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I'd hightlight two main recent transactions: (i) purchase of additional units in A-REIT and (ii) divestment of nearly all units in First REIT.
There have been a few equity fundraising in the REITs that I’ve invested in. The one I eagerly participated is A-REIT, which launched equity fundraising from existing investors (institutional and retail). Given the huge discount of 10ish percent (price set at SGD2.63), there had been a strong demand for the new insurance. A-Reit is a well-managed REIT that is focused on industrial warehousing, business parks and high-spec industrial estate. I took the chance to add more units through the unit insurance as well as secondary purchase of units in the market when the price was trading down. At the current price of SGD2.92, the counter gives out approximately 5.4-5.5% in distribution yield. I am still contemplating whether to add more. A-Reit has become the largest exposure (~2x of the second largest counter).
I exited nearly all of my position in First Reit. The pending renewal of the master leases with the sponsor who sold quite substantial stakes to another related party as the second sponsor is in doubt, in the perspective of income support from the sponsor. What really triggered me to selling was other substantial shareholders selling down their stakes. They might know more info than retail investors. Given the uncertainties ahead, I decided to part way with the once the largest position in my S-Reit portfolio.
A few counters are on the watch list and are in the target price range. I will continue monitoring how the unit price behave before making the decision.
It has been a busy 4Q19 in S-REIT portfolio.