights on Ascott REIT.

Profile of Ascott REIT

Since its establishment in 2006, Ascott REIT has grown into a top S-Reit with market capitalization of $2.33 billion and total assets worth a cool $5.3 billion. As a leading serviced residence player, its investment moat lies in having 11,430 apartment units across 37 cities.

Part of the reason for the success story of Ascott REIT is its unique business model of maintaining a balanced “stable income” and “growth income” management contracts for its property portfolio. I also love its growth strategies of acquisitions from its Sponsor (20 pipeline properties via ROFR) and the continuous …

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3Q 2018 passive income (non-REITs): RHT.

In 3Q 2018, I also added to my investment in RHT Health Trust at 72c a unit when Mr. Market got the jitters and the unit price plunged.

The reason for a nervous Mr. Market could be due a cautionary note issued by RHT’s external auditors on its…



Singapore Savings Bonds

Dear readers, the outcome for the application of the Singapore Oct 2018 Savings Bonds was just released! In a very surprising development, this was like one of the very rare occasions in recent issue of the Singapore Savings bonds monthly series that the maximum amount offered was not fully applied: of the S$300 millions of Singapore Savings Bonds on offer, only an approximate of S$248.5 millions of the bonds were applied. And the aforementioned result means that there was no ceilings like $45,000 imposed for the Sep 18 Singapore Savings bonds on the Oct 2018 Singapore Savings bonds. All the individuals received the full amount of the Singapore Savings bonds which they have applied for. Again, this was quite rare for recent Singapore Savings bonds issue. Read more »